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Kano Govt, Customs Raise Concern Over Sections In Tax Reform Bills

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1 year ago

February 26, 2025

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…as TUC, others oppose increase in VAT, reduced funding for TETfund, NASENI, NITDA

…as NLNG advocate Zero-rate VAT for export

By Gloria Ikibah

The Kano State Government has raised concerns over sections of the proposed tax reform bills that extend the Federal Government’s control over state and local tax agencies.

The Permanent Secretary in the Office of the Secretary to the State Government, Umar Mohammed Jalo, stated the government’s position, at a 3-day public hearing organised by the House of Representatives Committee on Finance on Wednesday in Abuja.

Jalo urged the House Committee to amend the bill by eliminating provisions that place it above other laws.

On the proposed reduction in the funding of key national agencies, like the Tertiary Education Trust Fund (TETFUND), Nigeria Information Development Agency (NITDA), and National Agency for Science and Engineering Infrastructure (NASENI), that are critical to the nation’s education, technology, and engineering sectors.

He said :”This clause is objectionable as it grants this bill a constitutional status similar to military rule, which cannot withstand the scrutiny of constitutional validity. The supremacy provision should be deleted.

“These provisions are substantially in breach of the Constitution of the Federal Republic of Nigeria, 1999, as the National Assembly lacks the competence to legislate on matters exclusively affecting state and local governments.

“Reducing funding to these strategic agencies will affect national interests in education, engineering, and information technology in adverse ways. TETFUND, NITDA and NASENI should continue to be funded to support the nation’s aspirations for technological advancement, prosperity, and sustainable development.”

Jalo also also expressed concerns over the planned increase in Value-Added Tax (VAT) from 7.5% to 15% by 2030, warning that such a move would worsen the hardship faced by Nigerians amid the rising cost of living. The government cautioned that higher VAT rates would further strain households and deepen economic difficulties.

As an alternative, the Kano State Government advocated for improved tax collection mechanisms rather than raising VAT.

“There is significant potential to enhance tax coverage and collection efficiency, as weak compliance remains a major challenge,” he noted.

While supporting the need for fiscal reforms, the government emphasized key concerns regarding the Federal Government’s ongoing tax restructuring. It also underscored the urgency of expanding Nigeria’s revenue base, stating that current public earnings—around 10% of GDP—are inadequate to meet the country’s growing development needs.

“The fiscal space needs to be enlarged,” the government noted. “Public revenues at approximately 10% of GDP are currently too small relative to the daunting challenges of development.

“A more auspicious fiscal space will provide tremendous opportunities for the governors to deliver on their promises, including achieving the Sustainable Development Goals (SDGs), reducing poverty, and rebuilding infrastructure for growth, wealth, and job creation.”

The Kano government welcomed the Federal Government’s efforts to reform the tax system, which they described as “long overdue,” and acknowledged that the current tax regime is overly complex and riddled with inefficiencies. “Despite past reforms, tax administration remains weak and plagued by inefficiency, poor governance, and corruption. Tax avoidance and evasion are prevalent and must be addressed.”

The state further praised the proposed harmonization of Nigeria’s multiple tax laws, stating, “Harmonisation will enhance clarity, compliance, and administrative efficiency. It will also ensure legislative cohesion and policy coherence.”

However, the government expressed strong reservations about the manner in which the reforms were being rushed through the National Assembly without sufficient stakeholder consultation. “The bills were apparently introduced with the utmost haste and without exhaustive stakeholder engagement,” the government stated.

“For any reform to be successful, social dialogue and effective communication are critical. The federal government should learn to consult more, to harvest ideas and diverse perspectives from its citizens.”

Kano also criticised the federal government’s failure to adequately communicate the potential benefits and costs of the reforms, and the vilification of Northern governors who opposed certain provisions of the bills.

“Northern State Governors who voiced their opposition to certain provisions of the bills were vilified and accused of ‘backward thinking’ and ‘parasitism.’ Citizens’ opposition to reforms must be addressed with civility, tact and diplomacy.”

