Politics
New Tax Reforms Will Benefit All Regions Equally – Tinubu
The Presidency has clarified that the proposed tax reforms, including changes to Nigeria’s Value-Added Tax (VAT) distribution model, are intended to benefit all regions equally.
This response follows opposition from the Northern Governors’ Forum, a coalition of governors from Nigeria’s 19 northern states, who expressed concern over aspects of the reform at a meeting held on October 28.
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Bayo Onanuga, Special Adviser to the President on Information and Strategy, disclosed this in a statement released on Thursday.
Led by Governor Muhammed Inuwa Yahaya of Gombe State, the governors, supported by traditional rulers like the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III, cautioned that the proposed VAT model might disadvantage their states.
The statement reads, “While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration.
“President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.
“These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape.
“First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.
“Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.
“Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.
“Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.
“The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.
“It is instructive to note that these proposed laws will not increase the number of taxes currently in operation. Instead, they are designed to optimise and simplify existing tax frameworks.
“The tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians.
“The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.
“Importantly, these laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonise revenue collection and administration across the federation to ensure efficiency and cooperation.
“At the moment, tax administration lacks coordination among federal, state, and local tax authorities, often resulting in overlapping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist.
“The proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.
“Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.
“The proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.
“On the proposed derivation-based VAT distribution model, which the Northern Governors oppose, it must be stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system.
“The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed.
“The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.
“The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services.
“This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states.
“These reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country.
“There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need.” It added
Politics
Adeleke Congratulates Ghanaian President-Elect, Mahama
Osun State Governor, Senator Ademola Adeleke has congratulated the newly elected president of Ghana, John Mahama.
This was gleaned in a government house statement in Osogbo on Monday in which Gov Adeleke described President Mahama as “a true democrat and a genuine friend of Nigeria”
Gov Adeleke stated, “we have been sharing deep thoughts about the true essence of democracy and the imperative of respect for people’s will as the bedrock of virile democratic state.
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“All through his days in the opposition, he adopted the best of democratic model with unbending faith in the capacity of voters to decide and the necessity of the system to accept the voters’ will as expressed without any equivocation. His faith in the electorate amidst hard work of electioneering campaigns paid off with a resounding victory at the polls.
“I further commend the ruling party for conceding defeat without attempting any electoral hijack. This was a demonstration of electoral maturity worthy of emulation by actors within the Nigerian space.
“I rejoice with my dear brother as our dreams come true by the grace of God and the people. As he prepares to return to the State House, I have no doubt that he will take Ghana to greater heights.
“I call for a closer, more robust relationship between Nigeria and Ghana. Both countries must deepen cooperation under mutual respect and opportunities. Our brotherly relationship should extend to the sub-national level for the benefits of citizens and residents of our dear nations.”
Politics
SERAP Urges Akpabio, Abbas To Assess Human Rights Impacts Of Tax Reform Bills
The Socio-Economic Rights and Accountability Project (SERAP) has urged Nigeria’s Senate President, Godswill Akpabio, and Speaker of the House of Representatives, Tajudeen Abbas “to urgently assess the human rights impacts of Nigeria’s reform bills currently being discussed by the National Assembly including on Nigerians living in poverty.”
According to the SERAP said, “any discussion and consideration of the tax reform bills must ensure full compliance with provisions of the Nigerian Constitution 1999 [as amended] and the country’s international human rights obligations and commitments.”
The call was contained in a letter dated December 7, 2024, under the signature of its deputy director Kolawole Oluwadare, in which the SERAP stated, inter alia, “The assessments should be transparent, include public participation, and shape the provisions and measures that are ultimately passed. The outcome of any such assessments should be widely published.”
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The SERAP urged Akpabio, and Abbas “to pass a resolution directing Mr Lateef Fagbemi, SAN, the Attorney General of the Federation and Minister of Justice to hold Nigeria’s state governors to account on their spending of trillions of naira of revenue derived from taxes including VATs collected by their states since 2015 and to ensure the recovery of any proceeds of corruption.”
