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Tax Reform Bills Propose New Sharing Formula, Cede 55% to State Govt

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The Senate on Thursday resumed its debate on the Tax Reform Bills, a set of four legislative proposals to increase value-added tax (VAT) distributable to the subnational governments to 55% while reducing the federal government’s share to 10%.

The new legislative regimes also proposed zero VAT on exports and essential consumptions by the masses and grant of input VAT credit on assets and services in addition to goods consumed by businesses to lower the cost of production

These far-reaching initiatives were contained in the lead debate of Leader of the Senate, Senator Opeyemi Bamidele on the Tax Reform Bills at the Senate Chamber, National Assembly Complex, Abuja yesterday.

The Federal Executive Council had proposed the Tax Reform Bills comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024 and Nigeria Tax Bill, 2024.

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The bills elicited spirited interests among key lawmakers and stakeholders across party lines, a situation that informed the leadership of the Senate to invite Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele and Chairman, Federal Inland Revenue Service, Dr. Zacch Adedeji to brief its plenary.

Leading debate at the plenary, Bamidele reeled out far-reaching proposals contained in the Tax Reform Bills, which according to him, aims at simplifying the tax landscape, reducing the burden on small business and streamlining how taxes are collected.

In the area of tax exemptions, Bamidele pointed out that those, whose salaries are not more than the minimum wage from Pay As You Earn (PAYE) deductions, would be exempted from the tax regime.

He also said small businesses with annual turnover of N50 million or less “are equally exempted from payment of taxes,” a key pro-business initiative that encourages job creation; deepens ease of doing business and incentivises more investments.

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Similarly, the senate leader explained that there was a proposed huge reduction in company income tax from the current 30% to 25% that would last for at least two years.

He said: “As part of deliberate attempt to curtail the incidence of double taxation and multiplicity of taxes and levies, multiple taxes hitherto paid by companies under various tax heads namely 2.5% education tax, 0.25% NASENI tax have been harmonized into a development level of 2% which by 2030 will be applied to fund the newly established student loan scheme which will benefit many Nigerian youths.

“Unlike what is obtainable under the existing tax regime whereby the Federal Government takes a lion share of VAT revenues, it is proposed that the sharing formula should allow the State Government share 55% of VAT revenue from the current 15% to 10% sharing formula.

“However, Local Governments share of VAT revenue remains unaffected. Relatedly, basic items consumed by Nigerian households such as food items, medical services and pharmaceuticals, educational fees, electricity etc. are exempted from VAT.

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“Again, as part of efforts to ease the administration of income taxes and levies across the Federation, there is a reasonable effort made to consolidate core tax statutes and related tax legislations,” Bamidele explained.

Contrary to misrepresentations in the public domain regarding the intendment of the Bills under consideration, Bamidele explained that the bills contained innovative and people-oriented proposals as part of the government’s deliberate fiscal and tax reform measures to cushion the effect of ongoing broader economic policies such as the removal of subsidy on petroleum products, renewed efforts to implement cost -reflective electricity tariffs in the power sector etc on Nigerian citizens.

In his contribution, former Chief Whip of the Senate, Senator Ali Ndume (Borno South) claimed that his problem was about timing and the issue of derivation.

He added that the Constitution of the Federal Republic of Nigeria, 1999 (as amended) must be amended before the Tax Reform Bills should take effect, therefore calling for its immediate withdrawal.

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Ndume observed: “I am not against the reform, my problem is timing and the issue of derivation make the reform contagious. The 1999 Constitution has to be amended before the bills can be effective.”

However, the Chief Whip of the Senate, Senator Mohammed Munguno (Borno North) expressed strong objection to Ndume’s submissions, asking the Senate to disregard it and pass the bills for second reading.

Munguno urged the Senate to pass the bill into second reading, advocating that all areas of concern would be addressed at the public hearing stage.

After the debate that featured Chairman, Senate Committee on Finance, Senator Sani Musa and Chairman, Senate Committee on Ecology, Senator Seriake Dickson, the Senate unanimously passed the bills into second reading following Munguno’s final position.

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In his remarks, the President of the Senate, Senator Godswill Akpabio referred the bill to the Senate Committee on Finance, advising the Committee to invite all the stakeholders to the public hearing to address all areas of concern.

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“How we imortalised Olunloyo before his death-Makinde

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By Kayode Sanni-Arewa

Governor of Oyo State, Seyi Makinde has said he is happy that former governor of the State, Omololu Olunloyo was imortalised before his demise.

Makinde, in a condolence message by his media aide Sulaimon Olanrewaju on Sunday, said the country had lost a patriotic leader, an icon and one of its most cerebral former administrators with the politician’s demise.

The governor said it is sad that the late mathematical guru and administrator passed away before his 90th birthday.

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“This death hits differently because I was looking forward to Baba’s 90th birthday, which would have come up on April 14. However, we have to submit to the will of God, who gives and takes lives as He wills.

“My joy is that our government immortalised and honoured Pa Olunloyo in his lifetime and he was present to witness it as we named the Ibadan Airport Road and the Leisure Park on the axis after him in recognition of his service to the state.

“May the Lord grant repose to his soul and give his family the fortitude to bear his demise,” Mr Makinde said.

The death of Mr Olunloyo was confirmed on Sunday morning through a statement by his family.

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The deceased died just a few days before his 90th birthday, according to the statement.

