The contentious VAT proposal would reduce the federal government’s share from 15% to 10%, with a portion allocated to states under a formula encouraging local investment.

A strong criticism has greeted the Northern Governors Forum's opposition to the proposed tax reform bills currently in the National Assembly, highlighting the need for the North to embrace a more business-friendly environment.

Pulse Nigeria reported that the Northern Governors Forum instructed regional lawmakers to reject four tax reform bills introduced by President Bola Tinubu, including the Nigeria Tax Bill 2024 and the Tax Administration Bill, citing concerns that the North would be disadvantaged by the new Value Added Tax (VAT) sharing structure.

However, the Arewa Civil Rights Movement (ACRM) President Dr Agabi Emmanuel dismissed these claims, arguing that the directive is "ill-conceived" and portrays the North in a "beggarly light."

"Our Movement is concerned with the far-reaching consequences of this directive," Dr. Emmanuel stated at a press conference in Abuja.

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He criticised the governors for overstepping their authority, claiming it disrespects federal lawmakers who are responsible to their constituents, not state governors.

The contentious VAT proposal would reduce the federal government’s share from 15% to 10%, with a portion allocated to states under a formula encouraging local investment.

READ ALSO: FIRS tips 2024 'Tax Bill' as key to Nigeria's taxation system reform

Emmanuel called for northern states to view the reform as an opportunity to foster business growth rather than resist the bill under the guise of regional disadvantage.

"Rejecting the bills would indicate lawmakers' inability to serve their constituents," he warned, hinting at potential recalls should representatives bow to the governors’ directive.

The ACRM also urged northern governors to refocus on their accountability, particularly concerning funds from the Federation Account, and to curb "sectarian extremism," which Emmanuel believes is hindering investment in the region.