Governor Dauda Lawal of Zamfara State has expressed concern that some financially weaker states may struggle to survive if the tax reform bills currently before the National Assembly are passed and signed into law by President Bola Tinubu. Speaking during a televised program on Tuesday, the governor emphasized the need for careful consideration of the reforms to prevent long-term negative consequences. “Some states may not be able to survive, so this is something that must be carefully studied to avoid hurting ourselves in the long run,” he said.
Governor Lawal noted that the proposed tax reforms have both positive and negative aspects. “The tax issue has many components—some good, some bad. We are analyzing the situation to guide our people on the best path forward. It’s an ongoing process, and we will continue to engage,” he added.
The tax reform bills introduced by the Tinubu administration have been met with widespread controversy, drawing criticism and opposition from various stakeholders. Among these critics are all 36 state governors under the National Economic Council (NEC) and the 19 northern governors, who have openly rejected certain provisions of the bills.
The governor also highlighted the challenges many states might face in meeting the recently proposed N70,000 minimum wage if the reforms are implemented. He explained that reforms are inevitable but cautioned against rushing into decisions that could have unintended consequences. “Systemic reforms are necessary, but we need to be careful not to act hastily in ways that could hurt us later,” he warned.
Governor Lawal specifically pointed to the derivation component of the reforms, which he said could significantly reduce the financial inflows of some states. “If the derivative component is implemented as proposed, it will affect the revenues of certain states, making it difficult for them to pay salaries,” he said.
He stressed the importance of a well-thought-out and unified approach, urging stakeholders to take time to understand the reforms’ implications and adopt a collective stance that safeguards the interests of all states.
