• Inheritance tax contradicts Islamic law, says Lamido
• Galadima warns of political fallout if the bill is passed
• Ekiti govt backs tax reform, cites revenue boost
Former Jigawa State Governor and ex-Foreign Affairs Minister Sule Lamido has reignited controversy over President Bola Tinubu’s proposed tax reform, denouncing the inclusion of an inheritance tax as an attack on Northern interests and a violation of Islamic principles.
His comments come just two weeks after proponents of the reform secured backing from the Nigerian Governors’ Forum (NGF). With the chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, pushing for the bill’s passage by March and full implementation by July, Lamido’s stance has added fresh resistance to the proposal.
In an interview with The Guardian, Lamido urged the president to take a more inclusive approach to economic reforms, warning that heavy-handed policies could erode public trust.
“As a Muslim, President Tinubu should know that Islamic law explicitly prohibits taxation on inheritance,” he stated. “The Quran provides clear guidelines on wealth distribution after death. Taxing inheritance is illegal, against God, and contrary to our faith.”
Lamido argued that inherited wealth is primarily meant to settle debts and be distributed among rightful heirs, making any government interference a violation of religious doctrine and an unfair burden on grieving families.
His criticism comes despite recent clarifications from Oyedele, who stated that the proposed tax reforms contain no provision for an inheritance tax. Oyedele explained that the inheritance tax was abolished in Nigeria in 1996 following the repeal of the Capital Transfer Tax Decree. He further clarified that inheritance is a one-time wealth transfer, distinct from recurring taxable income under the reform.
“Inheritance tax does not exist in our tax laws. The bill only addresses recurring family income, not one-time transfers like inheritance,” Oyedele said, citing Section 4(3) of the Nigeria Tax Bill and Section 2(5) of the Personal Income Tax Act.
Beyond the inheritance tax, Lamido also criticized Tinubu’s broader economic policies, particularly the removal of fuel subsidies on May 29, 2023, which he described as “arrogantly executed.” He warned that such abrupt decisions have deepened economic hardship and called for a more consultative leadership style.
“Good leadership requires engaging citizens, explaining policies, and carrying people along. Imposing policies without proper communication breeds resentment and mistrust,” he cautioned.
Echoing Lamido’s concerns, veteran Arewa politician Buba Galadima warned of severe political and social consequences if Tinubu proceeds with the tax reform bills.
Despite securing the support of all 36 governors after key amendments, Galadima maintained that passing the bill into law could alienate the North and affect Tinubu’s political future.
“Every political decision has consequences. If Tinubu insists on these tax reforms, I can’t predict the exact outcome, but it will have political ramifications,” Galadima stated.
He argued that Nigerians are already struggling with economic hardship and questioned the wisdom of adding further financial burdens.
“If the people say, ‘This might be good for the future, but we can’t afford it now,’ a wise leader would listen and reconsider,” he advised.
Galadima also criticized the government’s decision-making approach, warning that policies should prioritize the well-being of the masses, not just the interests of vocal elites.
On the North’s political influence, he pointed out that the region played a decisive role in Tinubu’s 2023 electoral victory, delivering over six million votes out of the total 8.7 million he secured.
“This is a subtle reminder that the North will be crucial in the 2027 election,” he said. “The president can push forward with the bills, but he should remember that there are political consequences.”
However, Galadima insisted that his opposition was not about dividing the country along regional lines but about ensuring policies reflected the interests of those who supported the administration.
While opposition to the reform grows in the North, the Ekiti State Government has welcomed the bills, saying they will significantly boost state revenue.
Femi Ajayi, the Commissioner for Budget and Economic Planning, stated during a budget presentation in Ado-Ekiti that the tax reforms—especially those related to Value Added Tax (VAT)—would enhance the state’s ability to fund developmental projects.
“The proposed tax reforms will increase revenue, enabling the government to complete ongoing projects and boost agriculture for food security,” he said.
Ajayi noted that the state’s 2024 budget achieved 88% performance, earning praise from both local and international financial institutions. He emphasized that the 2025 budget, tagged the ‘Budget of Sustainable Impact,’ aligns with Governor Biodun Oyebanji’s vision to improve citizens’ livelihoods.
As the debate over the tax reform bills intensifies, the divide between Northern leaders warning of political fallout and Southern states advocating for economic benefits continues to shape the national discourse.
