A bill which seeks to establish the National Council for Traditional Rulers with the objective of formally giving monarchs and community heads important official roles has scaled second reading in Senate.

The bill was sponsored by Senator Simon Lalong (Plateau South).

The Bill generated widespread debate among lawmakers when it was first introduced, with concerns expressed over potential conflicts between the responsibilities of traditional rulers and elected officials at the Local Government level.

But Lalong, a former Governor of Plateau State, noted that present day traditional rulers are well-educated and can provide valuable counsel on issues such as insecurity and other national matters, which could assist the government in addressing the needs of the citizens.

The former Director-General of the Tinubu-Shettima Campaign Council also asserted that they would be useful in the areas of security and conflict resolution in local communities.

According to him: “When there are crises and killings, the first thing people say is ‘let’s hold the traditional ruler responsible.’ It is true in their communities, they know everybody, including the criminals. But we expect them to be the ones running up and down.

“We need to charge them with responsibilities where they will be committed. But for now, you can’t hold them responsible. As the director-general of the campaign for Asiwaju and Kashim, we went around having some meetings with these traditional rulers.

“Every time we want them to participate, they ask to be given a role. So, it was also part of our (electioneering) campaign.

“So, I don’t see how we can jettison that when we are struggling for a constitutional amendment with respect to security. If we don’t have security, every other thing we are doing is rubbish.”

However, some senators still expressed concerns about the possibility of overlapping duties and emphasised the need for the bill to clearly delineate the roles of traditional rulers and government officials to avoid confusion.

Senate President Godswill Akpabio stressed the importance of clearly defining the functions of traditional rulers within the bill.

He also suggested holding a public hearing to gather input before the bill proceeds to a third reading.

Akpabio noted the value traditional rulers could bring in providing counsel on a wide range of issues that could benefit the government.

Akpabio referred the bill to the Senate Committee on Establishment and Public Service Matters for further legislative work and to report back in four weeks.

The House of Representatives has retained Value Added Tax (VAT) at 7.5%, rejecting a proposed gradual increase to 15% by 2030. The House also dismissed a proposal to reintroduce inheritance tax under the guise of taxing family income.

Submitting the report during plenary in Abuja, the Chairman of the House Committee on Finance, Rep. James Faleke, stated that the report represents a comprehensive review of the bills, incorporating extensive public input.

The report covers four key bills aimed at overhauling Nigeria’s tax framework:

Nigeria Tax Bill

Nigeria Tax Administration Bill

Nigeria Revenue Service (Establishment) Bill

Joint Revenue Board (Establishment) Bill

Key Amendments in the Tax Reform Bills

Nigeria Revenue Service (NRS) Bill

Redefined Scope: The NRS will now focus on federal-level revenue collection, excluding individual taxpayers in states and the Federal Capital Territory (FCT).

Board Composition: Section 7 now requires six executive directors, each appointed by the president from the six geopolitical zones on a rotational basis. Each state and the FCT will also have a representative on the board.

Secretary Qualifications: Section 13 mandates that the Secretary to the Board must be a lawyer, chartered accountant, or chartered secretary at the level of Assistant Director or higher.

Fixed Funding Rate: The NRS will now receive a 4% cost-of-collection rate (excluding royalties), subject to National Assembly approval.

Borrowing Powers Restricted: Section 28 now requires Federal Executive Council (FEC) and National Assembly approval before the NRS can secure any loans.

Joint Revenue Board (JRB) Bill

Tax Appeal Commissioners’ Criteria Revised: Section 25 removes the requirement that commissioners must have business management experience, as the Committee deemed it irrelevant.

Strengthened Tax Ombud’s Independence: Section 43 mandates that the Tax Ombud’s Office be funded directly from the Consolidated Revenue Fund, eliminating reliance on external donations.

Independent Funding for Tax Appeal Tribunal (TAT): The tribunal will now operate independently of the Federal Inland Revenue Service (FIRS) to prevent conflicts of interest.

Stricter Adherence to the Evidence Act: New rules ensure that tax appeal proceedings strictly follow the Evidence Act.

Taxpayer Identification Number (TIN) Processing: The timeline for issuing TINs has been extended from two working days to five to accommodate administrative delays.

Faster Tax Returns for Ceased Operations: Companies ceasing operations must now file income tax returns within three months, down from six months, to prevent revenue loss.

