News

Kano Govt, Customs Raise Concern Over Sections In Tax Reform Bills

Published

3 months ago

February 26, 2025

Gloria Ikibah

…as TUC, others oppose increase in VAT, reduced funding for TETfund, NASENI, NITDA

…as NLNG advocate Zero-rate VAT for export

By Gloria Ikibah

The Kano State Government has raised concerns over sections of the proposed tax reform bills that extend the Federal Government’s control over state and local tax agencies.

The Permanent Secretary in the Office of the Secretary to the State Government, Umar Mohammed Jalo, stated the government’s position, at a 3-day public hearing organised by the House of Representatives Committee on Finance on Wednesday in Abuja.

Jalo urged the House Committee to amend the bill by eliminating provisions that place it above other laws.

On the proposed reduction in the funding of key national agencies, like the Tertiary Education Trust Fund (TETFUND), Nigeria Information Development Agency (NITDA), and National Agency for Science and Engineering Infrastructure (NASENI), that are critical to the nation’s education, technology, and engineering sectors.

He said :”This clause is objectionable as it grants this bill a constitutional status similar to military rule, which cannot withstand the scrutiny of constitutional validity. The supremacy provision should be deleted.

“These provisions are substantially in breach of the Constitution of the Federal Republic of Nigeria, 1999, as the National Assembly lacks the competence to legislate on matters exclusively affecting state and local governments.

“Reducing funding to these strategic agencies will affect national interests in education, engineering, and information technology in adverse ways. TETFUND, NITDA and NASENI should continue to be funded to support the nation’s aspirations for technological advancement, prosperity, and sustainable development.”

Jalo also also expressed concerns over the planned increase in Value-Added Tax (VAT) from 7.5% to 15% by 2030, warning that such a move would worsen the hardship faced by Nigerians amid the rising cost of living. The government cautioned that higher VAT rates would further strain households and deepen economic difficulties.

As an alternative, the Kano State Government advocated for improved tax collection mechanisms rather than raising VAT.

“There is significant potential to enhance tax coverage and collection efficiency, as weak compliance remains a major challenge,” he noted.

While supporting the need for fiscal reforms, the government emphasized key concerns regarding the Federal Government’s ongoing tax restructuring. It also underscored the urgency of expanding Nigeria’s revenue base, stating that current public earnings—around 10% of GDP—are inadequate to meet the country’s growing development needs.

“The fiscal space needs to be enlarged,” the government noted. “Public revenues at approximately 10% of GDP are currently too small relative to the daunting challenges of development.

“A more auspicious fiscal space will provide tremendous opportunities for the governors to deliver on their promises, including achieving the Sustainable Development Goals (SDGs), reducing poverty, and rebuilding infrastructure for growth, wealth, and job creation.”

The Kano government welcomed the Federal Government’s efforts to reform the tax system, which they described as “long overdue,” and acknowledged that the current tax regime is overly complex and riddled with inefficiencies. “Despite past reforms, tax administration remains weak and plagued by inefficiency, poor governance, and corruption. Tax avoidance and evasion are prevalent and must be addressed.”

The state further praised the proposed harmonization of Nigeria’s multiple tax laws, stating, “Harmonisation will enhance clarity, compliance, and administrative efficiency. It will also ensure legislative cohesion and policy coherence.”

However, the government expressed strong reservations about the manner in which the reforms were being rushed through the National Assembly without sufficient stakeholder consultation. “The bills were apparently introduced with the utmost haste and without exhaustive stakeholder engagement,” the government stated.

“For any reform to be successful, social dialogue and effective communication are critical. The federal government should learn to consult more, to harvest ideas and diverse perspectives from its citizens.”

Kano also criticised the federal government’s failure to adequately communicate the potential benefits and costs of the reforms, and the vilification of Northern governors who opposed certain provisions of the bills.

“Northern State Governors who voiced their opposition to certain provisions of the bills were vilified and accused of ‘backward thinking’ and ‘parasitism.’ Citizens’ opposition to reforms must be addressed with civility, tact and diplomacy.”

The Comptroller General of the Nigeria Customs Service, Adewale Adeniyi in his submission on the bill, said its purpose was to make Nigeria more business-friendly and competitive but raised concerns about potential jurisdictional conflicts.

The Customs Boss argued that while tax is a vital revenue-generating tool, customs duties go beyond fiscal policy to promote industrialization, prevent environmental pollution, and uphold public health.

He said :”Our concerns are laid out in a 17-page document, but key areas of conflict include Section 23, 29, and 41A of the Joint Revenue Bill,” said the representative. They pointed out that Section 162 of the bill essentially “legislates the Nigerian Customs Service out of existence.

