News

Senate To Probe 10yrs Non-Completion Of Centenary Project

Published

10 months ago

May 7, 2024

By Kayode Sanni-Arewa

The Senate has set up an ad- hoc committee to urgently investigate factors, hindering the completion of the Abuja centenary city project, after 10 years.

This is contained in a motion entitled ” Urgent need to revive and complete the stalled Centenary city Project in Abuja to realise its economic and development potential by Senator Yisa Oyelola representing Kwara South during plenary in Abuja.

Senator Oyelola in his lead debate told his colleagues that the Abuja centenary economic city project commenced in 2014 through a public-private partnership to develop a modern city in the mould of Dubai.

The lawmaker said the project was earlier designed to commemorate the 100 years of Nigeria’s amalgamation celebration.

According to him, the original vision for the project was for it to serve as a potential economic hub with plans to create over 150,000 construction jobs.

He said the project was also designed to create 250,000 permanent well-paying Jobs, residential accommodation for over 200, 000 residents, and facilities to attract over 500,000 daily visitors.

He said reviving and completing the Abuja centenary city project would have great benefits for Nigeria, including job creation,and increasing Nigeria’s profile as an attractive destination for foreign direct investment, tourism and overall national development.

News

Kano Govt, Customs Raise Concern Over Sections In Tax Reform Bills

Published

13 minutes ago

February 26, 2025

Gloria Ikibah

…as TUC, others oppose increase in VAT, reduced funding for TETfund, NASENI, NITDA

…as NLNG advocate Zero-rate VAT for export

By Gloria Ikibah

The Kano State Government has raised concerns over sections of the proposed tax reform bills that extend the Federal Government’s control over state and local tax agencies.

The Permanent Secretary in the Office of the Secretary to the State Government, Umar Mohammed Jalo, stated the government’s position, at a 3-day public hearing organised by the House of Representatives Committee on Finance on Wednesday in Abuja.

Jalo urged the House Committee to amend the bill by eliminating provisions that place it above other laws.

On the proposed reduction in the funding of key national agencies, like the Tertiary Education Trust Fund (TETFUND), Nigeria Information Development Agency (NITDA), and National Agency for Science and Engineering Infrastructure (NASENI), that are critical to the nation’s education, technology, and engineering sectors.

He said :”This clause is objectionable as it grants this bill a constitutional status similar to military rule, which cannot withstand the scrutiny of constitutional validity. The supremacy provision should be deleted.

“These provisions are substantially in breach of the Constitution of the Federal Republic of Nigeria, 1999, as the National Assembly lacks the competence to legislate on matters exclusively affecting state and local governments.

“Reducing funding to these strategic agencies will affect national interests in education, engineering, and information technology in adverse ways. TETFUND, NITDA and NASENI should continue to be funded to support the nation’s aspirations for technological advancement, prosperity, and sustainable development.”

Jalo also also expressed concerns over the planned increase in Value-Added Tax (VAT) from 7.5% to 15% by 2030, warning that such a move would worsen the hardship faced by Nigerians amid the rising cost of living. The government cautioned that higher VAT rates would further strain households and deepen economic difficulties.

As an alternative, the Kano State Government advocated for improved tax collection mechanisms rather than raising VAT.

“There is significant potential to enhance tax coverage and collection efficiency, as weak compliance remains a major challenge,” he noted.

While supporting the need for fiscal reforms, the government emphasized key concerns regarding the Federal Government’s ongoing tax restructuring. It also underscored the urgency of expanding Nigeria’s revenue base, stating that current public earnings—around 10% of GDP—are inadequate to meet the country’s growing development needs.

“The fiscal space needs to be enlarged,” the government noted. “Public revenues at approximately 10% of GDP are currently too small relative to the daunting challenges of development.

“A more auspicious fiscal space will provide tremendous opportunities for the governors to deliver on their promises, including achieving the Sustainable Development Goals (SDGs), reducing poverty, and rebuilding infrastructure for growth, wealth, and job creation.”

The Kano government welcomed the Federal Government’s efforts to reform the tax system, which they described as “long overdue,” and acknowledged that the current tax regime is overly complex and riddled with inefficiencies. “Despite past reforms, tax administration remains weak and plagued by inefficiency, poor governance, and corruption. Tax avoidance and evasion are prevalent and must be addressed.”

The state further praised the proposed harmonization of Nigeria’s multiple tax laws, stating, “Harmonisation will enhance clarity, compliance, and administrative efficiency. It will also ensure legislative cohesion and policy coherence.”

However, the government expressed strong reservations about the manner in which the reforms were being rushed through the National Assembly without sufficient stakeholder consultation. “The bills were apparently introduced with the utmost haste and without exhaustive stakeholder engagement,” the government stated.

