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Tag: tax reform Bills

  • Opposition to proposed tax reform bills will fail, says ex-NADECO scribe

    Opposition to proposed tax reform bills will fail, says ex-NADECO scribe

    …reforms amount to taking a shot at fiscal federalism

    Former scribe of the defunct National Democratic Coalition (NADECO), Ayo Opadokun, has described opposition to the proposed tax reform bills of President Bola Tinubu as unthinkable.

    The Afenifere chieftain added that all right-thinking individuals should commend the president for the tax reform bills.

    Pa Opadokun stated that President Tinubu, through the tax reform bills, is “taking a shot at fiscal federalism.”

    He said: “Some people, rather than accept the facts regarding the necessity for our restoration to federal constitutional governance, keep on hypocritically telling us that the problem of Nigeria is leadership. When you say you have numbers, the tax you pay ordinarily does not amount to anything.

    “What the president is trying to do in this instance of the tax reform bills should be commended by any right-thinking individual. For the first time, he wants to use the bills to take a shot at fiscal federalism.”

    Opadokun spoke with reporters in Offa, Kwara State, on the sidelines of his yearly Christmas carol themed ‘Rejoice.’

    The elder statesman added that “they have gone to the extent of making sufficient clarifications so that well-meaning individuals who are not prejudiced, jaundiced, and not ethnically preoccupied will not oppose the bill.

    Read Also: Outcry against Tax Reform Bills misplaced, says Senator Umeh

    “When I listen to some of those claiming to represent the North on the matter, I wonder which North they are referring to.

    “I know that, by the circumstances of the moment, those opposed to the bills are not likely to succeed. Most parts of the country are ready for the bills to succeed.

    “Those grandstanding as if the bills will not favour them are doing so because they cannot continue to do what they have been doing: falsifying figures to enrich themselves while taking cognizance of their culture and tradition.”

    Speaking further, he urged the president to return Nigeria to true federal constitutional governance, saying, ‘It is the foundation upon which Nigeria gained independence.”

    He asked President Tinubu to take decisive steps in correcting historical wrongs and restoring the nation to its original federal structure.

    “The nation must return to federal constitutional governance; that is upon which we secured our independence. All that we are doing is chasing shadows,” he added.

    Reflecting on Nigeria’s socio-economic challenges, Opadokun attributed the nation’s struggles to years of mismanagement, particularly during military regimes. He highlighted the naira’s decline during the Ibrahim Babangida administration as a turning point for the economy.

    “Before Babangida came into office, the naira was stronger than the dollar. Within a year or two, it became three naira to a dollar. By the time he left, the situation was far worse,” he said, describing the nation’s economic plight as “beggarly.”

    Opadokun also criticised the long-term effects of colonial rule and military interventions, blaming them for eroding Nigeria’s cultural and educational values.

    “The British and the military destroyed our national values and substituted them with theirs. Missionaries had once pleaded for the use of local languages to teach children, but they were refused. Today, Nigeria is the largest English-speaking country in the world,” he said.

    He further challenged Nigerians to reflect on their roles in the nation’s challenges, emphasising the need for societal reforms and collective responsibility.

    “Many of us, both in the lower and elite cadres, have been complicit in perverting societal values. The middle class has been obliterated, and most of the wealthy today benefited from the military’s misguided policies,” he added.

  • Outcry against Tax Reform Bills misplaced, says Senator Umeh

    Outcry against Tax Reform Bills misplaced, says Senator Umeh

    Senator Victor Umeh (LP – Anambra Central) said on Monday that there was nothing to fear regarding the tax reform bills currently before the National Assembly for consideration and passage.

    President Bola Ahmed Tinubu transmitted four tax reform bills to the National Assembly for consideration in October, which, according to him, aimed to strengthen Nigeria’s fiscal institutions and ensure the actualisation of his administration’s comprehensive development plans for the country. Tinubu’s introduction of the bills provoked a public outcry, sparking widespread debate across Nigeria.

    Umeh, who spoke to reporters in Abuja, noted, however, that amidst the resentment against the proposed tax reforms, the Federal Government only needs to do what is necessary by properly marketing the bills to Nigerians for a better understanding of their contents to clear any doubts.

    He maintained that many issues have gone wrong in the country, resulting in citizens’ loss of confidence in governance, as they are unwilling to pay the taxes charged by the government, believing that these taxes will not be judiciously utilised for their intended purposes.

    Umeh, who is the Chairman of the Senate Committee on Diaspora Matters and Non-Governmental Organisations (NGOs), further observed that reforms are necessary steps and actions that the government must take to bring about the changes that would guarantee the growth of the country’s economy and improve life for the people.

    “Globally, what people don’t like to do is pay tax. Nobody likes paying money. However, a system that works effectively would earn the confidence of its citizens to pay taxes. When you charge a tax that people are unwilling to pay and subsequently use force to collect it, it is not a good tax.

    “Any tax collected by force is not a good tax. A good tax is one that people will willingly pay. Hence, it will be easy to administer, and the collection process will be straightforward.

    Read Also: Dogara, NLC differ on Tax Reform Bills

    “If they know that the money they are paying is used by the government to provide infrastructure and services, people will be more persuaded to pay tax. But in the current state of Nigeria, we find ourselves in a situation where the Nigerian people have lost faith in governance.

    “So, any action that is geared towards taxing citizens will receive immediate rejection. And that is what we are witnessing with the tax bills.