VAT System Adjustments: Section 22 ensures that taxable supplies are attributed to their place of consumption, addressing regional imbalances.

VAT Fiscalisation System: Section 23 introduces a new regulatory framework to improve VAT collection.

Increased Reporting Thresholds for Banking Transactions:

Individuals: ₦25 million → ₦50 million

Corporate Entities: ₦100 million → ₦250 million

Judicial Oversight on Asset Seizure: Section 60 mandates that tax authorities must obtain a court order before seizing movable assets.

Mandatory Electronic Taxpayer Records Access: Section 61 formalizes the government’s right to access electronically stored tax records in line with modern practices.

New VAT Revenue Distribution Formula:

70% distributed equally among local governments

30% based on population

General Amendments Across Tax Bills

VAT Rate Maintained at 7.5% – The Committee rejected the proposal to gradually increase VAT to 15% by 2030.

Petroleum Gains Tax Reduced to 30% – Section 78 revises the tax rate on petroleum gains from 85% to 30%.

Excise Duty Provisions Removed – Excise duty-related provisions were deleted due to concerns about their negative economic impact.

Higher Turnover Threshold for Small Companies: A business will now be classified as a small company if its annual turnover is ₦100 million or less (asset cap remains at ₦250 million).

New Penalties for Virtual Assets Service Providers (VASPs): Stricter fines and potential license suspensions for non-compliant crypto and digital asset businesses.

While submitting the report, Rep. Faleke highlighted the importance of the tax reform bills in modernizing Nigeria’s tax system, boosting revenue collection, and fostering economic growth.

“These Bills are critical to implementing a modern, transparent, and efficient tax system that will support economic growth and improve revenue collection,” he said.

He added that the review process was extensive, incorporating input from the public and key government agencies, including:

Nigeria Export Processing Zones Authority (NEPZA)

National Agency for Science and Engineering Infrastructure (NASENI)

National Information Technology Development Agency (NITDA)

Tertiary Education Trust Fund (TETFund)

“We carefully examined every submission to ensure that public opinion was reflected in our recommendations. This process involved a thorough review of existing laws proposed for repeal or amendment,” Faleke noted.

The amendments impact key laws, including:

Companies Income Tax Act (CITA)

Value Added Tax Act (VAT Act)

Personal Income Tax Act (PITA)

Federal Inland Revenue Service (Establishment) Act

Petroleum Industry Act

Nigeria Export Processing Zones Act

Oil and Gas Free Trade Zone Act

The House of Representatives is expected to deliberate on the report in the coming weeks as part of its legislative process.

Malam Nasir El-Rufai, the former governor of Kaduna State, has revealed that he knows individuals who paid for ministerial positions in President Bola Tinubu’s All Progressives Congress (APC) government.

In an interview with BBC Hausa, El-Rufai clarified that his departure from the party was not due to his ministerial ordeal but because the APC had drifted from its founding ideals. He explained that if the party had sacked him, it would have spared him the stress of explaining his exit. According to him, it wasn’t he who left the APC, but rather, the party had abandoned him and its original principles.

“It could have been easier for me if APC sacked me because they would save me from explaining the stress of why I left the party,” El-Rufai said.

When asked whether he thought people might believe he left due to not being appointed as a minister, El-Rufai confidently responded, “Did I seek to be minister? I know people who paid to get ministerial appointments.”

Although El-Rufai did not regret supporting Tinubu’s presidential campaign, he expressed his disappointment with how he had been treated. He further criticized the APC for becoming a party where personal interests overshadow the original vision, making it difficult for those who worked hard for its success to be acknowledged or rewarded.

“The APC has abandoned the ideals that led to its formation. It has abandoned the people. Everyone is now pursuing personal interests and wealth. The government has become a business enterprise where everything has a price,” he said.

El-Rufai also pointed out that key appointments in the current administration are being controlled by a select group from Lagos, reinforcing his belief that fairness and justice have been sidelined within the party.

“There is no justice. Those who worked for the party are not recognised, let alone rewarded. Appointments are now controlled by a select group from Lagos. The party is dead,” El-Rufai concluded.

Before making the decision to leave the APC, El-Rufai consulted several political figures, including former President Muhammadu Buhari, Tunde Bakare, Abdullahi Adamu, Adams Oshiomhole, and Bisi Akande, to seek their opinions on his situation.