“The UK experience is instructive,” the representative continued, referencing the 2005 merger of customs and tax functions in the UK, which was later reversed due to operational inefficiencies. “In 2012, the UK separated border control functions, acknowledging the distinct nature of customs operations.”

He cited examples from African countries like Uganda and Ghana, where customs and tax authority integration initially resulted in higher tax-to-GDP ratios but later caused inefficiencies and operational complexities.

“With success stories like Morocco’s customs modernization, which increased revenue by 37% and reduced clearance times by 65%, Nigeria’s Customs Service argued for preserving its autonomy. In fact, the NCS noted that since the enactment of the NCS Act in 2023, Nigerian customs revenue had surged by 92%, and trade facilitation had markedly improved.

“We should encourage collaboration between customs and tax authorities, not abolish customs or repeal an existing law”, Adeniyi added.

The Secretary General, of the Trade Union Congress, Comrade Nuhu Toro speaking rejected the gradual increase of Value Added Tax.

He said : “The gradual increment of VAT from the current 7.5% to 15%. Mr. Chairman and respected members, the TUC unequivocally rejects this proposition.

“Our reason is simple, allowing the VAT rate to remain at 7.5% is in the best interest of the nation. Increasing it would place an additional burden on Nigerians, many of whom are already struggling with their economic challenges and realities.

“At a time when inflation is on the rise, and unemployment is becoming an ever-growing concern, higher taxes will only further strain households and businesses alike. We must be mindful, Mr. Chairman, that such measures could slow down the economy.

Speaking for the Nigeria Liquified Natural Gas (NLNG), Manager Tax and Financial Systems, Clement Okoro Efeyita, said the organisation fully support the bill, and it will be of great benefit for the committee to consider making exports from Nigeria to be zero-rated on VAT.

According to Efeyita, “That way, exporters from Nigeria will be competitive globally. Another issue is we are of the view that agreements, contracts, that are already subject to the value-added tax rules should not be subject to value-added tax.

“In a way, it creates a form of double taxation if this area is not looked into. Mr. Chairman, we also would like to advocate with regards to the currently subsisting executive orders.

“Our view on it is simple. Most of the executive orders are tied to laws that will be repealed by the time the current bill is passed into law. Our view, which we seek for this committee to take into account, is to ensure that the provisions in those executive orders are fully reflected in the Nigerian tax field.

“That way, it will take away all forms of undignity. And it will also not create a situation where investors’ confidence in the country is in any way dampened”.

Still on the Nigerian tax bill Efeyita added: “It is with regards to the far out claim of capital arms. And our advocacy is very simple. Paragraph 21, subparagraph 1 of the first schedule of the Nigerian tax bill.

Our advocacy point is very simple and straightforward. We would like the bill, as currently drafted, to give full powers to taxpayers to be able to determine how they claim capital arms. Doing so will not in any way shortchange the government.

“But rather it will create a situation where the government is able to receive, in good time, taxes that are due. So our advocacy point is one of this.

“We would also like to draw your attention to the fact that by the time the Nigerian tax bill is passed into law, the Company Income Tax Act, among several other acts, will immediately be repealed.

“Mr. Chairman, I would like to draw your attention to section 23, subsection 1 of the Company Income Tax Act. And to mention that this particular provision has not been reflected in the Nigerian tax bill. And this provision, essentially, is one that will truly benefit the Nigerian state.

“It is a provision that grants a tax waiver to companies that bring in income they’ve earned abroad. Income types such as royalty, interest, and dividend. At this critical time of our economy, when we need foreign exchange inflow, should not be the time for such a critical provision that encourages taxpayers to bring in foreign currency they’ve earned abroad to be taken out of the proposed bill.

“But not to forget the fact that going to the Nigerian Tax Administration Bill at this point in time, there is also the new provision that will be found in section 12 and section 49 of the Nigerian Tax Administration Bill. There is a new provision that seeks to subject companies that produce LNG to a tax regime similar to what is obtainable upstream.

“Our point of advocacy is simple. A situation where the majority of companies that are subject to tax under the current company income tax regime are not equally being made to pay tax instrumentally over a 12-month period creates a kind of, permit my language, discrimination. It does not bring about equity and fairness.

“We are clearly advocating that all companies that are subject to the current company income tax act at 30% as is being reflected in the Nigerian Tax Bill correctly, should be made to pay taxes in similar manner. Mr. Chairman, committee members, these are the high points of restricting the macroeconomic standards of our nation. These laws, with their challenge, improve on the objectives as set out in section 16 of the 1999 Constitution as amended”, NLNG stated.

