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FG can retain VAT as it is – Oyedele
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has said it is possible for the current Value Added Tax structure to be kept as it is given the controversies it had stirred.
Oyedele said this on Sunday when he appeared on a live television programme on Arise TV to discuss the tax reforms proposed by President Bola Tinubu.
In October 2024, Tinubu introduced four Tax Reform Bills to the National Assembly to overhaul Nigeria’s tax system. The Bills – the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill – were to consolidate existing tax laws, streamline tax administration, and enhance revenue generation.
The proposed legislation has faced stiff resistance from various players in the country, as people argue that it would favour one section of Nigeria at the expense of others. Proposed reforms to the Value Added Tax were one of the main grief points.
Speaking on Sunday, Oyedele said what his committee proposed regarding Value Added Tax would benefit every part of the country.
He, however, noted that if the preference was for the current state, then his team was willing to oblige.
“There were two comments that Mr President made. His first point is that we have to do tax reforms. We cannot continue with the laws of the colonial era and hope that Nigeria will become a developed country. This tax system is holding us back. Then after a few other questions, someone asked a question again about whether he was willing to move and make a compromise, and he said, ‘Yes’. So his point is that we have to carry out tax reform.
“That is what is non-negotiable, otherwise, we will be missing out on a significant opportunity to move Nigeria forward. But in terms of the details of those bills, everything is up for grabs. I can tell you, as we speak today, if they want us to keep the current VAT formula, we’ll keep it 100 per cent. So, the fact that people keep using the problem we are trying to solve against us, is what I need to understand.
“We are saying today that Lagos State is getting the benefit for calls made in Kano, Kwara, in Ekiti. We say, let’s change that. And then you come out and say they want to take what we are doing in Kano to Lagos,” he said.
The tax reforms committee boss tracing the history of the VAT in Nigeria said, “It seems to me that the more we explain it, the more people try not to understand because a lot of people don’t even understand the current position of the law.
“Let me quickly explain what the problem is, the value-added tax was introduced in 1993 by the military. Implementation started in 1994 and that was to replace the sales tax that was being done by states.”
Oyedele stated that in 1999 when Nigeria got into the Fourth Republic, the country needed a constitution.
“The people that put the Constitution together pretty much replicated 1979’s. In 1979 there wasn’t VAT. So in 1999 when they introduced the constitution, VAT was missing, but the government continued to collect VAT. Some states like Rivers State and Lagos State are in court saying that VAT should be collected by the state because they feel that they are not getting enough for the contribution they are making into the VAT pot, and therefore if they collect it as a state tax, they will be better off.
“That is the equivalent of 100 per cent derivation. For us, as we’re working on these tax reforms. We said if we get states to start collecting VAT in Nigeria, it will be chaotic for business because we know for a fact that states in Nigeria will not respect input-output.
“So we said, how can we make everybody at least comfortable and address inequity? What did we identify? As of today, when companies remit their VAT, they tend to remit from their head office because that’s where they have the finance department. So MTN, BUA, Dangote, Airtel, all the banks, most of them are headquartered in Lagos. Some of the oil companies are headquartered in Rivers State,” he stated.
Oyedele affirmed that the tax reforms became important seeing that there was no VAT in the Nigerian constitution.
He went on to warn that if the tax reform bills were withdrawn from the National Assembly, it would be hard to represent them as he feared that consultations would be frustrated.
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Atiku demands apology from APC Following Morka’s Threats To Peter Obi
Ex-Vice President Atiku Abubakar has expressed strong disapproval of a perceived threat to the life of Labour Party’s presidential candidate, Peter Obi, by the All Progressives Congress (APC) National Publicity Secretary, Felix Morka.
Atiku described Morka’s comments as emblematic of a troubling drift toward authoritarianism under President Bola Ahmed Tinubu’s administration.
Morka, in an interview on Saturday, accused Obi of spreading misinformation and warned that the former Anambra State governor had “crossed the line.” In response, Atiku, via a statement on Tuesday, decried the APC-led government’s alleged attacks on opposition voices, describing such actions as a serious affront to democracy.
In his statement, Atiku expressed concern over what he described as the APC’s growing intolerance toward dissenting opinions. He linked Morka’s remarks to a broader trend of suppressing opposition, citing the continued detention of government critics like Mahdi Shehu as further evidence.
“The inflammatory remarks issued by Felix Morka directed at Peter Obi serve as a disturbing emblem of the current administration’s unsettling strategy in addressing opposition figures. This threat, coupled with the prolonged detention of voices like Mahdi Shehu, signals a worrisome shift towards authoritarian governance, where the rights of opposition figures are being stifled,” Atiku stated.
