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Nigeria Struggles With 6% Tax GDP Ratio – Speaker Abbas

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…say Reps has not take any definitive position on tax reform bills
….as presidency say bills not designed against any region
By Gloria Ikibah
The Speaker of the House of Representatives, Rep. Abbas Tajudeen, has expressed concerns over Nigeria’s tax-to-GDP ratio, which currently stands at a mere 6 per cent.
The Speaker noted that this figure was significantly below the global average and the World Bank’s recommended minimum benchmark of 15 per cent necessary for sustainable development, despite Nigeria being Africa’s largest economy.
Abbas stated this at an interactive session on Tax Reform Bills at the National Assembly Complex on Monday in Abuja.
He stated, “Nigeria, despite being Africa’s largest economy, struggles with a tax-to-GDP ratio of just 6 per cent, far below the global average and the World Bank’s minimum benchmark of 15 per cent for sustainable development. This is a challenge we must address if we are to reduce our reliance on debt financing, ensure fiscal stability, and secure our future as a nation.”
The Speaker highlighted the importance of the proposed tax reforms in diversifying Nigeria’s revenue base, ensuring equity, and fostering an environment conducive to investment and innovation.
“The proposed tax reform bills aim to diversify our revenue base, promote equity, and foster an enabling environment for investment and innovation. However, as representatives of the people, we must approach these reforms thoughtfully, understanding their potential implications for every segment of society.
Taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses”, Abbas added.
Acknowledging public concerns and debates surrounding the bills, Speaker Abbas emphasized the need for thorough deliberation and clarification of contentious issues.
“The controversies surrounding these bills, whether in the media, civil society, or among governance stakeholders, are a reflection of their importance.
Such debates are healthy and necessary in a democracy, and this session aims to channel those discussions into productive outcomes. It is critical that we listen to diverse perspectives, ask probing questions, and seek clarity on any unclear provisions,” he stated.
He reassured Nigerians that the House has not yet adopted a position on the bills and is committed to ensuring that the final legislation serves the best interests of the nation. “The House has not yet taken a definitive position on these bills. Our role is to scrutinise them thoroughly, ensuring they align with the best interests of our constituents and the nation at large. We owe this duty to Nigerians,” he said.
The Speaker also stressed the importance of balancing national interests with the needs of citizens, reiterating that “Taxes should be fair, transparent, and justifiable, balancing the need for public revenue with the burdens they impose on individuals and businesses.”
Rep. Abbas underscored the significance of pre-legislative scrutiny as a vital parliamentary practice to resolve ambiguities and ensure alignment with constitutional provisions, and described the interactive session as an opportunity for lawmakers to engage with experts and stakeholders to better understand the potential implications of the proposed reforms.
Addressing the session, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, clarified that the proposed tax reform bills were not designed to undermine or marginalize any region.
Iyedele emphasized that the reforms aim to enhance efficiency and boost revenue allocation to states based on consumption patterns.
He explained, “Currently, under Section 40 of the VAT Act, VAT revenue is allocated 15 per cent to the Federal Government, 50 per cent to the States and FCT, and 35 per cent to Local Governments. There is no negative thinking about any region or anything.”
Oyedele outlined key aspects of the reforms, which include amendments to income tax laws to support remote work opportunities, particularly in the global business process outsourcing sector.
Other provisions include tax exemptions for small businesses with an annual turnover of N50 million or less, alongside initiatives aimed at boosting exports and promoting the digital economy to create more opportunities for Nigerian youths.
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Rashford leaving Man United could bring him to form-Keane

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Roy Keane believes leaving Manchester United could do Marcus Rashford the “world of good” as he fears the forward will never regain his hunger at Old Trafford.

Rashford’s future appears to be in the balance after the 27-year-old, a product of United’s youth system, was left out of the Manchester derby.

United won 2-1 at Manchester City on Sunday, with Rashford telling journalist Henry Winter on Tuesday that he was “ready for a new challenge and the next steps”.

“I don’t mind what he said. I think it’s spot on,” former United captain Keane told the Stick to Football podcast.

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“Sometimes a deal just works for everybody. It’s been going on for a year or two now, there’s obviously a bit of talent in there, he’s been at the club since he was a kid.

A change would probably do him the world of good, for him and his team and his family. Just go and play, maybe go abroad or whatever it might be.”

Rashford’s current contract at Old Trafford runs until 2028 and although he has been linked to several other clubs, United manager Ruben Amorim is keen for the England forward to stay.

But Keane said: “I always think if you lose that hunger, it is hard to get it back.

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“Forget about the few bob (pounds) he’s earned over the years — and listen, good for him — but we know, the great players, it’s nothing to do with that.”

