Northern Youth Group Urges Governors To Embrace New Tax Law, See It As Poverty Reduction Tool

Abuja, Nigeria – The Northern Christian Youth Professionals (NCYP) has urged governors of the 19 northern states to embrace the proposed new tax law, highlighting its potential to alleviate poverty and stimulate economic growth in the region.

At a press conference in Abuja on Monday, NCYP President Isaac Abrak argued that the law offers significant benefits despite initial concerns over reduced federal VAT revenue sharing.

Abrak acknowledged the potential negative impact on northern states, which have historically relied heavily on federal allocations from VAT.

However, he emphasized the positive aspects of the tax reform, focusing on its provisions to exempt millions of low-income earners and small businesses from paying taxes.

This, he stated, would inject much-needed capital into the northern economy, creating opportunities for businesses and individuals alike.

“This bill helps fight poverty at the Talakawa level (masses),” Abrak said, pointing out that individuals earning N800,000 or less annually would be exempt from income tax, a significant change from the current system.

The reform also increases the threshold for the highest personal income tax bracket, benefiting many individuals and small businesses.

Small businesses with an annual turnover of N50 million or less will be exempt, compared to the current N25 million threshold. This, he claimed, would exempt up to 90% of businesses nationwide.

The NCYP president further highlighted the reduction in corporate income tax for medium and large companies from 30% to 25% in 2026 and the elimination of minimum income tax for profitable companies as further incentives for economic growth.

Abrak stressed that the northern region possesses significant untapped potential, including a large and dynamic population, established industries, a thriving creative sector (Kannywood), and vast arable land.

He called on northern governors to develop comprehensive economic strategies, revitalize key industries, address security challenges, and embrace meritocracy to unlock this potential and build a self-reliant future.

He dispelled the notion that the tax reform is designed to disadvantage the North, arguing that it creates a more equitable and conducive environment for economic prosperity.

The NCYP urged all northerners and Nigerians to support the reforms and work together towards a brighter future.

The group’s message emphasizes the need for the northern states to move towards greater economic self-sufficiency and contribute more significantly to the national economy.