Related Topics:chairman Kano Military Nigeria Nigerian

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Just in: Tinubu’s son Seyi, Tops Controversial List As Lagos Guber Race Ignites Political Wahala

Published

2 hours ago

May 14, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The race to succeed Governor Babajide Sanwo-Olu in 2027 is gradually gaining momentum, with political stakeholders and groups across Lagos State already rooting for their preferred candidates.

Among those generating buzz is Femi Gbajabiamila, Chief of Staff to President Bola Ahmed Tinubu and former Speaker of the House of Representatives.

A growing number of party faithful and influential figures are backing him, with popular Nollywood actor and lawmaker, Desmond Elliot, reportedly leading a ‘silent’ push for Gbajabiamila to emerge as the APC flagbearer in the next gubernatorial election.

Supporters are said to be banking on his close ties to the President and long-standing political experience, which they believe make him a strong contender.

“Gbajabiamila is not just a seasoned legislator. Now as Chief of Staff to the President, he has added executive experience.

“That’s the kind of leadership Lagos needs,” said Famous Oloyede, an APC chieftain from Surulere.

However, some party members believe that by 2027, Gbajabiamila, who will be 64, may be too old to govern a complex and fast-moving state like Lagos.

“He should stay back in Abuja and continue supporting the President. Lagos needs someone younger; and besides, it’s time another administrative district takes the seat,” a senior party source revealed.

Lagos State is organised into five administrative districts, collectively called IBILE, namely Ikorodu, Badagry, Ikeja, Lagos Island, and Epe.

Notably, the last four governors of the state, Bola Tinubu, Babatunde Fashola, Akinwunmi Ambode and Babajide Sanwo-Olu, have all hailed from either Lagos Island or Epe.

Even Alhaji Lateef Jakande, the state’s first civilian governor, identified as a native of Lagos Island.

The clamour for 2027 is not one-sided. Stakeholders from Epe, a region that once produced former governor Akinwunmi Ambode, are also pressing for political rebalancing.

Following Ambode’s fallout with the APC leadership, many indigenes believe Epe has been marginalised in the state’s power structure.

As a result, attention has shifted to the current Minister of State for Health and Social Welfare, Dr Maruf Tunji Alausa, who hails from Epe. Many locals view him as a competent and loyal figure capable of restoring Epe’s influence in Lagos politics.

“Epe has been marginalised for years,” said Olugbede Adekalu, a strong APC member.

“Ambode was not allowed to complete his second term, unlike others before him. It’s time to correct that injustice,” he said.

Speaker of the Lagos State House of Assembly, Rt Hon Mudashiru Obasa, is also being quietly touted by political and religious circles.

A notable Islamic cleric recently expressed support for Obasa’s candidacy, citing his legislative experience and grassroots popularity.

While Obasa has yet to make a formal declaration, he recently made a subtle remark that has further fueled speculations.

Speaking during a public engagement, the Speaker said, “Also, becoming governor is secondary; it is something that I have not given serious consideration. Nevertheless, that does not mean I am too young or lack experience to run; whereas, those who have been before me are not better off.”

Observers believe Obasa’s statement was a calculated message to signal openness to the race without making an outright announcement.

Also making the rounds is the name of Seyi Tinubu, son of President Bola Tinubu.

While he has not publicly declared interest, speculations are rife, with several diaspora groups reportedly rooting for him.

This development has placed the party and the Governance Advisory Council (GAC), the highest decision-making body of the APC in Lagos, in a dilemma, especially as President Tinubu has remained silent despite the growing clamour for his son’s potential candidacy.

In addition to the growing field of aspirants, fresh agitations are emerging from Ikorodu, one of Lagos State’s largest administrative districts under the IBILE structure.

Despite the fact that the current Deputy Governor, Obafemi Hamzat, hails from Iga Egbe, a traditional compound within the Ikorodu Division, many stakeholders are insisting the district is yet to be adequately represented at the top.

According to party insiders, there is mounting support for either Rep Babajimi Benson or Hamzat himself to emerge as the next governor.

However, should neither of them clinch the ticket, strong lobbying is ongoing for Hon Abike Dabiri-Erewa, former House of Representatives member and current Chairman of the Nigerians in Diaspora Commission, to be considered for the position of deputy governor, especially if the governorship goes to another district.

“Ikorodu deserves a real shot at the governorship. It’s one of the most loyal and populated zones in Lagos, yet we’ve never truly had our turn,” said a party source.

While some argued that Ikorodu had a brief taste of power through Abiodun Ogunleye, who served as deputy governor during Tinubu’s administration, a party member countered that Ogunleye’s tenure, just 14 days between May 15 and May 29, 2007, was too short to be considered meaningful representation.

