News
Oil Trade Sector Flags Key Concerns Over Tax Reform Restrictions
…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
ADC Rift Deepens as Party Leaders Disown Abuja Convention, Describes It As “Suya Convention”
…Gombe faction alleges legal breaches and forged processes
…Abejide signals possible defection ahead of next election
By Gloria Ikibah
The internal crisis rocking the African Democratic Congress (ADC) has escalated, with a key faction of the party rejecting the outcome of a recent convention held in Abuja and describing it as unlawful.
Factional National Chairman, Nafiu Gombe, alongside senior party figure and lawmaker, Leke Abejide, dismissed the gathering organised by a coalition group, arguing that it breached existing court rulings and undermined due process.
At a press briefing in Abuja on Friday, the group maintained that the convention, held on 14 April, 2026, failed to meet legal requirements and was conducted in disregard of binding judicial decisions.
They pointed to a Court of Appeal ruling delivered in March 2026, which they said remains in force, insisting that any resolutions from the disputed convention could ultimately be overturned by the courts.
The faction also raised concerns over the absence of the electoral commission at the event, suggesting this further weakened its legitimacy and cast doubt on its recognition under the law.
Tensions within the party appear to be deepening, with Abejide indicating he may explore alternative political platforms ahead of the next election cycle, a move that could further reshape the party’s internal dynamics.
Gombe said: “Any action taken in flagrant disregard of the Court of Appeal’s judgment is not only of questionable legality but is liable to be declared null and void,” he said.
The chairman maintained that those behind the convention were not recognised members of the ADC and therefore lacked the legal authority to convene a national convention or take binding decisions on behalf of the party.
“As far as the duly constituted leadership of the party is concerned, the coalition group are not members of ADC and consequently lack the locus standi to convene any congress or convention,” he stated.
He added that the actions of the group were not surprising, alleging a pattern of disregard for due process and violation of the party’s constitution.
Gombe also raised concerns over what he described as a contradiction in the coalition’s actions, as he said while the convention was ongoing, their legal representatives were simultaneously seeking validation for the same exercise before the Supreme Court.
“This underscores the illegitimacy of the entire process,” he said.
In a dramatic development, the factional chairman of the party indicated that the situation has escalated beyond internal disputes, raising serious concerns over alleged criminal actions, including the use of falsified documents purportedly carrying his signature.
“This matter is not an internal party affair. It involves a breach of the ADC constitution and infringement of my rights as a bona fide member. It has now escalated to a criminal dimension with the preparation of false documents bearing my forged signature,” he alleged.
He also criticised attempts by some political actors, including associates of former Senate President David Mark, to rely on provisions of the Electoral Act 2026 to shield their actions from judicial scrutiny.
According to him, Section 83(5) of the Act does not preclude the courts from intervening in cases where party constitutions are breached or members’ rights are violated.
Also speaking, Abejide described the Abuja gathering as a “Suya Convention” an “unlawful assembly” and an “affront to the judiciary,” accusing the organisers of deliberately disobeying court orders from both the Federal High Court and the Supreme Court.
He debunked claims that himself and the factional chairman, Gombe had been suspended by the opposing faction, describing such actions as baseless and lacking legal effect.
“It is not a convention but an illegal assembly. This attitude is treasonable and a direct affront against the judiciary.
“The purported suspension is a laughable phenomenon from an illegal group of people who came to destroy the ADC the same way they destabilised other parties they left,” Abejide stated.
Leaders of the faction also criticised members of the coalition, describing them as habitual defectors whose frequent movement between political parties has contributed to instability within the ADC.
Abejide, who represents Yagba Federal Constituency, defended his standing in the party, pointing out that he has remained with the ADC since 2017 and has been instrumental in strengthening its structure, particularly in Kogi State.
He highlighted the party’s growth in the state, noting that it expanded from a single seat in 2019 to securing several legislative positions by 2023, a development he linked to sustained grassroots engagement and steady leadership.
“I am not a political merchant moving from one party to another. I have remained in ADC and helped build it into a recognised platform,” he said.
The factional leadership revealed that it has briefed lawyers to challenge what it described as illegal suspensions and other actions taken by the opposing group, citing the legal principle of lis pendens, which restricts actions on matters already before the court.
They further cautioned that continued disregard for court orders and internal instability could jeopardise the party’s ability to field candidates in future elections.
“If ADC is unable to field candidates at the end of this crisis, the coalition group should be held responsible,” Abejide stated.
The factional leadership group dismissed claims by other factions within the party, insisting that those parading themselves as alternative leadership structures are either aligned with the same coalition or lack any constitutional backing.
Responding to questions on a separate faction that had also distanced itself from the Balagubu-led leadership, the chairman said such groups have no legal standing, alleging that many of their members had previously resigned their positions under questionable circumstances.
He further accused the coalition of recruiting politicians with a history of defection across multiple parties, arguing that their involvement has destabilised the ADC.