    “People have not been able to read the bills. They have continued to rely on social media posts to condemn the proposed tax reforms. I have read the tax reform bills, and I can tell you that as much as we will be conducting consultations, I have not seen anything in the bills that is particularly harmful and should warrant total rejection.

    “What we need to do is explain and ensure that people understand the purpose and intent of the bills. Therefore, the government has a great deal of work to do to market its objectives to the Nigerian people and undertake actions that will promote confidence among Nigerians.

    “The drivers of the government should be able to show that they are ready to be like ordinary people. So that when you ask Nigerians to pay money, they will know that they are not paying this money for you to buy luxuries for yourself and your family,” Umeh stated.

    He added: “If you subject the tax reform bills to critical analysis, you will see that most of the resentment and outcry is misplaced. I have studied the bills, and I don’t believe there should be any cause for alarm.

    “Most of the objections raised against the bills are unfounded. People assumed that there was an intention to make Lagos and Ogun states take all the money that would accrue from VAT.

    “They felt that because the headquarters of all the big corporations and companies are registered in Lagos, any tax they collect would go to Lagos State. This is not true. People have demonstrated ignorance of such a position on social media. However, if you take the time to study the bills, you will see that this is not accurate.

    He, however, averred that “The citizens have the right to reject any good law. You can have a good bill, yet the citizens can reject it. Once they reject it, the bill is gone. That is why the government has a substantial marketing effort to make in order to convince the Nigerian people. Because lawmaking involves citizens’ participation.

    “The bills will go through public hearing, and the preponderant opinion of Nigerians will prevail. If they declare that they don’t want the tax bill, we cannot proceed to pass the bill. Thus, the government has a great deal of work to do.

  • Rivers Baptist Conference hails Tinubu’s Tax Reform bills, reduction in farmers, herders clash 

    Rivers Baptist Conference hails Tinubu’s Tax Reform bills, reduction in farmers, herders clash 

    The Rivers Baptist Conference (RBC) has expressed support for the Tax Reform Bills recently introduced by President Bola Ahmed Tinubu’s administration.

    At its 47th Annual Session, attended by over 1,000 delegates from 400 churches at Rhema Baptist Church in Obio-Akpor Local Government Area, the conference emphasized the need for more consultations to educate the public on the bills.

    During the five-day conference, presided over by Chairman Rev. Ibiosiya Daniel Amachree, a communique issued at the weekend also praised the judiciary for its swift handling of cases in Rivers State.

    Signed by RBC President Rev. Robert Okparanta and Chairman Rev. Amachree, the communique highlighted the delegates’ commendation of the Rivers State Government’s efforts to enhance civil servants’ welfare and create job opportunities in the state.

    The President of Bayelsa Baptist Conference, Rev Dr Abili S. Abili and the Chairman of the Christian Association of Nigeria (CAN) in Rivers State, Archbishop Dr D. B. Kaladokubo were among the  religious leaders that graced the conference.

    The delegates, however, asked the Rivers government to pay more attention to human capital development, agricultural and infrastructural development to attract private investments into the state.

    Read Also: Reps call for increase safety measure at public gatherings

    They further urged courts handling Rivers cases to continue to maintain judicial impartiality and fairness in the dispensation of justice to all manners of persons.

    The communique said: “The effort of both federal and state governments to reduce insecurity and threats to lives and property particularly, the reduction of Farmers/Herders Clashes is commendable. 

    “However, there is still more that the governments at federal and state levels need to do to ensure safety of lives and properties of the citizens in general and members of the Christian community in particular. 

    “The conference commends the Federal Government on the introduction of the Tax reform bills to the National Assembly.  

    “However, we advise that wide and proper consultation should be carried out and public hearings conducted to ensure that the ordinary citizens are informed and made to understand the implications and benefits of the proposed Tax Reforms”. 

    The delegates called on the government to take short term and impactful measures to quickly alleviate the hardship on the citizens. 

    “Accordingly, Government needs to be more Intentional in taking steps to fix the refineries and make them functional, so as to improve local production of fuel and reduce fuel prices”, the delegates said.

    The conference commended the United States of America and the Republic of Ghana for the successful conduct of their Presidential elections. 

    “The Rivers Baptist Conference calls on the Nigerian Government to take steps to improve the Nigerian electoral system so as to ensure enthronement of a truly democratic system of governance in Nigeria”, they said.

  • Group allays fears of North over tax reform bills

    Group allays fears of North over tax reform bills

    The Independent Media and Policy Initiative (IMPI) has allayed the fears of Northern leaders over the tax reform bills before the National Assembly.

    A former Commissioner for Information in Adamawa State and a senior official of IMPI, Dr. Ahmed Sajo said the fears of northern governments were based on the very wrong notion of a northern Nigeria that does not want to support productive activities.

    Sajo, who spoke at a press conference in Abuja, urged leaders of the region to begin to think about adding value to the products that are produced in the north.

    He said: “VAT is about value addition. The north must agree that, as northerners and as northern governors and northern governments, there’s the need to add value to the products we have, even if they are just agricultural.

    “Take a cow, for instance. It has multiple value chains. If a northern state government can establish a world-class abattoir that slaughter about a thousand cows a day and processes it into meat; do a channel through which the blood is assembled. That would be a very huge gain. Imagine the blood of a thousand cattle. If you process it, it can be used for so many other things. The bones are valuable. The horns are valuable. The hooves and the skin are valuable.

