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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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Tinubu Seeks Senate Confirmation for Magnus Abe, 20 Other Appointees 

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By Yusuf Danjuma Yunusa

 

President Bola Tinubu has written two letters to the Senate, seeking confirmation of 21 nominees as board members of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

According to a statement by presidential spokesman, Bayo Onanuga, in the first letter addressed to the Senate President, President Tinubu nominated Senator Magnus Abe to serve as the NUPRC board chair. Abe, who represented Rivers South East in the Senate for two terms, is a former NNPC board member and current chairman of the National Agency of the Great Green Wall.

Other nominees for the NUPRC board are Engineer Paul Yaro Jezhi, a former Trade Union Congress (TUC) chairman in Kaduna State, and Sunday Adebayo Babalola, a former deputy director of the defunct Department of Petroleum Resources (DPR), which was abolished by the PIA in 2021. Both men will serve as non-executive commissioners.

President Tinubu also nominated executive commissioners to the board.

They are: Muhammed Sabo Lamido, executive commissioner for finance; Mr Edu Inyang, executive commissioner for Exploration and Acreage; Justin Ezeala, executive commissioner for economic regulation and strategic planning; and Henry Darlington Oki, executive commissioner for Development and Production.

Others are Indabawa Bashari Alka, executive commissioner for corporate services and administration; Mahmood Tijani, executive commissioner for health, safety and environment; and Ms Olayemi Adeboyejo, as secretary and legal adviser.

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Recall that former President Muhammadu Buhari appointed Lamido and Adeboyejo in 2022, while President Tinubu appointed Alka in 2023. Inyang, Ezeala, the former managing director of Nigerian Gas Marketing Limited, Mahmood Tijani, Babalola and Jezhi are new appointees of President Tinubu.

In his second letter to the Senate, President Tinubu nominated Mr Adegbite Ebiowei Adeniji, a lawyer, as chairman of the NMDPRA board.

Adeniji has over 30 years of experience in energy and natural resources issues. He was a special technical adviser to the Minister of State for Petroleum on upstream and gas until 2018.

He was a member of the Oil & Gas Policy team at the World Bank, which advised the Government of Nigeria on the reform and restructuring of the petroleum sector, including the development of the Strategic Gas Plan for Nigeria. He is currently the managing partner at ENR Advisory.

President Tinubu also nominated Chief Kenneth Kobani and Mrs Asabe Ahmed as non-executive members. Kobani was a former minister of state for trade under President Jonathan and secretary to the government of Rivers State, under Nyesom Wike.

Also nominated for confirmation are Abiodun Adeniji, executive director of finance; Francis Ogaree, executive director of hydrocarbon; Oluwole Adama, executive director of midstream and Downstream gas infrastructure; and Dr Mustapha Lamorde, executive director of Corporate Services and Administration. President Tinubu appointed Adama in 2024, while late President Buhari appointed Lamorde and Adeniji in 2021 and Ogaree in 2022.

Other members of the NMDPRA board, as proposed by President Tinubu, are Mr Yahaya Nasamu Yinusa, executive director, distribution systems; Adeyemi Murtala Aminu, executive director, corporate services; Ms Modie Ogechukwu, executive director, economic regulation and strategic planning; and Barrister Olawale Dawodu, as board secretary and legal adviser. Dawodu is an industry player and was, at a time, the Financial Reporting Manager at Exxon Nigerian subsidiaries.

The President urged the Senate to approve the nominees expeditiously.

The requests followed the recent appointment of chief executive officers (CEOs) for the two regulatory agencies.

The Senate had confirmed Oritsemeyiwa Eyesan as the chief executive officer (CEO) of NUPRC and Engineer Saidu Aliyu Mohammed as CEO of NMDPRA toward the last days of December, 2025.

The President charged all the appointees and nominees to discharge their duties and responsibilities professionally as regulators of the oil and gas sectors.

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APC, Wike Trade Blazing Words Over Rivers Politics”

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By Yusuf Danjuma Yunusa

A fiery war of ” words has erupted between the All Progressives Congress (APC) and the Minister of the Federal Capital Territory, Nyesom Wike, following his warning to the party’s National Secretary, Ajibola Basiru, to stay out of Rivers State politics.

During a “thank-you” visit to Oyigbo Local Government Area on Monday, Wike issued a stern caution to Basiru, accusing him of meddling in his state affairs.

“Let me warn those who come to Rivers State because you have heard we have N600bn—you come here, collect, and open your mouth to talk anyhow,” Wike declared.

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“Take this message to your National Secretary: Leave Rivers State alone. You have to be careful with the statements you make.”

In a sharp and direct response, Basiru fired back hours later in a personally signed statement. He questioned Wike’s authority to interfere in APC affairs, pointing out that the minister is not a member of the ruling party.

“My advice to him is that he should resign as Minister and face his obsession with Rivers politics,” Basiru stated.

He asserted his constitutional role as APC National Secretary extends nationwide and dismissed Wike’s remarks as intimidation.

“From my record, he isn’t a member of APC. I don’t see which authority or temerity he has to dabble into APC affairs,” Basiru said.

“I am one of the young Nigerians that confronted military dictatorship. I can’t be bullied by anybody, no matter how highly placed.”

Basiru also strongly denied any interest in Rivers State funds, labeling the suggestion as baseless and inconsistent with his record of integrity.

The clash underscores the ongoing tension between federal appointees and party officials, with Wike’s deep involvement in Rivers politics continuing to spark cross-party controversy even while serving as a minister under an APC-led government.

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KEDCO Promotes 1500 Staff In Major Staff Welfare, Performance Boost

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Kano Electricity Distribution Company (KEDCO) has approved a merit-based promotion of 1,500 members of staff as part of its ongoing commitment to staff welfare, motivation, and building a performance-driven workforce.

In a statement released by the company’s spokesperson, Sani Bala Sani, it was highlighted that the promotion exercise is the most significant in the company’s history, underscoring KEDCO’s renewed commitment to human capital development as a critical pillar of its ongoing transformation agenda under the current core investor-Future Energies Africa (FEA) and management.

According to the statement, the exercise followed a comprehensive performance appraisal process and aligns with best practices in corporate governance, fairness, and transparency. It was designed to recognize deserving staff who met the eligibility criteria in line with the company’s conditions of service, and have demonstrated dedication, competence, and resilience in supporting the company’s operational turnaround and improved service delivery.

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Speaking on the development, KEDCO’s Managing Director and Chief Executive Officer, Dr. Abubakar Shuaibu Jimeta described the move as a strategic investment in people, noting that the staff remain the company’s greatest asset.

“This promotion exercise is not just a reward for hard work; it is a statement of intent. At KEDCO, we are building a culture where performance is recognized, excellence is encouraged, and our people are empowered to deliver value to our customers and stakeholders,” the MD/CEO said.

The development forms part of broader workforce reforms aimed at boosting productivity, enhancing customer experience, and positioning KEDCO to meet the evolving demands of the power sector. It also reflects the company’s resolve to foster industrial harmony and sustain a motivated workforce capable of driving operational efficiency.

In a statement by Sani Bala Sani Head corporate communications KEDCO reaffirms its commitment to continuous staff development, capacity building, and improved welfare, stressing that a motivated workforce remains central to achieving reliable, efficient, and customer-focused electricity distribution across its franchise area.

 

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