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BREAKING: Governors reject increase in VAT, express support for Tax Reform Bills

The Nigeria Governors’ Forum (NGF) has rejected the move to increase Value Added Tax (VAT).

The governors also expressed support for the ongoing legislative process of the Tax Reform Bills.

It also proposed an “equitable” sharing formula for value-added tax (VAT).

This development was an outcome of a meeting between the NGF and the presidential tax reform committee, convened on January 16, 2025, to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system.

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In a statement on Thursday signed by the Chairman of the Forum and Governor of Kwara State, Abdulrahman AbdulRazaq said: “We, members of the Nigeria Governors’ Forum (NGF) and presidential tax reform committee, convened on the 16th of January 2025 to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and arrived at the following resolutions:

“1. The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernizing the tax system to enhance fiscal stability and align with global best practices.

“2. The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: 50% based on equality, 30% based on derivation, and 20% based on population.

“3. Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability. The Forum advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.

“4. The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.

“5. The meeting supports the continuation of the legislative process at the National Assembly that will culminate in. the eventual passage of the Tax Reform Bills.”

January 16, 2025
Why Tinubu must stand firm on tax reform bills

Emmanuel Umohinyang, a seasoned social commentator, human rights activist and lawyer, played a pivotal role in the success of the All Progressives Congress (APC) during the 2023 presidential elections. As the Convener of the now-defunct Re-elect Buhari Movement (RBM), he was at the forefront of mobilising support for President Bola Tinubu’s victory at the polls. In this interview, Umohinyang reflects on the performance of the Tinubu administration, concluding that the opposition to tax reform bills stems largely from a lack of critical thinking and mental laziness among those criticising the proposals before the National Assembly. The human rights activist also shares his thoughts on various contemporary national issues. Associate Editor ADEKUNLE YUSUF brings excerpts:

I can say the government has done fairly well. Let me also say it has been a bumpy road. The government started with polices that successive administrations have been running away from. If you knew Tinubu as governor of Lagos State, he took some of the toughest decisions ever taken by his predecessors. In fact, he made nonsense of the Federal Government led by then President Olusegun Obasanjo. One of these was the ocean surge at the dreaded Bar Beach which the Federal Government was using to milk the treasury of the country back then. They used to sand fill the place every three weeks and shortly after, the ocean comes to clear everything. It was Bola Tinubu’s initiative to involve construction giants to deal with the issue by creating wave breakers.

Today, you can attest to what Ahmadu Bello Way has become, a place liveable by Nigerians and foreigners, unlike in the past. Yes, the Tinubu administration started with some very stringent policies that have not made the administration popular in the eyes of Nigerians. One of these is the removal of petrol subsidy which he announced on the first day of his inauguration and the forex equalisation where the official and black markets were merged. Naturally, those two policies will affect the purse of the common man. And the president had said if he had any other option, he would have taken such option. I also remember the issue of fuel subsidy removal had always been unpopular. In 2012, I was one of those who occupied Ojota against the (Goodluck) Jonathan administration. People have always mistaken that protest against the issue of subsidy. We never protested against removal of fuel subsidy; we protested against the corruption embedded in the subsidy regime, wherein many of those importers were doing round tripping in connivance with corrupt Customs officials at the ports.

Unlike in the past, governors are now going home with billions of naira as monthly allocation. If we had a well-structured system at the state and local government levels, the humongous resources available to them today would have impacted the people, but the Federal Government then had also been extravagant buying aircraft, yacht and exotic vehicles. I think the misconception has always been what people want to hear. I am not aware that there is any budget of the Federal Government that the issue of yacht was ever referred to and people must come to understand that what was presented was a yatch that was propagated by the Naval authorities and people claimed the president wanted a yacht for his comfort. That is not true. It was part of the equipment the Navy needed to function. People have also made reference to the presidential jet. I think the president was not really interested in any presidential jet. It is because of the state of the available aircraft. The aircraft are what you will not even want your enemy to fly in. It is a case of having many aircraft with none in a flying state. What he did was to sell some of the aircraft to buy a replacement. What was even procured was not a brand new aircraft. It was not even his desire to buy another aircraft. No citizen in the world wants to hear that his president died in an aircraft. I think these are security issues, and you must safeguard the sovereignty of your country. The president represents that sovereignty.

His views on some reform policies that have brought economic hardships

Honestly, I am one of those who have seen pain in the lives of Nigerians. So many Nigerians are struggling to feed on a daily basis. This is reality. I have visited the markets myself and I have also shared what the government should do in the New Year. I think Mr. President is working on that. We also cannot do without the partnership of the state governments and the local governments. Now that the local governments are operating with full autonomy, one is expecting them to key into the drive of the Federal Government in reducing anguish, pain and poverty in the lives of our people. The issue of hardship is real, the issue of poverty is real, the issue of suffering of Nigerians is real. The government is doing everything to take them out of pain. Insecurity is expensive because it requires a lot of money to contain. What is most important is the judicious use of available resources because there is no substitute for human life and the president has a constitutional duty to maintain lives and property. So, anything the government of Bola Ahmed Tinubu will do to protect the lives of Nigerians, he will do, no matter the cost; no matter what it will take.

Insecurity and the capacity of government to win the war

How we address the issue still goes down to the issue of agriculture. The government must be deliberate. The federal and state governments must be intentional about it and sufficient funds must be put in place to drive those mechanised processes. If not, it will be a case of removing fuel subsidy and leaving a vast majority of Nigerians in a basket of poverty. This is what the government must do, and do it deliberately and intentionally, to take the people out of poverty and return them to winning ways.