    “A few years ago, there were factories in Maiduguri and Kano that produced shoes, bags, belts, and others, using animal skin. If they could only learn to begin to add value to the products we have, they would not even worry about VAT, or any other tax for that matter, because the north is rich.

    “Nasarawa state has just established a Lithium processing factory. Kaduna is doing the same. So, the leaders should begin to think about adding value to the products that we produce in the north. They should begin to think about productive engagement, not what is going on.

    Read Also: Tax Reform Bills and the provocative ‘Lagos will benefit most’ refrain

    “So, I don’t think there’s any need for us to begin to fear the tax reform bills that might alter VAT distribution patterns. It’s sad that some people keep saying the north is going to be cheated in the new tax system. But if you sit down and ask them to tell you the areas that the north will be cheated, they will not tell you.”

    IMPI Chairman, Dr. Omoniyi Akinsiju said the group considered the actions of northern state governments as needless distraction away from the economically redeeming attributes of the tax bills.

    He said: “These reforms, as coded in the bills, are built on three functional pillars of critical growth drivers which are revenue generation, enterprise development, and enhancement of citizens’ purchasing power.

    “Indeed, this is the first time in the history of fiscal policy deployments in Nigeria that the fiscal authorities will combine these three attributions in the tax law. Before now, tax laws were primarily focused on revenue generation without any consideration for enterprise development and citizens’ economic enablement through facilitating aggregate demand.

    “We are, however, not surprised by the furore generated over the proposed sharing formula for the proceeds of Value Added Tax (VAT) as contained in the bills, It is the typical expression of the hangover from the era of squabbling over who gets the lion’s share from revenue so generated when, indeed, all that is needed to be done is to innovate to create a symbiotic fiscal relationship between the state and the people in a win-win situation as captured in the bills.”

  • Tax Reform Bills and the provocative ‘Lagos will benefit most’ refrain

    Tax Reform Bills and the provocative ‘Lagos will benefit most’ refrain

    • By Daniel Ajasa Adediwura, PhD

    The recent uproar regarding the Tax Reform Bills in Nigeria has ignited a firestorm of misguided claims, most notably the assertion that these bills are designed to benefit only Lagos State. This provocative refrain is not merely an exaggeration; it is a glaring manifestation of ignorance and intellectual laziness. Individuals making these assertions exhibit a lamentable failure to engage critically with the contents of the Tax Reform Bills, instead resorting to alarmist rhetoric that undermines the transformative potential of these key legislative initiatives.

    On October 3, after receiving approval from the Federal Executive Council, President Bola Ahmed Tinubu sent four tax reform bills to the National Assembly.

    The Federal Government stated that these bills are designed to overhaul the country’s tax system.

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

    Unfortunately, however, these bills have sparked a wide range of opinions across the country. While some support the reforms, believing they could bring positive change, others fear they may worsen living conditions, making life harder for many citizens. But the obviously more prominent and cynical of the attacks is the claim that they are designed to enrich Lagos at the expense of other states.

    Apparently unwilling to allow the negative and deliberate misinformation to fester, Lagos State Governor,  Mr Babajide Sanwo-Olu, on Wednesday in far away Morocco, reluctantly cautioned that those bent on spreading such a dangerous rhetoric should stop it forthwith.

    Faulting the erroneous claim during an interview with NAN on the sidelines of the Africa Investment Forum Market Days 2024 in Morocco on Wednesday, Sanwo-Olu urged Nigerians to take time to understand the provisions of the reforms, noting that this will enable them to know their merits.

    “What those uncomfortable with the tax reform are not willing to accept is that there is no way of making an omelette without breaking the egg.

    “You cannot make changes if the reforms are not set in. I have advised that people should take time to read the provisions of the reform very well and to fully understand what they’re trying to do.

    “I have seen comments like ‘Lagos is going to be the major beneficiary’, ‘It is designed to enrich Lagos and such comments. It is not true. Lagos is actually going to be a shaped-off in some places, but on a larger scale basis, we see it as a global thing for a better governance structure.

    “All of us will play better and we’ll be able to discipline ourselves more. Some of the things that you will see is that you need to work harder for you to get the full benefit of the reform. So it’s not just an easy kill.”

    Sanwo-Olu explained that while Lagos state may face some losses in certain areas, it will also gain greater opportunities to play a more significant role.

    Read Also: Tinubu appoints eight new permanent secretaries

    The Lagos State Chief Executive expressed optimism on the potential of the Tax Reform Bills to unlock significant opportunities for all states and non-governmental actors, and reassuring Nigerians that the reforms are not intended to hurt anyone but to foster a fair and inclusive system that benefits everyone.

    “I have a positive attitude about it. I see it as a very wonderful reform. The tax-to-GDP ratio in Nigeria is one of the lowest in the world.

    So, there are a few things that need to happen, and like I keep saying, not until you make those changes, you will not be able to see the opportunities that are found in your account.

    “We really need to be bullish. We need to be encouraging ourselves and know that the intention is not to hurt anybody. This, I am very sure of. The intention is to better a lot, but not just better a lot of one person or one set of people. It’s for all of us, and so we should look at it this way,” Sanwo-Olu stated.

    For the record, former Bayelsa State Governor, Senator Seriake Dickson, representing Bayelsa West, stood out as one of the few who have debunked the misleading claim that the Bills are designed to enrich Lagos State only.

    He argued on Channels Television Politics Today on Tuesday this week that the tax reform bills will promote fairness and correct the existing system.

