Connect with us

News

Proposed Tax Reform Bills Not Against The North -Presidency

Published

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.

Advert

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.

 

 

News

May Day 2026: NLC Orders Street Protests in States Violating N70,000 Wage Act

Published

on

NLC Logo

 

By Yusuf Danjuma Yunusa

The Nigeria Labour Congress (NLC), the nation’s largest labour union, has directed workers in states that have not fully implemented the 2024 National Minimum Wage Act to mark May Day 2026 on the streets, suspending all indoor or official celebrations.

President Bola Tinubu signed the new minimum wage bill into law on July 29, 2024, raising the national minimum wage from N30,000 to N70,000. The amendment to the Minimum Wage Act of 2019 followed tripartite negotiations between the government, labour unions, and the private sector.

May Day, observed annually on May 1, honours workers and labour movements worldwide. This year, the NLC is calling for both a reflection on the state of workers’ rights and a celebration of the collective efforts that continue to build the wealth of nations.

Advert

In a statement signed on Friday by its General Secretary, Emmanuel Ugboaja, the union condemned several state governments for persistently violating the 2024 National Minimum Wage Act.

It accused them of refusing to implement key provisions, including consequential adjustments for senior workers, regular and timely payment of the new wage, and the extension of coverage to local government staff, primary school teachers, and health workers. The NLC described these violations as not only a breach of the law but an assault on the dignity of Nigerian workers.

Consequently, the NLC directed all its State Councils in jurisdictions where full implementation has not been achieved to ensure that no May Day ceremonies take place inside government houses, banquet halls, or any enclosed venue hosted by or in collaboration with defaulting state governments. All official receptions have been suspended.

Continue Reading

News

ADC Leadership Crisis: State Chairmen to Elect Caretaker Committee on Tuesday

Published

on

 

By Yusuf Danjuma Yunusa

The leadership crisis engulfing the African Democratic Congress (ADC) intensified Friday as state chairmen of the party announced plans to take control of the opposition party’s national structure, citing the electoral commission’s recent decision to derecognise the Senator David Mark-led National Working Committee.

Temitope Ogga, Chairman of the ADC state chairmen and also the Kogi State Chairman of the party, disclosed the move in an interview with Saturday PUNCH, describing it as necessary to prevent a leadership vacuum and protect the party’s structure ahead of the 2027 general election.

Ogga said the National Executive Committee — comprising the state chairmen — will meet on Tuesday to select a Caretaker Committee that will steer the party’s affairs while legal disputes are resolved.

Advert

“After the NWC, we are the next highest decision-making organ of the party,” Ogga stated. “We are the NEC, all the state chairmen are members of the NEC, and it is the most powerful organ of the party.”

The crisis follows the Independent National Electoral Commission’s decision on Wednesday to remove the names of the ADC’s NWC — led by Mark — from its official portal, complying with a Court of Appeal order. INEC said it would maintain the status quo ante bellum pending the determination of a substantive suit before the Federal High Court in Abuja.

The ruling stems from a protracted leadership battle within the ADC, with rival factions led by Nafiu Bala Gombe and Senator David Mark both claiming authority over the party’s national structure.

Ogga insisted the state chairmen are legally positioned to assume leadership. “Now that the court has said that it does not recognise the NWC as the party authority, they did not disband the state chairmen and their executives, so we are the next in line to take over the party, according to the party’s constitution.”

He added that the party would formally notify INEC of the transition. “The committee will be in acting capacity, and we are going to write INEC to inform them of this new development. We will submit the names of the members of the committee to INEC after our meeting on Tuesday.”

Continue Reading

News

ADC crisis rooted in legal process, not external influence — lawyers explain

Published

on

 

Two Nigerian lawyers, Inibehe Effiong and Bodunde Opeyemi, have offered detailed legal explanations of the ongoing leadership crisis within the African Democratic Congress (ADC), pointing to procedural decisions and binding court rulings as the root of the dispute.

Their interventions come amid growing public debate over the role of the electoral commission and speculation about possible political interference.

Mr Effiong, a public interest and human rights lawyer, criticised the legal approach taken by the faction led by former Senate President David Mark, describing it as procedurally questionable.
He said the Federal High Court did not issue any restraining order against the leadership, but instead directed that all parties be put on notice — a standard legal step requiring both sides to present their arguments.

According to him, the appropriate response would have been to contest the case at the trial court rather than file an interlocutory appeal.
“It became a motion on notice. They should have filed processes in opposition,” he said, adding that the decision to appeal at that stage was “unusual” and “untidy”.

He warned that pursuing further appeals could complicate the matter further instead of resolving it.

Advert

*Court ruling shapes situation*

Legal practitioner Mr Opeyemi traced the dispute to a leadership contest that followed a party meeting in July 2025, which produced a new executive.

The situation escalated when a party official challenged the process in court, asking the Federal High Court to stop both the new leadership and the electoral body from recognising the outcome.
While the court declined to grant an interim order, the case later reached the Court of Appeal.

In March 2026, the appellate court directed all parties to maintain the status quo ante bellum — meaning the situation must remain as it was before the case was filed.
Mr Opeyemi said this order is clear and binding.

“It requires a strict preservation of the state of affairs before the dispute,” he explained, adding that no party is allowed to take actions that could influence the outcome of the case.

Why the electoral body acted
The lawyers say this court order explains the position taken by the electoral commission, which has declined to recognise any faction of the party.

According to Mr Opeyemi, the commission is legally bound to comply with the directive and cannot take sides while the case is still before the court.
He said any attempt to recognise a leadership or engage with party activities under dispute could amount to a violation of a valid court order.

*Focus on internal legal process*

Both lawyers suggest that the situation is the result of internal disagreements and legal strategy within the party.
Their analysis indicates that the current impasse is being shaped by court processes rather than actions from outside the party.

The dispute is expected to remain unresolved until the Federal High Court delivers a final judgment on the substantive case.

Continue Reading

Trending