NEWS
Tax Reforms Not Aimed At Impoverishing Any Part Of Nigeria, Scrapping Agencies – Presidency
The transformative tax bill before the National Assembly is not aimed at impoverishing any part of Nigeria, neither will it be scrapping certain government agencies.
The Presidency, made the clarification in a statehouse statement issue on his verified social media handles Monday night, Special Adviser to the President (Information & Strategy), Bayo Onanuga.
Onanuga wrote, “Since the public debate around the transformative tax bills before the National Assembly began in the last few weeks, various political actors and commentators have tried to obfuscate the facts, deliberately misinforming and misleading the public.
“Unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills. While some commentators have attempted to incite the people against lawmakers, others have polarized one section of the country against another.
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“The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country, as recklessly canvassed, poorer. The bills will not destroy the economy of any section of the country. Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.
“Contrary to the lies being peddled, the bills do not suggest that NASENI, TETFUND, and NITDA will cease to exist in 2029 after the passage of the bills.
“Government agencies, such as NASENI, TETFUND, and NITDA, are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes.
“One reason President Bola Tinubu embarked on the Tax and Fiscal Policy Reforms is the need to streamline tax administration in Nigeria and make the operating environment conducive for businesses.
“For decades, businesses, investors, and private sector players in Nigeria have complained of being overburdened by a myriad of taxes and levies, including those earmarked to fund various government agencies and initiatives.
“The multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or continuing their operations. Some companies have had to make the rational decision to relocate to other countries. We can not continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people.
“The proposal, as contained in section 59(3) of the Nigeria Tax Bill, only seeks to consolidate some of the earmarked taxes imposed on companies and replace them with a single tax to be shared with the key agencies as beneficiaries in a phased manner until 2030.
“The time frame offers ample opportunity for the affected agencies to explore other funding sources in addition to budgetary allocations in line with the constitution and international best practices.
“It is a misrepresentation of facts to conclude that changing an agency’s funding source amounts to scrapping it. None of the countries leading globally in education, science, engineering, or information technology have similar earmarked taxes.
“The government imposes major taxes, be it income tax, consumption tax, or other taxes, to channel resources to its areas of priority at the time. Imposing a separate tax to fund an agency is an aberration that has yet to yield results despite the huge burden on businesses. The tax bill seeks to address this problem.
“Relevant stakeholders and public analysts owe it a duty to properly educate themselves about the bills’ contents and avoid misleading the public for any reason. We may be entitled to our opinions, but such views must be informed and based on facts, not emotions targeted at inflaming passions.
“In a period like this, when our people across the country look up to leaders for guidance and direction on matters of public importance, such as the Tax Reform Bills, leaders should be more measured in their public utterances to avoid heating the polity and polarising the country unduly.
“President Tinubu welcomes the public interest these bills have generated. He encourages leaders across the country, including Governors, Traditional rulers, Civil Society Activists, Students, trade associations, professional associations, and the general public, to take advantage of the Public Hearings that the National Assembly will organise to present their views on how best to reform our taxes and fiscal regime.
“What is never in doubt is the imperative of changing the existing tax laws and administration that have become obsolete and unhelpful in achieving the growth and development we desire for our country.”
NEWS
EFCC Reacts To Sowore, Co-Travellers’ Tantrums On Landmark Recovery
The Economic and Financial Crimes Commission (EFCC), has taken exception to unsavoury assertions by certain prejudiced individuals over the landmark recovery of 753 duplexes.
This was contained in a statement on Tuesday by its Head, Media & Publicity, Dele Oyewale.
While welcoming the thoughts of well meaning Nigerians on the matter, the anti graft agency made it clear that “the denigration of such efforts by Omowole Sowore and his think-same and act-same, is unacceptable and grossly un-charitable.”
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Oyewale stated, “The Economic and Financial Crimes Commission, EFCC, is following with keen interest, the flurry of reactions to its record-breaking recovery of 753 duplexes and other apartments on Plot 109 Cadastral Zone C09, Lokogoma District, Abuja.
“The commentaries of reform-minded Nigerians to the Commission’s painstaking efforts in securing the final forfeiture of the Estate to the Federal Government of Nigeria, are appreciated. However, the denigration of such efforts by Omowole Sowore and his think-same and act-same, is unacceptable and grossly un-charitable.
“The allegation of a cover up of the identity of the promoters of the Estate stands logic on the head in the sense that the proceedings for the forfeiture of the Estate were in line with Section 17 of the Advance Fee Fraud Act which is a civil proceeding that allows for action-in-rem rather than action-in-personam. The latter allows legal actions against a property and not an individual, especially in a situation of an unclaimed property. This Act allows you to take up a forfeiture proceeding against a chattel that is not a juristic person. This is exactly what the Commission did in respect of the Estate.
“The proceedings that yielded the final forfeiture of the Estate were products of actionable intelligence available to the Commission. The company flagged by our investigations denied ownership of the Estate following publications made in leading national newspapers. On the basis of this, the Commission approached the court for an order of final forfeiture which Justice Jude Onwuegbuzie of the Federal Capital Territory, FCT, High Court granted on Monday, December 2, 2024.
