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TUC proposes N2.5m threshold for personal income tax waiver

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The Trade Union Congress of Nigeria has called for an increase in the tax exemption threshold from N800,000 to N2.5m per annum to ease economic challenges faced by low-income earners.

The union stressed that this measure would increase disposable income, stimulate economic activity, and provide much-needed relief to workers and their families.

The president of the union, Festus Osifo, made the call in a statement on Tuesday.

He said, “We still have two items that we strongly believe should be reviewed in the tax bills that will immensely benefit Nigerians.

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“The threshold for tax exemptions should be increased from the current N800,000 per annum, as proposed in the bill, to N2,500,000 per annum. This will provide relief to struggling Nigerians within that income bracket, easing the excruciating economic challenges they face by increasing their disposable income.”

On the proposed transfer of royalty collection to the Nigeria Revenue Service, the TUC president warned of potential revenue losses and inefficiencies due to the lack of technical expertise in oil and gas operations within the NRS

He said, “The proposed bill assigning royalty collection to the Nigeria Revenue Service appears beneficial on the surface but would most likely result in significant revenue losses for the government. Royalty determination and reconciliation require specialised technical expertise in oil and gas operations, which NUPRC possesses but NRS lacks, potentially leading to inaccurate assessments and enforcement issues.

“Additionally, this shift would create regulatory burdens, increase compliance costs for industry players, and reduce investor confidence due to overlapping functions and inefficiencies between NUPRC and NRS.”

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Osifo reiterated that allowing the VAT rate to remain at 7.5 percent was the best for the country.

“Allowing the Value Added Tax rate to remain at 7.5% is in the best interest of the nation, as increasing it would place an additional financial burden on Nigerians, many of whom are already struggling with economic challenges.

“At a time when inflation, unemployment, and the cost of living are rising, imposing higher taxes would further strain households and businesses, potentially slowing economic growth and reducing consumer purchasing power,” Osifo said.

Osifo noted that the union welcomed the inclusion of a derivation component in VAT distribution among the three tiers of government, describing it as a step toward reducing dependence on oil revenues and encouraging sub-national productivity.

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He said, “On a general perspective, we welcome the inclusion of a derivation component in the Value Added Tax distribution amongst the three tiers of government. When passed into law and properly implemented, it will encourage productivity at the sub-national level, thereby moving us gradually from a total rent-seeking economy to a derivation-based system that will stimulate economic activities.”

The TUC president said the continued existence of the Tertiary Education Trust Fund and the National Agency for Science and Engineering Infrastructure would bring about progress to the nation’s education as well as engender economic development in the country.

He said, “It is also good to note that both TETFUND and NASENI will remain a going concern, as these institutions have greatly impacted the country through their respective mandates. Both have respectively been instrumental in improving our tertiary education and the adoption of homegrown technologies to enhance national productivity and self-reliance. Their continued existence is vital for sustaining progress in education, technology, and economic development across the country.”

However, the union president urged the Federal Government to adopt equitable tax policies that prioritise the welfare of citizens.

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He said, “ While we deeply appreciate the Federal Government’s efforts to listen and adjust to our advocacy, we still advocate that the above concerns be considered and adopted in the Tax Reform Bill, they will be highly beneficial to the Government and Nigerian populace.

“The Trade Union Congress of Nigeria has a shared responsibility to promote policies that improve the lives of Nigerians amongst whom are workers. We believe that proactive measures, when implemented, are for the maximum good of the citizens and are evidence of great and sincere leadership. As the conversations around the Tax Reform Bill continue, it is our expectation that the focus would be equitable economic growth and improved living conditions for all Nigerians.”

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Court dismisses SERAP’s suit against NASS budget

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By Francesca Hangeior

Justice James Omotosho of the Federal High Court sitting in Abuja has dismissed a suit by the Incorporated Trustees of the Socio-Economic Rights and Accountability Project, SERAP, challenging the powers of the National Assembly to amend its budget in the 2024 Appropriation Act.

Justice Omotosho ruled, among others, that SERAP lacked the locus standi to institute the suit.

The judge upheld the argument of Dr. Sheriff Adesanya, who represented the 1st Respondent (the Senate President), that the interest of SERAP and that of the 20 concerned citizens it represented, was no greater than that of the general public.

