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Tax Reform Bills: Tinubu moves to gather Northern Support

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President Bola Tinubu has initiated extensive outreach to northern elites and the political class in a bid to garner support for the passage of contentious tax reform bills currently under consideration by the National Assembly.

Overview of the Bills
The tax reform bills,introduced in October 2024, include:

The Nigeria Tax Bill 2024
The Nigeria Tax Administration Bill
The Nigeria Revenue Service (Establishment) Bill

The Joint Revenue Board (Establishment) Bill
These proposals aim to reform Nigeria’s tax administration and enhance revenue collection systems. However, they have faced significant resistance, particularly from northern governors who argue that the reforms could disproportionately affect their regions and hinder economic development.

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Tinubu’s Strategy
Presidency insiders revealed that President Tinubu has employed a multifaceted approach to address concerns raised by stakeholders, particularly from the northern political elite. This includes private consultations, strategic dialogue, and discreet “back channel” negotiations.

A senior official, speaking to The Punch anonymously, noted, “The President has been engaging with northern elites both individually and in groups, even prior to the holiday season.”

Another source disclosed that Tinubu is leveraging alternative methods to address objections to the bills, stating, “He is using every available channel to ensure that the contentious aspects of the bills are clarified and resolved.”

Northern Governors Remain Opposed
Despite Tinubu’s outreach efforts, northern governors have maintained their opposition. They insist that the bills should be withdrawn to allow for broader consultation and revisions. The governors argue that the proposed reforms could:

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Increase the tax burden on their states,
Stifle economic growth, and
Exacerbate financial hardship for citizens.

The federal government, however, has defended the reforms as necessary steps to:

Boost Revenue Generation: Diversify income streams and reduce reliance on oil.
Modernize Tax Administration: Streamline revenue collection for efficiency and transparency.
Public Reactions
The proposed reforms have sparked heated debates nationwide. While proponents argue that they are essential for Nigeria’s fiscal sustainability, critics contend that they could lead to increased taxation and worsen the economic struggles of ordinary Nigerians.

As the debate intensifies, President Tinubu’s ability to navigate these challenges and secure buy-in from critical stakeholders will significantly influence the bills’ passage and their broader implications for Nigeria’s economy.

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Tinubu splits Nigerian college of aviation into six campuses across Nigeria

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…as Akure, Ilorin, Ebonyi others get campus

President Tinubu has split the Nigerian College of Aviation, Zaria – Kaduna State into 6 campuses with 1 in each geopolitical zone of Nigeria.

SEE LOCATIONS:

1. Akure (Southwest);
2. Osubi (South-South);
3. Ebonyi (Southeast);
4. Ilorin (North Central); and
5. Yola (North-East).

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NBA president meets CDS, decries lawyers’ harassment

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The President of the Nigerian Bar Association, Afam Osigwe (SAN), has bemoaned the persistent attacks on legal practitioners by security agencies in the country.

He bemoaned the case of two lawyers, Okorie Kevin, who was reportedly detained by the Navy for over 120 days and Mr Ernest Okpaga, who was unlawfully detained and assaulted by officers of the Nigerian Police Force.

Speaking on Tuesday, during a courtesy visit to the Defence Headquarters, where he was received by the Chief of Defence Staff, Gen Christopher Musa, the NBA President raised the case of Kevin, calling for intervention.

Osigwe also brought the attention of the CDS to reports of military checkpoints being used as avenues for extortion by some unscrupulous personnel.

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He criticised the practice of collective punishment in communities experiencing crises involving the military.

The legal luminary stressed the need for a collaborative relationship between the NBA and the military to ensure justice, accountability, and respect for human rights.

Gen Musa, in his response, acknowledged the issues raised by the NBA President.

While denying knowledge of Kevin’s case, Gen Musa assured the NBA President that immediate steps would be taken to investigate and resolve the matter.

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He said the Defence Headquarters remained committed to maintaining a people-centric approach and adhering to rules of engagement when interacting with civilians, including lawyers.

The CDS expressed a willingness to collaborate with the NBA to strengthen mutual understanding and ensure adherence to the rule of law.

He assured the NBA that any soldier found engaging in unlawful activities at checkpoints would henceforth face disciplinary action.

In a separate press statement on Tuesday, Osigwe, while hosting members of the NBA National Litigation Committee in Abuja, commended the committee for professionalism, dedication and proactive response to Okpaga’s matter.

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He added, “The commitment demonstrated by the National Litigation Committee in addressing critical issues affecting lawyers is a testament to the strength and integrity of the NBA.”

Osigwe reiterated that the NBA remained resolute in its commitment to defending the rule of law and safeguarding the sanctity of the legal profession.

