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

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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.

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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.

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“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.

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Tinubu Declares End to Neglect of FCT Satellite Towns as Karu Water Project Comes on Stream(Photos)

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President Bola Ahmed Tinubu on Monday, declared that the era of neglect of satellite towns in the Federal Capital Territory (FCT) is over, saying his administration remained committed to ensuring that basic infrastructure and public services reach communities long excluded from development.

Tinubu, represented by Vice President Kashim Shettima, made the declaration while commissioning the Water Supply Network to Karu Satellite Town and Environs in Kurudu Community along the Karu-Karshi Road, Abuja.

Describing access to clean water as a fundamental human right, the President said the project was a practical demonstration of the administration’s resolve to translate the Renewed Hope Agenda into tangible benefits for ordinary Nigerians.

“We are here not just to cut a ribbon, but to breathe life into a fundamental human right that has eluded this bustling community for far too long. Today, we declare that the era of neglect for our satellite towns is officially over,” Tinubu said.

He recalled that when the administration launched the Renewed Hope Agenda, it entered into what he described as a “sacred covenant” with Nigerians to ensure that governance delivers meaningful improvements in people’s lives.

According to him, the government was determined to move beyond policy pronouncements and provide critical infrastructure to underserved communities.

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“When we launched the Renewed Hope Agenda, we promised that governance would no longer be a theoretical exercise confined to the boardrooms of city centres while our people in the periphery thirsted for basic amenities. We promised a government that listens, plans and delivers,” he said.

The President revealed that the Karu Water Supply Project was conceived following his directive that the Greater Abuja Water Supply Project should not be limited to the city centre but extended to satellite communities where a large proportion of the FCT’s working population resides.

He noted that the administration approved funding for the project without bureaucratic delays, enabling contractors, CGC Nigeria Limited, to complete the work ahead of schedule.

The project, he said, comprises more than 194 kilometres of secondary and tertiary pipeline networks designed to provide treated and potable water to residents of Karu, Orozo, Jikwoyi, Kurudu and neighbouring communities.

“To demonstrate our commitment, we did not allow the traditional shackles of bureaucratic delay to obstruct funding. Because we paid on time, the contractors worked on time. Today, ahead of schedule, we are commissioning over 194 kilometres of pipeline networks bringing safe and potable water directly to the doorsteps of our people,” he said.

Tinubu used the occasion to commend the Minister of the Federal Capital Territory, Nyesom Wike, for what he described as impactful leadership and efficient project execution.

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“Leadership is not measured by the eloquence of television commentary or the bitterness of empty rhetoric. Leadership is measured by tangible, verifiable impact on the lives of ordinary citizens.

“What we are witnessing in the FCT today across transport, healthcare, education, housing, roads and now water infrastructure is a testament to what happens when vision meets executive capacity. Thank you, Mr Project, for your leadership,” he said.

The President observed that residents of Karu had, for decades, depended on boreholes and water vendors despite the rapid growth of the community, stressing that the project would improve public health, sanitation and economic productivity.

He also urged residents to protect the infrastructure from vandalism and illegal connections.

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“This infrastructure belongs to you. It was built with your commonwealth and designed for your well-being. I urge you to safeguard these installations and treat this water as the precious resource that it is,” he added.

Earlier, Wike expressed appreciation to the President for supporting people-centred projects across the FCT, particularly in satellite communities that have historically suffered infrastructure deficits.

The minister said the Karu Water Supply Scheme was executed in direct response to Tinubu’s directive that critical infrastructure should extend beyond the city centre to communities on the outskirts of Abuja.

According to him, the FCT Administration remained committed to implementing projects and programmes that improve the quality of life of residents across the territory.

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Also speaking, Minister of State for the FCT, Dr Mariya Mahmoud, described the project as a landmark achievement in the Federal Government’s commitment to improving living conditions through strategic infrastructure investment.

She said the water network fulfilled a long-standing aspiration of residents and reflected the practical impact of the Renewed Hope Agenda.

Mahmoud noted that the project would enhance public health, strengthen sanitation, stimulate economic activities and reduce the burden faced by families who have endured years of inadequate access to potable water.

She called on residents to take ownership of the facility to ensure its sustainability for future generations.

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Providing an overview of the project, Executive Secretary of the Federal Capital Development Authority (FCDA), Richard Dauda, said the scheme was designed to improve access to potable water in Karu and surrounding communities.

According to him, the project utilised an existing reservoir and connected more than 1,000 distribution lines to serve Karu, Jikwoyi, Kurudu and adjoining settlements.

Dauda thanked President Tinubu for supporting what he described as a transformational intervention that would significantly improve the welfare of residents.

For years, residents of the Karu axis have relied heavily on private boreholes and water vendors, with community leaders repeatedly calling for the extension of municipal water services. The new network is expected to reduce dependence on unsafe water sources and lower water costs for households and businesses in one of Abuja’s fastest-growing satellite towns.