    Dickson stated, “In Bayelsa, part of what I have been fighting over the years, is that most of our tax is paid to Lagos State. Most of our VAT is paid to Lagos State, because the existing tax regime requires that it be attributed to the state where the headquarters of the company is, but in the proposition now, that will be upturned. So, there is a correction. Correction of the old order. It is introducing fairness that I have been fighting for over the years.”

    The former Bayelsa State Governor emphasised that the new bills align with the principles of true federalism.

    This type of open mind and disposition should be the attitude of everyone towards the Tax Bills.

    First and foremost, it is essential to recognize that they are aimed at overhauling Nigeria’s antiquated tax system, with the goal of enhancing revenue generation across all states. The bills propose a structured and equitable tax framework that will unblock financial resources for both state governments and the federal government, which, in turn, will foster sustainable development. It is intellectually dishonest to reduce the benefits of comprehensive tax reform to a narrow focus on a single state, particularly one that already has a considerable economic advantage. The true essence of these reforms lies in their ability to elevate the fiscal landscape of the entire nation, paving the way for more equitable development opportunities across all states.

    Critics often point fingers at Lagos, the economic hub of Nigeria, and its impressive tax base, yet fail to understand the implications of a vibrant tax system that improves revenue collection for poorer states. The Tax Reform Bills are strategically designed not just to enhance the financial clout of Lagos, but to level the playing field among the 36 states of the federation. By establishing clear guidelines and incentives for tax compliance, these reforms encourage states to compete for investment and innovation. The notion that Lagos will be the sole beneficiary of such a system ignores the essential premise that a thriving economy in one state reverberates positively across all others, leading to job creation, increased investment, and overall economic competitiveness.

    Furthermore, the Tax Reform Bills will stimulate creativity and resourcefulness among governors, forcing them to think outside the box in order to attract businesses and investments to their respective states. It is high time for Nigerian governors to shed any lingering dependency on federal allocations and start optimizing their states’ economic potentials. The responsibility to create conducive environments for businesses and taxpayers no longer rests solely at the national level; it is now a collective obligation among states. The assertions that these reforms are skewed in favor of Lagos represent an unwillingness to rise to the occasion, to engage in healthy governance, and to actively seek the betterment of their own states.

    Moreover, the Tax Reform Bills represent an opportunity for shared prosperity. They do not merely serve as a fiscal tool but encompass broader socio-economic objectives aimed at reducing inequality and expanding the tax net. The enhanced revenue projections from these bills allow all states to invest more in education, healthcare, infrastructure, and technological development—all of which are critical to national growth. Rather than being chained to the myopic view that these bills serve only one state, stakeholders must recognize the potential for collective advancement among all regions.

    It is imperative for all Nigerian citizens and leaders to engage in a more informed and constructive dialogue regarding the Tax Reform Bills. Idle talk that demonizes the reforms as being exclusively beneficial to Lagos serves only to stymie progress and fuel division among states. What is needed instead is a collaborative spirit, where the potential for economic revitalization is embraced as a shared aspiration among all Nigerians.

    In conclusion, the narrative surrounding the Tax Reform Bills must shift from one of division and antagonism to one of unity. Instead of perpetuating the notion that these reforms are a boon solely for Lagos, it is essential to underscore their capacity to invigorate the economy at a national level. The success of any economic reform is predicated on the involvement and engagement of all states, and the Tax Reform Bills present an invitation for collaborative progress. This is a clarion call for states to embrace their fiscal responsibilities, innovate their governance strategies, and ultimately contribute to Nigeria’s shared prosperity. It is time to silence the baseless claims and uncover the real opportunities that these reform bills herald for the entire nation.

    •Adediwura, a Chemical Engineer and Oil and Gas Consultant,  writes from Lagos.

  • Tax reform bills still hotly debated but…

    Tax reform bills still hotly debated but…

    With many stakeholders still raising their voices above the din in the ensuing debates over the controversial tax reform bills, indications are that the search for consensus building though may take a while but the dissenting voices are gradually yielding grounds, reports Ibrahim Apekhade Yusuf

    ON October 3, 2024, President Bola Tinubu submitted four tax reform bills to the National Assembly based on recommendations by the Presidential Committee on Fiscal and Tax Reforms.

    The bills include: Nigeria Tax Bill 2024 which seeks to establish the fiscal framework for taxation, Tax Administration Bill aimed at simplifying tax administration and reducing disputes, the Nigeria Revenue Service Establishment Bill which is to replace the Federal Inland Revenue Service Act and the Joint Revenue Board Establishment Bill to pave the way for a tax tribunal and ombudsman.

    Since the debates began on the flow of the lower and upper legislative chambers tempers have risen and fallen with those opposed and pro tax reforms at the different sides of the divided holding their grounds solidly.

    Things came to a head thus leading to initial calls from the National Economic Council (NEC) for the withdrawal of the bills for further consultation, but President Tinubu urged the legislative process to proceed, emphasising the importance of public hearings for citizen input.

    Road to consensus building

    Concerned about the differing views and the unfounded fears over the tax reform bills, the federal government has been building consensus across a spectrum of stakeholders to get their buy in, The Nation can authoritatively report.

    There have been several stakeholder engagements and public forums where the issues have become the centre focus of discourse.

    Speaking during a one-day roundtable on tax reform bills organized by the National Institute for Legislative and Democratic Studies (NILDS) in Abuja, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele assured Nigerians that the funds generated from Value Added Tax (VAT) under the proposed tax reform bills will not be mismanaged.

