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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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Kaduna Federal High Court Grants El-Rufai 200million Naira Bail

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By Yusuf Danjuma Yunusa

Former Kaduna State Governor, Malam Nasir Ahmad El-Rufai, on Tuesday secured bail from a Federal High Court sitting in Kaduna, bringing to an end a detention that lasted nearly two months.

Meanwhile, a Kaduna State High Court adjourned ruling on a separate bail application to April 21.

Delivering the ruling, Justice Rilwan Aikawa granted the former governor bail after hearing arguments from both the defence and prosecution.

However, but ordered that he remain in the custody of the Independent Corrupt Practices and Other Related Offences Commission, ICPC, pending the fulfilment of the bail conditions.

El-Rufai’s lead counsel, Oluwole Iyamu (SAN), had urged the court to admit his client to bail, arguing that it is a constitutional right and that the former governor has strong ties within Nigeria, making him unlikely to abscond.

However, the prosecution, led by the ICPC, opposed the application, citing concerns that the defendant could interfere with witnesses or obstruct ongoing investigations if released.

The court subsequently granted bail with stringent conditions, including a N200 million bond with two sureties in like sum.

The sureties are to include a recognised traditional ruler and a federal civil servant not below Grade Level 15. Other conditions include the submission of landed property documents, deposit of international passports with the court, and a restriction on public comments relating to the case, among others.

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A family member of the former governor, Bello El-Rufai, told journalists that efforts were underway to meet the conditions.

“The conditions are many, close to 10 or more, but we hope to fulfil them,” he said.

The ICPC had, on March 18, filed a 10-count charge against El-Rufai at the Federal High Court bordering on alleged conversion and possession of public property, money laundering, and abuse of office.

El-Rufai’s legal ordeal began on February 16, when he was arrested by the Economic and Financial Crimes Commission, EFCC. Although he was initially granted bail, he was subsequently re-arrested by the ICPC and remained in custody for several weeks before his arraignment.

On March 27, the ICPC granted him temporary release on compassionate grounds following the death of his mother, Hajiya Umma.El-Rufai, in Cairo, Egypt.

He was, however, returned to custody after her burial.

Proceedings were further complicated when the defence filed a motion asking Justice Aikawa to recuse himself over alleged bias, a request that was later withdrawn.

Meanwhile, at the Kaduna State High Court, proceedings in a separate case took a different turn as the presiding judge, Justice Darius Khobo, adjourned ruling on El-Rufai’s bail application to April 21, 2026.

Counsel to the defendant informed the court that the defence team was served with an amended charge in court and required time to study its contents. The prosecution, also led by the ICPC, had filed an amended nine-count charge, altering the scope of the case and dropping a co-defendant, Amadu Sule, from the trial.

Defence counsel, Ubong Akpan, explained that the adjournment was also due to the inability of the court to deliver the ruling as scheduled, citing the bereavement of the presiding judge.

“His lordship was bereaved and he was unable to put the ruling together. So, we understand these things happen,” Akpan said, adding that the defence remains optimistic ahead of the next hearing date.

El-Rufai is facing separate charges before the Kaduna State High Court bordering on abuse of office, fraud, intent to commit fraud, and conferring undue advantage.

There was heavy security presence at the court premises, with armed operatives stationed at strategic points to maintain order and restrict movement.

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Revoking Rainbow Centre’s Licence Over ADC Convention Is Abuse of Power-Atiku

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By Yusuf Danjuma Yunusa

Alhaji Atiku Abubakar, a leading presidential hopeful of the African Democratic Congress (ADC) for the 2027 election, has issued a blistering statement accusing the government and its agents of attempting to revoke the licence of Rainbow Event Centre – the scheduled venue for the party’s national convention today.

In a statement released Tuesday morning, Abubakar described the alleged move as a “shameful and cowardly abuse of public office,” and insisted that the convention will proceed despite what he called a pattern of political intimidation.

The full statement reads:

“The reports from the spokesperson of our great party, which exposes the plans of the government and its agents to revoke the licence of Rainbow Event Centre for the singular offence of hosting the African Democratic Congress convention slated for today, Tuesday, April 14, 2026, is a shameful and cowardly abuse of public office.

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Let it be said without equivocation: coercing a private business owner to deny a lawfully registered opposition party the use of a venue is not governance. It is not politics. It is the naked conduct of a regime that has lost the argument, lost the people, and now reaches for the boot because it has nothing else left.

The ADC has paid every fee. The ADC has signed every contract. The ADC has broken no law. Our only offence is that we are organising, we are growing, and we are preparing to retire this failed government at the ballot box in 2027.

This is how democracies are strangled, not in a single dramatic blow, but in a thousand petty, vindictive acts against opposition parties, against free assembly, and against the sacred right of citizens to choose their own leaders. To the international community, and every democratic partner of Nigeria: take note of what is being done here tonight, and in whose name.

We will not be intimidated. We will not be silenced. We will not bow to this creeping tyranny, and we will never bow to the petty tyrants behind it.

The convention will hold. The ADC will rise. And Nigeria will rise with it.
– AA”

Abubakar, a former vice president and veteran opposition figure, did not provide specific documentary evidence of the alleged licence revocation plot. However, his remarks come hours after the statement made by the National Publicity Secretary of their party, and before the ADC’s scheduled convention, which party officials say is expected to draw thousands of delegates from across the country.

Government spokespersons had not issued an official response at the time of this report.

Observers note that accusations of venue cancellations against opposition parties have been a recurring flashpoint in Nigerian politics, often raising questions about the fairness of the democratic space ahead of major elections.

The ADC has positioned itself as a coalition of disaffected groups and individuals aiming to challenge the ruling party in the 2027 presidential race. Today’s convention is seen as a critical test of the party’s organisational strength and resolve.

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Shaaban Sharada Distances Self From Barau/Abba/Shaaban Group’s Planned Gathering And Move To Endorse A New Deputy Governor

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Former federal lawmaker Shaaban Ibrahim Sharada has publicly disassociated himself from a political group known as Barau /Abba/Shaaban, which reportedly convened a meeting to endorse Kano State’s new Deputy Governor.

Sharada, who represented Kano Municipal in the House of Representatives between 2019 and 2023, issued the clarification on his verified Facebook page. In the statement, he emphasized that he has no affiliation with the group and no involvement in the planned gathering.

“I woulaaad like to take this opportunity to distance myself from a gathering that is said to be organized on, Tuesday, by the Abba, Barau, and Sha’aban Sharada grp They plan to declare their position regarding the current situation of endorsing new Deputy Governor of Kano under the leadership of Hon. Iliyasu Koki, which has already been published in the media,” Sharada wrote.

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He further stressed that he was unaware of the group’s formation and had no hand in organizing the meeting, adding that he did not even know its purpose.

The former lawmaker with prays for peace and well-being of Kano State:

“May Allah grant us health and peaceful living. Ameen, summa ameen.”

Sharada’s statement comes due to heightened political activity in Kano following the resignation of the former Deputy Governor Comrade Aminu Abdulsalam , with various factions and interest groups positioning themselves on the matter.

His distancing showcases the fluid alliances and tensions within Kano’s political landscape, particularly among figures associated with Senator Barau Jibrin.

 

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