“For any reform to be successful, social dialogue and effective communication are critical. The federal government should learn to consult more, to harvest ideas and diverse perspectives from its citizens.”

Kano also criticised the federal government’s failure to adequately communicate the potential benefits and costs of the reforms, and the vilification of Northern governors who opposed certain provisions of the bills.

“Northern State Governors who voiced their opposition to certain provisions of the bills were vilified and accused of ‘backward thinking’ and ‘parasitism.’ Citizens’ opposition to reforms must be addressed with civility, tact and diplomacy.”

The Comptroller General of the Nigeria Customs Service, Adewale Adeniyi in his submission on the bill, said its purpose was to make Nigeria more business-friendly and competitive but raised concerns about potential jurisdictional conflicts.

The Customs Boss argued that while tax is a vital revenue-generating tool, customs duties go beyond fiscal policy to promote industrialization, prevent environmental pollution, and uphold public health.

He said :”Our concerns are laid out in a 17-page document, but key areas of conflict include Section 23, 29, and 41A of the Joint Revenue Bill,” said the representative. They pointed out that Section 162 of the bill essentially “legislates the Nigerian Customs Service out of existence.

“The UK experience is instructive,” the representative continued, referencing the 2005 merger of customs and tax functions in the UK, which was later reversed due to operational inefficiencies. “In 2012, the UK separated border control functions, acknowledging the distinct nature of customs operations.”

He cited examples from African countries like Uganda and Ghana, where customs and tax authority integration initially resulted in higher tax-to-GDP ratios but later caused inefficiencies and operational complexities.

“With success stories like Morocco’s customs modernization, which increased revenue by 37% and reduced clearance times by 65%, Nigeria’s Customs Service argued for preserving its autonomy. In fact, the NCS noted that since the enactment of the NCS Act in 2023, Nigerian customs revenue had surged by 92%, and trade facilitation had markedly improved.

“We should encourage collaboration between customs and tax authorities, not abolish customs or repeal an existing law”, Adeniyi added.

The Secretary General, of the Trade Union Congress, Comrade Nuhu Toro speaking rejected the gradual increase of Value Added Tax.

He said : “The gradual increment of VAT from the current 7.5% to 15%. Mr. Chairman and respected members, the TUC unequivocally rejects this proposition.

“Our reason is simple, allowing the VAT rate to remain at 7.5% is in the best interest of the nation. Increasing it would place an additional burden on Nigerians, many of whom are already struggling with their economic challenges and realities.

“At a time when inflation is on the rise, and unemployment is becoming an ever-growing concern, higher taxes will only further strain households and businesses alike. We must be mindful, Mr. Chairman, that such measures could slow down the economy.

Speaking for the Nigeria Liquified Natural Gas (NLNG), Manager Tax and Financial Systems, Clement Okoro Efeyita, said the organisation fully support the bill, and it will be of great benefit for the committee to consider making exports from Nigeria to be zero-rated on VAT.

According to Efeyita, “That way, exporters from Nigeria will be competitive globally. Another issue is we are of the view that agreements, contracts, that are already subject to the value-added tax rules should not be subject to value-added tax.

“In a way, it creates a form of double taxation if this area is not looked into. Mr. Chairman, we also would like to advocate with regards to the currently subsisting executive orders.

“Our view on it is simple. Most of the executive orders are tied to laws that will be repealed by the time the current bill is passed into law. Our view, which we seek for this committee to take into account, is to ensure that the provisions in those executive orders are fully reflected in the Nigerian tax field.

“That way, it will take away all forms of undignity. And it will also not create a situation where investors’ confidence in the country is in any way dampened”.

Still on the Nigerian tax bill Efeyita added: “It is with regards to the far out claim of capital arms. And our advocacy is very simple. Paragraph 21, subparagraph 1 of the first schedule of the Nigerian tax bill.

Our advocacy point is very simple and straightforward. We would like the bill, as currently drafted, to give full powers to taxpayers to be able to determine how they claim capital arms. Doing so will not in any way shortchange the government.

“But rather it will create a situation where the government is able to receive, in good time, taxes that are due. So our advocacy point is one of this.

“We would also like to draw your attention to the fact that by the time the Nigerian tax bill is passed into law, the Company Income Tax Act, among several other acts, will immediately be repealed.

“Mr. Chairman, I would like to draw your attention to section 23, subsection 1 of the Company Income Tax Act. And to mention that this particular provision has not been reflected in the Nigerian tax bill. And this provision, essentially, is one that will truly benefit the Nigerian state.