The Comptroller General of the Nigeria Customs Service, Adewale Adeniyi in his submission on the bill, said its purpose was to make Nigeria more business-friendly and competitive but raised concerns about potential jurisdictional conflicts.

The Customs Boss argued that while tax is a vital revenue-generating tool, customs duties go beyond fiscal policy to promote industrialization, prevent environmental pollution, and uphold public health.

He said :”Our concerns are laid out in a 17-page document, but key areas of conflict include Section 23, 29, and 41A of the Joint Revenue Bill,” said the representative. They pointed out that Section 162 of the bill essentially “legislates the Nigerian Customs Service out of existence.

“The UK experience is instructive,” the representative continued, referencing the 2005 merger of customs and tax functions in the UK, which was later reversed due to operational inefficiencies. “In 2012, the UK separated border control functions, acknowledging the distinct nature of customs operations.”

He cited examples from African countries like Uganda and Ghana, where customs and tax authority integration initially resulted in higher tax-to-GDP ratios but later caused inefficiencies and operational complexities.

“With success stories like Morocco’s customs modernization, which increased revenue by 37% and reduced clearance times by 65%, Nigeria’s Customs Service argued for preserving its autonomy. In fact, the NCS noted that since the enactment of the NCS Act in 2023, Nigerian customs revenue had surged by 92%, and trade facilitation had markedly improved.

“We should encourage collaboration between customs and tax authorities, not abolish customs or repeal an existing law”, Adeniyi added.

The Secretary General, of the Trade Union Congress, Comrade Nuhu Toro speaking rejected the gradual increase of Value Added Tax.

He said : “The gradual increment of VAT from the current 7.5% to 15%. Mr. Chairman and respected members, the TUC unequivocally rejects this proposition.

“Our reason is simple, allowing the VAT rate to remain at 7.5% is in the best interest of the nation. Increasing it would place an additional burden on Nigerians, many of whom are already struggling with their economic challenges and realities.

“At a time when inflation is on the rise, and unemployment is becoming an ever-growing concern, higher taxes will only further strain households and businesses alike. We must be mindful, Mr. Chairman, that such measures could slow down the economy.

Speaking for the Nigeria Liquified Natural Gas (NLNG), Manager Tax and Financial Systems, Clement Okoro Efeyita, said the organisation fully support the bill, and it will be of great benefit for the committee to consider making exports from Nigeria to be zero-rated on VAT.

According to Efeyita, “That way, exporters from Nigeria will be competitive globally. Another issue is we are of the view that agreements, contracts, that are already subject to the value-added tax rules should not be subject to value-added tax.

“In a way, it creates a form of double taxation if this area is not looked into. Mr. Chairman, we also would like to advocate with regards to the currently subsisting executive orders.

“Our view on it is simple. Most of the executive orders are tied to laws that will be repealed by the time the current bill is passed into law. Our view, which we seek for this committee to take into account, is to ensure that the provisions in those executive orders are fully reflected in the Nigerian tax field.

“That way, it will take away all forms of undignity. And it will also not create a situation where investors’ confidence in the country is in any way dampened”.

Still on the Nigerian tax bill Efeyita added: “It is with regards to the far out claim of capital arms. And our advocacy is very simple. Paragraph 21, subparagraph 1 of the first schedule of the Nigerian tax bill.

Our advocacy point is very simple and straightforward. We would like the bill, as currently drafted, to give full powers to taxpayers to be able to determine how they claim capital arms. Doing so will not in any way shortchange the government.

“But rather it will create a situation where the government is able to receive, in good time, taxes that are due. So our advocacy point is one of this.

“We would also like to draw your attention to the fact that by the time the Nigerian tax bill is passed into law, the Company Income Tax Act, among several other acts, will immediately be repealed.

“Mr. Chairman, I would like to draw your attention to section 23, subsection 1 of the Company Income Tax Act. And to mention that this particular provision has not been reflected in the Nigerian tax bill. And this provision, essentially, is one that will truly benefit the Nigerian state.