    Oyedele emphasised that the bills currently before the National Assembly include specific provisions outlining how VAT proceeds should be utilized.

    According to him, these measures ensure no state governor or local council authority can divert funds to non-essential or white elephant projects. He highlighted that the reforms incorporate a comprehensive framework for tax collection and expenditure, ensuring transparency and accountability.

    Oyedele explained: “The reforms provide clarity on tax generation and expenditure. They emphasize addressing national priorities like education, healthcare, infrastructure, and poverty alleviation rather than unnecessary projects.”

    Also a one-day stakeholder meeting led by the Civil Society Legislative Advocacy Centre, CISLAC, where the CSOs called on the federal government to build a fair and inclusive tax system that reflects alignment of fiscal policies with equity and economic stabilisation.

    Read Also: Fuel tanker explosion sparks panic in Osun community

    The Director-General of the National Orientation Agency, NOA, Mallam Lanre Issa-Onilu, who was at that the public forum on the occasion of the World HIV Day, Security Awareness, Discouraging Get Rich Quick Syndrome, World Human Rights Day and Tax Reforms in Asaba, Delta State, said the bills were designed to scrap the over 50 nuisance taxes suffered by local businesses.

    According to him, VAT will no longer be calculated based on where companies have their headquarters but where the goods are consumed.

    He noted that the reforms were designed to ease the burden on hardworking Nigerians, while ensuring that everyone contributed fairly.

    Issa-Onilu, who was represented by Director, General Services in NOA, Mrs. Rebecca Nasamu, explained that the tax reforms bills “are four different bills that seek to bring everything about taxation and administration of tax in Nigeria under four different pieces of legislation.”

    He listed the bills as the Nigeria Tax Bill; The Nigeria Tax Administration Bill; The Nigeria Revenue Service Establishment Bill and Joint Revenue Board Establishment Bill.

    Issa-Onilu said: “The Nigeria Tax Bill is where all major taxes imposed on individuals and companies are clearly stated as well as the rates. The bill is just like a compendium of taxes charged in Nigeria.

    “The Nigeria Tax Bill, basically amalgamated all the existing laws in which provisions for taxation were made. When passed, the bill will lead to the repeal of 11 laws that contain provisions on imposition and collection of taxes.”

    On how the tax reforms would benefit Nigerians, he said the government was working to stop different levels of authority from taxing people for the same thing and ensuring that those “earning very little pay little or no taxes, helping them manage their finances better.”

    He said new digital systems were being introduced to make tax payments easier and more accountable, stressing that “by supporting this effort, we can create a tax system that works for all and funds the development projects that will improve our nation.”

    Meanwhile, CSOs in a communiqué issued at the end of the national tax conference in Abuja yesterday, called on the federal government to build a fair and inclusive tax system that reflects alignment of fiscal policies with equity and economic stabilisation.

    The CSOs include Oxfam Nigeria, ActionAid, ChristianAid, the Nigerian Labour Congress, NLC, International Budget Partnership, IBP, Centre for Democracy and Development, CDD, and Civil Society Legislative Advocacy Centre, CISLAC, while some of the government institutions in attendance included the federal ministry of finance and the West Africa Tax Administration Forum, WATAF.

    The communiqué raised concerns about key issues identified, including the timing of a VAT increase, which is considered problematic, given the current inflation rate exceeding 30 per cent; the degree of involvement of all stakeholders in determining the classification of essential and non-essential items in the proposed VAT reform.

    Others are the need for data-driven evidence to justify both the equity and benefits of the proposed VAT sharing formula across the different tiers of government; the need for the government to address the significant infrastructure gap in Nigeria; review of the technical framework governing tax incentives and waivers and their effective administration to ensure that they are being utilised efficiently and contribute to the country’s economic development, among others.

    The communiqué read: “The 2024 National Tax Conference concluded with a united call for reforms that align fiscal policies with equity and economic stabilisation.

    “These recommendations underscore the collective effort needed to build a fair and inclusive tax system that fosters sustainable development and equitable growth for all Nigerians.

    “The tax system should be made more progressive to ensure that all taxpayers, especially big businesses and high-net-worth individuals pay their fair share of taxes.

    “The proposed Personal Income Tax (PIT) rate risks eroding the relative gains from the minimum wage increase, as most low-income earners would exceed the N800,000 annual threshold. Rather than raising the rate for the second bracket to 15%, we recommend capping it at 10%, considering the inflationary pressures on the cost of living in Nigeria. This income group is already taxed at a 7% PIT rate when adjusted for the real value of their earnings. To offset the potential revenue shortfall from this adjustment, we propose increasing the rates for the last income bracket (above 50 million Naira) to 26%.

    “The Presidential Committee should make available to the public, detailed data on the current VAT compliance rate, highlighting challenges leading to underperformance, and proffering solutions for improvement.

    “The National Assembly to ensure the passage of the sections of the proposed tax bill that aim to harmonise taxes and digitize tax administration. In anticipation of this, we urge the government to expedite the process of developing an effective implementation framework and ensuring its effective use.

    “In collaboration with the Federal Inland Revenue Service, FIRS, the presidential committee should release a detailed framework outlining how VAT changes will be enforced, ensuring consistency and transparency across the system.

    “Government should actively engage in public education and awareness campaigns to clarify the goals of fiscal reforms, focusing on fairness and equity.