“It is a provision that grants a tax waiver to companies that bring in income they’ve earned abroad. Income types such as royalty, interest, and dividend. At this critical time of our economy, when we need foreign exchange inflow, should not be the time for such a critical provision that encourages taxpayers to bring in foreign currency they’ve earned abroad to be taken out of the proposed bill.

“But not to forget the fact that going to the Nigerian Tax Administration Bill at this point in time, there is also the new provision that will be found in section 12 and section 49 of the Nigerian Tax Administration Bill. There is a new provision that seeks to subject companies that produce LNG to a tax regime similar to what is obtainable upstream.

“Our point of advocacy is simple. A situation where the majority of companies that are subject to tax under the current company income tax regime are not equally being made to pay tax instrumentally over a 12-month period creates a kind of, permit my language, discrimination. It does not bring about equity and fairness.

“We are clearly advocating that all companies that are subject to the current company income tax act at 30% as is being reflected in the Nigerian Tax Bill correctly, should be made to pay taxes in similar manner. Mr. Chairman, committee members, these are the high points of restricting the macroeconomic standards of our nation. These laws, with their challenge, improve on the objectives as set out in section 16 of the 1999 Constitution as amended”, NLNG stated.

News

Senate committee on health invites stakeholders to a one-day public hearing on 3 major Bills

Published

3 hours ago

February 26, 2025

Naijablitznews

The Senate Committee on Secondary and Tertiary Health has invited critical stakeholders in the health sector to brainstorm on three major Bills on Thursday.

The three Bills namely: A Bill to amend the Federal Medical Centres Act, 2022 to establish the Federal Medical Centre Gembu sponsored by Senator Manu Haruna representing Taraba Central Senatorial District.

Other Bills are:A Bill for an Act to amend the Federal Orthopaedic Hospitals Management Board Act,
CAP, 010 Laws of the Federation of Nigeria, 2004 (Amendment) Bill to establish an
additional Orthopaedic Hospital in Obokun, Osun State, 2025 (SB.582) Sponsor: Senator
Fadahunsi, Francis Adenigba (Ogun East);
National Eye Centre Jimeta Adamawa State (Establishment) Bill, 2025 (SB.524) Sponsor:
Senator Abass, Aminu lya (Adamawa Central)

The public hearing is scheduled to hold at the Senate Conference Hall 022 by 2pm on Thursday, 27th February, 2025.

News

Amaewhule, 26 Other Lawmakers Never Defected To APC, Rivers Chair Confirms

Published

5 hours ago

February 26, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Rivers State chapter of the All Progressives Congress (APC) states the obvious that 27 members of the State House of Assembly never defected to APC .

Rivers APC chairman Chief Tony Okocha, dismissed claims that the lawmakers had defected to the APC from PDP.

Okocha also denied receiving the lawmakers into the APC, saying what happened at the Port Harcourt Polo Club in December 2023 was not a reception for the 27 lawmakers.

He said the December event attended by the lawmakers was to celebrate the constitution of the state executive council of the APC by the party’s national body.

While addressing a news conference in Port Harcourt on Tuesday, Okocha said he personally invited the lawmakers individually as friends for the 2023 event and not as Assembly members.

He said, “There was no intention to organise a reception for what we were not holding. We were inaugurated in Abuja and we chose to organise a reception and thanksgiving for our members.

It was not to receive the 27 lawmakers. We were misinterpreted to have received the 27 lawmakers into the APC. That is not correct.

“We invited individual members of the Assembly. I have a relationship with them over time. We tried to woo them into the party. I was intentional in reaching out to them to join us. We would have counted it all joy if we had succeeded.”

Okocha continued, “We want to tell Nigerians that the 27 lawmakers led by Martin Amaewhule never defected to the All Progressives Congress.

“What people flaunt on social media or television cannot put a plausible argument for them.

“The law is not about emotions. It is as strict as it is.”

He accused Governor Siminalayi Fubara of disobeying the rule of law at all times, saying “The era of strong man mentality is gone. The law has taken its place.

“There is no way a High Court can sit in judgment over a superior Court of Appeal. It is not done. It is a pity that senior lawmakers in this country will now come out to misinterpret the court judgment.”

Okocha further accused the governor of exhibiting dictatorial tendencies in his refusal to obey the court judgment which authorised him to re-present the 2024 budget before the Amaewhule-led House of Assembly.

“We are disenchanted by the governor’s disrespect for the rule of law. Justice James Omotosho granted 15 reliefs in his judgment but the governor has refused to obey them.

“You cannot run the state without an annual budget. But the governor is doing so. You cannot present a budget before a three-man Assembly. The Appeal Court called it a forum,” Okocha stated.

He, however, called for calm and expressed optimism that the parties would obey when the Supreme Court finally rendered judgment on the matter.