“It is a provision that grants a tax waiver to companies that bring in income they’ve earned abroad. Income types such as royalty, interest, and dividend. At this critical time of our economy, when we need foreign exchange inflow, should not be the time for such a critical provision that encourages taxpayers to bring in foreign currency they’ve earned abroad to be taken out of the proposed bill.

“But not to forget the fact that going to the Nigerian Tax Administration Bill at this point in time, there is also the new provision that will be found in section 12 and section 49 of the Nigerian Tax Administration Bill. There is a new provision that seeks to subject companies that produce LNG to a tax regime similar to what is obtainable upstream.

“Our point of advocacy is simple. A situation where the majority of companies that are subject to tax under the current company income tax regime are not equally being made to pay tax instrumentally over a 12-month period creates a kind of, permit my language, discrimination. It does not bring about equity and fairness.

“We are clearly advocating that all companies that are subject to the current company income tax act at 30% as is being reflected in the Nigerian Tax Bill correctly, should be made to pay taxes in similar manner. Mr. Chairman, committee members, these are the high points of restricting the macroeconomic standards of our nation. These laws, with their challenge, improve on the objectives as set out in section 16 of the 1999 Constitution as amended”, NLNG stated.

Related Topics:chairman Kano Military Nigeria Nigerian

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Tinubu government begins 2026 Tertiary Institutions National Laureate Programme

Published

3 hours ago

August 2, 2026

EMMANUEL AGAJI

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● Institutions directed to Constitute Laureate Committees as Nigeria Begins Search for its Finest Academic Research

The Tertiary Institutions National Laureate Committee has formally announced the commencement of the 2026 National Laureate Programme, marking the inaugural edition of what is expected to become Nigeria’s foremost national platform for recognising outstanding student academic research, innovation and scholarly excellence across tertiary institutions.

The launch of the Programme signals a major milestone in the Federal Government’s commitment to promoting research excellence, strengthening the nation’s knowledge economy and placing scholarship at the centre of Nigeria’s development agenda.

The National Laureate Programme, inaugurated by the Federal Government under the leadership of the Honourable Minister of Education, Dr Tunji Alausa, CON, is designed to identify, evaluate, celebrate and reward exceptional undergraduate dissertations, master’s theses and doctoral research produced in accredited Nigerian tertiary institutions.

Supported by an annual research prize fund of ₦365 million, the Programme ranks among Nigeria’s most prestigious academic recognition initiatives and reflects the Federal Government’s determination to encourage original research, innovation and solutions capable of addressing national and global challenges.

Beyond recognising academic excellence, the Prize is intended to strengthen Nigeria’s research ecosystem by promoting innovation, encouraging the commercialisation of research outputs, supporting industrial development, inspiring future researchers and establishing scholarship as a strategic national asset.

As part of the commencement of the 2026 edition, all accredited universities, polytechnics, colleges of education, monotechnics, military institutions and other eligible tertiary institutions are requested to immediately commence internal preparations for participation.

Every eligible institution is expected to constitute an Institutional Laureate Selection Committee made up of experienced academics with proven research records, unquestionable integrity and the capacity to conduct objective evaluations in accordance with the approved National Laureate Programme framework.

Institutions are also required to formally submit the names and designations of the Chairman, Secretary and members of the Committee, after which the Committee will coordinate the institution’s participation in the Programme.

Following the institutional evaluation process, each participating institution is expected to nominate up to eighteen outstanding research works, comprising six undergraduate dissertations, six master’s theses, and six doctoral theses in the case of universities, or their equivalents for polytechnics, monotechnics, colleges of education, and other tertiary institutions, drawn from the six approved thematic areas, such as Agriculture, Teaching Innovation, Medicine and Health Sciences, Engineering, Science, and Technology, Law, Arts and Social Sciences.

The Programme offers Star Prizes of ₦35 million for the undergraduate category, ₦50 million for the master’s category, and ₦100 million for the doctoral category.

In addition, 15 Thematic Laureate Awards, valued at ₦12 million each, will be presented to other outstanding winners.

