Connect with us

News

Just in: Tinubu gives fresh directive on Tax reform Bills

Published

on

Following the controversy emanating from the Tax Reforms Bills, President Bola Tinubu has directed the Ministry of Justice to work closely with the National Assembly to address the concerns within and outside the legislature.

The Minister of Information and National Orientation, Mohammed Idris, revealed this in a statement he signed Tuesday titled ‘President Tinubu committed to accountability on tax bills, directs Ministry of Justice to work with NASS on concerns.’

Mohammed said, “In line with the established legislative procedure, the Federal Government welcomes meaningful inputs that can address whatever grey areas there may be in the bill.

“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.”

Advertisement

Following approval of the Federal Executive Council in October, President Tinubu transmitted four tax reform bills to the National Assembly for consideration.

The Federal Government says the bills are aimed at overhauling the nation’s tax system.

They include the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

The proposed legislation seeks to consolidate existing tax laws, establish clearer frameworks for tax administration, and create bodies like the Tax Appeal Tribunal and the Office of the Tax Ombudsman.

Advertisement

However, they have sparked significant controversy.

Critics argue that the reforms could disrupt the balance of fiscal federalism, potentially centralising tax authority and diminishing state revenues.

Notably, at a meeting on October 28, 2024, governors of the 19 Northern States, under the platform of the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the tax reform bills.

They argued that the changes might adversely affect their regions’ financial autonomy.

Advertisement

Three days later, the National Economic Council comprising all 36 state governors asked the President to withdraw the Tax Reforms Bill from the National Assembly for more comprehensive consultations.

However, the President said there would be no need to withdraw the tax reforms bill from the National Assembly.

He insisted that, while the legislative process takes its course, inputs and changes can be made without withdrawing the bill from the NASS.

The controversy has permeated the legislative process. Some senators such as the dormer Senate Chief Whip, Ali Ndume, are calling for the withdrawal of the bills to allow for more extensive consultations.

Advertisement

Governor Babagana Zulum of Borno State has also warned that while President Tinubu can deploy his executive powers to pass the tax reform bills, there would be consequences for millions of Nigerians.

Zulum added that the proposed VAT-sharing model will only benefit Lagos and Rivers states.

Nonetheless, the Senate proceeded to pass the bills for a second reading, a move that has been met with harsh criticism.

In its statement on Monday, the Presidency said most reactions from political leaders and commentators “are not grounded in facts, reality, or sufficient knowledge of the bills.”

Advertisement

It said the tax bills will not enrich Lagos or Rivers states at the expense of northern states.

Corroborating the Presidency’s stance, the Information Minister said, “The fiscal reforms will not impoverish any State or region of the country, neither will they lead to the scrapping or weakening of any federal agencies.”

“Similarly, it is important to be aware that there is a lot of misinformation and fake news circulating around the tax bills and the overall reform agenda of the Tinubu Administration.

“I call on all commentators and groups to keep up the spirit of informed engagement, and to strive to be respectful and understanding at all times despite the diversity of opinions. In the spirit of democratic engagement, there should be no room for name-calling, or for the injection of unnecessary ethnic and regional slurs into this important national conversation,” Idris added.

Advertisement

The FG welcomed the nationwide debate on the bills saying “This is the very essence and meaning of democracy.”

It argued that contrary to the popular notions the bills will “bring relief to tens of millions of hardworking Nigerians across the country and empower and position our States and the 774 Local Governments for sustainable growth and development.”

It said the President’s ambitious fiscal reform agenda will devolve more resources to Nigeria’s State and Local Governments, and ultimately to the Nigerian people, in the spirit of harnessing democracy that works for the people.

Idris argued that Nigerians are witnessing the most far-reaching, impactful, and beneficial set of fiscal reforms that Nigeria has seen in decades.

Advertisement

In addition to the four tax bills being debated and deliberated upon, there is also the 2023 Supreme Court ruling on financial autonomy for local governments, which will significantly empower the tier of government that is closest to the Nigerian people.

