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RMAFC Challenges Tinubu’s Tax Reform Bills Over Constitutional Validity
The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has strongly opposed President Bola Ahmed Tinubu’s contentious tax reform bill, which the National Assembly is currently considering.
In a comprehensive nine-page memorandum obtained by Economic Confidential, RMAFC outlined a range of legal, constitutional, and technical objections to the proposed legislation.
The document, signed by RMAFC Chairman Mohammed Bello Shehu, emphasized that Section 162(2) of the 1999 Constitution (as amended) grants the Commission the authority to determine the formula for equitable revenue sharing among the three tiers of government.
This mandate also includes ensuring that the formula reflects principles of fairness and justice.
“The Constitution designates RMAFC as the final authority on matters of revenue allocation,” the memorandum stated.
“As such, no Act of Parliament, including the VAT Act, can infringe upon this constitutional responsibility. Any such attempt would constitute a violation of the Constitution.”
RMAFC maintained that its role as the exclusive arbiter in developing fair revenue allocation formulas must be respected. Any deviation from its constitutional duties, it argued, could undermine the integrity of the Commission and compromise the principles of justice in revenue sharing.
In its submission, the Commission called for an approach to Value Added Tax (VAT) allocation that accounts for the unique nature of VAT as a consumption tax.
It proposed a formula developed by RMAFC that would ensure equitable distribution among federal, state, and local governments.
The memorandum outlined the following points:
1. Equitable Allocation Formula: VAT allocation and derivation should be based on a formula developed by RMAFC. This formula would consider VAT’s consumption-based nature, ensuring fairness in distribution.
2. Recognition of Consumption Patterns: The formula would factor in consumption rather than merely production or the location of company headquarters, ensuring balanced benefits.
3. Support for Weaker Economies: Special consideration would be given to states with weaker economies, promoting national cohesion and fairness across all tiers of government.
RMAFC concluded the memorandum with several recommendations.
It urges he federal government to empower the Commission to finalize a VAT allocation formula in line with its constitutional mandate, reinforcing Constitutional Mandates by ensuring that VAT allocation strictly follows RMAFC’s framework, not arbitrary provisions in the VAT Act or the proposed reform bill.
The memo urges dialogue among federal, state, and local governments to secure consensus on the RMAFC’s formula, thereby reducing tensions and ensuring acceptance.
The memo also cautions legislative or executive measures that undermine RMAFC’s authority and advocates implementing systems like electronic invoicing to tag VAT collections to end-user locations, enhancing transparency and accuracy.
The Commission warned that the proposed tax reform bill threatens national unity and constitutional harmony.
By adhering to its constitutional mandate, RMAFC believes it can provide an equitable solution to revenue allocation disputes while safeguarding the principles of fairness and justice.
PRNigeria reports that the Revenue Mobilisation, Allocation, and Fiscal Commission (RMAFC) is a constitutional empowered to ensure the equitable distribution of the country’s financial resources among the three tiers of government: the federal, state, and local governments.
It is mandated that the revenue allocation formula be reviewed to ensure equitable distribution among the three tiers of government to reflect fairness, justice, and equity, taking into account.
It is also empowered to monitor the accruals and disbursements from the Federation Account to ensure compliance with the revenue-sharing formula and advise the federal, state, and local governments on fiscal efficiency and revenue diversification.
News
Crashed helicopter flying NNPC officials violated regulations – FG
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.
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.”
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.
News
Kaduna returns Abacha family property seized by El-Rufai
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.
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.”
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.
News
CAC deregistered 300,000 dormant companies in one year
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.
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.
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.
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.
“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.
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