Connect with us

News

Proposed Tax Reform Bills Not Against The North -Presidency

Published

6 months ago

on

 

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.

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.

 

 

#

Related Topics:

News

Governor Yusuf Pays Over 3 Billion for Secondary School Students to Sit for NECO, NABTEB, NBAIS

Published

7 hours ago

on

May 9, 2025

By

 

The Governor of Kano State, Alhaji Abba Kabir Yusuf, has expended over 3 billion naira for 141,175 (one hundred and forty-one thousand, one hundred and seventy-five) Kano students who passed the 2024 qualifying examinations to sit for this year’s WAEC, NECO, NABTEB, and NBAIS (2025).

In a statement issued by the Governor’s Special Adviser on Information, Ibrahim Adam, it was noted that the Commissioner for Education, Ali Haruna Makoda, announced to newsmen in Kano that the State Ministry of Education had released the results of the qualifying examinations for secondary school students in Kano.

These students are studying under the Kano State Teachers Service Board and the Science and Technical Schools Board, where 75 percent of them qualified to write the senior school certificate examinations of WAEC, NABTEB, NECO, and NBAIS (for Arabic students).

Ali Haruna Makoda stated that the students eligible for payment by the Kano State Government under Alhaji Abba Kabir Yusuf are those who scored five credits and above.

#

The Commissioner maintained that all secondary school principals and directors should notify their students of their results so that the state government can effect the payment.

The 2025 qualifying exams for WAEC, NECO, and NABTEB will enable the students to sit for their 2025 examinations required for admission into tertiary education.

Ibrahim Adam, the Special Adviser to Governor Yusuf on Information, said that since the inception of the administration in May 2023, it has settled registration fees for Kano indigent students for WAEC, NECO, NABTEB, and NBAIS.

The Special Adviser pointed out that apart from settling the fees, Governor Yusuf’s administration has also paid huge outstanding debts for WAEC, NECO, and NABTEB left behind by former Governor Abdullahi Umar Ganduje’s administration.

He also said it is part of Governor Yusuf’s declaration of a state of emergency on education and an effort to mitigate the high number of out-of-school children that have bedeviled the state.

Continue Reading

News

NWDC Cancels Foreign Scholarship Scheme, Backs FG’s Local Education Policy

Published

13 hours ago

on

May 9, 2025

By

 

 

The North West Development Commission (NWDC) has announced the cancellation of its foreign scholarship application process in response to a new policy directive from the Federal Government prioritizing local education.

In a statement issued by the NWDC management on Thursday, May 8, 2025, the commission confirmed that the cancellation is in line with a recent federal directive urging public institutions to focus on strengthening educational capacity within Nigeria.

“This decision follows the Federal Government’s announcement on May 7, 2025,” the statement read. “We are fully committed to aligning our programs and initiatives with national priorities, especially those aimed at promoting local content and indigenous capacity building.”

The Federal Government’s directive was conveyed through a press statement signed by Mrs. Boriowo Folasade, Director of Press and Public Relations at the Federal Ministry of Education. The statement emphasized the need to redirect resources towards improving domestic institutions and ensuring more Nigerians have access to quality education at home.

“The policy is designed to reduce reliance on foreign academic systems and bolster Nigeria’s educational sector by investing in local universities and training institutions,” Mrs. Folasade said in the official release.

The NWDC reiterated its support for this policy, noting that it will explore new avenues to support educational and human capital development within the region. “The commission will provide updates on further opportunities and programs in due course,” the NWDC statement concluded.

The move is expected to impact hundreds of applicants who had hoped to pursue studies abroad under the commission’s sponsorship but may now need to consider domestic options supported by the commission in future initiatives.

#

Continue Reading

News

Erosion Control :Governor Yusuf Disburses Over N600 Million Compensation

Published

17 hours ago

on

May 9, 2025

By

 

Kano State Governor, Alhaji Abba Kabir Yusuf, has disbursed over N600 million to residents of Bulbula and Gayawa who were affected by the ongoing Erosion Control Project.

A statement released on Thursday by the Governor’s Spokesperson, Sanusi Bature Dawakin Tofa, said that the disbursement was organized by the Kano State Agro-Climatic Resilience in Semi-Arid Landscapes (Kano-ACReSAL), under the Ministry of Environment and Climate Change. The event took place at the Coronation Hall, Government House, Kano.

According to the statement, the project involves the construction of reinforced concrete channels, bioremediation buffers, and other robust erosion control infrastructure.

This initiative aims to reclaim degraded land and restore safety to the affected areas. It is being executed through a collaboration between the state and federal governments, with support from the World Bank.

The statement further elaborated that the project will also strengthen surveillance through the engagement of community vigilantes and the installation of solar streetlights to deter criminal activity that had previously thrived in the abandoned gully area.

In his address, Governor Yusuf stated:
“Today marks a significant step forward in our collective journey to restore dignity, security, and prosperity to the communities of Bulbula and Gayawa.”

He continued:
“I am deeply honored to be here to personally present compensation cheques to the Project Affected Persons (PAPs) under the Resettlement Action Plan (RAP) for the Bulbula-Gayawa Erosion Control Project in Nasarawa and Ungogo Local Government Areas.”

The Governor urged the beneficiaries to make judicious use of the funds, emphasizing:
“Every cheque presented today is a message that the government of Abba Gida-Gida stands with its people, especially during times of hardship and displacement.”

“The compensation being disbursed today is based on thorough enumeration, community engagement, and due diligence. Our approach ensures that every affected citizen is recognized, documented, and fairly treated in accordance with global best practices,” he assured.

Governor Yusuf lamented that:
“The Bulbula-Gayawa erosion menace has brought untold hardship to many. It has claimed farmlands, damaged homes, displaced families, and turned once-thriving neighborhoods into unsafe zones.”

The Governor pledged his administration’s continued support throughout the project’s lifecycle, reiterating that no community would be left behind in the development process.

Governor Yusuf expressed his appreciation to the implementation team under the ACReSAL Project, traditional rulers, community representatives, and relevant stakeholders for their transparency, professionalism, and relentless efforts in ensuring the successful compensation exercise.

 

Some beneficiaries, Jibril Abdullahi Jibril and Fatima Haruna, expressed their gratitude to the state government for the intervention. They recalled years of advocating for the project, which had been unsuccessful until the present administration took action.

 

#

Continue Reading

Trending