He criticized Morka’s warning that Obi should “be ready for whatever comes his way,” calling it an alarming affront to democratic values. Atiku emphasized that in a democracy, opposition voices are not only essential but should be welcomed as part of a healthy political discourse.
Atiku demanded that the APC and Morka clarify the intent behind the threatening remarks and issue a public apology to Peter Obi. He stressed that such inflammatory language undermines civil discourse and sets a dangerous precedent for governance.
“It is not merely the right, but the solemn duty of a democratic government to listen to its critics, engage in dialogue, and allow space for alternative viewpoints,” Atiku stated. “Instead, we are faced with a chilling threat. What exactly does Mr. Morka imply by saying Obi has ‘crossed the line’? The APC must clarify this disturbing insinuation.”
The former PDP presidential candidate also criticized Morka for comparing Obi’s statements on national hardship to a “Wild West scenario,” asserting that Obi’s comments merely reflected the daily struggles of Nigerians under the current administration.
Atiku reiterated that free speech and open dialogue are cornerstones of democracy and urged the APC to embrace constructive criticism rather than resorting to threats.
“The APC must reflect on its responsibility to uphold democratic principles and ensure that the voices of opposition leaders like Peter Obi are not suppressed but respected as a vital part of governance and public accountability,” Atiku concluded.
This incident highlights growing tensions between the ruling party and opposition figures, raising questions about the state of free speech and democratic engagement in Nigeria.
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BREAKING: New chapter, Mahama Sworn In As Ghana President, Nigerian Leaders Show Solidarity
On Tuesday, John Dramani Mahama was officially sworn in as Ghana‘s new president in a grand ceremony attended by global dignitaries and leaders.
The event marked Mahama’s return to power after an eight-year break following his decisive victory in Ghana’s December elections.
The 66-year-old former president secured 56.6% of the vote, a commanding lead in a nation known for its tight electoral contests between its two dominant political parties.
His victory was fueled by widespread dissatisfaction with the ruling party’s handling of the economy, especially in the wake of Ghana’s 2022 sovereign-debt default.
Among the international attendees was Nigeria’s President, Bola Ahmed Tinubu, who witnessed Mahama’s inauguration.
Prior to the swearing-in ceremony, a delegation of governors from Nigeria’s opposition party, the Peoples Democratic Party (PDP), paid a courtesy visit to Mahama in Accra.
The delegation included Delta State Governor Sheriff Oborevwori, Adamawa State Governor Ahmadu Fintiri, Zamfara State Governor Dauda Lawal, Taraba State Governor Agbu Kefas, and Plateau State Governor Caleb Mutfwang.
Governor Oborevwori shared the purpose of the visit in a social media post, emphasizing its significance in fostering bilateral ties.
“It was a privilege to pay a courtesy visit to the President-elect of Ghana, His Excellency John Dramani Mahama, earlier today alongside my brother governors. This visit will enhance the bilateral relations between our states and, by extension, strengthen the ties between our beloved country, Nigeria, and our sister nation, Ghana,” Oborevwori wrote.
Similarly, Governor Fintiri expressed that the visit was a gesture of support and solidarity as Mahama embarks on a new chapter of leadership.
A New Chapter for Ghana
Mahama’s return to the presidency comes at a critical time for Ghana, as the country faces significant economic challenges. His administration is expected to focus on economic recovery and fostering regional and international partnerships.
The show of solidarity from Nigerian leaders underscores the importance of strong ties between the two West African nations. With Mahama’s leadership and renewed international support, there is hope for a strengthened partnership between Ghana and Nigeria, fostering growth and development across the region.
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Tinubu Approves Mouth Watering Retirement Packages For Service Chiefs
President Bola Tinubu has approved a retirement package for Nigerian service chiefs and generals, which includes $20,000 for annual foreign medical treatment, bulletproof SUVs, cooks, and other benefits, sparking criticism from medical associations.
The retirement benefits, outlined in the Harmonised Terms and Conditions of Service for Officers and Enlisted Personnel in the Nigerian Armed Forces and signed by Tinubu on December 14, 2024, also entitle the Chief of Defence Staff and other service chiefs to a bulletproof SUV, replaced every four years and maintained by the military. Additionally, retirees will receive a Peugeot 508 or an equivalent backup vehicle.
Beyond vehicles, retired generals will have access to domestic aides, residential guards, and other luxurious privileges.