    “Provide platforms for wider citizens’ engagement in the reform process to ensure their concerns are addressed and integrated into final policies.

    “A portion of the additional revenue should be redistributed to benefit the owner tax brackets and the most vulnerable populations (women, girls and persons with disabilities).

    “Include clear indicators for tracking and monitoring gender inclusivity in the proposed fiscal policy and tax reform.”

    “Advise against increasing VAT rates during a period of high inflation, as it may exacerbate inflationary pressures and reduce the purchasing power of Nigerians.

    “Review and expand the list of VAT exemptions to include all necessary items for basic living, such as energy sources (electricity, cooking gas, fuel) and food-related items, ensuring that they are accessible to all Nigerians.

    “Tax expenditure should be subject to legislation to ensure cost effectiveness and an established framework to monitor milestones.”

    Also giving fresh insights on the growing level of groundswell of support for the tax reform bills, Senator Abubakar Atiku Bagudu, Minister of Budget and Economic Planning, while addressing some selected journalists in Abuja said many of those opposed to it across the different divides are being properly informed of the merits and its benefits to the socioeconomic development of the country.

    According to him, President Bola Ahmed Tinubu is very committed to ensuring that Nigeria works for everybody.

    Shedding lights on the sections of the bill that has raised a lot of dusts, Bagudu said, “Today, if one looks at one of the tax bills, particularly the one that is, I think, generating the most controversy, is about 247 pages long, a lot of it with definitions, technical jargons that you need guidance in order to understand. Secondly, that legislation repealed about 12 laws that have been in existence. So if you are a small scale businessman or businesswoman or a bank, you need a compliance unit that understands those 12 laws in order not to run afoul of one.

    “Equally, that legislation is amending other 19 laws, as well as revoking laws. So, again, why this controversy? If a legislation is submitted to National Assembly, every part of Nigeria is represented, it could be that I’m from a fishing community, and if somebody say, I want to come, under the river there is diamond mine, and I have been given licence, I have the right to ask, okay, what will happen to my fishing community? I have the right to ask, and that’s why I’m there, and then debate it and say, okay, even if we are doing it for the greater good, how can we accommodate my fishing communities? It’s not a monologue.

    “Even when the Senate said six weeks for a public hearing, we can debate about time. We can debate about arguments. But what is wrong is for us, given the great effort that we are doing to put our economy in the right direction, to be swayed by arguments of tribalism, of religion, of sentimental arguments, the President and indeed his government, is determined that Nigeria will take its pride of place in the comity of nations. We are doing infrastructure work that shows the kind of commitment he has to Nigerians. He is supporting different states in their various quests to develop. He has requested all state governors to give him what can be done more in their states, so that more economic activities can be generated.

    “Some of the reform initiatives, energy transition, for example, are for all parts of Nigeria. Security, additional investment in security is for everyone in Nigeria. I’m just coming out of the Bankers’ Committee meeting. Part of it, they were complaining that they did not like the windfall tax. That’s Nigeria for you. Maybe some Nigerians will say, ah, it’s good that the bankers have been taxed. But we have a president who believes in Nigeria, who is a committed democrat, so he understands that people have the right to debate. But what is annoying is when people, in order to make a point, maybe they take resort to sentiments that can weaken our federation.

    On insinuations that the reform will lead to unemployment, especially in the north, Bagudu said such a narrative has no iota of truth in it.

    “That is why I told you that the intended benefits of this tax legislation, for example, is to simplify tax compliance for small companies. We have been investing in MSMEs. We have been investing in nano credits. We want them to be the engines of growth. How can they be the engines of growth if you have a wild list of legislations that they don’t even know how to comply with? I met with a European Ambassador recently, an ambassador from one of the European countries, and he told me that, because of some of our challenges, multiple regulatory challenges. Says he knows of a company in his country, that when they invoice to Cameroon or Ghana, they invoice at least 40% cheaper than when they invoice to Nigeria, so one has to be holistic. We are under pressure that Nigeria maintains a higher level of growth. We want to generate growth. We will not do anything that will sabotage employment generation. Any measure we take is intended to generate major economic activity and growth. That is what we can be, even as politicians, to talk from a self-serving interest, that is what I can get a clap for not the other way around. And indeed, Mr. President is leading that drive.”

  • ACF advocates dialogue, forms committee on Tax Reform Bills

    ACF advocates dialogue, forms committee on Tax Reform Bills

    The Arewa Consultative Forum (ACF) has called for calm and tolerance over the tax reform bills currently before the National Assembly, urging stakeholders to embrace constructive dialogue in line with democratic principles.

    In a statement signed by its national publicity secretary, Prof. Tukur Muhammad-Baba, the forum expressed concern over the acrimonious nature of the ongoing debates, which it said had led to divisions and disrespectful exchanges.

    “It is regrettable that discussions on the bills have turned acrimonious, with some resorting to abusive language. Public debates are an essential part of the democratic process, and differing opinions should be respected,” the statement said.

    The ACF highlighted concerns raised by stakeholders, including the National Economic Council, suggesting that insufficient consultations were conducted in preparing the bills. It also noted the Federal Government’s apparent urgency to pass the legislation, which has raised suspicions among critics.

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    The forum commended the Senate’s decision to engage in broader consultations with stakeholders to address contentious provisions. “We urge all parties to contribute constructively to the legislative process to ensure the emergence of robust laws that serve the entire country,” it added.

    In response to the issues raised, the ACF announced the establishment of a committee of experts to review the bills and make appropriate recommendations to relevant authorities.