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A recent report indicated that the payment of ransom to kidnappers and bandits hit the trillion of naira mark as a sign that a lot still has to be done in the area of security in the country. Insecurity is a universal concept. There is insecurity in Benin, Niger, Ghana, Togo and Cameroun. Nigeria is surrounded by countries with very porous borders. However, we are working with our partners in these countries to see to it that these issues are addressed. You can agree that the issue of Boko Haram has been brought to minimal and controllable level. Banditry has also been tackled. I have always said that insecurity is not something you address over the shelf. The cost of one bomb is over $200,000 and so if government drops four of these bombs, which is close to the budget of a state.

Opposition to the Tax Reform Bills

I think the resentment has to do with knowledge gap. There is a misconception from some of our brothers from the North. It is not the North as a region because those resisting the bills are minute in number, powerful though. The tax reform is targeted at improving the life of the common man, whether in the South or the North. A lazy governor will definitely resist such. Why? It is because the tax reform is premised on hard work of individual states. If you are bringing so much to the table, that reform favours you, but for governors who want to go to Abuja for allocation and go back home and relax without doing anything. Such governors will not be happy. When you look at the context of those tax reform bills, you will see that they speak positively to the average man on the streets. It has taken the yoke of tax from him and placed the benefits on hardworking sub-regional governments. The tax is more about where the product is consumed, not about where the product is produced. It will trigger states to work more on consumption level in their states.

The poor are being exempted from paying tax. Where is the problem coming from? The majority of poverty index come from the North. Why are they saying the tax reform bills are anti-North when the poor will not be taxed? And the rich are the ones to pay tax. It is a case of taking from the rich to service the poor. But the rich are trying to revolt against the poor by driving the wrong narrative that the tax reform bills are anti-North. And they are trying to do this because they know that most of their followers will not have the luxury of time to look at the bills. But I am also happy that some of leaders from the North are now trying to drive the right narrative.

Why government can’t allow illegal modular refineries

Per adventure you have not seen what they call an illegal modular refinery is all about; it is nothing near a refinery. It is just somebody boiling oil using firewood and I am sure you can’t put such a thing in your car. I know you will not want to do that. When people are saying encourage them or legalise them (illegal modular refineries) to address the high cost of petrol, it is like saying legalise illegality. And as soon as you do that, you have opened the flood gate for theft of crude. It will be ridiculous of government to do that. People are saying why is the government damaging them (illegal refineries)? Before you know it, the corruption you are trying to solve will overshadow it.

I am not one of those people who want to smooth-talk a government that is not performing; I am not in that category. The late Chief Gani Fawehinmi taught us to stand for what is right, even if it means standing alone. Even when we are supporting a government, when that government is not doing well, we will say it. And we will say it openly and confront the government with it; we don’t need to hide behind something to say it; we must say it openly. Are we happy with what is happening? No, we are not. But we are seeing that there is a renewed hope, which is achievable if we can be patient with this government.

I fell in love with the (Muhammadu) Buhari administration not because he was going to do everything perfectly. By the way, perfection belongs to only God. What I have told the President is that, and he has accepted, is that the assets and liabilities of the Buhari administration are part of his own administration. All he needs to do is to ensure that what were those pitfalls the Buhari administration made that he can avoid. I think President Tinubu should sustain emphasis on roads construction and rehabilitation and rails because we need to open up more states. That is why I am happy with the Lagos-Calabar that he is doing. The Sokoto, Badagry, Jebba roads and many more the administration is doing. He must also avoid the mistake of Buhari, which is giving people assignment and going to sleep. That is why we have the Emefieles of this world who ran riot with public fund.

What will make him to withdraw his support for President Tinubu

The very minute the Bola Ahmed Tinubu administration deviates from the people-oriented programmes and policies it has started, I will withdraw my support. As long as his administration continues to pursue policies that can help to build a prosperous future for Nigeria and Nigerians, I will continue to support him and I have no regrets about it.

January 16, 2025
Tax Reform Bills: Senate panel, Fed Govt team meet

Attorney-General of the Federation and Minister of Justice Lateef Fagbemi, SAN, yesterday led Federal Government’s delegation the National Assembly Complex to meet with the Senate Ad hoc Committee on Tax Reform Bills.

The meeting, which held behind closed door, lasted for several hours.

With the AGF were: the Executive Chairman, Federal Inland Revenue Service (FIRS), Zach Adedeji; Chairman, Revenue Mobilisation Allocation and Fiscal Commission, Dr. Mohammed Bello Sheu and the Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele.

Some critics of the bills have been demanding wider consultation for clarifications on the grey areas, which they fear may injure their interest.

Governors Babagana Zulum (Borno), Bala Mohammed (Bauchi) and Abdullahi Sule (Nasarawa) as well some laemakers in the North have asked the government to pull the brake on the proposed legislation.

Borno South Senator Ali Ndume has been most critical of the proposed reforms, which many argue are long overdue.

President Bola Ahmed Tinubu had raised the Fagbemi-led team to interface with the federal lawmakers on the proposed reforms.

The bills are the Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

At the end of yesterday’s meeting, Senate Minority Leader, Abba Moro, told reporters that the session was fruitful, adding that the interactive session with the Federal Government’s delegation would continue.

