The Northern governors’ opposition centers on the VAT allocation formula proposed in Tinubu’s bill, which they argue could disproportionately affect states in the North. These states largely depend on federal allocations for funding due to lower internally generated revenue compared to southern states. According to sources familiar with the governors’ stance, they believe that the proposed allocation changes might exacerbate existing economic disparities, reducing funds available for critical development initiatives in Northern regions.
Governor Sule reiterated the Northern states’ historical support for President Tinubu, emphasizing that their opposition to aspects of the reform should not be mistaken for disloyalty to his administration. He pointed to the significant role the Northern region played in Tinubu’s electoral victory, underlining their alignment with his leadership vision. Sule suggested that the governors’ concerns over the VAT allocation issue stem from a commitment to safeguarding the interests of Northern states and ensuring equitable economic growth across the country.
The Northern Governors’ Forum has reportedly raised alternative suggestions for structuring VAT allocations, advocating for a distribution method that would consider the unique economic circumstances of different regions. This proposal reflects the forum’s view that any major fiscal reform should carefully account for regional differences in economic capacity and needs. While the forum has not disclosed full details of these alternative recommendations, they are anticipated to address the disparity between states with higher revenue generation capabilities and those with less developed economies.
While some analysts view the Northern governors’ stance as a potential challenge to the Tinubu administration, others see it as a constructive dialogue aimed at achieving a balanced fiscal policy that serves all regions equitably. The Northern governors have emphasized their respect for Tinubu’s authority and remain committed to collaboration on other national initiatives. Their position highlights the complexities involved in developing fiscal policies that satisfy both regional and national interests, especially in a diverse federation like Nigeria.
He said: “We cannot bring President Tinubu as a president.… CLICK TO READ THE FULL NEWS HERE▶️▶️