The FG said these reforms will not only facilitate increased revenues (without imposing additional tax burdens on the people), they will also make it possible for citizens to demand and enjoy greater accountability in the management of public resources at all levels of government.

“President Tinubu and the administration will continue to champion policies that close the loopholes and gaps through which Nigeria’s valuable public resources have been frittered away for decades.

On top of this necessary foundation, the resources being conserved and realised from these reforms will be invested in critical infrastructure (healthcare, education, transportation, digital technology, etc) and in social investments that will benefit all Nigerians and ensure that no one is left behind.

Advertisement

“This is the promise and the reality of the Renewed Hope agenda,” the statement read.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Crashed helicopter flying NNPC officials violated regulations – FG

Published

on

Barely two months after a Sikorsky SK76 helicopter operated by East Aviation crashed in Port Harcourt, the Nigerian Safety Investigation Bureau has disclosed that its handlers violated several of the Nigeria Civil Aviation Regulations directives.

Although the bureau was silent on whether or not the vices led to the unfortunate incident, the act shows gaps in the regulatory duties of the NCAR.

The helicopter, which was contracted by the Nigerian National Petroleum Company Limited, plunged into the Atlantic Ocean near Bonny Finima, off the coast of Calabar on October 24, with six passengers and two crew members.

Five bodies of the eight victims have been recovered while the remaining three are still yet to be found.

Advertisement

While reeling out the preliminary findings of the bureau on the accident, The Director-General of NSIB, Alex Badeh, on Tuesday told journalists in Abuja that the crashed helicopter was not fitted with a Flight Data Recorder, a violation of the Part 7.8.2.2(q) of Nigeria Civil Aviation Regulations (Nig. CARs) Act 2023

Badeh added that the helicopter crew members used non-standard phraseology throughout the flight.

The preliminary findings of the bureau read partly, “The helicopter was fitted with a solid-state cockpit voice recorder; The helicopter was not fitted with a Flight Data Recorder; although Part 7.8.2.2(q) of Nigeria Civil Aviation Regulations (Nig. CARs) 2023 requires that FDR shall be fitted on the helicopter; The flight crew used non-standard phraseology throughout the flight.”

The report further reads; “There were no standard callouts for the various phases of the flight; The helicopter Radio Altimeter (Rad alt) was snagged and deferred on October 18, 2024, six days before the accident; No dew point data was reported in the weather information passed to 5N-BQG on the day of the occurrence.”

Advertisement

While speaking on the causes of the crash, Badeh explained that the investigators discovered that it appeared to be “Struggling to gain balance right before crashing into the ocean.”

He further noted that the crew’s struggle was followed by an aural warning from the aircraft, “Bank angle, Bank angle,” which was the last recorded data on the Cockpit Voice Recorder with smoke emanating from the engine before it ditched into the water.

Other reports released by the NSIB include a final report on the serious accidents involving Beech Baron 58 aircraft operated by Nigerian College of Aviation Technology, Zaria with nationality and registration marks 5N-CAG, which occurred on runway 5 at General Hassan Usman Katsina International Airport, Kaduna on December 31, 2022 and five other incidents.

The NSIB, however, charged the NCAA to ensure strict compliance with the Nigerian Civil Aviation Regulations (Nig. CARs) 2023 part 7.8.2.2(q) which requires that all helicopters with a maximum take-off mass over 3175 kg and up to 7000 kg be fitted with a Flight Data Recorder.

Advertisement
Continue Reading

News

Kaduna returns Abacha family property seized by El-Rufai

Published

on

Kaduna State Governor, Senator Uba Sani, has reinstated ownership of two properties previously revoked from the family of the late military dictator, Gen. Sani Abacha, during the administration of his predecessor, Nasir El-Rufai.

The properties, located at No. 9 Abakpa GRA and No. 1 Degel Road, Ungwan Rimi GRA, in Kaduna, had been seized in 2022 following allegations of breaches of occupancy terms under the Land Use Act.

