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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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ADC crisis rooted in legal process, not external influence — lawyers explain

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Two Nigerian lawyers, Inibehe Effiong and Bodunde Opeyemi, have offered detailed legal explanations of the ongoing leadership crisis within the African Democratic Congress (ADC), pointing to procedural decisions and binding court rulings as the root of the dispute.

Their interventions come amid growing public debate over the role of the electoral commission and speculation about possible political interference.

Mr Effiong, a public interest and human rights lawyer, criticised the legal approach taken by the faction led by former Senate President David Mark, describing it as procedurally questionable.
He said the Federal High Court did not issue any restraining order against the leadership, but instead directed that all parties be put on notice — a standard legal step requiring both sides to present their arguments.

According to him, the appropriate response would have been to contest the case at the trial court rather than file an interlocutory appeal.
“It became a motion on notice. They should have filed processes in opposition,” he said, adding that the decision to appeal at that stage was “unusual” and “untidy”.

He warned that pursuing further appeals could complicate the matter further instead of resolving it.

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*Court ruling shapes situation*

Legal practitioner Mr Opeyemi traced the dispute to a leadership contest that followed a party meeting in July 2025, which produced a new executive.

The situation escalated when a party official challenged the process in court, asking the Federal High Court to stop both the new leadership and the electoral body from recognising the outcome.
While the court declined to grant an interim order, the case later reached the Court of Appeal.

In March 2026, the appellate court directed all parties to maintain the status quo ante bellum — meaning the situation must remain as it was before the case was filed.
Mr Opeyemi said this order is clear and binding.

“It requires a strict preservation of the state of affairs before the dispute,” he explained, adding that no party is allowed to take actions that could influence the outcome of the case.

Why the electoral body acted
The lawyers say this court order explains the position taken by the electoral commission, which has declined to recognise any faction of the party.

According to Mr Opeyemi, the commission is legally bound to comply with the directive and cannot take sides while the case is still before the court.
He said any attempt to recognise a leadership or engage with party activities under dispute could amount to a violation of a valid court order.

*Focus on internal legal process*

Both lawyers suggest that the situation is the result of internal disagreements and legal strategy within the party.
Their analysis indicates that the current impasse is being shaped by court processes rather than actions from outside the party.

The dispute is expected to remain unresolved until the Federal High Court delivers a final judgment on the substantive case.

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APC Dismisses ADC’s Claims, Calls Leadership Crisis ‘Self-Inflicted’

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By Yusuf Danjuma Yunusa

The All Progressives Congress (APC) has described the Independent National Electoral Commission’s (INEC) recent removal of the African Democratic Congress (ADC) National Working Committee (NWC) members from its portal as a problem entirely of the opposition party’s own making.

Speaking on News Central on Thursday, APC spokesperson Felix Morka rejected allegations that the ruling party was behind INEC’s decision to stop recognising David Mark as ADC national chairman and former governor Rauf Aregbesola as national secretary.

“We are only concerned about our level of preparation and the effort we are making. We’re concerned about ourselves. It is the opposition that is obsessed about what the APC does,” Morka said.

He added: “Even the most recent development that everyone is talking about—INEC’s decision to derecognise the David Mark executive—was utterly self-inflicted. The APC didn’t do that. We did not orchestrate the hijack of the ADC by that executive.”

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INEC removed the Mark-led NWC from its portal on Wednesday, citing a March 12 ruling by the Court of Appeal. The commission also delisted the factional chairman, Nafiu Bala Gombe. INEC stated it would no longer recognise any factional activities until the Abuja Division of the Federal High Court resolves the party’s leadership dispute.

In response, the ADC, through its national publicity secretary Bolaji Abdullahi, accused the ruling party of hijacking its leadership and pressuring INEC to sack the Mark-led NWC. “The electoral body acted under pressure from a government panicked by the opposition momentum, despite its efforts to destroy all opposition parties and foist a one-party rule on Nigeria,” the ADC alleged.

Morka dismissed the accusation, arguing that INEC withdrew recognition from Mark and Aregbesola because they disregarded the ADC’s constitution and the rule of law.

“They did that, completely ignoring the rule of law and the party’s constitution on succession. When you parachute into a party and take over without following constitutional stipulations on leadership succession, this is the consequence,” he said.

“This was manufactured by the same people now complaining and pointing fingers at the APC. We are not concerned about all that.”

The leadership crisis in the ADC—a coalition of opposition politicians positioning to challenge President Bola Tinubu in the 2027 elections—began following the resignation of Ralph Nwosu as national chairman. David Mark was subsequently ratified as chairman, a move Gombe contested, arguing that he was entitled to the position under the party’s constitution.

Gombe then approached the Federal High Court in Abuja, challenging the legality of Mark’s leadership and seeking an order to stop the NWC members from parading themselves as party leaders.

Mark’s faction appealed to the Court of Appeal on December 18, 2025, arguing that the lower court lacked jurisdiction. However, the appellate court dismissed the appeal, allowing the case to proceed at the Federal High Court.

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INEC Dismisses Calls for Chairman’s Removal, Clarifies Voter Revalidation Decision

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By Yusuf Danjuma Yunusa

The Independent National Electoral Commission (INEC) has rejected mounting calls for the resignation or removal of its Chairman, Professor Joash Amupitan (SAN), while also moving to clarify what it termed widespread misconceptions about its planned nationwide voter revalidation exercise.

In a statement issued late Thursday in Abuja and signed by the Chairman’s Chief Press Secretary, Adedayo Oketola, the Commission said it was aware of “recent public statements by political actors alleging partisan bias” and demanding the Chairman’s removal over the Commission’s decision to obey a recent Court of Appeal judgment.

INEC acknowledged the right of stakeholders to voice their opinions, but stressed that its operations and leadership structure are constitutionally protected.

“It is imperative to clarify that INEC is a creation of the Constitution of the Federal Republic of Nigeria. The appointment, tenure, and removal of the Chairman and National Commissioners are strictly governed by Section 157 of the 1999 Constitution (as amended),” the statement read.

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The Commission further underlined the independence of its leadership, noting that “the Chairman does not hold office at the pleasure of any political party or interest group.” It warned that “any call for removal outside the established constitutional process is not only a distraction but a direct assault on the independence of the nation’s electoral umpire.”

Explaining its compliance with the recent Court of Appeal judgment, INEC said the decision was necessary to avoid a repeat of past electoral crises. The Commission stated that it acted “to avert a situation that occurred in Zamfara State and Plateau State, where elected officials were removed by election tribunals on account of disobedience of court judgments.”

The Commission also clarified that monitoring the activities of the David Mark-led faction of the African Democratic Congress (ADC) would amount to disobedience of the court order. It added, “It was only on the 9th of September 2025 that INEC accepted and approved David Mark’s Exco, which was seven days after the matter was filed at the Federal High Court.”

Addressing allegations that it was undermining the multi-party system, INEC dismissed such claims, pointing to its recent registration and recognition of three political parties—the Democratic Leadership Alliance, the Nigeria Democratic Congress, and the National Democratic Party. This brings the total number of active political parties in the country to 22, which the Commission said demonstrates its neutrality.

Reaffirming the binding authority of appellate court rulings, INEC cited Section 287(2) of the 1999 Constitution, which “mandates every person and authority in Nigeria not only to obey the judgment of the Court of Appeal but also to enforce such judgment.”

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