News
Just in: Tinubu Alters 1977 Nigeria Tax System, Approves New Tax Policy
By Kayode Sanni-Arewa
President Bola Tinubu has altered the 1977 Nigeria Tax System and approved a new withholding tax policy for the country. This major change was disclosed by Taiwo Ayodele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, on Tuesday.
*1977 Nigeria Tax System.*
The 1977 Nigeria Tax System, which introduced withholding tax as an advance payment of income tax on specified transactions, aimed to provide regular revenue flow for the government and curb tax evasion. However, this system posed several challenges, particularly for farmers and Small and Medium Enterprises (SMEs).
*New Withholding Tax Policy.*
Ayodele highlighted that the new withholding tax policy addresses the heavy burden imposed by the previous system on these groups. Key issues of the old regime included ambiguities about compliance requirements, eligible transactions, applicable rates, timing of remittance obligations, and difficulties in obtaining refunds for excess withholding tax. The structure of the old regime promoted tax inequity and added to the cost of doing business.
*Key Changes in the New Policy.*
The new withholding tax policy, approved by President Tinubu, will be published in the official gazette in the coming days. The key changes include:
*Exemption of Small Businesses* : Small businesses are now exempt from Withholding Tax compliance.
*Reduced Rates:* Businesses with low margins will benefit from reduced withholding tax rates.
*Exemptions for Manufacturers and Producers* : Farmers and other manufacturers are exempt from withholding tax.
*Measures to Curb Evasion:* Enhanced measures to minimize tax avoidance and streamline the process of obtaining credit and utilizing tax deducted at source.
*Reflecting Emerging Issues* : The policy adopts global best practices, addresses emerging issues, and provides clarity on the timing of deductions and definitions of key terms.
These reforms aim to ease the cost of compliance for taxpayers, improve the business environment, and promote tax equity.
The approval of the new withholding tax policy marks a significant step towards a more equitable and efficient tax system in Nigeria. By addressing the shortcomings of the 1977 Nigeria Tax System, the new policy aims to create a more favorable environment for businesses, particularly SMEs and manufacturers.
Continue Reading
By Gloria Ikibah
The House of Representatives has adopted the projected oil benchmark prices at $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027, respectively.
This according to Chairman House committees on Finance and National Planning, and Economic Development, Rep. James Faleke, is aimed at providing a stable foundation for the country’s budget and economic planning.
The report also projects a significant increase in domestic crude oil production.
The projected production levels are 2.06, 2.10, and 2.35 million barrels per day for 2025, 2026, and 2027, respectively.
Other key projections include a GDP growth rate of 4.6%, 4.4%, and 5.5% for 2025, 2026, and 2027, respectively. The projected exchange rate is NGN1400/USD for the same period. Inflation rates are projected at 15.75%, 14.21%, and 10.04% for 2025, 2026, and 2027, respectively.
The 2025 Budget proposes spending of NGN47.9 trillion, with NGN34.82 trillion retained and new borrowings of NGN9.22 trillion.
Debt service is valued at NGN15.38 trillion, while pensions, gratuities, and retirees’ benefits stand at NGN1.443 trillion.
The report also highlights concerns over the non-remittance of operating surpluses into the Federation Account by the NNPC, as well as the failure of some revenue-generating agencies to comply with the Fiscal Responsibility Act.
“The three-year projections for domestic crude oil production had a significant increase from 1.78mbpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027.
“Some critical Agencies such as NNPC, NLNG, Immigration Services and others that are relevant to the attainment of set revenue targets engage in Public Private Partnership and Joint Venture
Arrangements that are inimical to the revenue growth of the Country.
“Historical non-remittance of operating surpluses into the Federation Account by the NNPCL due to what it called under recovery with the claim that the federating units owed it the sum of Ten Trillion Naira.
“The GDP growth rate is projected at 4.6%, 4.4% and 5.5% for years 2025, 2026 and 2027 respectively. The projected exchange rate which stands at NGN1400/USD for years 2025, 2026 and 2027.
“Inflation rates projections are 15.75%, 14.21% and 10.04% for 2025, 2026 and 2027; following the criteria in the overview of the framework for revenues and expenses, the 2025 FGN Budget proposed spending stands at NGN47.9 trillion, of which NGN34.82 trillion was retained. New borrowings stood at NGN9.22 trillion which constitutes both domestic and foreign borrowings.
“Debt service was valued at NGN15.38 trillion; pensions, gratuities and retirees’ benefits stood at NGN1.443 trillion and fiscal deficit at NGN13.08 trillion.
