News
Oil Trade Sector Flags Key Concerns Over Tax Reform Restrictions
- /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 27
https://naijablitznews.com/wp-content/uploads/2025/02/IMG-20250226-WA0017-1-1000x600.jpg&description=Oil Trade Sector Flags Key Concerns Over Tax Reform Restrictions', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
- Share
- Tweet /home/naijuinz/public_html/wp-content/plugins/mvp-social-buttons/mvp-social-buttons.php on line 72
https://naijablitznews.com/wp-content/uploads/2025/02/IMG-20250226-WA0017-1-1000x600.jpg&description=Oil Trade Sector Flags Key Concerns Over Tax Reform Restrictions', 'pinterestShare', 'width=750,height=350'); return false;" title="Pin This Post">
…as manufacturers association call for fair implementation
By Gloria Ikibah
The Oil Producing Trade Sector (OPTS) has raised concerns over four key tax reform restrictions: limited access to tax incentives, increased effective tax rates, exclusion of recently announced incentives, and contract stabilization issues.
Speaking at the resumed 3-day public hearing on the Tax Reform Bills in Abuja, OPTS representative Oluwole Oladimeji highlighted specific concerns regarding Sections 57 and 85 of the proposed law. He emphasized the need for clarity on the minimum effective tax rate and investment utilization under the new framework.
“How do you work with Section 57? It introduces a minimum effective tax rate, but clarity is needed on how it will be computed,” Oladimeji stated.
He also pointed to the need for further explanation on three-year tariff limits and the application of tax credits in investment calculations.
“If I move on to another section of concern, on the three-year tariff limits, section 85, subsection 4, it talks about the three-year tariff limit on recouped tax credits. And this, if implemented, will reduce the benefits of the non-associated tax, as well as the due potential consequential fiscal derivatives.
“The third element on that list has to do with clarity that is needed with respect to section 85, subsection 1b, that says that the tax credit will not be applicable after the 10th year, i.e., before the 11th year. Our request regarding this is, one, that if we are going to have an even minimum effective tax rate at all, all taxes should be included in the basis for determining this. Secondly, that all tax credits will be utilized before the issue of any minimum tax, effective tax rate, will even arise at all.
“And then, with respect to the 11th year, that the current provision in section 85, subsection 1b should be extended by putting provision except carried forward from the 10th, so that if we are going to utilize tax credits in the 10th year, it will not be lost at all when we have only tax allowance that is also applicable. Then, another thing we would like to talk about is related to section 85, subsection 2, which provides that the incentives, tax incentives, will only be applicable to companies under the PIM. This will be the use of section 78, which covers section 78 through 88, and here we have the map incentives in there.
“So the way the thing is now, it will be only available to companies that are converted to PIM. And to cure this, we propose that there should be a remapping of the current section 78 to chapter 8, that includes incentives, so that one would not think that it is particularly restricted to companies under the particular tax regime. Because if this is not done, it will be introducing a limitation that is not in the executive order signed by the President in 2024.
“Another area of concern is section 92, subsection 3, which as currently drafted, says that the company shall be excluded from other incentives if it has utilized associated gas incentives. Now, gas incentives have typically determined a project, not a company. And the exclusion clause currently existing is overly broad and can give us other incentives.
“Another element of concern under this restriction on utilization of tax incentives has to do with section 104, which today knocks off investment tax credits enjoyable, allowable under section 4 of the deep offshore and inland leasing production sharing contract. What section 104 talks about today is only investment tax allowance.
“It has removed the investment tax credit that is currently a trade dispute. So our request is that there should be a retention of the current provision of section 4 of the deep offshore act that we are proposing. I will give you a second indicator to look at now, which has to do with increase in effective tax rates”.
In section 146, Oladimeji observed a sharp increase in the heat rate, rising from 7.5% to a progressive 15% in 2013. Additionally, sections such as 21, 27, 69, 94, and 97, along with sections 1–4, introduce penalties when P80 is due—whether on an expense or an asset that is not charged. This results in the affected expense or asset being non-deductible for tax purposes.
He furthermore noted that, the current wording of the law lacks clarity on how P80 will be treated, raising concerns that businesses might face penalties simply because of unclear payment terms. “The issue of P80 penalties has already been addressed in the Nigerian Tax Acquisition Regulations, particularly in Sections 64 and 121, which outline penalty conditions for unpaid P80.
