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The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has acknowledged that Nigeria's justice system is deeply plagued by corruption.
The commission’s chairman, Musa Adamu Aliyu, SAN, made the remark on Thursday while speaking at the 2024 Annual Lecture/Award Ceremony, organised by the Crime Reporters Association of Nigeria, CRAN.
Aliyu opined that corruption remains one of the most persistent challenges affecting all sectors and institutions of Nigerian society.
He stressed that the trend undermines policy decision-making in the country.
According to Aliyu, the Justice System Administration faces institutional, funding, infrastructural, human resources, and socio-cultural challenges.
He added that, “The widespread corruption within the justice system, including bribery, influence peddling and attitudinal challenges are more fundamental and daunting.
“I dare say that the justice sector remains a focal point of concern, particularly regarding bribery involving stakeholders in the justice sector, and despite limited public contact, judicial officials exhibit relatively high bribery prevalence, hence the need for targeted anti-corruption measures in this sector.”
Godswill Akpabio, the Senate President, has reiterated the Senate's dedication to progressing legislative work on the contentious tax reform bills, highlighting their significance for Nigeria's development.
Presiding over the plenary on Thursday, Akpabio explained that the committee led by Senator Abba Moro, established to interface with the Attorney General of the Federation (AGF) on the contentious aspects of the bills, is part of the Senate’s internal mechanisms.
“We are elected to work for the interest of Nigerians,” Akpabio said, adding, “Once a bill passes a second reading in the Senate, it is alive. It is then up to the committee on finance to begin consultations and hold public hearings.”
Earlier, Senate Leader Opeyemi Bamidele (APC, Ekiti Central) clarified that the Senate had not suspended deliberations on the tax reform bills, countering media reports purporting that the Deputy Senate President Barau I. Jibrin’s announced indefinite suspension of action on the bills during Wednesday’s plenary.
On Wednesday, Senator Barau, who presided over the session, was reported to have said that the Senate Committee on Finance, chaired by Senator Sani Musa (APC, Niger East), will put on hold further action on the bills.
He had also announced the formation of a special committee led by Senator Moro to engage with the AGF on the concerns raised.
However, Bamidele, invoking Senate Rule 42 on Thursday, asked: “Where was it stated that we have suspended our proceedings on the tax reform bills? This Senate did not suspend and does not intend to suspend, deliberations on the tax reform bills.
“These bills are executive bills and can only be withdrawn by the President. There is no basis for their withdrawal, and the Senate Committee on Finance is actively working to meet its six-week deadline, including conducting a public hearing. The bills remain very much alive.”
Efforts to confirm whether the scheduled meeting between the Senate committee and the AGF took place were unsuccessful. Calls to Senator Moro, other committee members, and the AGF’s office went unanswered at the time of filing this report.
South-South senators back tax reform bills
In a related development, 16 senators from the South-South region have pledged their support for the proposed tax reform bills. Following a meeting on Wednesday, the caucus, in a communiqué signed by Senator Seriake Dickson (Chairman) and Senator Jarigbe A. Jarigbe (Secretary), emphasised their commitment to fostering legislative initiatives that ensure the country’s peace, prosperity, and progress.
The communiqué stated, “Recognising the importance of tax reforms in enhancing national revenue and fostering economic stability, we resolved to support the tax reform bills. This support will be based on a comprehensive study and thorough evaluation of the bills to ensure they align with the overall interest of Nigerians, particularly the well-being of the South-South region.”
The caucus also urged restraint from individuals attempting to inject regional, ethnic, or tribal sentiments into the national dialogue and expressed readiness to participate in robust consultations and interactions initiated by the Senate.
The PH Refinery ships its first export of petroleum products to Dubai.
The company is expected to load the cargo in the coming days onboard the Wonder Star MR1 ship, signalling the commencement of operations at the plant and the exportation of petroleum products.
The ship will load 15,000 metric tons of the product, which translates to about 13.6 million litres.
Although the volume coming from the NNPC into the global market is still small, the development has the potential to impact the Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future while changing the market realities for Atlantic Basin exporters into Nigeria and other regions.
The sulfur content of the export by NNPC stands at 0.26 per cent per wt and a 0.918 g/ml density at 15°C, according to Kpler, a data and analysis company.
The cargo was reportedly sold at an $8.50/t discount to the NWE 0.5 per cent benchmark on a Free on Board (FOB) basis.
Kpler reported that the development would help displace imports from traditional suppliers in Africa and Europe, as Nigeria’s falling clean product (CPP) imports are already decreasing, dragging imports into the wider West Africa region lower as well.
President Bola Ahmed Tinubu has given marching order to Nigerian Consumer Credit Corporation (CREDICORP) to ensure return of Peugeot Automobile and Dunlop tyre to the country as Nigeria joins nations with credit facility for the purchase of brand new automobiles.
Managing Director/ CEO of CREDICORP Engr. Uzoma Nwagba, confirmed Tinubu’s directive to his agency yesterday at the launch and signing of Memorandum of Understanding ( MoU) for N20 billion consumer credit fund for the purchase of locally assembled automobiles in Abuja between CREDICORP, NAMA and NADDC.
Nwagba said he had gone to brief the President on progress of the agency, with reference to N20 billion credit fund for purchase of locally assembled automobiles by Nigerians.