Speaking on Tuesday, Abacha family lawyer, Reuben Atabo (SAN), confirmed the reinstatement, describing it as a significant development.

The revocation, which was widely publicised in newspapers on April 28, 2022, included the late Abacha’s name as item 34 among those affected.

Advertisement

Atabo said the move had caused “embarrassment” to the Abacha family, prompting legal action against the state government.

Governor Sani, however, reversed the revocation in two separate letters dated December 10, 2024, through the Kaduna Geographic Information Service.

Both letters, signed by Mustapha Haruna on behalf of the Director General of KADGIS, directed the family to settle outstanding fees and charges as a condition for reinstatement.

One of the letters reads: “His Excellency, the Governor of Kaduna State, has in the powers conferred on him under the Land Use Act 1978, reinstated the aforementioned title… Subject to strict condition of settling all outstanding fees and charges.”

Advertisement

The Abacha family, through Atabo, welcomed the decision, describing it as a gesture of fairness and justice.

The reinstatement marks a shift from El-Rufai’s administration, which had cited “various contraventions” as the basis for revoking the properties.

Continue Reading

News

CAC deregistered 300,000 dormant companies in one year

Published

on

The Corporate Affairs Commission (CAC) has deregistered over 300,000 dormant companies within a year to sanitise the nation’s corporate registration system.

The Registrar General, Hussaini Ishaq Magaji (SAN), announced this in an exclusive interview with The Nation in Abuja.

Magaji said: “From October 16, 2023, when I assumed office, to date, we have witnessed an extraordinary level of deregistration. In December 2023 alone, we deregistered over 100,000 companies. By February 2024, another 100,000 companies were removed, and recently, we deregistered an additional 100,000.”

The CAC boss explained that the deregistered entities had remained inactive, failing to file annual returns for over a decade.

Advertisement

According to him, some of the companies posed risks to the economy, as they could be used for fraudulent activities.

He said: “Our challenge is that we are not even deregistering in millions. This is because, as I earlier told you, business registration in Nigeria started since sometime around 1912. And what we have in our portal is from 2021. So, you can see the barrier.

“All the historical records from that year to this year are not on the portal. We are onboarding them gradually. When we complete our task, we will then have the total number of the dormant companies and they will go.

“Our system is integrated with critical agencies, such as the Federal Inland Revenue Service (FIRS), security agencies, embassies, and banks. Once a company is marked as inactive on our portal, it cannot access banking services, process embassy documents, or engage in other operations,” he said.

Advertisement

Magaji explained the legal framework supporting these actions, saying: “If a company remains dormant for over 10 years, we are empowered to deregister it. Additionally, even if a company has been inactive for two years without filing annual returns, I can deregister it under the law.”

The registrar general attributed the success of CAC’s measures to the political will of the Federal Government.

He added: “We have been given a free hand by Mr. President and the supervising minister to carry out our duties without interference. This has enabled us to act boldly and decisively.”

Magaji dismissed the claims that a significant number of companies were folding up due to insolvency or economic challenges.

Advertisement

The CAC boss described such assertions as exaggerated.

He added: “While some businesses apply for voluntary winding up, the numbers of such companies are negligible. Many of these cases arise from changes in business focus rather than economic difficulties. For instance, a company like Nokia transitioned from producing phones to manufacturing vehicle tyres.”

Magaji noted that technological advancements and shifts in business strategies were driving many companies to restructure rather than exit the market.

He said CAC hosts Nigeria’s Beneficial Ownership Register, a platform providing free access to information about companies and their significant controllers.

Advertisement

“Nigeria is one of the global leaders in implementing the beneficial ownership register. We are hosting the register at bor.cac.gov.ng. This transparency ensures that even individuals with indirect control of a company must disclose their interest within 30 days,” he said.

Continue Reading

Trending

Copyright © 2024 Naija Blitz News