The Presidency has responded to Bauchi State Governor Bala Mohammed’s recent threats against President Bola Tinubu’s administration regarding the controversial tax reform policy. In a statement issued on Monday by Sunday Dare, Special Adviser to the President on Media and Public Communication, the administration expressed surprise that, despite receiving ₦144 billion in federal allocations under Tinubu’s leadership, Bauchi State continues to struggle with high poverty rates.
OBSERVERSTIMES recalled that Last Thursday, Governor Mohammed criticized President Tinubu’s tax policies as being anti-northern and warned that the region would demonstrate its displeasure with the federal government. He claimed that the Tax Reform Bills are designed to benefit only a specific part of the country while shortchanging northern Nigeria, stating, “We will show our true colors; we will fight for it.”
In response, Dare emphasized that such rhetoric does not foster the constructive dialogue necessary between state and federal governments. He stated, “The recent inflammatory remarks by Governor Bala Mohammed regarding the Tax Reform Act and direct threats toward the Federal Government are unbecoming of his position as a state governor. His statement, ‘We will show President Tinubu our true color,’ is particularly concerning and fails to reflect the constructive dialogue needed in our governance.”
Dare pointed out that Bauchi State has received ₦144 billion in federal allocations—both for the state and local governments—under the current administration, representing a significant increase from previous disbursements. Despite this, the state continues to face serious developmental challenges and high poverty rates.
“Rather than issuing threats, Governor Mohammed might better direct his efforts toward implementing effective poverty alleviation programs and ensuring transparent utilization of these federal resources,” Dare suggested. He added that the governor’s remarks do not represent the collective voice of Northern Nigeria, which seeks collaborative governance and constructive engagement with the federal government to address national challenges.
Dare urged Governor Mohammed to retract his confrontational statements and focus on productive dialogue with the federal government regarding any concerns about the Tax Reform Act. He emphasized that the Tax Reform Act and increased federal allocations present significant benefits for the states.
Dare outlined several advantages of the federal allocations, including: “The ₦144 billion allocation represents one of the highest increases in federal disbursements to states, providing Bauchi with unprecedented fiscal resources. This includes a recent ₦2 billion special intervention fund for food security and enhanced state revenues due to the removal of fuel subsidy compensation payments, along with special consideration for derivation funds that protect northern states’ interests.”
He also highlighted the benefits of the Tax Reform, which include streamlining multiple taxation systems that burden small businesses, enhancing revenue collection efficiency through digitalization, protecting informal sector workers, and providing special provisions for agricultural businesses crucial to Bauchi’s farming communities.
Moreover, Dare noted that the reforms create frameworks for attracting investments through tax incentives and capacity building for state revenue services. “These initiatives demonstrate the federal government’s commitment to supporting state development. Rather than antagonizing these efforts, Governor Mohammed could leverage these resources by implementing transparent fiscal management systems, developing state-specific tax incentives to attract investments, and investing in agricultural value chains,” he concluded.