“Capital expenditure is projected at NGN16.48 trillion which is exclusive of transfers; statutory transfers stand at NGN4.26 trillion; Sinking Fund is projected at NGN430.27 billion.
‘Total recurrent (non-debt) is projected at NGN14.21 trillion; special intervention for recurrent and capital is pegged at NGN200 billion and NGN7 billion respectively.
“That the existing liabilities and debt obligations are largely responsible for increasing debt profile of the Country.
“Most revenue generating agencies violate the Fiscal Responsibility Act due to the lack of punitive provisions in the Act. Noncompliance with the Nigerian Export Supervision Scheme (NESS) Act by relevant government agencies, specifically focusing on the inspection and monitoring of oil and gas exports as well as non-oil exports.
The committees findings also Identified systemic gaps and irregularities in the operations of the Import Duty Exemption Certificate (IDEC); and that the Federal Government Ministries Departments and Agencies (MDAs) as well as the Government Owned Enterprises (GOEs) are not complying with the financial reporting standards.
Among other recommendations, the House noted: That the National Assembly, through its Committees on Finance, National Planning and other relevant Committees should carry out in-depth investigation of such agreements by the NNPC, NLNG and Immigration Services with a view to reconcile remittances to the Federation Account.
It added that the Committees on Finance,Petroleum Upstream, and Petroleum Downstream are tasked to
investigate reports from the Revenue Mobilization, Allocation, and Fiscal Responsibility Commission alleging that the NNPC withheld ₦8.48 trillion as claimed subsidies for petrol.
Additionally, the investigation will address the NEITI report stating that NNPC failed to remit $2 billion (₦3.6 trillion) in taxes to the Federal Government.
The committees are further directed to
verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit (PMS) by the NNPC between 2020 and 2023.
That the GDP growth rate which is projected at 4.6%, 4.4% and 5.5% for years 2025, 2026 and 2027 respectively be approved ; and that the projected exchange rate which stands at NGN1400/USD for years 2025, 2026 and 2027 be approved subject however to review in early 2025 according to monetary and fiscal policies.
The House further noted that the Inflation rates projections which are 15.75%, 14.21% and 10.04% for 2025, 2026 and 2027, be approved.
That the following the criteria in the overview of the framework for revenues and expenses, the 2025 Federal Government of NigeriaBudget proposed spending stands at NGN47.9 trillion, of which NGN34.82 trillion was retained; new borrowings stood at NGN9.22 trillion which constitutes both domestic and foreign borrowings; debt service was valued at NGN15.38 trillion; pensions, gratuities and retirees’ benefits stood at NGN1.443 trillion and fiscal deficit at NGN13.08 trillion.
That the Capital expenditure is projected at NGN16.48 trillion which is exclusive of transfers statutory transfers stand at NGN4.26 trillion; Sinking Fund is projected at NGN430.27 billion; That the Committee approves the respective figures for total recurrent (non-debt) at NGN14.21 trillion; special intervention for recurrent and capital is at NGN200 billion and NGN7 billion; and that the National Assembly do approves the Promissory Note Programme and Bond Issuance to settle outstanding claims and liabilities of Federal Government owed to States, high priority judgments as well as liabilities incurred by Federal Ministries, Department and Agencies on behalf of Government.
By Gloria Ikibah
The House of Representatives has passed for second reading “A Bill to establish the National Commission for Technology Transfer, Acquisition and Promotion” to continuously monitor the inflow of foreign products and technology to Nigeria on Wednesday at plenary.
The Bill which was sponsored by Rep. Clement Jimbo, lawmaker representing Abak/Etim Ekpo/Ika Federal Constituency of Akwa Ibom State, seeks to leverages on the huge and active Nigerian population to create jobs for youths, process raw materials into finished goods/products, as well as increase the Gross Domestic product (GDP) and Transfer Technology to Nigeria.
Leading the debate on the general principles of the Bill, Rep. Jimbo explained that the overriding principle behind the introduction of this Bill is to ensure regular value addition to the country’s solid mineral’s exploration.
According to him, this was triggered by the need to create sustainable jobs for our teeming youths.
The piece of legislation also seeks to jack up our Gross Domestic Products GDP and increase our revenue base through foreign exchange.
Jimbo noted that the National Bureau of Statistics, NBS disclosed that over 200 million cell phones, over 500,000 solar systems, over 12 million cars, millions of cameras, microphones, laptops and remote controls are currently in used in Nigeria.