Moro said: “We just had a meeting, an interface with the officials of government, the Attorney-General of the Federation, the Chairman of RMAFC and in the process of evaluating the contending tendencies regarding the tax bill and in the process, we have agreed among ourselves that we must synthesize the whole processes to ensure that at the end of the day, we give to Nigerians what Nigerians want and that is a law that serves the purpose of all Nigerians.

“So, that is where we are now and hopefully by the time we meet again we will finalize and we will have some better story to tell you.”

FIRS boss Adedeji expressed confidence that the proposed law would enjoy the support of the legislature in due course.

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He said: “So, what has happened today is that you see the framework of the law, you see the attorney-general, you see the lawmakers and all of us the operators and everything.

“All those things you call grey area were discussed, identified and then we are in the right direction and everything is going as planned.”

He also stated that all controversial issues on the tax bills were identified at the meeting and the issues were clarified.

Adedeji added: “There won’t be any other further meeting because all issues were identified, all the issues were clarified and then the resolutions were made in order to all those to the best knowledge of everybody there and then for the betterment of the country.”

Expressing confidence that the tax bills will be passed because they were in best interest of all, Adedeji said: “Not only confident because this is what is best for the country so it’s not only me, even the senators that brought us together, if they don’t see the positive part of it we will not be here.

“This is the first working day of the year and we are here because we all know this is what is needed, which is the consensus that all of us have said and then if I could hear Mr. President that we know we have to make the change. What we are doing now is just to make that change better for the greater number of people.”

The bills, which have passed a second reading in the Senate and referred to the Committee on Finance, they are yet to be debated in the House of Representatives.

Senators from the Southeast have said they are not against the bills but need to consult with their governors and other stakeholders in the region.

Southsouth senators warned people opposed to the tax bills to desist from introducing regional, ethnic or tribal sentiments when criticising them.

However, the Senate President, Godswill Akpabio, had assured that the National Assembly will do everything within its ability to ensure the passage of the tax bills.

January 14, 2025
Tax Reform Bills and economic outlook for 2025

The Year 2024 has been flogged to death! With 2025 now underway, it’s clear that this year will be crucial for Nigeria and Nigerians. To ensure a game-changing year, the government must develop a comprehensive framework to address the economic, social and political challenges ahead.

To begin with, President Bola Tinubu should leverage his political expertise to facilitate a consensus-driven approach to the Tax Reform Bills currently before the National Assembly. This requires negotiating with regional stakeholders, addressing politically-driven concerns, and finding common ground to ensure the Bills’ successful passage.

The Tax Reform Bills are to be commended as the much-needed attempt to get the country back to where it was before the suspension of the 1963 Republican Constitution by a misguided set of people in 1965. Yes, Nigeria must become a producer nation again! This is the only way to pull tens of millions out of poverty, create jobs and nurture a political economy based on shared economic prosperity.

The fantasy coming from some people that Nigeria can continue to defy the law of gravity and go on with the assumption-based political economy must be consigned to the dustbin. So, the Federal Government has a responsibility to push upfront an economic spokesperson who can present its economic position with the clear lucidity necessary to shift the territory of the debate in favour of its own position. This has to be done with the sense of urgency that the current situation demands!

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When President Tinubu took office, Nigeria faced significant challenges, including widespread insecurity, underdeveloped infrastructure and a debt service-to-revenue ratio of 97%. The country also struggled with a massive Forex backlog of $7 billion and many state governments’ inability to pay salaries. These pressing issues underscored the need for urgent reforms to get the country back on track.

By 2025, Nigeria’s economy is poised for growth, driven by increased oil production, projected to reach two million barrels per day, and enhanced domestic refining capabilities. Building on recent momentum, Nigeria has achieved notable economic gains, with its Gross Domestic Product (GDP) growing by 3.46% and unemployment rates decreasing to 4.3%. The country’s fuel imports are also declining rapidly, and it has begun exporting Premium Motor Spirit (PMS) to West Africa and Europe.

Contrary to former Vice President Atiku Abubakar’s claims, Nigeria has made significant strides in managing its debt. The country has reduced its revenue-debt service ratio from over 90% to 64%, indicating a marked improvement in its debt management. Furthermore, Nigeria’s foreign reserves have increased substantially to over $40 billion, despite the challenges of servicing external debts and clearing foreign exchange backlogs. These positive developments are expected to strengthen the naira, ultimately leading to a reduction in the cost of goods and services.

Infrastructure development is another area where Nigeria is making progress. The Lagos-Calabar coastal road is under construction and it’ll soon be the turn of the Sokoto-Badagry highway. Likewise, initiatives such as the student loan scheme by NELFUND and consumer credit by CrediCorpNG are gaining traction, providing financial support to individuals and businesses.

The Tinubu-led government is taking steps to promote autonomy for local governments, modernize the livestock industry and restructure social investment programs. Efforts to address insecurity, such as (the detention of) Simon Ekpa, banditry and farmers-herders clashes, are also yielding positive results, indicating improved social cohesion.

To effectively address inflation in 2025, the government should consider implementing a comprehensive Inflation Reduction Act. But then, this would require strong political will! Key components of the Act should include cost-efficiency measures, such as implementing the Oronsaye Report and designating a cost-efficiency czar – preferably the Minister of State in the Ministry of Finance or the Secretary to the Government of the Federation. This czar would be responsible for overseeing the implementation of performance-based budgeting, ensuring the budget is aligned with specific timelines and objectives.