“It is important to note that Nigeria already has a well-established legal framework for determining capital allowances and utilizing SAFE under existing laws, such as the Petroleum Profits Tax Act, the Petroleum Industry Act, the Deep Offshore and Inland Basin Production Sharing Contract Act, and CITA. The aim of the Tax Committee should be to simplify these laws, not introduce unnecessary complications.
“The oil and gas industry operates in collaboration with multiple government agencies, including the ATD, CDMA, FRS, and CBA, as well as partnerships with the NNPC. These collaborations involve project reviews, performance assessments, and audits. Therefore, tax reforms must prioritize simplification and efficiency, ensuring that regulatory burdens do not make doing business more difficult. Overloading companies with excessive tax obligations will ultimately increase costs and hinder economic growth”, he added.
The President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye commended the federal government for adopting a structured and consultative approach to tax reforms. He noted that this method would facilitate early revenue generation and drive inclusive economic growth.
Meshioye expressed confidence that the proposed reforms under the Constitutional Reconciliation Bill would effectively tackle the long-standing issue of multiple and excessive taxation.
However he highlighted the growing concern over arbitrary levies imposed by regulatory bodies at various levels of government, as well as the unlawful collection of taxes and fees by non-state actors, which continue to create an unpredictable business environment.
“We look forward to the implementation of these reforms to address the persistent challenges of high taxation and restrictive policies. It is our hope that this will usher in a new era where the National Assembly refrains from approving arbitrary levies on businesses to finance government agencies,” he stated.
He cited a recent instance where businesses were required to contribute a percentage of their market capitalization to sustain certain financial indices. He warned against such measures, emphasizing that they place undue strain on businesses.
Meshioye welcomed the planned reduction of the Corporate Income Tax (CIT) rate from 30% to 27.5% in 2025 and 25% in 2026, aligning with global trends toward lower income tax rates. He described this move as a positive step that would ease financial pressure on manufacturers, attract investment, and reinforce the government’s commitment to reducing the cost of doing business in Nigeria.
Addressing concerns related to tax rates in free trade zones, he stressed the importance of maintaining clarity and ensuring that tax policies align with existing laws. He argued that rather than undermining the incentives for businesses operating within the zones, a fair tax structure would create a level playing field between companies within and outside these zones, particularly in relation to sales into the customs territory.
Meshioye underscored the need for a balanced approach to taxation, ensuring that Nigeria’s trade policies remain competitive while protecting the country’s tax base.
He pointed to Section 16 of the Real Tax Clause as a crucial reference for maintaining fairness and economic stability.
The hearing continues on Friday when the Nigerian National Petroleum Company Limited will present their observations.
News
Tinubu Declares End to Neglect of FCT Satellite Towns as Karu Water Project Comes on Stream(Photos)
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.
“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.
“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.
“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.
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.
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.
News
110bn SUVs Procurement: Respect Separation of Powers, pro-democracy group warns critics of N’Assembly
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.
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.
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.
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.
News
South Africa deploy security personnel nationwide ahead of anti-migrant deadline
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.
“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.
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.
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.
-
News18 hours agoFull List: Winners Of By-Elections In Kano, Rivers, Others
-
News18 hours agoFresh Controversy as Group Petitions INEC Over Tinubu’s Credentials, Seeks Clarification Ahead of 2027 Election
-
News18 hours agoJAMB ends affiliated degree programmes in Colleges of Education
-
Metro17 hours agoSad: Unidentified lady slumps, dies on Ajah bridge in Lagos
-
News13 hours agoXenophobia: Malawian National K!lled in South Africa
-
News11 hours agoJust in: Finally, Starmer resigns as UK PM
-
Entertainment18 hours agoCubana Chief Priest’s Alleged Babymama, Hellen Ati Uses Her ‘Yansh’ To Curse Him
-
News18 hours agoNnamdi Kanu Expels Chika Edoziem, 9 Other Senior IPOB Members Over Alleged Betrayal, Sabotage, Power Grab

Warning: Undefined variable $user_ID in /home/naijuinz/public_html/wp-content/themes/zox-news/comments.php on line 49
You must be logged in to post a comment Login