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Iran turns down Trump’s call for direct nuclear talks

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Iran’s top diplomat has rejected direct negotiations with the United States as pointless, his office said Sunday, after US President Donald Trump said he preferred face-to-face talks over its nuclear programme.

Trump sent a letter to Iran’s supreme leader Ayatollah Ali Khamenei last month calling for negotiations but warning of military action if diplomacy failed.

On Thursday, the US president said he favoured “direct talks”, arguing they were “faster” and offered a better understanding than going through intermediaries.

But Iranian Foreign Minister Abbas Araghchi said direct talks made no sense with a country “that constantly threatens to resort to force in violation of the UN Charter and that expresses contradictory positions from its various officials”.

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“We remain committed to diplomacy and are ready to try the path of indirect negotiations,” he was quoted as saying in a statement issued by his ministry.

Iran keeps itself prepared for all possible or probable events, and just as it is serious in diplomacy and negotiations, it will also be decisive and serious in defending its national interests and sovereignty.”

On Saturday, Iranian President Masoud Pezeshkian said his country was willing to engage in dialogue with the United States on an “equal footing”.

He also questioned Washington’s sincerity in calling for negotiations, saying “if you want negotiations, then what is the point of threatening?”

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Iran and the United States have had no diplomatic relations since shortly after the 1979 Islamic Revolution with some regional countries like Oman playing a mediating role between the two sides.

Letter diplomacy
Trump’s letter was delivered to Iran via the United Arab Emirates, and Tehran responded at the end of March via the Sultanate of Oman.

On Sunday, the chief of staff of the Iranian armed forces, General Mohammad Bagheri, said Iran’s response stressed that “we seek peace in the region”.

“We are not the ones who start wars, but we will respond to any threat with all our might,” he said of the content of Iran’s response.

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Western countries, led by the United States, have for decades accused Tehran of seeking to acquire nuclear weapons.

Iran rejects the allegation and maintains that its nuclear activities exist solely for civilian purposes.

In 2015, Iran reached a landmark deal with the permanent members of the UN Security Council, namely the United States, France, China, Russia, and the United Kingdom, as well as Germany, to limit its nuclear activities.

The 2015 agreement — known as the Joint Comprehensive Plan of Action — gave Iran sanctions relief in exchange for curbs on its nuclear programme to guarantee that Tehran could not develop a nuclear weapon.

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In 2018, during Trump’s first term in office, the United States withdrew from the agreement and reinstated biting sanctions on Iran.

A year later, Iran began rolling back on its commitments under the agreement and accelerated its nuclear programme.

On Monday, Ali Larijani, a close adviser to Khamenei, warned that while Iran was not seeking nuclear weapons, it would “have no choice but to do so” in the event of an attack against it.

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Nigerian Army ‘Destr0ys Over 70 Bandits Dens In Taraba, Wastes Three Terrorists’

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During the operation, three terrorists were reportedly eliminated, and security forces recovered firearms and logistical supplies.

The Nigerian Army says it has destroyed over 70 camps used by bandits in Taraba State, as part of a continued effort to combat terrorism in the region.

During the operation, three terrorists were reportedly eliminated, and security forces recovered firearms and logistical supplies.

SaharaReporters learnt that the military engaged the terrorists at a hideout in Achelle, situated within the Karim Lamido Local Government Area, as part of their ongoing efforts to dismantle the remaining elements of terrorist groups in the state.

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Captain Oni Olubodunde, spokesperson for the 6 Brigade of the Nigerian Army in Jalingo, confirmed the operation, stating that its primary objective was to identify and neutralise dangerous criminals active in the area.

Olubodunde further reported that, in addition to eliminating the three terrorists, security personnel seized an AK-47 rifle, ammunition, and two motorcycles during the operation, which took place on April 5, 2025.

“In continuation of Operation Lafiya Jama’a, a military offensive to remove criminal elements from Taraba State, the brave troops of the 6 Brigade Nigerian Army and Sector 3 Operation Whirl Stroke (OPWS) successfully neutralised three bandits, destroyed several camps, and seized weapons and ammunition during a daring clearance operation conducted in the Karim Lamido Local Government Area on April 5, 2025,” said Olubodunde.

The operation targeted suspected bandit hideouts, beginning in Achelle, where troops carried out a thorough sweep before advancing to Chibi.

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As forces reportedly approached Chibi, the bandits attempted to escape but were intercepted. In the ensuing clash, three bandits were eliminated, and multiple makeshift camps were destroyed. Security personnel also seized two motorcycles, an AK-47 magazine, and 13 rounds of 7.62mm special ammunition.

Furthermore, troops conducted extensive searches in the Dutsen Zaki and Achalle areas, where over 70 criminal camps have been dismantled in recent weeks.

According to Olubodunde, no signs of human activity were detected during this latest operation, underscoring the effectiveness of previous security efforts.

Brigadier General Kingsley Chidiebere Uwa, Commander of the 6 Brigade Nigerian Army, praised the troops for their dedication and strategic execution. He reassured the people of Taraba State that terrorists and criminals would find no refuge in the region.

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General Uwa also urged residents to remain vigilant while going about their daily activities without fear. He emphasised the importance of maintaining law and order.

He encouraged the public to provide timely and credible information to security agencies, stressing that such cooperation is essential for ensuring the safety of local communities.

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