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Nigeria tax spat opens country’s smouldering north-south divide - FT

DECEMBER 21, 2024

Critics warn President Bola Tinubu’s proposed changes to VAT distribution will help wealthier southern states

Nigeria’s government is facing stiff opposition to a controversial tax reform bill that northern leaders say favours more productive southern states, reawakening a historic regional divide in Africa’s most populous country.

Nigeria’s parliament late last month began deliberating on four bills proposed by President Bola Tinubu’s administration, including the so-called “Nigeria Tax Bill”, to streamline tax codes and generate more revenue for a government whose tax collection lags behind its African counterparts.

But the proposal on how VAT should be shared among Nigeria’s 36 states and capital city Abuja has become the subject of vociferous debate. https://www.ft.com/content/698...

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