The National Assembly should adopt a Performance Planning Budgeting System for its oversight functions. It is alarming that, since 1999, the Assembly has not established a Congressional Budgeting Office to provide technical expertise. This oversight contributes to Nigeria’s underperformance, and the current Assembly must address this flaw. To tackle economic challenges, implementing the Inflation Reduction Act and declaring a State of Emergency in ports and trade facilitation systems could help streamline trade processes, reduce inflation, and stimulate growth.

Nigeria must revamp its trade facilitation mechanisms. There’s no alternative! This overhaul should be accompanied by an Inflation Reduction Act that fosters partnerships with the states and local governments to revamp rural roads and promote integrated rural development. To combat food price inflation, the president should reinvigorate his commitment to creating an enabling environment for modern commodity exchanges. These exchanges are a crucial tool in reducing inflation and addressing the current economic challenges. Ultimately, the government must prioritize inflation reduction in its economic policy and ensure this goal is reflected in the 2025 budget.

It is our belief that there’s already a Technical Committee in progress, examining what will be the signs and wonders of the Trump Presidency in terms of the global cost of oil prices and the effects of proposed tariff hikes on international trade. Since we are not God, instead of questioning Donald Trump’s character, we must be as proactive as we were in responding to the devaluation of the British Pound Sterling in 1967. Nigeria’s response to the British devaluation as a member of the Sterling Group earned the country great plaudits and admiration across the world. Essentially therefore, there must be a plan! Before we start clapping for Trump, there must be strategies in place to project his policies rather than his character!

A Trump Presidency begins on January 20; and, like the Boy Scout, Nigeria must be prepared! It is to be hoped that a savvy international trade negotiating team is already in place. It is going to be very hard! We must be prepared!

January 11, 2025
Tax Reform Bills: WRO urges NASS to grant states exclusive VAT collection rights

The Western Region Organization (WRO), a global movement advocating for a return to regional governance in Nigeria, has called on the National Assembly to transfer the authority to collect Value Added Tax (VAT) exclusively to states.

In a statement, the WRO urged lawmakers to amend the tax reform bills to allow states to collect and utilize VAT generated within their territories.

According to Mr. Banji Ayiloge, the Executive Director of the organization, such amendments would ensure that the tax reform bills are fair and align with the principles of a true federal system.

“WRO strongly believes that Value-added taxes ought to be in the purview of the states, and the states need the tax to raise significant revenue to develop their areas.

“We frown at the federal government mopping up VAT funds from the states and redistributing them, an act that is not federalism in any fashion but unbridled state socialism, which seeks equality by creating an unequal distribution of resources, which ultimately rewards visionless leaders in some states.

“This is patently unacceptable because it lacks vision and offends the principle of fairness and justice,” the group said.

Ayiloge said that such an amendment and its speedy passage would ensure equity and justice in the nation’s tax system and enable states to use VAT to spur development in their respective domains.

According to the organization, reverting VAT to states would be “the best political decision since the military coup of January 15, 1966, which dismantled the Regional Government arrangement negotiated by Nigeria’s nationalists.

Read Also: Support tax reform bills, ex-Rep. Egoh tells Northern govs

“The negotiated agreement resulted in Nigeria becoming a genuine federal republic with four autonomous regions until 1966.

Ayiloge recalled that VAT was first introduced by the former Ogun state governor, Bisi Onabanjo during the second Republic before the Babangida Junta highjacked it and made it the federal government’s programme.

“Therefore, it is inconceivable that a Bola Tinubu administration that is supposed to be quite perceptive of these issues will succumb to blackmail and harassment to support a scheme that is patently illegal and deficient.

The group said it was time to correct the penchant of some leaders who usually cry foul whenever policies designed to end unfair advantage forced on the rest of the country by past leaders were corrected.

“They have gotten away with these selfish acts for far too long, and this clique of Northern leaders resisted any attempt to redirect national policies toward equitable and progressive policies, which they frowned upon.

Ayiloge said there must be a change of policies “as southern Nigeria is tired of carrying the burden of others since the amalgamation of 1914.

“The propensity by other regions to focus more on intangible things to the detriment of the productive and forward-looking efforts of leaders from the South has resulted in the perilous state in which the nation has found itself,” the group said.

He urged all regions to direct their energies to productive uses of the vast resources available in their respective regions.

According to him, the North’s extensive land area is favourable to mechanized farming, and if properly utilized, it could serve as Nigeria’s breadbasket.

January 10, 2025
Support tax reform bills, ex-Rep. Egoh tells Northern govs

A former member of the House of Representatives, Mr Oghene Egoh, has urged governors of states in the north to support the tax reform bills before the National Assembly.

Egoh made the plea in an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos.

The former federal lawmaker urged the governors to seek more clarification for a better understanding of the provisions of the tax reform bills rather than outright opposition.

“Some governments in the north condemed President Tinubu’s tax bill because they do not understand it.

“Some of the governors said that it will make their states to be poorer.

“The purpose of the tax reform bills is to ease collection of tax, to streamline the various laws in the country and to make it easier to collect more tax across the states.

“The reform will provide enough money to be distributed to all states and also there will be enough money to run capital projects among other benefits,” Egoh said.

He further said that the tax reform would ensure more revenue that would be available to the states and federal governments.

Egoh said that with the act, money generated through VAT and other taxes would be enormous, adding that every state would earn more money.

The former lawmaker said that under the proposed bill less money would be remitted to federal government while higher per centage would go to the states.

He said if the bills were passed and properly implemented, no state would become poorer.