“These are individuals who have moved from one political party to another. Their track record shows a pattern of political inconsistency and opportunism,” he said.
The faction also rejected reports that some of its leaders had been suspended by the opposing group, describing the move as baseless and legally untenable.
They argued that any disciplinary action taken by what they termed an “illegal assembly” cannot stand, especially while related matters are before the courts.
“The purported suspensions are laughable. You cannot suspend someone from a structure that has no legal existence,” he said.
Responding to questions on whether he will seek reelection on the platform of ADC in 2027, Abejide said there would be the possibility of political realignments if the crisis persists, noting that politicians may be forced to seek alternative platforms.
” If this matter is not resolved within the next two weeks, any aspirant contesting under this platform risks their political future”, he stated.
News
Opposition Status Is Earned Through Electoral Victories, Not By Emergency Coalition — Wike
Minister of the Federal Capital Territory (FCT) and the Leader of the Peoples Democratic Party (PDP), Nyesom Wike, on Friday declared that credibility as an opposition force must be earned through electoral victories, not mere rhetoric and emergency coalition, as he pledged loyalty to the newly elected National Working Committee (NWC) of the Peoples Democratic Party (PDP).
Speaking during a courtesy visit to the party’s national headquarters, Wadata House, Abuja, Wike dismissed claims by smaller political groups positioning themselves as leading opposition voices, insisting that performance at the polls remains the true test of relevance.
“You cannot become an opposition party without winning an election. Those who say they are leading the opposition have not contested any election successfully,” he said.
Wike’s remarks come amid ongoing realignments within Nigeria’s political space, with parties jostling for influence ahead of the 2027 general elections.
Reaffirming his commitment to the PDP, Wike said his visit was to demonstrate solidarity with the new leadership and encourage a united front as the party rebuilds after internal crises.
“My coming here is to reassure you of my support. I have come to pledge my loyalty to the National Working Committee,” he stated.
He acknowledged that the PDP had faced significant challenges but noted that the party was gradually emerging from its internal strife.
“Yes, we have crisis, and we have almost come out of it. It will require hard work and sacrifice to move the party forward,” he said.
The minister urged the NWC to prioritise reconciliation, particularly by engaging members who had defected, many of whom, he noted, still retain interest in the party.
“Reach out to them. Most are concerned about opportunities, including tickets. You know what to do,” Wike advised.
He also cautioned against distractions, especially ongoing legal battles, expressing confidence that the party would prevail.
“We have defeated them at the Federal High Court and the Court of Appeal. The same God will see us through. Stay focused and work as a team,” he added.
In his response, PDP National Chairman, Abdulrahman Mohammed, assured that the new leadership would reposition the party and restore public confidence.
“We have capable hands and we are determined to lead the party to a higher level. We will not disappoint Nigerians,” he said.
Mohammed stressed that the PDP remained a viable platform for national leadership and would intensify efforts to secure electoral victories in 2027.
Also speaking, National Secretary, Senator Samuel Anyanwu, commended Wike’s continued support, describing his visit as a significant boost to the morale of the party’s leadership.
The visit underscores growing efforts within the PDP to reassert its dominance as Nigeria’s foremost opposition party, amid increasing competition and shifting political alliances.
News
Tragedy averted as man parks SUV on 3rd Mainland bridge jumps into lagoon
Tragedy averted in Lagos on Tuesday after a 33-year-old man jumped into the lagoon from the Third Mainland Bridge but was rescued moments later.
The man, identified simply as Olu, reportedly parked his silver Lexus SUV around the Yaba axis of the bridge before plunging into the water.
Eyewitnesses said he was quickly spotted, prompting swift intervention. The Divisional Police Officer in Yaba, CSP Adegbemi Isiaka, was alerted and immediately mobilised a nearby fisherman, who pulled the victim out of the lagoon.
He was subsequently rushed to a hospital, where he received treatment.
Sources disclosed that Olu, said to be based in Ibadan, Oyo State, had travelled to Lagos with the intention of taking his own life.
According to accounts, he had suffered significant losses from cryptocurrency investments, which left him distressed and overwhelmed.
“He drove from Ibadan to Lagos just to jump from the bridge. He said he lost money in his investment and could not cope,” an eyewitness recounted.
The witness added that the DPO had to offer a token to the fisherman to ensure the rescue was carried out swiftly.
Confirming the incident, Lagos Police Command spokesperson, SP Abimbola Adebisi, said the man has since been discharged from the hospital and reunited with his family, who arrived from Ibadan after being contacted.
She added that the family has undertaken to get him professional help at a rehabilitation centre.
Adebisi also noted that the victim was counselled and warned against attempting suicide, which is considered an offence under Nigerian law.
The incident gained public attention after businessman Isaac Fayose shared a video online, urging people to check on loved ones.
In the now-viral clip, a witness narrated how Olu parked his vehicle, left his phones behind, and jumped into the lagoon, before help arrived just in time to save him.
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