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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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Former President Muhammadu Buhari Buried in His Hometown of Daura with Full Military Honours

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By Abbas Yushau Yusuf

Former President of Nigeria, Muhammadu Buhari, was laid to rest in his hometown of Daura amidst tears and tributes.

The burial was attended by President Bola Ahmed Tinubu and Vice President Kashim Shettima.

He was lowered into his grave at exactly 5:50 p.m.

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The late President Muhammadu Buhari died on July 13 at a London clinic after a brief illness.

The Governor of Katsina State, Dr. Umar Dikko Radda, was visibly emotional, with tears seen flowing down his cheeks.

Former President Buhari was given a state burial by President Bola Ahmed Tinubu.

Before the final interment, gun salutes were fired by members of the Armed Forces to honor their three-time Commander-in-Chief.

Nigeria’s Chief of Defence Staff and highest-ranking military officer, General Christopher Musa, read the citation of the former president.

The late Buhari served as Nigeria’s Military Head of State from January 1, 1984, to August 26, 1985, before being overthrown in a military palace coup by his then Chief of Army Staff, General Ibrahim Badamasi Babangida.

Upon the return to democratic rule, he contested for the presidency three times in 2003, 2007, and 2011 before winning on his fourth attempt in 2015. He was re-elected in 2019.

President Muhammadu Buhari handed over power to President Bola Ahmed Tinubu on May 29, 2023, after completing two terms in office.

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Dr. Gwaram Distorts Facts, We Sponsored Ourselves — Cry PhD Holders at FCAPT, Kano

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In a dramatic twist to the narrative being peddled by the embattled Provost of the Federal College of Agricultural Produce Technology (FCAPT), Kano, Dr. Muhammad Yusha’u Gwaram, several academic staff have come forward to debunk his recent claims of having increased the number of PhD holders in the institution from 3 to 13 within five years.

The claim, published in several media outlets, has been described by multiple sources within the institution as “a desperate attempt to score cheap popularity” and “a clear distortion of facts aimed at bolstering his failed bid for tenure extension.”

In a series of interviews conducted with several PhD holders at FCAPT, who requested anonymity for fear of retaliation, a clearer picture has emerged. Contrary to Dr. Gwaram’s assertion, the College currently has only nine PhD holders, not thirteen as he claimed. Of these, three, including Dr. Gwaram himself, already held doctoral degrees prior to his assumption of office in 2020.

Of the remaining six, four were already enrolled in PhD programs before he took office, with no institutional support whatsoever from the College. “To be very clear, no single lecturer has received financial support, not even for tuition, from the College under Dr. Gwaram’s leadership,” said one of the sources. There was an active and highly intelligent lecturer who got a PhD admission in India, despite using his meagre salary to finance his travels and other academic costs, this lecturer had to abandon his study due to lack of support from the College. “If Gwaram ever supported only one PhD student, we challenge him to publish the evidence. We are enlightened and educated. Nobody can take us for a ride”, said one of the angry PhD. holders.

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More concerning is the active obstruction Dr. Gwaram has allegedly meted out to staff pursuing postgraduate studies. For example, three of the College’s promising lecturers, all of whom secured competitive, fully funded PhD scholarships abroad, had their study leave applications denied, and their salaries suspended for about three consecutive years. These scholars, now based in the USA, Japan, and Thailand, represent the kind of global exposure and academic excellence any serious institution should be proud of. Yet, in what many described as a retaliatory stance, Dr. Gwaram refused to reinstate their salaries despite a directive from the Agricultural Research Council of Nigeria (ARCN), which unequivocally instructed him to settle the outstanding payments.

As for the so-called Research and Development (R&D) support, the truth is equally disappointing. The College, under Dr. Gwaram, provides a measly ₦150,000 (approx. $100) per staff member and only to a small circle of favorites, once annually. These monies come from the budgets of the Federal Government not the internally generated revenue as he falsely claimed. No PhD candidate has ever received this ₦150,000 naira support more than once. “How can ₦150,000 cover tuition, research logistics, transportation, and publication costs in today’s economy, let alone abroad?” one of the lecturers queried. “The claim that this is a meaningful support is not only misleading but also insulting to the intelligence of Nigerians.”