“What worries some governors about the reform is that Lagos State will get more money due to revenue collection, but it does not make any difference because Lagos State is not getting money from petroleum derivation.

“Lagos State budget is the highest in the federation because they have Internal Generated Revenue, which is more than revenue generated by 10 states put together.

“Other states should work harder to improve their Internally Generated Revenue, the same principle of tax that relates to various states is what also relates to Lagos State.

“The more economic activity the state has the more VAT it will collect and this will make state governments to put in efforts to collect the VAT,” Egoh added.

He said that with collection of VAT, over 60 per cent would go to the state while the balance would go into the federated account for division.

“I cannot imagine how a state like Ekiti, which has small population and commercial activity, will be able to collect VAT more than Kano State; also Ebonyi, Cross River that have little oil derivation will get more money than Kano or Kaduna,” Egoh said.

He said that every state had it own economy indexes, adding that there were lots of agricultural produce coming from the north which VAT could be generated from.

Read Also: Tax Reform Bills: NEF call for dialogue, inclusive policies

Egoh urged state governments to give Mr President a chance to change the narrative to enable more development in the country through collection of VAT.

The News Agency of Nigeria (NAN) reports that President Bola Tinubu transmitted four tax reform bills to the National Assembly on Oct. 3, 2024.

NAN also reports that the bills were the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

The bills would overhaul tax administration and revenue generation in Nigeria, as many of the provisions contained in them were landmark in nature.

(NAN)

January 7, 2025
Tax Reform Bills: Bwala urges governors to liaise with lawmakers for harmony
- North’s groups back Bala Mohammed’s position
The Special Adviser to the President on Policy Communication, Daniel Bwala, has urged governors across the 36 states to discuss their areas of concerns on the proposed Tax Reform Bills with lawmakers in their domains.

Bwala’s advice followed a statement by Bauchi State Governor Bala Mohammed, who accused the Presidency of ignoring public concerns over the proposed Bills.

Mohammed had warned that the Bills, if passed, could have “concomitant effects” on the financial stability of the states and worsen the economic hardship Nigerians are facing.

“We believe that as the leader of the federation and all other federating units, they should listen to us, not act arrogantly, or show impunity as though they can proceed, regardless,” the governor said.

But speaking yesterday on a national television programme, Bwala reminded critics of the proposed Tax Reform Bills that they were under the purview of the National Assembly.

The presidential aide rejected the governor’s claims, arguing that the President’s actions demonstrated his responsiveness to the observations from Nigerians.

He added that President Bola Ahmed Tinubu had not bypassed democratic processes in pushing through his administration’s reforms.

Bwala said governors that were critical to the reforms should engage lawmakers from their states to express their concerns rather than apportion blames to the President.

“The part I disagreed with him (Bauchi governor) is that he created the insinuation that the President does not listen.

Read Also: Tax Reform Bills: Why North shouldn’t fear, by Senator Wadada

“If a group of governors does not get the President to do their bidding, it does not mean he is not responding to Nigerians because the governors are 37 — including the FCT ministers — but Nigerians are over 200 million.

“I think that rather than scapegoating and blackmailing the President, the governors should talk to their lawmakers.

“It is a democracy. He has presented the Bills to the National Assembly. It is the National Assembly that will deliberate and do what they need to do in the process of the passage.

“If a governor has a concern after having a conversation with the Federal Government, he should dialogue with National Assembly members in his state to articulate his concern. At the end of the day, it will come down to voting,” he said.

During a presidential media chat last month, President Tinubu said the Tax Reform Bills “have come to stay”.

The President also signalled a willingness to make concessions to address stakeholders’ concerns.

Also, two northern groups – the Coalition of Northern Groups (CNG) and the North Central Citizens Council (NCCC) – have expressed support for the position of Bauchi State Governor Bala Mohammed on the proposed Tax Reform Bills.

The CNG condemned the Presidency for allegedly threatening the governor over his comment on the proposed Bills.

The NCCC urged President Tinubu to withdraw the controversial Bills, warning that the North might be compelled to “show its true colour” if their concerns were ignored.

In a statement by its National Coordinator, Jamilu Aliyu Charanchi, the CNG faulted the response by the Special Adviser to the President on Media and Public Communication, Sunday Dare.

It said: “We find it significant to remind all and sundry that Governor Mohammed’s comments were completely acceptable and constructive in a democratic system that encourages dialogic conversations, which he made in the spirit of advocating for the welfare of Bauchi State and the broader Northern region within the Nigerian political milieu.

“His statement – ‘We will show President Tinubu our true colour’ – was a call for sincere and constructive dialogue with the Federal Government, not a threat.

“Governor Mohammed’s remarks echo the frustrations and concerns of countless Nigerians who believe that the Tax Reforms must not be implemented in a manner that is unjust, divisive, and deliberately skewed to favour a few states over the majority.

“Regrettably, instead of heeding the governor’s wise counsel and constructive criticism that has been already echoed by a vast majority of Nigerians, the Presidency snarled in response, …simply because of their unwillingness to swallow the pill of a bitter truth…

“The CNG stands resolutely behind Governor Mohammed on this issue of tax reform and his unwavering dedication to advocating for the needs and interests of his people, exercising his constitutional freedom. For any democracy to thrive, open and honest dialogue is essential for achieving meaningful progress and fostering national cohesion…”

In a statement in Abuja by its Coordinator, Mohammed Eneji, the NCCC said: “Governor Bala Mohammed has the right to speak for his people as a governor who forms a subnational under the Tinubu-led government and as such deserves to be heard. Instead of Sunday Dare calling Governor Mohammed’s comments as a threat, the government should rather listen to the voice of reasoning, which is the voice of the general North.