The letter, read in part: “SERAP urges you to ensure the inclusion in the tax reform bills of transparency and accountability mechanisms to ensure that any revenue derived from taxes covered under the bills are not mismanaged, diverted or pocketed by politicians, their family members and close associates.
“SERAP notes that Nigerian authorities have the discretion to develop laws on taxation most appropriate to their circumstances.
“However, the Nigerian Constitution 1999 [as amended] and human rights and anticorruption treaties to which the country is a state party impose limits on the discretion of the authorities in the development of any such laws.
“Our preliminary review of the provisions of the tax reform bills shows that the bills contain some provisions that are antithetical to human rights and the rule of law.
“For example, section 28(2)(c) of the Tax Administration bill among others, requires financial institutions including banks to provide to tax authorities ‘the names, addresses, or any other information of new or existing customers.’
“Under section 28(4), financial institutions must make ‘additional disclosure” about their customers ‘if it is required by a notice signed by the Chief Executive Officer of the relevant tax authority.’
“These provisions, especially the phrases ‘any other information’ and ‘additional disclosure’, if implemented, could be used unjustifiably or arbitrarily to restrict the right to privacy of customers.
“The risks of violations of human rights are illustrated by the absence in the bills of sufficient safeguards against abuse of access to personal data of customers.
“The provisions also give little or no consideration to data protection, thereby increasing the risks of misuse by public authorities of a customer’s personal details including their home address.
“Another troubling provision of the tax reform bills is section 57 of the Tax Administration bill which grants broad, extensive and intrusive powers to tax authorities which may be misused to undermine Nigerians’ human rights.
“In particular, section 57(1) provides that ‘an authorised officer of the relevant tax authority shall have free access to all land, buildings, places, books and documents, in the custody or under the control of a person, public officer, or institution, for the purpose of inspecting the books or documents.’
“Such official will also have free access to ‘any property, process or matter which the officer considers necessary or relevant for the purpose of collecting any tax.’
“Under subsection 2, ‘the relevant tax authority shall take immediate possession of [any] removable media and the related removable equipment or computer used to access the stored documents on the media in order to prevent the accidental or intentional destruction, removal or alteration of records and documents.’
“Section 57(5) seems to pre-empt the nature of any judicial authorisation required for tax official ‘enter any private dwelling’ by prescribing that such authorisation will ‘be valid for a period of three months from the date of its issue or such lesser period as the judicial officer considers appropriate.’
“Under subsection 6, the tax official is required to ‘produce the written authorisation and evidence of identity “on first entering the private dwelling’. The official will only produce such evidence subsequently if they consider it reasonable to do so.
“These provisions are broadly worded and could be misused to violate Nigerians’ human rights.
“The provisions also do not contain any special safeguards which means that the broad, extensive and intrusive powers granted to tax authorities could be arbitrarily exercised without any accountability.
“Section 57 also does not contain any explicit provisions that would allow the court to examine the lawfulness or necessity of any authorisation before or after any entering.
“The provisions of section 81 of the Tax Administration bill essentially oust the jurisdiction of the court in pending tax matters by stating that ‘the pendency of a legal proceeding shall not affect the performance of the duties or obligations of any taxable person under this Act or any other tax law.’
“The provisions could be misused to infringe the rights to equality and the right of access to courts, denying the right of an effective remedy to any aggrieved party.
“Several other provisions of the tax bills lack mechanisms for effective oversight and accountability, as required by the rule of law in a democratic society, thereby increasing the risks of abuse of power or arbitrariness. The provisions could be misused to violate Nigerians’ right to property and fair hearing.
“The tax bills also do not seem to contain provisions for a fair balance between the authorities’ powers to collect taxes and the requirements of the protection of the individual’s fundamental rights.
“The absence of provisions in the tax bills on meaningful judicial oversight and review and accountability procedures would also undermine the rights of Nigerians including to privacy and disproportionately affect disadvantaged and marginalized individuals and groups.