Insiders suggest that Dr. Gwaram’s recent media campaign is part of a calculated strategy to position himself for an illegal extension of his tenure, which is due to end on August 20, 2025. “If Dr. Gwaram truly believes in the capacity of the PhD holders he is celebrating in the press, why not step aside and support one of them to succeed him as Provost? That would be a genuine legacy,” another source pointed out.

Instead, the atmosphere at FCAPT has become one of distrust, intimidation, and political maneuvering, with staff demoralized and students left as collateral damage in the Provost’s quest for personal aggrandizement.

We therefore call on well-meaning Nigerians, particularly stakeholders in the agricultural education and research sector, to disregard the embellished narratives being circulated by Dr. Gwaram. FCAPT is in dire need of visionary, fair-minded, and transparent leadership, not one rooted in propaganda and the suppression of merit. Prayed one of the academic staff union leaders.

He added, “the true heroes of the College’s academic advancement are the resilient lecturers who struggled and triumphed against all odds on their own dime and determination.

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From 3 to 13 PhDs: Kano Agricultural College Soars Under Gwaram’s Leadership

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The Provost of the Federal College of Agricultural Produce Technology (FCAPT), Kano, Dr. Muhammad Yushau Gwaram, has disclosed that the institution now has 13 PhD holders among its academic staff a significant leap from when he assumed leadership of the college.

Dr. Gwaram made the revelation during a press briefing held at the college premises in Kano, where he addressed journalists on the milestones achieved by the college under his leadership.

According to the provost, the number of doctorate holders has increased from just three to thirteen through deliberate staff development efforts. “Some of our PhD holders had migrated to Ilorin and other places, but we’ve been able to retain a substantial number. In addition, we now have over 30 lecturers with Master’s degrees, and very soon, more than 20 of them will become PhD holders,” Dr. Gwaram stated.

He further explained that despite not being beneficiaries of TETFund grants, the college has continued to sponsor the academic development of its staff using internally generated resources. “We are using our little funds to train our staff up to PhD level,” he emphasized.

Dr. Gwaram also highlighted academic advancement within the college, noting that during his tenure, the institution had organized two national conferences where scholarly papers were presented. “For over five years, we have consistently reviewed our curriculum to align with modern agricultural practices,” he said.

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The provost revealed that the college now offers seven new courses, all fully approved by the National Board for Technical Education (NBTE), unlike in the past when some courses lacked accreditation. “All the courses we offer now are NBTE-approved. When our students graduate, they do so with not just certificates but practical skills that make them self-employed,” he noted.

He also highlighted the college’s engagement with local communities, especially rural women and students, through food processing projects. “We’re currently processing ‘garin kunu’ and other delicacies. We collaborate with both community members and students to drive agro-based entrepreneurship,” he explained.

In terms of infrastructure, Dr. Gwaram announced that the college has installed a functioning water system, hospital facilities with beds for medical attention, and a tomato processing engine capable of handling up to 1,000 kilograms at once.

“Our tomato packaging and processing technology has reached across Nigeria. We trained 300 people in the South-South, 150 in the South-East, and many more in the South-West on tomato processing,” he added.

The provost also lauded the cordial relationship the college enjoys with the Kano State Government, stating that it has consistently sponsored many students for training at the institution.

Furthermore, Dr. Gwaram emphasized the college’s hands on approach to learning. “We have greenhouses where students are trained practically. The goal is to ensure that our graduates are equipped with employable and entrepreneurial skills,” he concluded.

The Federal College of Agricultural Produce Technology, located in Kano, continues to position itself as a hub for agricultural innovation and skill-based education across Nigeria.

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