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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.
Hon. Mikhail Suleiman Mohammed, the Kogi East Zonal Vice Chairman of the ruling All Progressives Congress (APC), has passed away. His family announced his death on Friday.
Mohammed played a pivotal role in securing the governorship seat for the APC during the 2024 gubernatorial election in Kogi State, contributing significantly to the party’s success.
Kogi State’s Deputy Governor, Joel Salifu, expressed deep shock and sorrow upon hearing of Mohammed’s sudden passing. In a statement issued by his Chief Press Secretary, Unubi Emmanuel, the deputy governor described the news as both devastating and unexpected.
He praised Mohammed’s integrity, noting his dedication to the APC and his pivotal role in strengthening the party’s influence in the region. Salifu acknowledged that the loss would be profoundly felt, recognizing Mohammed’s outstanding contributions to the growth and prosperity of Kogi State.
In his tribute, the deputy governor prayed for divine mercy upon the soul of the departed and asked for God’s grace to grant him eternal rest. He also extended his condolences to Mohammed’s grieving family, praying for them to find the strength to endure this irreparable loss.
Mohammed, born on October 1, 1980, in Oduh Ogboyaga, Dekina Local Government Area of Kogi State, is survived by his wife and six children.
President Bola Ahmed Tinubu has given his approval for the appointment of Nasir Naeem Abdulsalam as the new Managing Director of the Ajaokuta Steel Company.
This announcement was made through an official statement on Friday, signed by Segun Imohiosen, the Director of Information and Public Relations for the Secretary to the Government of the Federation, George Akume.
The statement confirmed that Abdulsalam’s appointment, effective from April 3, 2025, aligns with the provisions of the Certain Political and Judicial Office Holders (Salaries and Allowances, etc.) Act of 2008, as amended.
Before his appointment, Abdulsalam held the position of Technical Adviser to the Honourable Minister of Steel Development. He also served as the Special Assistant for Academic Affairs to the Director-General of the National Institute for Legislative and Democratic Studies (NILDS).
The statement highlighted that President Tinubu has tasked Abdulsalam with leveraging his extensive experience in the steel industry to transform the Ajaokuta Steel Company. The goal is to spur both upstream and downstream industrial and economic activities, positioning Nigeria as the industrial powerhouse of Africa. This aligns with the objectives of the Renewed Hope Agenda’s focus on national diversification.
In his new role, Abdulsalam is expected to spearhead initiatives that will revitalize the company and contribute significantly to the nation’s economic development, ultimately enhancing Nigeria’s industrial landscape in line with its broader diversification goals.
…as Benin’s higher education minister commend Nigeria’s support
By Gloria Ikibah
In a strategic effort to break communication barriers and boost trade, development, and bilateral relations between Nigeria and the Republic of Benin, the Director General of the Nigerian Technical Aid Corps (NTAC), Hon. Yusuf Buba Yakub, led a high-level delegation to Cotonou on Monday for talks with the Togolese Minister of Higher Education and Scientific Research, Prof. Eleonore Yayi Ladekan.
The meeting focused on enhancing cooperation in language learning and professional exchange, with the NTAC DG stressing the importance of the Agency’s role in promoting South-South collaboration by deploying skilled Nigerian professionals to partner countries.
Hon. Buba Yakub reaffirmed Nigeria’s readiness to deepen ties with its neighbours through initiatives that promote mutual understanding, especially in areas like language and education, which are critical for unlocking the full potential of regional cooperation.
He said: “Our aim is to as much as possible try to mitigate the barriers placed by language in the process of fostering deeper relationships among our people,which is the long-term ideal of every diplomatic effort.
“This will booster trades between our both countries and lead to better economic outcomes for everyone.We know that wherever language is a barrier, progress is limited.So,for NTAC to continue to champion these moves something tells you that we have seen the enormous gains in what we started for our both countries.
“From this collaboration,we intend to deploy a number of English teachers to your country so that we can facilitate an effective learning and acquisition of English Language.We will also learn French.As I said earlier, the goal is to bring down the linguistic divide that exists between our countries and by so doing enhance all other aspects of our bilateral engagements, including trades, services and cultural exchange.”
While receiving the delegation from the Nigerian Technical Aid Corps (NTAC), the Minister of Higher Education and Scientific Research of the Republic of Benin, Prof. Eleonore Yayi Ladekan, expressed heartfelt appreciation for Nigeria’s consistent support.
She praised the impact of NTAC’s programmes, particularly in capacity building and human resource development within Benin.
The Minister specifically highlighted the establishment of the Nigerian International School in Cotonou, describing it as a milestone achievement that has significantly contributed to the country’s educational progress in recent years.
She also expressed a keen interest in exploring additional areas of cooperation with NTAC to further strengthen bilateral engagement.
Prof. Ladekan reaffirmed Benin’s commitment to maintaining and expanding collaborative efforts with Nigeria for the mutual benefit of both nations.
She extended her gratitude to the NTAC delegation and conveyed appreciation to President Bola Ahmed Tinubu for his administration’s unwavering dedication to the advancement of African unity, development, and regional cooperation.
The NTAC Director General, was accompanied by Director of Programmes, Amb. Zakari Usman, other NTAC officials, and representatives from the Nigerian Mission in Cotonou, including Messrs Mubarak Mohammed Mantu and Emmanuel Nwosa.
On the Beninese side, the Minister was joined by members of her team: Ahounouikpe F. Judith, Gbenou Victoria V., Lalaye A. Philippe, Youssa A. Juaka, and Akpovi Salvadore.
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