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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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Nigeria Courts UK for Counter-Terrorism Pact

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By Yusuf Danjuma Yunusa

President Bola Tinubu on Wednesday stated that the country’s collaboration with the United Kingdom in addressing insecurity remained crucial, adding that he planned to discuss Nigeria’s counter-terrorism initiatives and challenges to regional stability during his meeting with British Prime Minister Keir Starmer on Thursday (today).

The President made the disclosure on Wednesday night at a state banquet hosted by King Charles III at Windsor Castle, marking the first time a Nigerian leader has addressed a gathering at the historic British royal residence.

Wednesday’s dinner which began at 09:00pm (local time) was part of activities lined up for Tinubu’s ongoing state visit to the United Kingdom.

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On security cooperation, the President disclosed that he would discuss Nigeria’s counter-terrorism efforts and regional stability challenges during his meeting with Prime Minister Keir Starmer on Wednesday.

“Our West African region faces complex terrorism challenges with roots in the Sahel. Nigeria carries an enormous responsibility to help safeguard regional stability.

“In confronting these threats, partnership with the United Kingdom remains essential and I look forward to my meeting with Prime Minister Keir Starmer tomorrow (today),” Tinubu said.

The President added that the United Kingdom provided him refuge during the military dictatorship of former head of state, Gen. Sani Abacha.

He said the Metropolitan Police placed his residence under surveillance for protection following threats from agents of the military junta.

In an expression of gratitude, Tinubu described the UK’s support during what he called “the dark years of military dictatorship” as deeply humbling, noting that the solidarity remains etched in Nigeria’s collective memory.

He said, “Your Majesty, I wish to express Nigeria’s deep gratitude to this great nation for the refuge and support it extended during the dark years of military dictatorship.

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Deputy Senate President Receives IGP’s Committee on State Police Framework

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Deputy President of the Senate, Senator Barau I. Jibrin, has received members of the steering committee of the Nigeria Police Force, established to develop a framework for the creation of State Police.

The Inspector-General of Police, Olatunji Disu, inaugurated the eight-member committee on March 4, 2026, with the mandate to design a workable structure for state policing in Nigeria.

Senator Barau, who chairs the Senate Committee on the Review of the 1999 Constitution, welcomed the delegation led by the committee’s chairman, Professor Olu Ogunsakin, during a courtesy visit in Abuja on Tuesday.

According to a statement issued by Ismail Mudashir, spokesperson to the Deputy Senate President, Professor Ogunsakin briefed Senator Barau on the committee’s mandate and sought the Senate’s advice and contributions to enrich its final report.

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In his response, Senator Barau commended Inspector-General Disu for aligning the initiative with President Bola Ahmed Tinubu’s Renewed Hope Agenda, aimed at strengthening national security. He urged the committee to prioritize accountability, safeguards against abuse, and public enlightenment.

“You must, most importantly, work on a structure to create a robust public safety mechanism and engender a secure nation,” Senator Barau said. “During public hearings of the Senate on amendments to the 1999 Constitution, Nigerians raised concerns and fears about the establishment of state police. We should create a system that allays their fears.”

One of the bills before the Senate Committee on the Review of the 1999 Constitution seeks to amend the Constitution to allow for the establishment of State and Community Police. The proposal aims to enhance local law enforcement capabilities and strengthen community engagement through a structured legal framework.

In a statement issued by Ismail Mudashir Special Adviser to the Deputy Senate President on media and publicity said to ensure inclusivity, Senator Barau’s committee conducted zonal public hearings across the six geopolitical zones of the country, providing stakeholders with the opportunity to contribute to the constitutional amendment process.

