News
Reps Advance Tax Reform Bills Amid Unanimous Support
…as legislators overcome initial opposition to move key revenue laws forward
…weigh concerns over VAT, multiple taxation, Economic Impact
The House of Representatives on Wednesday passed through second reading the four tax reform bills submitted by the President, with no opposition from lawmakers.
The proposed laws include the Nigeria Revenue Service (Establishment) Bill, the Nigeria Tax Bill, the Nigeria Tax Administration Bill, and the Joint Revenue Board (Establishment) Bill.
Originally introduced on October 8, 2024, deliberations on the bills were delayed due to concerns raised by northern leaders and the Nigerian Governors Forum, particularly over the Nigeria Tax Administration Bill, but Speaker Tajudeen Abbas had urged members to consult widely with their constituents before debating the proposals.
Naijablitznews.com reports that ahead of plenary on Wednesday, the four bills were merged into a single document for debate. Despite highlighting potential conflicts with certain constitutional provisions and a few contentious clauses, lawmakers overwhelmingly supported moving the bills forward.
House Minority Leader, Rep. Kingsley Chinda (PDP Rivers, representing minority voices, acknowledged broad support for the reforms but pointed out concerns regarding specific provisions. He emphasized that while the bills aim to restructure the tax system for better revenue generation, the interpretation of certain provisions requires careful review.
The House of Representatives, on Wednesday, continued deliberations on the tax reform bills, with lawmakers expressing mixed reactions to various provisions, including proposed changes to Value Added Tax (VAT) and streamlining of multiple taxes.
Leade of the House, Rep. Julius Ihonvbere commended the President for initiating the reforms, and stated that the bills aim to modernize Nigeria’s tax system, eliminate multiple taxation, enhance revenue collection, and boost economic diversification. He acknowledged opposition to the bills but noted that differing perspectives had strengthened the final proposals.
Ihonvbere highlighted key benefits, including incentives for small businesses, improved revenue generation, and the reduction of tax burdens on low-income earners. He revealed that the reform would consolidate over 60 different taxes into just nine, ensuring quicker resolution of tax disputes within 14 days.
Minority Whip, Rep. Ali Isa (PDP, Gombe) raised concerns over Clause 146 of the Nigeria Tax Bill, which proposes a gradual VAT increase from 7.5% to 10% and later 15%, and cautioned that higher VAT could worsen economic hardship and urged the House to address areas requiring adjustments.
Chairman House Committee on Public Accounts, Rep. Bamidele Salam (PDP, Osun), emphasised that while tax reforms can be challenging, they are necessary for national development. He criticized Nigeria’s complex and duplicative tax laws, arguing that they deter investors and hinder economic growth.
Rep. Stanley Olajide (PDP, Oyo) pointed out that the House regularly establishes new agencies that require funding, making tax reform essential for sustaining government institutions.
Deputy Chief Whip, Rep. Isiaka Ibrahim Ayokunle (APC, Ogun) described the bills as a major step toward tax harmonization but stressed the need for penalties not only for taxpayers who default but also for government agencies failing to implement tax laws effectively.
In his submission, Rep. Sada Soli (APC, Katsina) raised constitutional concerns, particularly regarding Section 141 of the Tax Administration Law, which he said conflicts with existing legislation and creates jurisdictional overlaps. He also criticized ambiguities in VAT and fiscal policies that could overburden taxpayers.
Rep. Babajimi Benson (APC, Lagos) praised the bills for promoting fairness and increasing revenue for states. He also backed the decision to retain key agencies like TETFund, NITDA, and NASENI, stating, “I commend the President for having the guts to push these reforms now.”
Rep. Gboyega Nasiru Isiaka (APC, Ogun) reinforced the House’s commitment to reforms, stating, “From day one, we promised Nigerians a tax overhaul. Our system is outdated, and this is the change we need.”
The debate, which lasted over three hours, showcased a broad consensus on the need for tax reform while highlighting critical areas requiring fine-tuning before the final passage.
During deliberations on the tax reform bills, Rep. Marian Onuoha (APC, Imo) emphasized that the proposed laws aim to create a fairer tax system by placing a heavier burden on high-income earners.
Rep. Abubakar Hassan Fulata raised concerns over the absence of an interpretation clause in three of the four bills, warning that without clear definitions, the laws could be misapplied or exploited by those enforcing them.
Rep. Ademorin Kuye (APC, Lagos) stressed that Nigeria must reform its tax laws to remain globally competitive, while Rep. Leke Abejide (ADP, Kogi) praised President Tinubu for taking decisive steps to rescue the economy from collapse.
Addressing the derivation principle, which had been a contentious issue, Rep. Ahmed Jaha (APC, Borno) insisted that the law must clearly define the specific type of derivation it refers to in order to avoid ambiguity.
Rep. Donald Ojogo (APC, Ondo) highlighted the importance of integrating modern technology into tax administration to curb revenue leakages and boost collection efficiency.
Former House Leader, Rep. Alhassan Ado Doguwa commended lawmakers for their patriotism and Speaker Abbas Tajudeen for allowing thorough consultations before proceeding with the bills. He also praised the President for respecting the legislative process, particularly in retaining key government agencies.
Former Deputy Speaker Rep. Ahmed Idris Wase recalled how the tax reform debate initially caused divisions within the House but credited the Speaker’s diplomacy for maintaining unity. He welcomed the retention of TETFund, arguing that removing it would have harmed the education sector.
In a unanimous decision, the House passed the bills for second reading via a resounding voice vote, with no opposition. The bills have now been referred to the House Committee on Finance, which will conduct a public hearing for further scrutiny and stakeholder engagement.
