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Proposed Tax Reform Bills Not Against The North -Presidency

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Governors of 19 Northern States of Nigeria, under the platform of the Northern Governors’ Forum, at their meeting on Monday, October 28, 2024, expressed their opposition to the new derivation-based model for Value-Added Tax (VAT) distribution in the new tax reform bills before the National Assembly.

Chairman of the forum, Governor Muhammed Inuwa Yahaya of Gombe State, read the communiqué.

The Northern Governors’ Forum meeting also had traditional rulers from the region, led by the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III, in attendance.

While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration.

President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.

These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape.

First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.

Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.

Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.

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Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.

The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.

It is instructive to note that these proposed laws will not increase the number of taxes currently in operation. Instead, they are designed to optimise and simplify existing tax frameworks.

The tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians.

The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.

Importantly, these laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonise revenue collection and administration across the federation to ensure efficiency and cooperation.

At the moment, tax administration lacks coordination among federal, state, and local tax authorities, often resulting in overlapping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist.

The proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.

Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.

The proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.

On the proposed derivation-based VAT distribution model, which the Northern Governors oppose, it must be stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system.

The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed. The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.

The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services. This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states.

In a statement by the special adviser to the President on Information and strategy Bayo Onanuga said the reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country. There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need.

 

 

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Court Restrains Anti-Corruption Commission, Others from interfering in MAAUN’s Affairs

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A Kano High Court has granted an interim injunction restraining the Public Complaints and Anti-Corruption Commission (PCACC) and four other parties from interfering in the internal and external affairs of Maryam Abacha American University of Nigeria (AAUN), Kano.

Justice Sanusi Ado Ma’aji of the High court of Kano Judicial Division issued the order, while ruling on a motion of ex parte filed by the management of the university.

The respondents in the suit are the Kano State Government, PCACC, Kano State House of Assembly and the state’s Attorney-General and concerned parents of the institution.

Justice Ma’aji in the court order dated December 11, 2025, restrained the respondents or any other person acting on their behalf from inviting officials of the institution or interfering in the administrative and academic activities of the intuition, pending the hearing and determination of the substantive suit.

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The court also directed all the parties to maintain status quo in relation to the matter between the applicant and the first respondent, pending the determination of the originating summons.

Speaking after the ruling, MAAUN’s counsel Zahraddeen M. Bello, said that the court’s decision reaffirmed the rule of law and the need for due process, saying the university will continue to operate within the confines of law, while the case is pending.

However, the court granted leave to the applicant to serve court processes on the fifth respondent at its office located at No. 224 Sabo Bakin Zuwo, Kano.

The matter was adjourned to December 29, 2025 and the order was given under the hand and seal of the presiding judge and was duly endorsed by the Principal Registrar of the court.

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Jigawa Trains Local Government Chairmen on 2025 Tax Reform Act

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The Jigawa Joint Task Committee has commenced a two-day capacity-building training for local government chairmen and policymakers. The two-day capacity program focused on the new Nigeria Tax Reform Act (NTA) 2025, which is scheduled to take effect nationwide on January 1, 2026.

The training gathered a contingent of state and local revenue stakeholders, including all 27 local government chairmen of Jigawa State, led by the Chairman of the Association of Local Governments of Nigeria (ALGON), revenue officers, and key policy and tax experts.

The core objective of the session was multifaceted: to enhance understanding of the NTA 2025 and its specific implications for local government administration, strengthen collaboration between state and local tiers for revenue harmonization and joint administration, and improve the technical capacity of local government leaders in deploying modern revenue processes and digital systems.

During the event, the Executive Chairman of the Jigawa Internal Revenue Service (JIRS), Dr. Nasir Sabo Idris, commended the state government’s leadership for its commitment to fiscal autonomy.

“I wish to acknowledge the immense support of His Excellency, Governor Malam Umar Namadi, FCA,” Dr. Idris said.

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According to Dr. Idris, Jigawa Governor’s commitment to revenue generation has been unwavering, ensuring a consistent improvement in the state’s Internally Generated Revenue (IGR).

Dr. Idris pointed out that the upcoming launch of JigiTax, a wholly digital platform designed to streamline and modernize revenue collection across Jigawa State, is underway.

He said the move is seen as a direct response to strengthening transparency and blocking revenue leakages.

On his part, the Jigawa State Commissioner for Local Government, Ibrahim Graba Hannun-Giwa, whose address was delivered by the Director of Research, Malam Samaila Yusuf, said:

“The Ministry of Local Government is doing all it takes to continue supporting the visionary policies of Governor Namadi and driving policies that will shore up the revenue base of our local governments,” Malam Yusuf stated, emphasizing a unified approach to fiscal strength.

The dividends of the collaborative efforts were highlighted by the ALGON Chairman, who also serves as the Chairman of Dutse Local Government.

Speaking to newsmen, he asserted that the state’s disciplined approach had fundamentally altered the financial landscape at the grassroots level.

“With the commitment shown by Governor Namadi and the diligent efforts of the Jigawa Joint Revenue Committee, no local government in Jigawa now seeks intervention,” the ALGON Chairman declared.

He said, “Revenue loopholes are being systematically blocked, and improved compliance by different stakeholders, including markets and motor parks remitting their taxes, has significantly boosted our revenue drive.”

He further confirmed that the local governments had already undertaken a series of awareness trainings for all relevant stakeholders to ensure a seamless transition to the NTA 2025.

Barrister Aliyu Abdullahi said the in a paper presentation titled “State and Local Government in the Law,” by a legal practitioner. The paper specifically called for the legislative institutionalization of the Jigawa Joint Revenue Committee by the State House of Assembly. This institutional backing, the practitioner argued, would solidify the collaborative framework for revenue harmonization and ensure its longevity beyond the current administration.

 

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Former President Obasanjo Endorses Turaki’s Faction of PDP

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By Yusuf Danjuma Yunusa

Former President Olusegun Obasanjo hosted the national working committee (NWC) of a faction of the Peoples Democratic Party (PDP) at his residence in Abeokuta, Ogun state.

The PDP faction visited the former president on Saturday, and Kabiru Turaki led the delegation.

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Those among the delegation are: Muazu Aliyu, former Niger governor; Jonah Jang, former governor of Plateau; Adolphus Wabara, former senate president, and many more.

Interacting with the delegation, Obasanjo commended the faction’s effort, adding that its members should “soldier on”.

The former president also urged the faction to remain steadfast in instilling discipline in the party, adding that:

“anybody who wants to belong to a political party must adhere strictly to its rules and regulations”.

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