    The forum appealed for mutual respect and restraint in discussing the proposed reforms, emphasizing that no individual or group has a monopoly on wisdom.

    “Reforms must address emerging challenges and align with the nation’s collective interest, not sectional or vested interests. This process requires patience, decorum, and inclusivity,” the statement concluded.

  • Reps Southern caucus backs Tax Reform Bills, okays talks

    Reps Southern caucus backs Tax Reform Bills, okays talks

    • Ongoing debate healthy, says information minister

    Wake up from your slumber, some members yesterday seemingly told the House of Representatives over its suspended action on the Tax Reform Bills.

    Lawmakers from the South – across party lines – said they have endorsed the Executive Bill.

    They expressed interest in dialogue with their colleagues who have misgivings on the Bills, intended to revitalise the dormant tax laws of the country.

    Leader of the Southern caucus in the Green Chamber Nichola Mutu (PDP, Delta), said yesterday that the lawmakers are in a position to carry out their constitutional duty of lawmaking and should not shy away from it.

    Mutu said: “We members of the Southern Caucus have met and welcome the Bills and we are ready to dialogue”.

    He was accompanied Fred Agbedi (PDP, Bayelsa), Babajimi Benson (APC, Lagos) and Pascal Agbodike (APGA, Anambra) to the news conference.

    Unlike in the Senate, where the Tax Reform Bills are at the public hearing stage, having passed first and second reading, the House of Representatives has kept the Bills in abeyance after an attempt at first reading turned rowdy.

    Last week, when House spokesman Akin Rotimi mentioned the support for the Bills by Ekiti State Caucus, while presenting a report, some members shouted him down. He had to be rescued by the presiding officer.

    Yesterday,  Mutu said the caucus was ready to interface with lawmakers from other parts of the country on the nitty gritty of the tax bills.

    He added:  “The Southern Caucus welcome the tax reform bills with so much excitement. We are open to dialogue and at the right time, we will capture the people’s element that is missing in the bill.

    “We are open to dialogue. We have not gone beyond that. This is just the first process. But just to inform you that we have received the bill, we welcome the bill, and  we are open to dialogue. That is all.”

    Agbedi said the National Assembly has the responsibility to receive bills from  Nigerians, including the Executive, and process them for the good of Nigerians.

    He said: “It is the responsibility of the National Assembly to receive bills and proposals, go through them and ensure they are in line with the interest of the country.

    “There is a process involved in the lawmaking. The Executive has presented the tax bills to the National Assembly and we will follow due process in processing them and then invite the public to make their own inputs.

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    “We are ready to take our responsibility, to make laws and we are in consonance with our people. Some states have taken positions and others are still discussing and will take position on the bills.

    “We are ready to make better laws for the good governance of the country. We will put the bills through the principles of lawmaking. We will make amendment where necessary to the bills, then pass them and transmit to the President for his assent.

    “It is the responsibility of the House of Representatives, the Senate, the National Assembly, to receive proposals or any sort of bill from either the Executive or the individual bills. Once they are received, they go through the House procedures, processes, and then, the public is invited. Here, Mr. President has sent an Executive Bill.

    “What the Southern Caucus is saying is that we are ready to take up our official responsibility of making laws for the nation. And so, we welcome the bill. As we process it, input are made from our various states and constituencies. Some states have already received those input.

    “At the end of the day, amendments, innovations will be brought into that proposal. And it will be passed by both Houses and then, the president will assent to whatever amendments that are done to his proposal. The caucus is ready to run with the proposal that Mr. President has sent.

    Benson said Section 4 of the Constitution gives the responsibility of making laws to the National Assembly, assuring that lawmakers would abide by the rule of law.

    He said no bill is widely acceptable to all Nigerians, recalling that the Petroleum Industry Bill took many  years to pass after series of negotiations and getting others to have a buy in.

    He said “we will go through the law, sit with our brothers, do the front and back and at the end, Nigeria will be better for it”

    He said “Section 4 of the Constitution gives the responsibility of making laws for the good governance of the country to the National Assembly. Now, the National Assembly, as you are aware, has two arms, the Senate and the House of Reps.

    “The rule of law says that your Executive can present bills, and there are processes where those bills can be treated. Bills go through first reading, goes through second reading. If it passes, we do our public hearing.

    “There’s no bill that has a national outlook that there won’t be interest colliding one way or the other. But our job is to sit down with our brothers, find the middle course and I’ll go back to history. The derivative, the 13% that is being received by oil producing states, started with 50%. Recently, we did the PIB. We had issue with the host community.

    “So, there’s negotiation back and forth. At the end of the day, Nigerians will be better for it. Negotiation is an act. We will sit down, go back and forth, exchange, make them see reason, we see reason, and we all ensure that this matter comes to a logical end and it will be in the interest of the people of Nigeria.”

    Tax Reform

    debate healthy

    The Minister of Information and National Orientation, Mohammed Idris, explained why the four tax bills should be thoroughly debated.

    He said policy formulation and debates are inseparable.

    The minister, according to a statement by his media aide, Rabiu Ibrahim, spoke in Abuja when he received the management of the Progressives Institute, led by the Director General, Dr. Lanre Adedayo, on a visit to his office.

    The minister said constructive engagement with stakeholders and the public on any policy of the government would ensure that policies are well-aligned with the needs and aspirations of citizens.