Institutions are reminded that every nominated research work must first be formally submitted as required under the National Policy for the Nigeria Education Repository and Databank (NERD) and assigned a valid National Document Number (NDN) before it can be considered for the National Laureate Programme.

This requirement reinforces the Federal Government’s commitment to research integrity, proper documentation and the preservation of Nigeria’s academic output within the national knowledge infrastructure.

The Committee further reminds participating institutions that the National Laureate Programme operates a rigorous three-tier evaluation system, comprising Institutional, Regional, also referred to as Zonal, and National assessments.

This multi-layered process has been designed to guarantee transparency, fairness, objectivity and merit in the selection of the country’s finest academic research.

Institutions are therefore encouraged to conduct their internal assessments with the highest standards of professionalism and impartiality, recognising that only the very best research works will progress through the successive stages of evaluation.

The management of every participating institution is responsible for constituting its Institutional Laureate Selection Committee in accordance with the approved guidelines. Once constituted, the institution’s approved NERD Focal Officer (NFO) is required to designate the Committee members through NFO dashboard on NERD.

This formal designation grants authorised members secure access to make entries, evaluate submissions and digitally manage the institution’s participation on the national Laureate Dashboard throughout the Programme.

The National Laureate Committee also calls on Nigerian professional bodies and associations to play an active role in safeguarding the integrity of the Programme by nominating distinguished scholars and subject experts for appointment into the Regional Laureate Selection Committees across the six geopolitical zones of the Federation.

Professional bodies representing agriculture, science, engineering and technology, medicine, law, arts and social sciences, teaching, and related disciplines are encouraged to submit nominations of suitably qualified experts with established records of scholarship, peer review, integrity and professional leadership.

Those appointed will participate in the independent regional evaluation of research submissions before the national assessment. All nominations will undergo rigorous screening based on merit, experience, integrity, diversity and conflict of interest requirements to ensure that the Programme maintains the highest standards of credibility and academic excellence.

Institutions and professional bodies are advised to conclude the selection of committee members and subject matter experts by 15 August 2026 while the submission of institutional entries will continue until the 31st of August 2026.

It noted that submissions would include mandatory digital transmission as provided in the guideline on the National Laureate portal.

Describing the Programme as a landmark national investment in intellectual capital, the Chairman of the National Laureate Committee, Emeritus Professor Abubakar S. Sambo (OON), said the National Laureate Programme was designed to elevate academic excellence to national prominence, encourage world-class research, inspire innovation and recognise scholars whose work has the potential to transform lives, industries and the future of Nigeria.

He encouraged every eligible institution and every relevant professional association to participate actively in ensuring the success of the inaugural edition of the Programme.

Further information, including detailed guidelines, committee manuals and application procedures, is available on the National Laureate Programme website at www.nationalaureate.ng.

Additional guidance may also be obtained through the Committee Guide and the Application Guide available on the website.

Issued by:
Ita Ekpenyong
Spokesperson
National Laureate Committee

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Troops rescue 34 abductees, nab ISWAP informant, recover arms

Published

4 hours ago

August 2, 2026

EMMANUEL AGAJI

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Troops of the Nigerian Army have, in the last 24 hours, rescued 34 kidnap victims, apprehended suspected ISWAP informants and recovered arms and ammunition in coordinated operations nationwide.

This is contained in an operational report made available to the News Agency of Nigeria (NAN) on Sunday.

The report said that troops of Operation HADIN KAI rescued 31 kidnap victims from terrorists along the Buratai-Kamuya road in Biu Local Government Area of Borno.

It said the rescue followed a swift response after troops of 135 Special Forces Battalion detected ISWAP/JAS terrorists abducting civilians from four vehicles through CCTV surveillance.

According to the report, troops immediately deployed a quick reaction force, engaged the terrorists and forced them to abandon the victims and flee, with one motorcycle left behind.

“In another operation, troops of 145 Battalion conducted a fighting patrol to the Turoh general area of Damasak in Mobbar Local Government Area.

