Governor Dauda Lawal of Zamfara State has raised concerns over the proposed tax reform bills currently before the National Assembly, warning that financially weaker states might struggle to survive if the reforms are enacted.
“Some states may not be able to survive, so it is something that must be carefully studied so that we don’t hurt ourselves in the long run,” Governor Lawal stated during an appearance on Channels Television’s Politics Today.
The reforms, introduced by President Bola Tinubu’s administration, have drawn widespread criticism and opposition, particularly from the 36 state governors under the National Economic Council (NEC) and the 19 northern governors.
Governor Lawal highlighted the potential challenges posed by the reforms, including difficulties in meeting the proposed N70,000 minimum wage.
He emphasized the need for careful deliberation to avoid unintended consequences.
“There is the good aspect, and there is the bad aspect. Reform in a system is inevitable, but we need to be careful not to rush into something that could hurt us later,” Governor Lawal said.
The governor noted that certain components of the tax reforms, especially those tied to revenue derivation, could negatively impact states’ inflows, further complicating their financial stability.
As debates over the reforms intensified, Lawal called for a unified approach, urging a thorough study of the situation to determine a sustainable path forward.
The controversy surrounding the tax reform bills reflects the delicate balance required to implement economic policies that address national priorities while ensuring state governments remain financially viable.