A party insider from Ogolonto, a community in Ikorodu, stated:

“Ogunleye’s 14-day tenure was purely symbolic. You can’t call that real representation. That’s not power-sharing, it was a token gesture. Ikorodu deserves more than a fleeting appointment.

“Serving just 14 days as deputy governor hardly qualifies as meaningful leadership. Ikorodu deserves more than a fleeting appointment.”

Reflecting growing calls for more equitable power rotation across Lagos, some party members have maintained that adjoining districts long overlooked deserve a turn in the executive seat.

“Power should shift to Badagry now. They’ve never produced either a governor since 1999,” another party member told DAILY POST.

Another name quietly gaining traction within APC circles is that of Senator Mukhail Adetokunbo (Tokunbo) Abiru, who currently represents Lagos East Senatorial District in the National Assembly.

This district encompasses the local government areas of Epe, Ibeju-Lekki, Ikorodu, Kosofe and Somolu

With many zones clamouring for recognition and no clear frontrunner emerging yet, one thing is clear: the contest for the soul of Lagos in 2027 will be one of the most keenly watched and hotly contested in the state’s recent political history.

News

Just in: FG receives Wigwe’s helicopter crash report from NTSB

Published

2 hours ago

May 14, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Director-General of the Nigeria Safety and Investigation Bureau (NSIB), Alex Badeh, has confirmed that the United States National Transportation Safety Board (NTSB) shared the final report on the helicopter crash that claimed the lives of former Group Chief Executive Officer of Access Holdings Plc, Herbert Wigwe, his wife Doreen, their son Chizi, former NGX Group Chairman Abimbola Ogunbanjo, and two pilots.

Recall that the tragic crash occurred on February 9, 2024, when an Airbus EC130B4 helicopter operated by Orbic Air, LLC crashed near Halloran Springs, California.

The NTSB’s final report outlined the primary causes of the crash, identifying “pilot disorientation” and a violation of flight protocols as key contributors to the tragedy.

Specifically, the report pointed to the decision to proceed under visual flight rules in instrument meteorological conditions as a significant factor in the crash.

Badeh stated, “The NTSB shared the report directly with the NSIB as we are interested parties and in accordance with ICAO Annex 13 protocols.

“We do not necessarily comment on accident reports as they are not meant to apportion blame but to improve safety and prevent reoccurrence.”

When asked if the NSIB was satisfied with the findings in the NTSB report, Badeh emphasised that the NSIB does not engage in commenting on accident reports.

He clarified that the primary purpose of such reports is not to assign blame but to ensure that measures are put in place to enhance safety in the aviation sector.

“The report’s essence is to improve safety across the sector. The NSIB is not the head of aviation in Nigeria,” Badeh reiterated.

Badeh further confirmed that the family of the deceased had been in communication with the NTSB throughout the investigation process, from the time of the crash until the final report was released.

“The family of the deceased has been in contact with the NTSB at the time of the accident till the close of the investigation,” Badeh stated.

News

Insecurity!Six Terrorists Silenced, Camps Destroyed as Troops Sweep Sokoto, Zamfara Forests

Published

2 hours ago

May 14, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

In a daring continuation of Operation of Troops FANSAN YANMA Phase V, the troops have penetrated deep into terrorist strongholds across parts of Sokoto and Zamfara States, dismantling layers of insurgent infrastructure and recovering weapons.

The multi-day operation, which began with swift assaults on identified camps, saw troops advancing through highly hostile territory, including Gidan Madi, Tsamiya Village, Tudun Ruwa, Alela, and several forested areas notorious for harbouring terrorist cells.

Security sources told Akelicious that the troops encountered multiple ambushes laid by fighters of the Lakurawa terror faction, a splinter group known for its entrenched operations in the North West region.

Despite the resistance, the troops pressed forward, clearing key hideouts beyond Alela village, including the Areo general area, Damoria, Tumuna Village, and the densely wooded Goboro Forest.

“These locations have been long used by terrorists as logistics hubs and operational bases for launching attacks on civilian communities and security convoys,” a senior military source familiar with the operation said.

The military offensive did not come without cost. One soldier was wounded in action (WIA) during the series of engagements, while a vigilante supporting the operation paid the ultimate price. The wounded soldier was promptly evacuated to the 8 Division Military Hospital (8 DMSH) in Sokoto for treatment.

Troops also neutralised six terrorists affiliated with the Lakeurawa faction during the operation. Several others escaped with varying degrees of gunshot wounds, fleeing into the surrounding forest areas

Among the arms recovered from the cleared camps were various weapons, magazines, two handheld radios, and motorcycles which were some of the items believed to have been used for communications and mobility within the camps