However, medical associations, including the Nigerian Medical Association (NMA), the Medical and Dental Consultants Association of Nigeria, and the Nigerian Association of Resident Doctors (NARD), have criticized the packages.
They argue that such lavish benefits are inappropriate in a country grappling with inadequate healthcare infrastructure, unpaid medical personnel, and a brain drain in the health sector.
While those who retire as lieutenant generals and their equivalents will enjoy international and local medical treatment worth up to $20,000 annually, the benefits for the CDS and the service chiefs were not specified, but it is believed that theirs would be significantly higher.
In addition, they will be assigned a special assistant or personal assistant, three service drivers, and a service orderly, with escorts provided as necessary by relevant military units.
Also, each retiring service chief will also be provided with five domestic aides, comprising two service cooks, two stewards, and one civilian gardener, along with an aide-de-camp or security officer.
The HTCOS read, “Retirement benefits for CDS and Service Chiefs: The following benefits shall be applicable: One bullet-proof SUV or equivalent vehicle to be maintained by the Service and to be replaced every four years. One Peugeot 508 or equivalent backup vehicle.
‘’Retention of all military uniforms and accoutrement to be worn for appropriate ceremonies; five domestic aides (two service cooks, two stewards and one civilian gardener); one Aide-de-Camp/security officer; one Special Assistant (Lt/Capt or equivalents) or one Personal Assistant (Warrant Officer or equivalents); standard guard (nine soldiers).
“Three service drivers; one service orderly; escorts (to be provided by appropriate military units/ formation as the need arises); retention of personal firearms (on his demise, the personal firearm(s) shall be retrieved by the relevant service) and free medical cover in Nigeria and abroad.”
For other senior officers such as lieutenant generals and equivalents, they are entitled to two Toyota Hilux vehicles or one Toyota Land Cruiser, along with $20,000 annual medical treatment, two cooks, two stewards, four residential guards and two drivers.
The document stated, “Lieutenant generals and equivalents will receive two Toyota Hilux vehicles or one Toyota Land Cruiser, along with $20,000 annual medical treatment, two cooks, two stewards, four residential guards, and two drivers.
“Retirement benefits for lieutenant general/equivalents.
The following benefits shall be applicable: Officers of three-star rank. Two Toyota Hilux Vehicles or one Toyota Land cruiser or equivalent jeep of the same value; two Cooks; two Stewards; four residential guards; one service orderly; two service drivers and free medicals in Nigeria and abroad to the tune of $20,000 per year.”
The Federal Government also approved for major generals and brigadier generals a Toyota Land Cruiser or equivalent, $15,000 annual medical treatment, domestic staff, and residential guards.
One-star officers are expected to receive $10,000 annually for medical care, a Toyota Camry or equivalent and similar domestic and security arrangements.
The HTCOS further read, “For major-generals/brigadier-generals and equivalents, the following benefits shall be applicable: One Toyota Land Cruiser or equivalent car of the same value.
“One cook; One steward, two residential guards; One service orderly; One driver; Free medicals in Nigeria, and abroad to the tune of $15,000 per annum.
“Officers of One-Star rank (Brig. Gen.): One Toyota Camry or equivalent car of the same value; One service driver; two residential guards; One orderly and free medicals in Nigeria and abroad to the tune of $10,000 per annum.’’
Colonels and their equivalents are to get a Toyota Corolla or its equivalent and free medical care within Nigeria.
The President of the NMA, Prof Bala Audu, emphasised that any retirement benefits received by government officials should be invested within Nigeria.
Speaking on the upgraded perks for the military brass, the NMA president noted, “If they want to give them government-benefited medical treatment, cooks, or whatever, I think they should give them all their benefits in Nigeria, that is what I believe.’’
“Whoever wants to receive benefits, whether service chiefs or Mr. President, it should be in Nigeria, and not abroad,’’ he insisted.
President of MDCAN, Prof Muhammad Muhammad, demanded that the Nigerian healthcare system should be transformed to cater to Nigerians’ healthcare needs.
“My main concern is not what they are giving, but the fact that it is made official that the medical treatment has to be abroad. When, in fact, in most situations, when they go out, it’s Nigerian doctors that they are going to meet. So, in that situation, we need to make sure they are taking good care of the Nigerian healthcare providers,’’ he said.
He added that the decision to make provision for foreign treatment for the retired officers signalled a lack of confidence in the local health sector.
“This also means that the government does not have confidence in the Nigerian healthcare system.