He said all the above listed products have one thing in common which is batteries. He added that the major ingredient in the production of battery is a solid mineral lithium.
He further noted that a German foreign broadcasting company, Deutsche Welle DW said lithium has been discovered in large quantities in Abuja, Nasarawa, Kogi, Ekiti, Kwara, and Cross River.
“The Minister of Solid Mineral, Mr Dele Alake said ‘we will do everything possible to discourage the carting away of our solid minerals without value addition’ this statement is in sync with the intendment of this Bill Mr. Speaker,” he said.
Addressing reporters after the plenary on Wednesday, Jimbo stressed the need for speedy passage of the Bill, which he said would lead to better life for Nigerians.
He said in compliance with relevant sections of the Standing Orders of the House as amended, the proposed Bill has no financial Implication when passed into law.
By Gloria Ikibah
Members of the Kano State Caucus in the House of Representatives have emphasized the critical role of legal professionals in enhancing their legislative duties. The caucus made this call during a meeting with the International Federation of Women Lawyers (FIDA), Kano State Chapter, held in Abuja on Tuesday
Speaking on behalf of the caucus, the leader of the Kano and Northern Caucus, Hon. Alhassan Ado Doguwa, acknowledged that while lawmakers bear the primary responsibility for crafting legislation, their work can be significantly enriched through collaboration with legal experts.
“Those of us here are called lawmakers, but while making laws, we need fine and brilliant minds like yours to assist us,” Doguwa said. He pointed out the importance of avenues like public hearings and constituency offices where legal professionals can provide valuable input.
“When we have professionals like you collaborating with us, it ensures that our critical duty of lawmaking is executed with precision. Despite my 34 years in the House, having been elected six times, I acknowledge that I am not perfect. I am not a lawyer, and there are gaps only your expertise can fill,” he admitted.
Doguwa also highlighted the ongoing constitutional review process as an opportune moment for legal professionals to contribute meaningfully. “Virtually all the laws in the Federation can be reviewed. They are not cast in stone. Your insights will help us address gaps in legislation, such as with the Petroleum Industry Act, which continues to generate debate,” he said.
In her remarks, the Chairperson of FIDA Kano State Chapter, Barrister Bilkisu Suleman, outlined the organization’s mission to provide free legal services to underprivileged individuals, particularly women and children.
“FIDA is an international body of legal professionals dedicated to promoting the rights of women and children. Our services are offered pro bono, and we allocate time to advocacy, legal representation, and mediation,” Suleman said.
She elaborated on the organization’s efforts to ensure access to justice, including handling sensitive cases in courts, mediating disputes, and conducting community sensitization programs.
“Our work often involves resolving family disputes outside the courtroom to foster peace and stability. We mediate cases, even if they are already in court, because ensuring harmony within families is crucial,” she explained.
Suleman also highlighted the challenges of addressing legal issues in impoverished communities and stressed the importance of collaboration with lawmakers to improve societal welfare.
“We deeply appreciate the efforts of representatives in promoting the welfare of society and encourage continued cooperation to make meaningful impacts,” she concluded.
News5 hours ago
Reps Okay $75 Oil Benchmark Price, 2.06mbpd, NGN1400/USD Exchange Rate
News5 hours ago
A Bill To Create Jobs, Process Raw Materials To Finish Goods Pass Second Reading
News5 hours ago
Kano Reps Seek Legal Expertise from Women Lawyers to Improve Lawmaking
Metro8 months ago
Just in: Terrorists ambush military truck, kill all soldiers on board
Entertainment8 months ago
Nigerian Dancer, Korra Obidi Attacked with acid, stabbed on stage In UK
News9 months ago
Meet Rare Gem 16 Years Old Chiaza, CEO of ‘RUN MARKET PLACE’
-
Metro23 hours agoMany admitted after reacting to drugs shared during free medical outreach
-
News23 hours agoEFCC opens up on Yahaya Bello, says he didn’t surrender but nabbed
-
Metro23 hours agoSAD! Gas explosion rocks Lagos market, 11 shops damaged
-
Metro22 hours agoGunmen kidnap Akwa Ibom businessman, kill driver
-
News22 hours agoThree soldiers killed as troops repel terrorists in Borno
-
News22 hours agoFinance ministry amendment bill scales second reading
-
News23 hours agoAdebayo Defends National Assembly’s Power to Remove CCT Chairman
-
Sports23 hours agoJust in: Man city wobbles after 3-0 lead as Feynoord from behind equalises