The Adamawa State chapter of the Coalition of Northern Groups (CNG) has expressed concern over the Federal Government’s recent economic policies, particularly the proposed tax reforms, which they argue will increase the already difficult economic conditions in the State and the nation.
Speaking at a press conference on Wednesday in Yola, Abubakar Daware, the coordinator of Adamawa CNG, noted that the worsening situation caused by the removal of subsidies on fuel, electricity, and other essential services are already hard on the people.
He stated that these measures had already resulted in skyrocketing inflation, increased poverty, and heightened economic distress for millions of Nigerians.
According to Daware, the newly proposed tax reforms, if implemented, would only add to the burden faced by struggling households and businesses in the state.
He emphasized that the majority of the population in the state is made up of rural dwellers, farmers, traders, and small business owners, all of whom are already suffering from the economic fallout from subsidy removals. The proposed tax measures, he said, would further deepen poverty, worsen unemployment, and undo any progress made toward economic recovery.
According to him, Adamawa CNG calls for the immediate suspension of the tax reforms and for broad consultations with stakeholders, including representatives from civil society organizations, and community leaders.
Daware also called for an urgent review of the proposed revenue-sharing formula, which he described as unjust and disadvantageous to Adamawa and other Northern states.
He criticized the proposed formula, which allocates 60% of revenue to derivation, arguing that it disproportionately favors resource-rich regions and leaves Adamawa at a disadvantage.
The CNG proposed an adjusted formula of 40% for equality, 30% for population, and 30% for derivation, to ensure a more balanced distribution of resources.
The group also called for the introduction of meaningful economic palliatives to mitigate the impact of these reforms on vulnerable populations. These measures, they argue, should include targeted subsidies, access to affordable loans, and support for small-scale farmers and traders.
In addition to tax reforms, the Adamawa CNG urges the Government to take action on infrastructure issues that are stifling economic growth in the state.
Daware pointed out that Adamawa’s strategic location near Cameroon makes it a vital trade corridor, but the continued closure of land borders has hindered cross-border trade, affecting the livelihoods of farmers, traders, and transporters.
The group called for the immediate reopening of land borders to revitalize economic activity and create jobs.
They also urged the government to prioritize key infrastructure projects, such as the completion of the Yola-Gurin Road and the construction of the Jibiro-Belel Road, which are crucial for improving connectivity and boosting economic productivity in the state.
The CNG further calls for immediate investment in power infrastructure to ensure reliable electricity supply and to explore renewable energy solutions as a way to reduce the state’s dependence on national grid.
Daware also urged lawmakers from the state in the National Assembly, and other stakeholders to act swiftly challenge the bill and decisively to address these issues before they cause further damage to the economy.