“We from the North Central Zone advise the Presidency to heed the warning of the governor as frustration continues to mount from average citizens due to the current harsh economic situation, the North may be forced to withdraw their support for President Bola Ahmed Tinubu, if policies, such as the Tax Reform Bills, which are directly targeted on further plunging the region into abject poverty and underdevelopment, see the light of the day…”

The group tabled some demands for the Tinubu administration to address.

“What the regions are asking from the President are as follows: provide us with tight security for our farmers to access their farmlands. This will boost agriculture and provide food for the citizens and for export.

“Revive the Ajaokuta Steel Company to full capacity; develop other solid mineral resources in the entire northern region; open all our land borders so that the region can be open for business again; and develop all our sea and dry ports, and so on,” the NCCC added.
January 2, 2025
Budget, Tax Reform Bills, oil sector probe, constitution review top Senate’s agenda for 2025

The consideration and passage of the N49.7trillion 2025 Appropriation Bill, Tax Reform Bills and probe of alleged economic sabotage in the petroleum industry will top the key focus of the Senate in 2025, it has been learnt.

The Majority Leader of the Senate, Senator Michael Opeyemi Bamidele (APC – Ekiti Central) who disclosed this in his New Year message to Nigerians, also said that red chamber would also devote significant attention to the amendment of the Constitution and key economic reform initiatives that have been in the pipeline to open up Nigeria for real businesses that will throw up limitless opportunities.

Bamidele said with ongoing reform initiatives of the present administration, the country will not only record greater opportunities and become more stable, fiscally and monetarily.

The Senate Leader’s statement titled: Another year of limitless opportunities, reads: “2024 has finally rolled into the archive of history. It was quite a challenging year dotted with tough economic realities that triggered public discontent nationwide.

“Inflation, driven by foreign exchange instability, was a major concern with its attendant consequences upon the purchasing powers of most Nigerians. All these realities, among others, are no doubt a real test of our resolve as representatives of the people to decisively, effectively and efficiently respond to issues of strategic national interests.

“This time, though challenging and tough, truly brought the best out of the National Assembly. It inspired us all to work together and promote diverse initiatives aimed at addressing the roots of our socio-economic challenges.

“The initiatives have already started redefining our business environment rapidly, boosting investors’ confidence in our domestic economy and creating limitless opportunities for compatriots across the strata.

“And with all these reforms, Nigeria will definitely record greater opportunities in this year. So far, I can confidently say Nigeria is gradually becoming more stable, fiscally and monetarily.

“With the multi-tiered interventions by the Presidency and National Assembly, for instance, Dangote Refinery and Petrochemicals commenced operations within the 2024 fiscal year.

“Likewise, Port Harcourt Refining Company and Warri Refining & Petrochemicals Company are now back to operations after almost two decades of dysfunction. The operations of these refineries are a testament to the political will of the government of All Progressives Congress to reverse all negative trends that plague our economy and polity.

“Beyond the downstream petroleum sector, the National Assembly has leveraged its multi-tiered interventions in virtually all strategic sectors to reverse the regression that the country recorded at different times between 2011 and 2023. The approach has spurred steady growth in our gross domestic products all through 2024.

“It has sustainably translated to 2.98% growth in the first quarter; 3.19% in the second quarter; 3.46% in the third quarter and may be as high as 4% in the fourth quarter. Also, our debt-service-revenue ratio has shrunk from 97% in June 2023 to 65% in November 2024, and I believe the margin will further shrink in the new year we began on Wednesday.

“Each of these records is indeed a great leap forward, and our parliamentary agenda that emphasises strategic collaboration among government arms without prejudice to our constitutionally guaranteed independence has made it obviously attainable.

“All these outcomes simply mean Nigeria is now out of the vicious cycle of fuel importation that cost her $600 million, which annually translates to $7.2 billion. It also means the operations of these refineries will significantly reduce undue pressure on the Naira; guarantee stability in the foreign exchange market and trigger an unprecedented crash of consumer price index, often used to measure inflation.

“For me, these are signs of a greater tomorrow that await our compatriots regardless of their economic, political or social status.

“No doubt, the outcome of the multi-tiered initiatives has been impressive and stimulating. But that does not suggest that the National Assembly will now rest on its oars and go to bed. Never!

“Rather, as an institution, we duly appreciate the tasks before us. We also understand the urgency of providing decisive institutional responses that will guarantee the stability of our fatherland, whether economically or politically, culturally or socially.

“For this reason, we will dutifully sustain this drive to deepen global best practice in the country’s petroleum industry. This is the rationale behind the Senate Ad-hoc Committee to Investigate Alleged Economic Sabotage in the Nigerian Petroleum Industry.

“Considering the significance of the Committee, the National Assembly has initiated the process to constitute a joint committee of the Senate and House of Representatives to look more decisively and incisively into diverse issues spurring infraction and sabotage in the petroleum.

“Now, the previous year has successfully paved the way for 2025, another year that presents boundless opportunities and cautious optimism, clear direction and strategic engagement, relentless pursuit and remarkable turnaround.

“We look forward to highly challenging sessions that will be devoted to pursue our collective aspiration of a greater Nigeria.