Keane added that leaving United could revive Rashford’s “real hunger” for on-field success.

“I think there’s a good chance he might get it back with a change of a club and scenery, a new country, a new league, whatever, but I don’t think he’ll get it back at United.”

Amorim, talking to reporters ahead of Thursday’s League Cup quarter-final at Tottenham, urged Rashford to “speak with the manager” rather than air his grievances publicly.

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Rashford has scored 138 goals in 426 appearances for the club since making his senior debut in 2016.

However, he has lost form over the last 18 months with United and was also axed from England’s Euro 2024 squad.

Rashford has scored just 15 goals in 67 appearances since signing a lucrative new contract 18 months ago, with speculation over his future increasing in recent days.

The forward, who was absent from training on Monday through illness, is set to miss the League Cup quarter-final at Spurs.

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Amorim is keen to keep Rashford but he admitted he would have handled the situation differently when he was a player.

“If this was me, probably I will speak with the manager,” he told reporters on Wednesday. “But, guys, let’s focus on Tottenham. Tottenham is the most important thing.”

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Wike revokes Abuja lands of Buhari, Akume, Abbas, others

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The Minister of the Federal Capital Territory (FCT) has revoked lands belonging to former President Muhammed Buhari, the Speaker of the House of Representatives, Tajudeen Abbas; and the Secretary to the Government of the Federation, George Akume.

Also, 759 other prominent figures and organisations in Maitama II, Abuja. were also affected by the revocation which was for non-payment of Certificate of Occupancy.

This was contained in a publication by the FCT Administration and made available to Channels Television by the Special Adviser to the FCT Minister, Lere Olayinka.

In a separate publication, the minister also threatened to revoke lands belonging to the Minority Leader of the House of Representatives, Kingsley Chinda; former presidents of the Senate, Iyorchia Ayu and Ameh Ebute; the Chief Whip of the Senate, Tahir Monguno; and 610 others for outstanding fees owed to the FCTA for certificate of occupancy not paid within two weeks.

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This revocation by the minister comes months after he made several pleas to residents of the FCT, particularly those residing in hybrid areas of the nation’s capital, to pay outstanding fees owed to the FCTA or risk revocation of their lands.

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Afenifere demands for unconditional release of Farotimi

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The pan-Yoruba socio-political organisation, Afenifere, has intervened in the ongoing face-off between legal luminary, Chief Afe Babalola and activist, Dele Farotimi, calling for unconditional release of the activist.

The organisation at a World Press Conference held at the residence of its leader, Chief Ayo Adebanjo in Lagos said while it was not talking about the merit or demerit of the case, the procedure and manner of arrest of the activist was condemnable.

Deputy Leader of the Group, Oba Oladipo Olaitan who addressed the press conference expressed concern over the continued incarceration of Farotimi over a bailable offence.

Farotimi, a member of the National Caucus of Afenifere, was arrested on Tuesday December 3, 2024 in his office in Lekki Lagos by plain-clothed police officers from Ekiti State Police Command over a petition by Babalola.

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Babalola had claimed he was defamed in the book written by Farotimi titled, “Nigeria and its Criminal Justice System.”

The Chief Magistrate Court in Ekiti has reserved a ruling on his bail application until December 20.

But Afenifere Deputy Leader criticised the chief magistrate, Abayomi Adeosun, for denying bail, describing the charges as bailable.

He stated that what is happening to Farotimi represented a script playing out as the charges are bailable and should have been granted bail on self-recognisance.

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“It is Dele Farotimi today, it could be you tomorrow,” the Deputy Leader added.

“Afenifere believes that Chief Afe Babalola, like every citizen, has a right to defend his reputation if injured to the full extent of the law but not outside the strictures of the law. Therefore, Dele Farotimi must have his day in court. He cannot be unjustly incarcerated. His rights must be similarly protected,” he said.

The group called for an end to using the police from other states to arrest citizens, saying, “The increasing practice of arresting people in a state and transporting (rendering) them out of state often without the knowledge of the relatives of those arrested and also charged in a state other than the state of normal residence of the suspect need to be stopped.

“The practice exerts undue mental agony and expense on the accused person and their families who are often left wondering for hours or days about the safety and whereabouts of their loved ones. The Police must stop this practice.

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“It is a loophole that can be exploited by criminals who may be tempted to disguise their crimes by acting out their nefarious activities by imitating the rogue police operations.”

Oba Olaitan added that the delay in granting bail to Mr. Farotimi “has confirmed the fears of well-meaning people all over the world that these processes are driven by extraneous considerations outside the facts and laws in respect of the petition on which the Police and the Chief Magistrate in Ekiti are hinging their actions.”

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