…ready for nationwide protest
The Nigeria Labour Congress (NLC) has demanded an immediate reversal of the 50 per cent tariff hike implemented on Tuesday by telecommunication companies.
The NLC lamented that the companies implemented the new tariff despite an earlier agreement reached with the Federal Government and the Nigerian Communications Commission (NCC) that gave birth to a 10-man committee to deliberate on the matter.
In a communique, the NLC revealed that the committee was to reach an agreement within two weeks and report back before any final decision would be made on the new telecom tariff structure.
The NLC slammed the companies for implementing the tariff without the committee’s conclusion, describing their action as a betrayal of trust, an affront to the principles of negotiation, and a direct slap on the government and its institutions and a disdain for the Nigerian people.
It said the action is a further demonstration of regulatory capture and impotence amid corporate onslaught and the continuing abandonment of workers and masses to corporate fat cats by the government.
“This unwarranted and premature tariff hike demands an immediate response from our collective resolve since government clearly favours the rich against the people,” the labour union said.
The NLC made this known after a Central Working Committee (CWC) meeting conducted in Kogi to deliberate on pressing national issues, including the tariff hike, the proposed Tax Reform Bills, and the rolling out of the Compressed Natural Gas-powered buses for the North Central zone.
The NLC then issued a list of resolutions which reads, “The CWC demands an immediate reversal of the tariff hike, which took effect today, and insists that the companies revert to the previous tariff until the committee completes its deliberations and reaches a conclusive agreement.
“As a first step in resisting this arbitrary tariff hike, the CWC has directed that, beginning Thursday, February 13, 2025, Nigerian workers and other willing citizens shall boycott the services of MTN, AIRTEL, and GLO daily between 11:00 AM and 2:00 PM until the end of February 2025.
“All workers and citizens are urged to suspend the purchase of Data from these companies which has also become one of their greatest tools for exploiting Nigerian citizens.
“We also demand the repatriation of all funds siphoned out of the country by these companies.
“If the telecommunications companies fail to revert to the old tariff by the end of February 2025, a total shutdown of their operations nationwide will commence from March 1, 2025.
“All NLC State Councils are directed to commence immediate sensitization and mobilization of their members and the general public within their jurisdictions.
“All NLC Affiliate Unions are requested to mobilize their members across the country to observe electronic silence during the designated hours.”
The NLC also reviewed the ongoing discussions around the Tax Reform Bills being considered by the government, insisting that any tax policies must be designed to alleviate the burdens on Nigerian workers and not worsen the existing economic hardship.
The labour union promised to engage with relevant authorities to ensure that tax reforms are fair, equitable, and worker-friendly.
“The CWC calls on all Nigerians to unite in this struggle against exploitative economic policies and to actively participate in the outlined actions to demand justice and fairness in telecommunications, taxation, and transportation policies,” the NLC concluded.
By Kayode Sanni-Arewa
No fewer than 145 stranded Nigerians, including 124 women, 13 men, and 8 children, have been repatriated from Libya with the support of the International Organisation for Migration (IOM), the Libyan Directorate for Combating Illegal Migration (DCIM), and the Nigerian consulate.
The mlNigerians were flown into Lagos from Mitiga International Airport, Tripoli, on a Voluntary Humanitarian Return (VHR) flight.
Nigeria’s National Emergency Management Agency (NEMA) confirmed their arrival at Murtala Muhammed International Airport at 5:35 p.m. on Tuesday aboard a chartered Boeing flight with registration number 5A-BAA.
After profiling and biometric registration, the returnees were moved for further reintegration programs facilitated by the IOM.
By Gloria Ikibah
The House of Representatives Committee on Public Petitions has directed the Comptroller General of the Nigerian Customs Service, Adewale Adeniyi, to appear before it on Tuesday February 18, 2025, and respond to allegations regarding the continued service of certain senior officers beyond their retirement dates.
The Obasi-Pherson Help Foundation had petitioned the 10th House, claiming that some Assistant Comptrollers and Comptrollers—identified as Imam, Umar, and Egwu, as well as Awe, Fatia, and Faith had reached their mandatory retirement dates but refused to step down.
In issuing the summons, the Committee Chairman, Rep. Mike Etaba stressed the importance of transparency in public service.
He said: “Nigerians deserve to know the true situation, and only the Customs Comptroller General can provide clarity.
“With many young Nigerians seeking employment, it is unacceptable for those due for retirement to hold onto positions meant for fresh recruits”.
Rep. Etaba emphasised that the Committee remains impartial, committed to ensuring justice based on the merits of each case.
In a related matter, the Committee has warned that it may issue an arrest order for the Director General of the National Identity Management Commission (NIMC) if she fails to appear in person to respond to allegations of a breached software agreement.
Truid Limited, a private firm, claims that NIMC failed to honour a license agreement for a tokenization system it developed and deployed at no initial cost to the commission.
The agreement, signed in 2021, allowed Truid to recoup its investment through service provider transactions, with revenue shared between both parties over a ten-year period.
However, the petition alleged that the new NIMC DG has been attempting to terminate the arrangement, leading to a dispute.
Chairman Etaba expressed dissatisfaction over the DG’s repeated absence despite multiple invitations.
“If she fails to appear at the next hearing, we will have no choice but to request the Inspector General of Police to compel her attendance.
“Government officials cannot continue to disregard constituted authority”, he stated.
NLC vows to fight 50% tarriff hike, demands immediate reversal or…
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