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Tax Reform: Speaker Abbas Assure Youths Will Be Considered

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By Gloria Ikibah
Speaker of the House of Representatives, Rep. Tajudeen Abbas has assured the various youth groups that their input will be factored in the review of the proposals ahead of their passage of the Tax Reform Bills by the parliament.
Speaker Abbas who was represented by Rep. Leke Abejide (ADC, Kogi), stated this at the National Youth Dialogue on Tax Reform Bills on Monday in Abuja.
According to him, the Tax Reform Bills is a catalysts of economic growth and national progress.
“These bills will prepare the country to be economically viable, technologically independent of other nations,” he said.
In his welcome address, Chairman House Committee on Youths in Parliament, Rep. Ayodeji Alao-Akala said the review of the nation’s tax laws has become necessary to address contemporary challenges in fiscal policies.
Chairman noted that young people, particularly those engaged in micro, small, and medium enterprises (MSMEs), are among the most affected by taxation policies.
Naijablitznews.com recalled that last week, the Senate and House of Representatives held public hearing on the Tax Reform Bills transmitted to the parliament in October 2024 and pledged their readiness to review the proposed legislation in the country’s interest.
He said: “If we get it right with the youth, we get it right with the country, Iurge young Nigerians to contribute meaningful ideas to the bill”
Rep. Alao-Akala sad that most low-income earners in Nigeria are youths, struggling to start businesses, rent homes, or make financial progress.
According to him the proposed tax reforms aim to ease this burden by ensuring fairer policies that support entrepreneurship and economic independence.
The Chairman insisted that delaying reform any further would be detrimental, emphasizing that “tomorrow never comes; the time to act is now.”
Similarly cross section of youth groups at the Public hearing, backed the tax reform bills currently under consideration by both chambers of the National Assembly.
One of the Groups, Alumni Association of the Legislative Mentorship Initiative commended the Federal Government proposals, saying that if implemented, the reforms are capable of changing the nation’s economic narrative.
“This proposed legislation is not merely a collection of fiscal policies; it is a blueprint that will shape the economic trajectory of our nation and more importantly, directly impact the lives of our youth, who largely represent the present and future of Nigeria,” representative of the association, Abubakar Tijani said.
He called for a balanced exchange of views, adding that as good as the bills were, there were areas of uncertainty that needed some clarity for the benefit of Nigerians.
“As we engage in this critical discourse, we must approach the subject with a balanced perspective, acknowledging the bill’s potential benefits while also addressing its areas of concern. Our collective goal must be to ensure that this legislation fosters inclusive growth, empowers our citizens, and lays a solid foundation for sustainable development,” Tijani added.
He listed the positives of the tax reform proposals to include company income tax reduction, support for small businesses, personal income tax relief and VAT exemptions on essential goods and services, among others.
“One of the most notable features of the bill is the proposed reduction in the Company Income Tax rate. The current rate of 30 per cent is set to decrease to 27.5 per cent in 2025, with a further reduction to 25 per cent by 2026. This measure is designed to stimulate business growth, enhance corporate profitability, and attract both domestic and foreign investments.
“By lowering the tax burden on companies, the government aims to encourage reinvestment, innovation, and job creation, all of which are critical for economic expansion. For the youth, this could translate into increased employment opportunities and a more vibrant private sector.
“The bill also introduces a significant exemption for small businesses with an annual turnover of ₦50m or less. These enterprises will no longer be required to pay income tax, a move that alleviates financial pressures on small-scale entrepreneurs and fosters a culture of entrepreneurship.
“Another laudable aspect of the bill is the exemption of workers earning ₦800,000 annually or less from personal income tax. This measure provides much-needed relief to low-income earners, many of whom are young professionals just starting their careers.
By increasing disposable income, the government is not only improving the standard of living for these individuals but also stimulating consumer spending, which is a key driver of economic activity,” he added.
That said, Tijani pointed out grey areas which require legislative intervention given the nation’s fragile economy.
“The bill proposes a gradual increase in the VAT rate, starting from the current 7.5 per cent to 10 per cent in 2025, 12.5 per cent in 2026, and 15 per cent by 2030. While this measure is intended to boost government revenue, it could have adverse effects on consumers.
“An increase in VAT often leads to higher prices for goods and services, which could erode purchasing power and exacerbate inflationary pressures. For the youth, who are already grappling with high unemployment rates, this could further strain their financial circumstances. It is essential to consider the broader implications of this policy on the cost of living and economic stability.
“Another concerning provision is the plan to cease funding for critical agencies such as the Tertiary Education Trust Fund, National Agency for Science and Engineering Infrastructure, National Information Technology Development Agency by 2030.
“These agencies play a pivotal role in advancing education, technology, and innovation, sectors that are indispensable for youth development and national progress. TETFUND, for instance, has been instrumental in improving infrastructure and quality in tertiary institutions, while NASENI and NITDA have driven technological innovation and digital transformation. Cutting funding to these agencies could hinder their ability to deliver on their mandates, thereby hindering progress in areas that are crucial for the youth and the nation’s future.
“The bill also proposes imposing taxes on businesses operating in Free Trade Zones. These zones have historically enjoyed tax exemptions as an incentive to attract investments and stimulate economic activity. By introducing taxes, the government risks deterring investors and undermining the competitiveness of these zones.
“This could lead to reduced economic activity, job losses, and a decline in foreign direct investment. For the youth, who often benefit from employment opportunities in these zones, this could have far-reaching implications,” he further said.
The association recommended the retention of the current VAT rate and urged the Federal Government to continue to fund agencies like TETFUND, NASENI and NITDA which he said are needed to thrive in a rapidly evolving global economy.
In its contribution, the Centre for African Policy Research Advisory, called for the involvement of Nigerians in the implementation of the bills when they are eventually passed into law.
Speaking on behalf of the Centre, Segun Adebayo emphasised the need for the protection of the nation’s tax sovereignty.
“Tax sovereignty refers to a nation-state’s right to control its tax policies. It is closely tied to a country’s ability to govern effectively and democratically,” he said.
One of the lead partners in the dialogue, Project Sprint, in its contribution, said the bills hold the potential to reduce the budget deficit, decrease government dependence on borrowing, curtail tensions across socioeconomic strata, and attract foreign investments.
Coordinator of the group, Isreal James in his speech, pointed out areas of concern in the proposed reforms, saying, “One critical aspect to consider is the microeconomic implications of personal income tax on labour supply.
“Many youths in Nigeria fall within the wage bracket of 70,000 to 150,000 naira per month. Taxing this demographic could have detrimental effects, especially for those on the verge of paying off academic loans and starting their lives.
“As we navigate the modern era, it is crucial to recognise that services such as telecommunications and digital transactions are essential. To disregard these services as non-essential would be a step backwards in our progress.
“We advocate for a reduction in VAT to between 3.5 per cent and 5 per cent to better reflect our GDP per capita. While encouraging states to compete economically to improve their VAT collection is commendable, it is equally important for the Federal Government to empower states to effectively manage their economies. One way to achieve this is through the decentralisation of port construction, ensuring that states have the necessary infrastructure to thrive,” he said.

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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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