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110bn SUVs Procurement: Respect Separation of Powers, pro-democracy group warns critics of N’Assembly

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A pro-democracy organisation, the Advocates of Social Justice for All (ASJA), has warned Civil Society Groups and critics of National Assembly over the controversial N110 billion reportedly spent on the procurement of official vehicles and support allowances for lawmakers in 2023, to stop undermining the institution of the Parliament.

A Federal High Court sitting in Lagos, had penultimate Wednesday, declared that the sum of N40bn used to procure 360 Sports Utility Vehicles (SUVs) for Members of the House of Representatives, and 109 SUVs for Members of the Senate; and the sum of N70bn used for support allowances for the newly inaugurated Members of the 10th National Assembly, as appropriated for in the 2022 supplementary budget, did not meet the standard procurement laws.

Declaring the appropriation and expenditure of the total sum of N110bn by the National Assembly as “unlawful”, Justice Yellim Bogoro ordered the Senate President, Senator Godswill Akpabio, and Speaker of the House of Representatives, Hon. Tajudeen Abbas, “to ensure that all future procurements or expenditure of public funds by the National Assembly comply strictly with due process requirements and are also guided by the principles of transparency, accountability and value for money.”

Two weeks after the judgement, the Plaintiff in the matter, the Socio-Economic Rights and Accountability Project (SERAP), in a statement, insisted that Members of the National Assembly must refund the said N110bn to the Federal Government coffers.

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But in a statement issued on Monday, ASJA questioned the recent judgment of the Court which reportedly declared the expenditure unlawful, arguing that the ruling raises significant constitutional issues concerning the operational autonomy of the legislature.

The statement signed by Dr. Torkuma Asongo, the Executive Director, the group maintained that the National Assembly, as an independent arm of government, possesses the constitutional authority to make budgetary provisions necessary for the effective discharge of its legislative responsibilities.

According to the group, the procurement of official vehicles for federal lawmakers should not be interpreted as an act of extravagance, but rather as a necessary measure to enable legislators effectively carry out oversight functions, constituency engagements, committee assignments, and other official duties across the country.

“The National Assembly remains one of the critical institutions of democracy, and its Members require adequate operational support to effectively discharge their constitutional mandate. Official vehicles for lawmakers should be regarded as essential tools for legislative work rather than luxury items,” the statement read.

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The group also criticised the call by SERAP for the refund of the funds, describing the move as premature and potentially capable of generating unnecessary institutional tension.

It argued that, rather than exerting public pressure on the legislature, concerned parties should allow the judicial process to run its full course, including any appellate proceedings.

ASJA further emphasised the importance of upholding the doctrine of separation of powers, cautioning against actions that could undermine the independence and integrity of the legislature.

“The principle of separation of powers is fundamental to constitutional democracy. While accountability and transparency remain essential, care must be taken to ensure that the constitutional independence of the legislature is not eroded through undue interference or public sensationalism,” the group warned.

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ASJA urged civil society organisations and other stakeholders to approach issues concerning the National Assembly with objectivity and restraint, noting that sustained efforts to delegitimise the parliament could weaken democratic institutions and diminish public confidence in governance.

The group therefore called for continued respect for the National Assembly as the country’s foremost representative institution, insisting that strengthening democratic institutions remains essential to Nigeria’s democratic consolidation.

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South Africa deploy security personnel nationwide ahead of anti-migrant deadline

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South African police will beef up security nationwide ahead of a June 30 deadline set by fringe anti-illegal immigration groups for undocumented foreigners to leave, law enforcement authorities said on Monday.

The country, one of Africa’s largest and most industrialised economies, has been on edge following weeks of sometimes violent xenophobic unrest that has left at least two people dead.

Small but organised groups have issued an ultimatum for undocumented migrants to exit or face consequences, a demand with no legal force.

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“The South African Police Service has elevated its operational readiness across all provinces, with comprehensive deployment plans in place to protect communities, critical infrastructure and key public spaces,” acting police minister Firoz Cachalia said.

He stressed the right to peaceful protest but warned: “Criminality, intimidation, violence, the destruction of property and any attempt to undermine public safety will not be tolerated”.

The military would secure strategic sites such as airports and stand ready to assist police if needed, said Defence Minister Angie Motshekga.

“Indeed, if, and I hope it is not going to reach that point, called upon by the police to support, we will, but basically ours is around the key points,” she said.

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South Africa, a longstanding magnet for migrant labour, faces joblessness above 30 per cent and a history of periodic anti-foreigner violence, fuelled by claims migrants drive crime and steal jobs.

Past flare-ups have been deadly: 62 people were killed in 2008 riots, with further outbreaks in 2015 and 2016.

Violence in 2019 saw armed mobs descend on foreign-owned businesses around Johannesburg, leaving at least 12 people dead — 10 of them South African citizens.

The latest tensions come ahead of local government elections scheduled for November 4.

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During the voter registration at the weekend, gunmen shot dead four people linked to political parties in separate incidents.

Two of those killed were affiliated with the opposition Umkhonto we Sizwe (MK) party, which is headed by ex-president Jacob Zuma, South Africa’s leader between 2009 and 2018.

The third, a Democratic Alliance ward candidate, was shot in the Western Cape, while an African National Congress ward councillor was killed in the Eastern Cape.

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