“We recognise that a number of unfinished tasks are currently pending before the two chambers of the National Assembly. But consistent with the principles of rational choice, we address each of these tasks in order of national priority or significance.

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“Consequently, the next few weeks will be devoted to the scrutiny of the Appropriation Bill, 2025; Tax Reform Bills, 2024; investigation of economic sabotage in the petroleum industry, amendment of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and key economic reform initiatives that have been in the pipeline to open up Nigeria for real businesses that will throw up limitless opportunities.

“Can we achieve any of our priorities without the support of the key actors, largely the people and civil society, the media and religious institutions, the private sector and government agencies, the international community and key social institutions?

“Obviously, we cannot do it alone. We are representatives of the people, who convincingly employed us through the ballots. Our effectiveness, therefore, is purely dependent on the extent to which we cultivate and sustain collaboration with our employers to promote our collective interests.”

January 1, 2025
Tax Reform Bills: Why North shouldn’t fear, by Senator Wadada

The senator representing Nasarawa West on the platform of the Social Democratic Party (SDP), Ahmed Aliyu Wadada, has dismissed claims that President Bola Ahmed Tinubu is fighting the North by introducing the Tax Reforms Bills currently before the National Assembly.

Wadada said this while addressing repiorters in Abuja.

According to the lawmaker, with all the positive interventions by the Tinubu administration in the North, such as the AKK, revocation and re-awarding of the Abuja-Kaduna-Kano road, Sokoto-Badagri superhighway, commitment to tackling insecurity, amongst others, the President cannot be fighting the same North simply because he is introducing tax reforms.

Wadada, who doubles as the Chairman of the Senate Committee on Public Accounts, noted that the fears emanating from the intended reforms are unnecessary.

The Sarkin Yakin Keffi explained that even if the President was fighting the North, the region has the requisite capacity to fight back.

“First and foremost, no northerner should be afraid of tax or taxes. We set the pace in this country through community taxes, cattle tax, among others. Some citizens of this country were educated with that. We were ahead of everybody. We were paying taxes when other citizens of Nigeria were not paying taxes because the southern part of Nigeria had no cattle tax or community tax. We set the pace.

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“We are not afraid of the tax reforms because so long as we desire the much we want from government, it cannot happen without the needed level of resources being obtained,” he said.

Wadada stressed that even though there were grey areas in the Tax Reforms Bills, which could be addressed through consultations, President Tinubu had no any ulterior intention against the North.

The Nasarawa West senator attributed the outcries against the reforms to the general tendency to resist change.

“I think anybody that comes to fight the North, the North has the requisite capacity to fight back. We will always fight for our people. But for me, I wouldn’t be carried away by street talks. I will always talk based on my understanding of the situation.

“There are the areas that are yet to be cleared. Permit me to say I don’t think in any way at all President Bola Ahmed Tinubu’s administration means bad for any part of Nigeria. But when you are introducing something new to the people, there must be deeper or wider consultation,” he added.

Wadada also dismissed insinuations that the tax reforms might affect the second term ambition of the President simply because he, in his characteristic leadership style, was introducing some unprecedented and unexpected changes in the economy.

“You see, life is dynamic. If because of the Tax Reforms Bills we are quick to pass judgment on 2027, we may be wrong. What if before 2025 he introduced something that the entire North jumped into?

“I don’t want to go to 2027; let’s confine ourselves to now. As far as the administration of President Tinubu is concerned, my dear Nigerians, I have this to say and I will take from the quote of our famous Comrade Balarabe Musa, the Second Republic governor of Kaduna State and I quote: ‘We are today living in times of great changes, the old orders are crumbling fast, while new systems of life and activities are emerging. Our task is to understand these changes and utilise them for human progress.’

“The link is that Bola Ahmed Tinubu is today the President of Nigeria and he is introducing some unprecedented and unexpected changes. These changes are rolling out the old orders, introducing new orders and contemporariness in governance. Our task is to understand these changes and utilize them for the betterment of Nigeria,” he said.

Wadada explained that some of the interventions by the Tinubu administration in the North, mentioned above, have the capacity to maximally transform the North and to further emancipate the region economically.

“If President Tinubu truly, as wrongly conveyed by some people, was detrimental or was out to be against the North, there are things also happening in the North whose credit should be given to him.

“The last administration awarded the contract of the Abuja-Kaduna-Kano road which wasn’t completed up till the time the administration left office.

“In the history of Nigeria, never was any project revoked from Julius Berger. But Asiwaju revoked that contract from Julius Berger. The contract was re-awarded to a different company for Abuja to Kaduna to be a reality. The AKK – the Ajaokuta-Kaduna-Kano – is on. The Sokoto-Badagri superhighway was conceptualised during President Shehu Shagari’s administration (in the Second Republic), but President Bola Ahmed Tinubu turned it around to start from Sokoto to Badagri.

“Within that stretch, there are about 40 dams that are not put into full utilisation. The idea is to open that corridor so that these dams can be better utilised for irrigation programmes and what have you…”

“On that stretch, recently, he was in Brazil and some undertaking was signed on livestock. If that road is constructed, silos would also be constructed within that corridor at various points so that what is being obtained today, with cattle being conveyed from Sokoto to Lagos, Port Harcourt, with vehicles breaking down along the road; all that will all stop. There will be ranches. Brazilians will come in partnership with Nigeria to establish ranches in that corridor,” he added.

The Sarkin Yakin Keffi argued that the Tax Reforms Bills might not be not perfect as there were grey areas that needed to be addressed.