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Furthermore, Justice Omotosho agreed with Dr. Adesanya (of Abiodun Adesanya & Co) that the plaintiff’s claims were without merit.

He dismissed the case in its entirety.

SERAP, through Andrew Nwankwo of Eko Akete Chambers, had contended that the National Assembly’s unilateral increase of its budget allocation from ?197 billion to ?344 billion contravened Section 81 of the Constitution, the Code of Conduct for Public Officers, and democratic principles, particularly the separation of powers.

The organization sought a declaration that the budgetary increase was unconstitutional and requested orders compelling the National Assembly to adhere to constitutional procedures by re-presenting any amended appropriation bills to the President for approval before enactment.
Apart from arguing that the Plaintiffs had no standing to initiate the suit, Dr. Adesanya also defended the procedural validity of the National Assembly’s budgetary actions, Saying SERAP failed to show that the lawmakers’ action was procedurally irregular.

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The lawyer had told the court that “It is respectfully submitted that the presumption of regularity enjoyed by the National Assembly’s Act must be rebutted by the Plaintiffs.

“Apart from speculative claims by the Plaintiffs that the altered appropriation bill was not forwarded to the President after amendment by the National Assembly, there is no evidence (assuming such alteration necessitated representation to the President) to support this assertion.”

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Nigeria prosecutes 100 terror financiers in 2 years —Tinubu

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By Francesca Hangeior

President Bola Tinubu, yesterday, announced that Nigeria has successfully prosecuted over 100 terrorist financiers in the past two years as part of its ongoing fight against financial crimes and terrorism financing.

This effort aims to disrupt the financial networks supporting terrorist groups such as Boko Haram and Islamic State West Africa Province, ISWAP, ultimately safeguarding communities and fostering a secure environment for development.

The announcement was made by Secretary to the Government of the Federation, SGF, Mr. George Akume, who represented Tinubu at the National Anti-Money Laundering, Combating Terrorism Financing and Counter Proliferation Financing Compliance Summit held in Abuja.

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He said: “By taking away the funds, resources and material support behind Boko Haram and ISWAP, we are denying them the ability to inflict terror on our communities and citizens.

“We have made progress to tackle the threats of terrorism and other violent crimes through the gallant action of our frontline troops and our security agencies.

“Through the efforts of the office of the national security adviser and the attorney-general of the federation, we have prosecuted and convicted over 100 terrorist financiers in the last two years.
“It is an approach that we are utilising as a fundamental component of our national strategies to combat serious criminal offences.”

Hafsat Bakari, Chief Executive Officer of Nigerian Financial Intelligence Unit, NFIU, who also spoke at the summit, highlighted the importance of collaboration among various stakeholders, including political leaders, financial institutions, law enforcement agencies, and international partners.

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“The fight against financial crimes is not one that any single entity can win alone. It requires the collective strength and commitment of our political leaders, regulators, financial institutions, law enforcement and security agencies, and international partners,” Bakari stressed.

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Man found dead in Kano well

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By Francesca Hangeior

Kano State Fire Service has recovered the lifeless body of an unidentified 45-year-old man from a well in Babawa village, Gezawa Local Government Area of Kano State.

In a statement released on Wednesday, the Kano State Fire Service spokesman, Saminu Abdullahi, said the control room received a distress call reporting the incident.

The statement read, “Today being Tuesday 21st January 2025, at about 12:59 hrs, the State Fire Service control room received an emergency call from a police officer, ASP KABIRU LAWAN of Gezawa police division.”

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“He informed the control room about the incident at BABAWA VILLAGE in Gezawa Local Government area.

“Emergency rescue team from the state headquarters were mobilised to the scene of the incident, arrived at 13:25 hrs and found a man of about 45 years old, whose identity is unknown to anyone within the vicinity.”

According to the fire service, the man appeared unconscious when first found in the well.

Efforts to rescue him proved futile, and he was later confirmed dead, suspected to have succumbed to prolonged exhaustion.

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“Thereafter, the victim was handed over to ASP Kabiru Lawan of Gezawa Police division for further action,” he said.

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