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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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Breaking:Ramadan Cresecent Sighted In Saudi Arabia

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— The Supreme Court announced on Tuesday evening that the crescent moon marking the beginning of Ramadan has been sighted in Saudi Arabia, confirming that the holy month will begin on Wednesday.

The announcement followed reports from authorized moon sighting committees across the Kingdom, in accordance with Islamic tradition.

With the confirmation, Muslims across Saudi Arabia will begin fasting at dawn on Wednesday, observing the ninth month of the Islamic lunar calendar with prayers, reflection and charitable acts.

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Ramadan is a period of spiritual devotion marked by daily fasting from dawn to sunset, increased worship, and community gatherings.

Mosques across the Kingdom are preparing to receive worshippers for Taraweeh prayers, while authorities have finalized arrangements to ensure smooth services during the holy month.

Government entities and private institutions are also set to implement adjusted working hours in line with Ramadan schedules.

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BREAKING: Drama in Reps as Lawmakers Reverse on Electronic Results, Opposition Walks Out

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By Yusuf Danjuma Yunusa

The House of Representatives on Tuesday rescinded its earlier decision on Clause 60(3) of the Electoral Act amendment bill, adopting instead the version earlier passed by the Senate, which allows both electronic and manual transmission of election results.

The decision followed an emergency sitting and sparked protest from opposition lawmakers, who staged a walkout from the chamber while chanting, “APC, ole! APC, ole!” in open dissent.

The House had initially approved a stricter provision mandating compulsory electronic transmission of results from each polling unit to the Independent National Electoral Commission’s (INEC) Result Viewing (IREV) portal.

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The earlier version stipulated that: “The Presiding Officer shall electronically transmit the results from each polling unit to the IREV portal and such transmission shall be done after the prescribed Form EC8A has been signed and stamped by the Presiding Officer and/or countersigned by the candidates or polling agents where available at the polling unit.”

However, at Tuesday’s sitting, lawmakers reconsidered the clause and aligned with the Senate’s version, which introduces a caveat in the event of technical failure.

Under the adopted provision, while electronic transmission remains mandatory, it provides that where such transmission fails due to communication challenges, making it impossible to upload results electronically, the manually completed Form EC8A—duly signed and stamped by the Presiding Officer and countersigned by candidates or polling agents where available—shall remain the primary basis for collation and declaration of results.

The reversal has heightened political tension within the chamber, with opposition members expressing concern that the amendment could weaken safeguards around electronic transmission of election results.

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Health Ministry Enforces Federal Directive, Retires Directors with Eight Years’ Service

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By Yusuf Danjuma Yunusa

The Federal Ministry of Health has ordered an immediate disengagement of Directors who have spent at least eight years in the directorate cadre with immediate effect.

The directors affected include those in the ministry, federal hospitals, agencies, among others, according to a memo sighted by our correspondent in Abuja on Tuesday morning.

The Federal Government had, on Monday, directed all Ministries, Departments, and Agencies to enforce the eight-year tenure limit for directors and permanent secretaries, following a new deadline set through the Office of the Head of Civil Service of the Federation.

The memo announcing the enforcement of the order at the FMOH signed by the Director overseeing the Office of the Permanent Secretary at the Federal Ministry of Health, Tetshoma Dafeta, reads, “Further to the Eight (8)-Year Tenure Policy of the Federal Public Service, which mandates the compulsory retirement of Directors after eight years in that rank, as provided in the Revised Public Service Rules 2021(PSR 020909) copy attached, I am directed to remind you to take necessary action to ensure that all affected officers who have spent eight years as Directors, effective 31st December, 2025, are disengaged from Service immediately.

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“Accordingly, all Heads of Agencies and Parastatals are by this circular, to ensure that the affected staff hand over all official documents/possessions with immediate effect, their salaries are stopped by the IPPIS Unit and mandate the officers to refund to the treasury all emoluments paid after their effective date of disengagement.

“This is reiterated in a circular recently issued by the Office of the Head of the Civil Service of the Federation, Ref. No. HSCF/3065/Vol.I/225, dated 10″ February 2026. A copy is herewith attached for guidance, please.

“In addition, you are to forward the nominal roll of all directorate officers
(CONMESS 07/CONHESS 15/CONRAISS 15)

“Failure to adhere to paragraph 2 above shall be met with stiff sanctions.”

Recall that in July 2023, the former Head of Civil Service of the Federation, Folasade Yemi-Esan, announced the commencement of the revised Public Service Rules.

Speaking at a lecture at the State House, Abuja, to mark the 2023 Civil Service Week, Yemi-Esan stated that the revised PSR took effect from July 27, 2023.

The Head of Service issued a circular addressed to Permanent Secretaries, the Accountant-General of the Federation, the Auditor-General for the Federation, and heads of extra-ministerial departments, informing them of the revised rules.

“Following the approval of the revised Public Service Rules (PSR) by the Federal Executive Council (FEC) on September 27, 2021, and its subsequent unveiling during the public service lecture in commemoration of the 2023 Civil Service Week, the PSR has become operational with effect from July 27, 2023,” the circular read.

According to Section 020909 of the revised PSR, the tenure limit for permanent secretaries is four years, with a possible renewal based only on satisfactory performance.

The rules also stipulate that a director (GL 17) or their equivalent shall compulsorily retire after eight years in that position.

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