“The expectation of the EFCC from citizen Sowore is a patriotic appreciation of its efforts in securing such a landmark forfeiture. It is shocking that the activist is not concerned about the systemic lassitude and unhelpful permissiveness that allowed such a monstrous corrupt act in the first instance. Nigerians should gear up more against lapses and loopholes in our system that continue to make the nation vulnerable to corrupt tendencies. The EFCC will continue to safeguard the financial space of the nation against manipulators and organised brigandage.
“It is important to note that the substantive criminal investigation on the matter still continues. It will be unprofessional of the EFCC to go to town by mentioning names of individuals whose identities were not directly linked to any title document of the properties. The EFCC is unwavering in its no-sacred-cow approach to every matter and together we will make Nigeria greater.”
NEWS
Minimum Wage: Kaduna NLC Suspends Strike For Seven Days
The Kaduna State chapter of the Nigerian Labour Congress (NLC) has suspended its strike over the state government’s failure to fully implement the N72,000 minimum wage for all workers.
The strike, which began on Monday, was halted for seven days following late-night negotiations with government officials.
Speaking to reporters in Kaduna on Tuesday, NLC State Chairman Ayuba Suleiman explained the union’s decision to suspend the industrial action.
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He said, “We met with the government representatives and agreed to suspend the strike for seven days to give them space to revisit their payment template. We rejected the payment because it exempted some workers, paid others less, and paid some more. We want a uniform payment template that reflects the new minimum wage.”
Suleiman expressed appreciation to workers for their support during the strike and urged them to resume work immediately.
“We thank you for your compliance, and we assure you that your interests are our priority. You can now return to work tomorrow morning, and we will continue to fight for your rights,” he added.
The NLC chairman also noted that the suspension followed consultations with the National Monitoring Committee, which gave the union the green light to pause the action temporarily.
“We contacted the NLC’s National Monitoring Committee, and they gave us the go-ahead to suspend the strike. We are confident that the state government will revisit its payment template and come up with a uniform payment structure that reflects the new minimum wage,” Suleiman stated.
The strike was triggered by what the union described as inconsistencies in the state government’s salary adjustments, despite an official minimum wage of N72,000.
The NLC insisted that the payment structure must comply with consequential adjustments to ensure equity among all workers.
However, the Kaduna State government has defended its position, clarifying that the dispute is not about the minimum wage but about salary adjustments.
“The least-paid worker in Kaduna state received N72,000 in November,” said Ibraheem Musa, Chief Press Secretary to Governor Uba Sani.
“The issue is not about the minimum wage, but about the consequential adjustments. We urge patience, as the state’s limited revenue, which comprises an average monthly allocation of N8 billion from the Federal Account Allocation Committee (FAAC) and N4 billion in internally generated revenue, makes it difficult to implement the adjustments immediately.”
NEWS
Tax Bills Debate Heats Up: Tinubu Orders Review To Address Concerns
President Bola Tinubu has directed the Federal Ministry of Justice and the National Assembly to address concerns raised over the proposed Tax Reform Bills.
The bills, which aim to reshape Nigeria’s fiscal policies, have faced criticism from various quarters, particularly northern governors who claim the reforms could harm their region.
The reforms have been described by some critics as potentially impoverishing Nigerians and targeting the northern region.
However, the presidency has dismissed these allegations as unfounded.
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Minister of Information and National Orientation, Mohammed Idris, assured Nigerians that the government is committed to transparency and fairness.
“The government has nothing sinister to warrant the suggestion that the process is being rushed. In line with the established legislative procedure, the Federal Government welcomes meaningful inputs that can address whatever grey areas there may be in the bills,” Idris said in a statement on Tuesday.
He added that President Tinubu has mandated the Justice Ministry and relevant officials to work closely with the National Assembly to resolve any concerns before the bills are passed into law.
Idris lauded the public engagement on the issue, describing the debates as “commendable” and in line with democratic principles.
“It is very inspiring to see Nigerians from all walks of life coming out to express their views and opinions on these matters of critical national importance.
“In the spirit of democratic engagement, there should be no room for name-calling or the injection of unnecessary ethnic and regional slurs into this important national conversation.”
Addressing allegations that the bills are anti-north, Idris dismissed the claims as “fake news” and “misinformation.” He emphasized that the reforms are designed to benefit all Nigerians and would not marginalize any region.
“These fiscal reforms will not impoverish any state or region of the country, neither will they lead to the scrapping or weakening of any federal agencies,” he said.
The Tax Reform Bills were the focus of a recent town hall event hosted by Channels Television, where experts weighed in on the controversy.
Among the panelists were Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee; Yakubu Dogara, a former Speaker of the House of Representatives; and Governor Sule Abdullahi of Nasarawa State.
Oyedele defended the bills, highlighting their potential to transform the country’s fiscal system.
“These bills have more than 200 transformative provisions to fix our country and set us on the right path to prosperity,” he said.
“We should not allow one or two provisions that we can easily discuss and agree on to become the pain or the bottleneck.”
Dogara urged critics, particularly from the northern region, to avoid politicizing the issue. “I want to talk to my brothers in the North. I don’t think this is the time for us to begin to condemn the president and to begin to say that on account of these bills, he is anti-north,” he said.
Despite calls for the bills to be withdrawn, the Senate has already passed them through a second reading.
Stakeholders hope that Tinubu’s directive for a review will ensure that all concerns are addressed and the final legislation promotes equitable economic reforms.