So, they have to make sure that whatever level of care they receive abroad, we also have it in Nigeria because that is what is going to make Nigerians continue to have confidence in the healthcare system and the healthcare providers in Nigeria. So, my main concern is not what was allocated, but the fact that it is made official that the treatment will be abroad.
“That means the government itself is not comfortable and is not happy with what is available in the Nigerian hospitals for the care of Nigerians,” he added.
While acknowledging that the retirement package for service chiefs, judges, and politicians is not new, the medical expert insisted that the well-being of Nigerians and healthcare professionals should also be prioritised.
“And then likewise, they need to increase budgetary provisions to upgrade our hospitals and other healthcare institutions and training centres so that Nigerians who may not necessarily have to go out of the country will be able to get the requisite healthcare service that they require,” he recommended.
On his part, NARD president, Dr Tope Osundara, noted that medical tourism is the bane of the health sector, stressing the need to address it urgently.
“The treatment they go abroad to get can be gotten here in Nigeria. Besides, what is stopping the government from providing state-of-the-art equipment in our hospitals or upgrading the hospitals?
“It’s not like we don’t have Nigerian doctors who can do some of the things they travel abroad to do, but unfortunately, rather than prioritise our health system, equip the hospitals and make it efficient, we would rather spend the money elsewhere, thereby improving their economy.
“We should rather pump money into our health system, and this money will find a way to circulate. By the time you are pumping money into it, and people are taking advantage, it will give a return on investment. But it seems that the focus of the government is elsewhere rather than majoring on what is essential in Nigeria.
“I appreciate the Coordinating Minister, Prof Muhammad Pate, who is also trying to do everything they can to improve the health system, but there is a limit to what a minister can do.
“We need a paradigm shift concerning reforms in the health sector. It still lies with the executive arm of government to ensure that the priorities are not focused on medical treatment abroad, but we should internalise treatment and make it local,” he said.
The Country Director, Accountability Lab Nigeria, Friday Odeh, described the development as “alarming”, noting the hardship faced by Nigerians, adding that the extravagant retirement benefits raised concerns about the priorities of the government.
He also questioned whether the service chiefs had done enough to deserve the packages while calling on the citizens to challenge such policies.
Odeh stated, “It is alarming that service chiefs are set to receive $20,000 for foreign medical treatment, bullet-proof SUVs, and personal staff as part of their retirement package. At a time when Nigeria faces economic hardship, such extravagance raises serious concerns about the government’s priorities.
‘’Millions of Nigerians struggle with poverty and failing public services, yet resources are being funnelled into luxuries for a select few. Does Nigeria truly have this kind of money to play around with?”
Odeh queried the wisdom behind the retirement perks citing the inability of the armed forces to address the insecurity plaguing the country.
He added, “The justification for these perks is questionable. For over 12 years, insecurity has ravaged the country, with insurgency, kidnapping, banditry, and violence leaving a trail of destruction. While there have been some gains, they are uneven and insufficient.
‘’Have the service chiefs done enough to deserve such packages, especially when insecurity persists in many regions in a country where military procurement details are never public and allegedly, corruption sits deep in these budgets?
“This policy reflects deeper issues in governance. It sends a troubling signal that public resources can be lavishly spent on elites, regardless of performance.
“Citizens and the media must challenge such policies that always hide behind national security, and demand a focus on the greater good. While insecurity has marginally reduced in some areas, it is far from enough to justify rewarding leaders with excessive perks,” he stated.
The Executive Director of the Rule of Law Advocacy and Accountability Centre, Okechukwu Nwaguma, pointed out that the retirement benefits reflected “a troubling disconnect between government actions and the realities faced by citizens”, adding that the justification for such perks was questionable.
He noted, “The Nigerian government’s decision to grant excessive retirement perks to military leaders amid the current economic hardship reflects a troubling disconnect between government actions and the realities faced by citizens.
“It raises significant concerns regarding government prioritization and fairness. The lavish retirement benefits of military leaders contrast sharply with the struggles faced by the majority of citizens dealing with insecurity, unemployment, and inflation.
“This disparity can deepen public disenchantment with the government, as it appears more focused on rewarding elites than addressing the needs of ordinary people.”
Nwaguma said the decision may reinforce the perception that the Tinubu government favoured elite interests, fostering public alienation.
“It raises questions about the fairness of resource allocation during times of crisis. This situation highlights the need for improved governance that reflects the will and welfare of the people. Citizens expect their leaders to demonstrate empathy and responsibility.
“For lasting stability and public trust, the government should align its policies with the socioeconomic realities of the populace and prioritise security and social welfare initiatives,” he added.
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