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Opposition kicks as FG plans N55bn for presidential fleet maintenance

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The Peoples Democratic Party and the Labour Congress have kicked against the N55bn allocated in the 2025 budget for the maintenance of the presidential fleet.

This is contained in the 2025 Appropriation Bill sent to the National Assembly for approval.

If approved by the lawmakers, over N55.5bn will be spent on total overhauling of three aircraft engines in the presidential fleet, including fuelling, fumigation, air navigation, cleaning, and other maintenance of the presidential fleet.

The entire aviation ministry’s 2025 budget stands at N105,953,496,365, The PUNCH understands.

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The budget, which was scrutinised by our correspondent, showed that the Ministry of Aviation and Aerospace Development has N71,123,368,069; the Nigerian Meteorological Agency gets N9,819,554,829, while N7,975,364,319 goes to the Nigerian College of Aviation Technology, Zaria.

Others are the Nigerian Safety Investigation Bureau, with N10,035,209,148, and the Nigerian Airspace Management Agency, which was allocated N7,000,000,000.

Meanwhile, at least N19.43bn was spent on the maintenance and operations of the Presidential Air Fleet from July 2023 to September 2024, The PUNCH gathered.

Checks by our correspondent on GovSpend, a civic tech platform that tracks and analyses the Federal Government’s spending, showed that the payouts amounted to N13.55bn in 2024, representing 66 per cent of the allocations for the fleet in the fiscal year.

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The yet-to-be-passed budget showed that N8,646,336,653 bn was earmarked for the repair of air navigational equipment, while N5,514,000,000 was set aside for an engine overhaul of one of the aircraft in the presidential fleet with the registration number 5N-FGW.

The document further stated that two other engines will be overhauled with the sum of N3,132,336.65.

The government also planned to spend N8,646,336,653 on air navigational equipment, with N1,550,000,000 proposed for aircraft fuel cost in 2025 and another N1,255,700,000 for aircraft maintenance in the presidential fleet, among others.

Besides, the sum of N149,000,000 was appropriated for security operations (overhead) and an additional N7,500,000 for cleaning and fumigation services for the presidential fleet.

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The sum of N311,145,300 was set aside for insurance premiums for aircraft.

However, The PUNCH understood that this huge sum may be handled by foreign insurance companies such as the United States and the United Kingdom, since local insurance companies don’t have the capacity to insure aircraft, particularly airbuses.

Meanwhile, local insurance companies only occasionally serve as “middlemen” between the presidency and their foreign counterparts.

Oppositions, Nigerians react

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When approached by our correspondent, South-West chairman of the Peoples Democratic Party, Kamorudeen Ajisafe, asked if the presidency was planning on procuring another aircraft.

He, however, promised to get back but never did till press time.

Also venting his anger on the development, factional National Publicity Secretary of the Labour Party, Abayomi Arabambi, described the development as an inhuman and satanic act, adding that spending such an amount of money on the presidential fleet was a misplaced priority. He reasoned that with millions of Nigerians struggling to make ends meet, it’s an appalling and “wholesome insult to the Nigerian masses that the government would choose to spend such a large sum on luxury aircraft.

He said, “The presidential air fleet already has some aircraft, including a recently purchased Airbus A330, which cost over $100m.

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“The government’s spending habit is a clear indication of its lack of commitment to reducing poverty and inequality.

Debo Adeniran, the executive chairman of the Centre for Anti-Corruption and Open Leadership, noted, “What we are getting from this administration is opposite to our expectations… an administration that has fallen in love with profligacy.

“It’s time the government rethink its priorities and start putting the needs of its citizens first. The proposed expenditure on presidential jets is a national shame, and it’s time for Nigerians to demand better from their leaders. As you noted, it’s surprising that the same people who are complaining about the government’s wasteful spending will likely vote for the same politicians in the next election. It’s a vicious cycle that needs to be broken.”

An engineer, Olakunle Aina, said he was disappointed to hear that such figures are voted for travel, stating that the funds are huge for fancy sake.

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“I am not an aeronautic engineer, but I know that the money wouldn’t have been that huge if our leaders were ready to manage, only if they were in tune with the level of hardship in the land, but no! They are not suffering; what to eat is not their problem, and that is why the next thing for them is affluence. For me, spending such huge money on the presidential fleet is the height of insensitivity.

“It can be cheaper while the balance can be better channelled; our leaders must think, and the time for that is now.”

A trader, Mrs. Aina, said she couldn’t relate to what the huge amount meant to get Nigeria better and subtly added that her biggest saving was N150,000.

“The biggest I ever had is N150,000, and I contributed that for a whole year just to get a koiki. So, when you say some leaders intend to spend N55bn on travelling in aeroplanes, that will bring trauma to me; I will be tempted to place curses on them.”

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Credit: PUNCH

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