“The terrorists reportedly fled on sighting the troops, leaving behind two motorcycles and illicit drugs recovered during exploitation of the area.

“Also, troops of 232 Battalion Tactical apprehended a suspected ISWAP informant at Garaha Market in Hong Local Government Area of Adamawa,” it said.

In the North-West, the report revealed that troops of Operation FANSAN YAMMA engaged terrorists moving with rustled cattle in Tsafe Local Government Area of Zamfara.

It added that the troops’ superior firepower forced the terrorists to withdraw in disarray during the encounter.

The report also revealed that troops of Operation MESA rescued a kidnapped woman and her two children along the old Obajana-Jakura-Tajimi road in Lokoja Local Government Area of Kogi.

According to the report, preliminary investigation revealed that the victims were abducted on July 29 from a Ruga settlement in the Gada-Biyu area of the same local government.

“In Plateau State, troops of Operation Enduring Peace responded to reports of an attack on a herder in Bassa Local Government Area.

“The assailants had fled before the troops arrived, while the deceased and recovered cattle were handed over to the victim’s family,” it added.

In the South-East, the report said the troops of Operation UDO KA recorded a major breakthrough with the arrest of three suspected terrorists linked to the ambush of troops in Imo on May 4.

It added that the operation, conducted in Delta and Imo states, followed intelligence obtained from earlier arrested suspects.

According to the report, troops recovered four AK-47 rifles, one FN rifle, a pistol, 11 AK-47 magazines, two FN magazines, 239 rounds of assorted ammunition, a fragmentation jacket and other military items from terrorist camps.

“The recovered weapons included rifles earlier carted away during the May ambush on troops, while further exploitation led to the discovery of another terrorist camp containing additional arms and ammunition,” it said.

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Joint military task force rescue kidnapped Lt Col, civilian after 10-day search operation

Published

4 hours ago

August 2, 2026

EMMANUEL AGAJI

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A joint military task force has rescued a senior Nigerian Army officer, Lt. Col. Ofor Amobi, and a civilian, Mr. Ikechukwu Onwuanra, after an intensive 10-day search-and-rescue operation across forests and communities in Enugu State.

This was contained in a military operational report made available to the News Agency of Nigeria (NAN) on Saturday, August 1, 2026 in Abuja.

The breakthrough came in the early hours of Saturday following sustained operations by troops of Sector 1, Operation UDO KA (OPUK).

The search mission involved personnel of the 82 Division Garrison, 103 Battalion (Rear), the Nigerian Navy Special Boat Service (NN SBS), and the 197 Special Forces Battalion, operating under the leadership of the Commander, 82 Division Garrison, with support from the Air Component.

According to the report, between 6:00 p.m. on July 31 and 6:00 a.m. on August 1, the joint troops continued search operations using actionable intelligence across Inyi, Awlaw and Akpugo-Eze forests and adjoining communities in Oji River Local Government Area of Enugu State.News

At about 2:00 a.m., the Divisional Police Officer (DPO) of Inyi Division alerted the troops to the suspected location of the kidnapped victims.

The troops immediately mobilised and launched a fighting patrol into the area, where they discovered Lt. Col. Amobi and Mr. Onwuanra abandoned at the edge of a forest. The civilian was found with a gunshot wound.

The victims were successfully rescued and evacuated to Inyi before being moved to the 82 Division Medical Hospital for medical treatment and comprehensive evaluation.

During preliminary debriefing, the victims disclosed that they had been blindfolded shortly after their abduction and transported to an unknown location.

They said they were later abandoned in a forest around the Enugu–Anambra border as the kidnappers came under sustained operational pressure.

The military attributed the successful rescue to the relentless pressure mounted by the joint force, supported by the Air Component, which maintained continuous dominance of the suspected hideouts and denied the abductors freedom of movement throughout the 10-day operation.

The sustained search-and-rescue mission ultimately forced the kidnappers to abandon the captives and flee.

Further investigations and follow-up operations are ongoing to identify, track and apprehend those responsible for the abduction.