According to him, there is a need for wider consultations to enable the President achieve his desire for fairness in the sharing of the Value Added Tax (VAT), which has been the major bone of contention.

“When you are introducing something new to the people, there must be deeper or wider consultations. What is happening between the Attorney-General of the Federation and the legislators should have happened before introducing the Tax Reforms Bills. I am not his spokesperson, but I am the spokesperson of my people in Nasarawa West Senatorial District. I will always say it the way it is to the best of my knowledge,” Wadada said.

The senator noted that the fairness envisaged by the President, which propelled him to undertake the reforms of the country’s tax systems, could only be achieved through consultations.

“The most controversial and ambiguous aspect of the Tax Reforms Bills is the VAT aspect of it. My understanding of it, rightly or wrongly, is that the President envisages fairness as he packages it, as he portrays it, based on what is contained in the document. But the practicability of it is the difficult aspect of the Value Added Tax.

“If VAT is Value Added Tax, what is the crux of the matter? VAT is a consumption tax. What part of the country has the highest population? It’s the North. So, we are VAT because we consume more than any other part of the country,” he added.

December 30, 2024
Tax Reform Bills: Narrative around derivation model false, says Senate Leader Opeyemi

…Reveals what Kano, Zamfara, Lagos, Rivers will get as VAT

Senate Leader Opeyemi Bamidele has assured Nigerians that the Senate is attentive to the concerns raised regarding the Tax Reform Bills.

In his Christmas message on Wednesday, Bamidele congratulated Nigerians on the festive season and called for their unwavering support for the nation’s leadership.

He urged citizens to remain steadfast, drawing strength from their faith, as they work together to rebuild and rebrand the country for greater socio-economic prosperity.

Bamidele’s message emphasized the importance of collective effort in driving national growth while celebrating the spirit of Christmas.

He said: “Christmas, again, presents humanity with the opportunity to appreciate God Almighty for His redemption plan and the birth of Jesus Christ, whom we are all celebrating today.

“Christ is indeed the real reason for this season and nothing more. It is not just a season for wining and dining, but also one of deep reflection about Christ’s birth and mission, His care and love, and His sacrifice and travail for us all, even for the unborn generations.

“The reason for the season is, no doubt, a huge lesson for all humanity, far and near. As we celebrate His faithfulness and goodness in our homes, we must also remember the needy in our neighbourhoods and consciously minister to them as Christ would have done.

“We need to reflect on the plight of the vulnerable nationwide and rekindle enduring hope in their hearts. We must reach out to those in troubled areas and show them the care of Christ our Lord.

“In this season and beyond, we must likewise remember Nigeria, our Fatherland, and the only country of our common heritage.

“With the zeal of our Lord, we must offer our timeless prayers for the renaissance of our Fatherland, for the restoration of her economy, for the stability of her polity, for the cohesion of her people across the Niger, and the manifestation of her glory in the league of Nations.

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“This is the season never to shy away from the eternal responsibilities God Almighty has committed to our hands. This is the season to renew our resolve to faithfully stand with the political leadership for the renewal of hope.

“This is the season to halt the search for pastures that are never green, but the time to join hands to build our Nation with conviction and rebrand it for the ceaseless inflow of global capital and the endless troupe of global tourists.

“This is the spirit behind key legislations and reforms we have promoted in the 10th National Assembly. From the Tax Reform Bills of 2024 to the National Minimum Wage Act of 2024, the Investment and Securities Act of 2024, and the National Ranches Commission Establishment Bill of 2024, among others, we are simply committed to building an environment where businesses can operate seamlessly; where investors will never think twice before they bring in their capital; where our compatriots can freely breathe without undue burden and where the next generations will be proud at all times.

“We are pursuing each of these reforms purely in love for our countrymen, as Christ our Lord has commanded.”

On the tax reform bills, he stated: “This intention is more than evident in the case of the Tax Reform Bills 2024, a set of four initiatives consciously designed to reverse the country’s disturbing economic indicators.

“We have taken due note of public concerns about these initiatives. We are, as well, looking deeply into the areas of public concern.

“Our duty, as democrats, is not just to listen to our constituents, but also to give effect to policy initiatives that will positively impact their lives.

“For the record, the Tax Reform Bills, when finally enacted, utterly exempt all employees earning N1,000,000 annually or N83,000 monthly; exempt start-ups, shared services, and technologically driven services from taxation; and recommend zero VAT on essential services and consumption.

“Even though it reviews the derivation formula to 60%, this proposal is guided purely by the principles of equity, fairness, and justice. The new model will eventually guarantee a significant increase in VAT distributable to every state of the federation.

“As credible data have shown, for instance, the new model recommends 6.17% to Kano compared to 0.89% currently due to it.

“It recommends 1.21% for Zamfara compared to 0.05%. Currently, Lagos receives 80.26%, but the new model only recommends 15.28%, representing an 81% decrease.

“Under the new model, also, Rivers’ share will decline from 7.74% to 4.6%, accounting for 41%. With these figures, the narrative around the new derivation model is utterly incorrect and unfounded.

“Amid the debates about the Tax Reform Bills, as Christ, our Lord has taught us and as the Parliament of the people, we shall never pursue any agenda outside our oath of allegiance or undertake policy initiatives that are adversarial to or conflict with the interests and welfare of all our constituents and indeed our Fatherland.

“With all my heart, I wish you all happy celebrations in this season of deep reflection. Merry Christmas and a Happy New Year in advance.

December 25, 2024