 

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Fuel Hike Dampens Eid Spirit in Mararaba

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By Yusuf Danjuma Yunusa

In the bustling heart of Mararaba, a satellite town known for its relentless energy, the usual pre-festival buzz is unusually subdued. With just days to go until Eid-el-Fitr, the air is thick not only with dust from the busy streets but also with a palpable sense of anxiety. The holy month of Ramadan, already a period of sacrifice for many Muslims struggling with the country’s economic hardship, has been made even more challenging by a recent and significant hike in fuel prices. The celebration that marks the end of fasting—a time for joy, new clothes, and communal feasting—now looms as a day of difficult choices for many residents.

On a street lined with small shops and busy pedestrians, our correspondent spoke to five Muslim residents to understand how they plan to navigate this celebration amidst mounting hardship.

For Aliyu Mohammed, a taxi driver, the fuel hike has directly slashed his earnings, forcing him to redraw his Eid budget entirely.
“Before now, it was tough, but we were managing,” Mohammed said, leaning against the bonnet of his taxi. “But this fuel price increase has finished our little remaining strength. I spend almost everything I make on fuel, leaving nothing for my family. For Eid, I had hoped to buy new clothes for my three children, but now I will be lucky if we can afford a good meal of rice and chicken. The celebration will be just in prayers. The joy is gone from it.”

A few meters away, Aisha Garba, a mother of four and food vendor, expressed her worries about the rising cost of food items. Her small business, which usually thrives in the week leading up to Eid, is struggling.
“People are not buying food like they used to,” she explained, stirring a large pot of stew. “The money they have is for transport to their villages or for small essentials. For my own family, Eid will be very simple. I planned to prepare traditional dishes like Masa and Taushe, but the price of rice, oil, and even sugar has gone up since the fuel hike. Everything is transported by road, so prices must rise. We will cook what we can afford and be grateful to Allah for seeing us through Ramadan. There will be no new furniture or special treats for the children.”

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For young men like Ibrahim Sani, the prospect of Eid is a painful reminder of his circumstances. He spends his days helping out at a friend’s phone-charging kiosk.
“Eid is supposed to be a reward after a month of patience,” Sani said, his voice low. “But what reward is there when you can’t even afford henna for your hands or a new pair of slippers? I cannot travel to see my family in Kano because transport fares have doubled. I will attend the Eid prayer at the central mosque and then probably spend the rest of the day here in Mararaba. The feeling is one of deep sadness. We are being squeezed from all sides.”

The hike has also affected community dynamics. Malam Yusuf Idris, a tailor, has seen a sharp decline in customers bringing fabric for Eid outfits. His shop, once a hub of activity, is quiet.
“This is usually my busiest time of the year,” Idris said, his measuring tape hanging idly around his neck. “But this year, people come, they ask for the price, and they leave. They can no longer afford to sew new clothes. I have also had to increase my prices because thread and other materials cost more now due to transport. It is a cycle. I fear many children in this neighborhood will go to the prayer ground in old clothes on Eid day. We will still celebrate, but the spirit is broken by this hardship.”

Yet, amidst the despair, there is a resilient focus on the spiritual core of the festival. Hajiya Fatima Abdullahi, a grandmother and respected elder in the community, embodies this quiet fortitude.
“The essence of Eid is not in new clothes or lavish food,” she said, sitting on a mat in front of her home. “Yes, the hardship is great. The fuel price has made everything more difficult for my children and neighbors. But we are Muslims. We have spent the last 30 days learning patience and gratitude. We will give our Zakat-ul-Fitr (obligatory charity) so that even the poorest can join in the celebration. On that day, we will put on our best clean clothes, even if they are old. We will go to the mosque to thank Allah for giving us the strength to fast. The celebration is in our hearts and in our prayers. We will not let hardship steal our faith.”

As the sun sets over Mararaba, the stories from the street paint a clear picture. The Eid-el-Fitr celebration this year will go ahead, but it will be a more somber, introspective affair. The double blow of persistent hardship and a fresh fuel hike has forced families to strip the festival down to its bare essentials: prayer, charity, and quiet gratitude for survival—leaving the traditional trappings of joy as an unaffordable luxury for many.

 

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