    Idris said: “Let’s take the tax reform, for example, that has generated so much debate with some people saying that the debate is against government policy or the President and I tend to disagree.

    “I think that these are healthy debates that all of us are having so that we can make this bill better. For anyone who thinks that debate and putting out policy are mutually exclusive, I think that’s wrong.

    “There will always be the opportunity to have a healthy debate so that whatever government puts forward, can be made better. In any case, this is being done for the benefit of all Nigerians. Therefore, Nigerians have the democratic right to interrogate government policies, provided the commentaries are healthy and are geared towards making the policies better.”

    The minister emphasised that the tax reform proposed by the President is not intended to place any part of the country at a disadvantage.

    Idris explained that it is designed to promote inclusive growth and stimulate economic activities across the nation, in line with President Tinubu’s commitment to equitable development and prosperity for all Nigerians.

    The minister urged Nigerians to actively participate in discussions on government policies, as their contributions are invaluable in strengthening the nation’s democratic process.

    Idris said the reforms that the President instituted are bold and tough, but the surest way to fulfill his campaign promise of promoting progress and prosperity for all Nigerians.

    He added: “Reforms are usually tough, usually hard, but once they are followed through, they deliver extraordinary results and we know that the direction that this government is going, we are extremely confident that all the reform processes that Mr. President has instituted, will take us to the desired destination.”

    Idris expressed delight that so far, Nigerians are beginning to see the benefits of the reforms, especially through the recent positive indices provided by the National Bureau of Statistics on the performance of the economy.

    He commended the National Chairman of the APC, Dr. Abdullahi Umar Ganduje, for setting up the Progressives Institute, highlighting that it’s envisioned to serve as the intellectual engine room of the party and the government through research on policies and programmes to be implemented or being implemented by the administration.

    Dr. Adedayo said for the first time in the history of political parties in Nigeria, the APC floated the Institute to serve as a think-tank and provide the intellectual foundation for capacity building, leadership recruitment, and research on policies of the administration.

    He sought the support of the minister for the forthcoming conference being organized by the Institute on skills acquisition, entrepreneurship, and challenges of development.

    Reforms equitable, says FRC

    The Chairman of the Fiscal Responsibility Commission (FRC), Victor Muruako, said the proposed reforms would contribute to economic growth.

    He spoke at the Fellowship Lecture and Investiture Ceremony of the Capital Market Academics of Nigeria (CMAN) in Abuja.

    Muruako said the research conducted by the commission showed that  the proposed reforms do not favor any specific region or group.

    He said the bills, if passed into laws, will promote a fairer distribution of resources among Nigeria’s federating states.

    Muruako added: “The bills are designed to benefit all Nigerians, particularly low-income earners and Micro, Small, and Medium Businesses (MSMBs).”

  • 200 Northern CSOs back tax reform bills

    200 Northern CSOs back tax reform bills

    A coalition of 200 Civil Society Organisations (CSOs) in the north has thrown its weight behind the Tax Reforms Bills proposed by President Bola Ahmed Tinubu.

    The CSOs, comprising the Coalition of Northern Civil Society Groups and Concerned Northern Professionals, gathered for a town hall meeting in Abuja and resolved that the policies are geared towards the development of Northern Nigeria.

    In a communique at the end of the meeting and co-signed by Dr. Fasasi A. Kazeem and Dr Opialu Opialu Fabian, the CSOs said the bills have the potential to revolutionize the national economy, bring an end to the era of liquidity crises, and promote a genuinely competitive environment for businesses to thrive.

    “We believe that the Tax Reforms Bills are in the overall interest of all sections of Nigeria,” the communique said. “The bills have the potential to increase government revenue, reduce poverty, and promote economic growth and development.

    “A critical and dispassionate perusal of the Tax Reform Bills reveals a commendable effort by President Tinubu to revolutionise the national economy, bring to an end the era of liquidity crises, and promote a genuinely competitive environment for businesses, irrespective of the sizes or structures, to enable them to thrive seamlessly and guarantee a country of prosperity.

    “However, in appreciation of our disposition as a country, Nigerians are often polarized, when a big national decision is in the offing, not minding the gains and the laudable objectives. Here incidentally is the case of the Reform Bills, it has not been received with the natural sentiments.”

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    The CSOs acknowledged concerns raised by some stakeholders, including the Northern State Governors’ Forum, but argued that the bills are designed to promote fairness, equity, and justice in the distribution of revenue.

    “We understand that there are concerns about the revenue-sharing formula, but we believe that the bills have taken into account the needs and interests of all sections of the country,” the communique added.

    The coalition called for robust stakeholder engagement, public awareness, and education on the provisions of the bills to ensure their acceptance and effective implementation.

    “We urge the National Assembly to continue with the consideration of the bills, while also engaging with stakeholders to address any concerns they may have.”

  • Southern Reps back tax reform bills, seeks further consultation

    Southern Reps back tax reform bills, seeks further consultation

    Members of the Southern Caucus in the House of Representatives have expressed support for the four tax reform bills currently under consideration by the National Assembly.

    However, the caucus emphasized the need for further consultations to ensure necessary amendments are made before the bills are passed.

    Read Also: Tax Reform Bills: FG raises tax exemption threshold for SMEs to N50m

    Speaking at a press conference, Leader of the Southern Caucus, Nicholas Mutu (PDP, Delta), said: “We, members of the Southern Caucus, have met and welcome the tax bills. We are ready for dialogue. This is just the first phase.”

    Details shortly…