“Under human rights law, states including Nigeria are required to make the promotion and protection of human rights central to their tax systems. Nigeria needs a rights-based tax system that works for the people and not the politicians, their family members and close associates.
“The country also needs transparent, democratic and rights-aligned tax reforms to unlock the maximum available resources for the full realisation of human rights.
“Furthermore, there are credible reports that several state governors continue to divert or mismanage the revenue derived from taxes, impeding the funding of public goods and services that are crucial for the progressive realisation of human rights.
“In many states, millions of Nigerians continue to be denied access to essential public services such as water and basic sanitation while millions of children of school age roam the streets.
“SERAP is concerned that growing reports of corruption in the use of tax revenue and other public resources continue to disproportionately affect poor Nigerians and other most vulnerable segments of the population.
“SERAP is concerned that the opposition by some state governors against the tax reform bills may be politically motivated and reduce the tax payable to the national treasury. State governors should constructively engage in good faith in the processes to adopt a national tax system for the country.
“We would be grateful if the recommended measures are taken in the consideration of the tax reform bills.
“If the offending provisions of the tax reform bills including those outlined above are not addressed and brought in conformity with human rights standards and safeguards, SERAP shall take all appropriate legal actions to compel you and other members of the National Assembly to comply with our request in the public interest.
“SERAP notes that the tax reform bills, if properly aligned with human rights standards, would enhance the ability of the Federal Government, states and local governments to fulfil their human rights obligations and adequately fund public services essential for human rights.
“However, without transparency and accountability, revenue derived from taxes may not be spent to combat poverty and fund development as well as provide essential public goods and services for Nigerians.
“The National Assembly has the constitutional responsibility to conduct and publish human rights impact assessments of the tax reform bills to ensure that proposed reforms best protect, advance and fulfill people’s human rights.
“SERAP also urges you to revise and repeal several of the provisions of the bills, particularly the Tax Administration bill.
“SERAP urges you to include provisions in the tax reform bills that will ensure that Nigerians have access to all relevant data and information on fiscal policy and government revenues, including from the corporate sector.
“According to our information, members of the National Assembly are currently discussing Nigeria’s tax bills which primarily aim to ‘provide uniform procedures for a consistent and efficient administration of tax laws in order to- (a) facilitate tax compliance by taxpayers; and (b) optimise tax revenue.’
Politics
Like America, Like Ghana: Opposition Defeats Ruling Party In Presidential Election
In a manner reflective of the November 5 election in the United States of America (USA), Ghana’s former president, John Mahama has bounced back to power, coasting to victory in the December 7, 2024 election, thereby ousting the ruling party, represented by the Vice President.
Biztellers reports that with the votes still being counted, Ghana’s Vice President and presidential candidate of the ruling New Patriotic Party (NPP) Mahamudu Bawumia has conceded defeat to Mahama.
He made the all-important call to the former president on Sunday.
President Mahama flew the flag of the National Democratic Congress (NDC) at the Saturday election.
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The NPP being floored at the polls follows its failure to overcome widespread frustration over the struggling economy.
The defeat in Saturday’s election marked the end of two terms in power for the NPP under President Nana Akufo-Addo, characterised by Ghana’s worst economic crisis in years, high inflation, and debt default.
Bawumia address the situation thus at a press conference, “The people of Ghana have spoken and they have voted for change at this time. We respect this with all humility.”
He confirmed that he had called and congratulated his opponent, the candidate of the NDC and former president, Mahama on the outcome of the election.
With blaring horns and cheering, Mahama supporters had already begun gathering to celebrate outside the party’s campaign headquarters in Accra.
On his part, the president-elect, Mahama took to his verified handle on micro-blogging site, X to affirm that he had received Bawumia’s congratulatory call over his “emphatic victory.”
The Vice President acknowledged that Mahama had won the presidency “decisively,” and that Mahama’s NDC party had also won the country’s parliamentary election, according to the NPP’s internal vote tally.