“The President told me: I want to see Peugeot, Dunlop and others come back to the country,” he quoted the president saying. He said CREDICORP was creating a scenario obtained in advanced countries where, people get car automobiles at a single – digit interest rate. CREDICORP for auto purchase will commence in January 2025.
Nwagba said his agency will engage automobile plants in the country working with the National Automotive Design and Development Council (NADDC), the Nigerian Automotive Manufacturers Association (NAMA) to drive down prices of vehicles at an affordable cost for Nigerians.
“We are trying to make the financing more available and more easily accessible. Meaning in terms of the rates also, to enable Nigerians have cheaper credits.
We work with financial institutions, and for this particular intervention, we are looking at going over time, targeting a single-digit rate to enable Nigerians to purchase these vehicles.
For people who have very strong credits, and who show a good credit history, the financial institutions are taking a bet and a confidence in them for those who are accessing our capital that we are providing, as well as those who are accessing our guarantees.
“We know that interest rates are quite high and is one of the discouraging factors and that is the economic reality of Nigeria; one that obviously makes it more difficult to access credit for mobility, is the high interest rates that we have now.
But given the mandate of Mr. President and his passion for enabling people to get cheaper credit to be able to access these life-enhancing goods, we are targeting lending on a single-digit interest rate. “But for now, you can see that our credit, enabling the banks and microfinance banks are the cheapest in the country.
So, it continues to go down as much as people show good credit history. And the fund that we are launching today is just a start. It’s a start to show a commitment to this industry. “It’s a start to show the commitment of the President.
And it’s a start to actually catalyse credits and allow people to access, get out of transport poverty. Transport poverty is a thing in Nigeria, where a lot of people, especially people in the cities, what you call the urban poor or urban middle class, struggle with access to good transportation,” he said.
The naira has seen steady appreciation since the Eurobond sales and the introduction of the Electronic Foreign Exchange Matching System (EFEMS) on Monday.
Data from the Central Bank of Nigeria showed that the naira on Wednesday appreciated to N1,608/$1 at the Nigerian Foreign Exchange Market (NFEM). This is from N1625/$1 on Tuesday and N1660 on Monday.
Analysts have projected that this appreciation will likely remain till early next year.
A source who wants to be anonymous said that the gains the naira has witnessed stem from the transparency in the foreign exchange market due to the EFEMS, boosting confidence in the market.
“This transparency has shown that the banks had more liquidity (dollar supply) before the launch of the platforms,” the source said.
On Monday the CBN kick-started the EFEMS, an electronic platform introduced to tackle speculation and improve transparency in Nigeria’s FX market. It automatically matches buy and sell orders, promoting fairness and efficiency in FX trading. Financial experts have expressed optimism about EFEMS’ potential to address persistent challenges affecting the naira and Nigeria’s FX reserves.
The EFEMS system allows authorised dealers, including commercial banks, to place buy and sell orders in real-time. Transactions are automatically matched based on predetermined rules, ensuring swift execution and real-time visibility for market participants and regulators.
Similarly, Gbolohan Ologunro, portfolio manager at FBNQuest said that the country has seen more dollar inflows as Foreign Portfolio Investors (FPIs) have been quite active in the foreign exchange market and that’s because the yield on one-year bills has made it more attractive for them to hold more naira assets.
At the last three primary treasury bills auctions, yields have been at record highs, peaking at 30.71 percent, before dropping to 29.75 percent yesterday.
On Wednesday the one-year NT-bills saw the largest bid this year of about N2.53 trillion.
Uduak Jacob, portfolio manager at Comercio Partner Asset Management also mentioned that FPIs have been flooding the market with dollars.
“FPIs have been flooding the market with dollars, in anticipation of an OMO auction. Some even participated in the NTB auction yesterday,” Uduak said.
Yields at recent OMO auctions are at a record high of 32 percent.
Ologunro mentioned that alongside yields which have attracted foreign investors, the newly introduced EFEMS platform has boosted confidence in the FX market.
“If the platform continues to function efficiently and the yields continue to remain at current levels till next year, FPIs will continue to have faith in the naira and will continue to hold naira assets and this will increase dollar inflows,”.
[b]“These inflows will be sustained by the sales from the Eurobond into the system by January which will likely drive reserves to $45 billion, and continue the naira’s appreciation to February,”[/b]Ologunro said
Nigeria revisited the international bond market on Monday and sold $2.2 billion worth of Eurobonds across two tranches after being oversubscribed to the tune of $9.1 billion.
The Federal Government sold $700 million worth of the 6.5-year Eurobond maturing in 2031 at a coupon rate of 9.625 percent and $1.5 billion of the 10-year tenure at 10.375 percent.
Analysts at CSL stockbrokers said in a recent report that on the positive side, the proceeds from the Eurobond issuance, expected to flow into Nigeria’s foreign exchange reserves by December 9, 2024, are projected to boost the reserves to over $42 billion by year-end.
“This increase could provide the Central Bank of Nigeria (CBN) with greater capacity to support the naira in the near to medium term, potentially leading to a modest appreciation of the domestic currency,” the report stated.
The Muslim community has been thrown into mourning following the death of a renowned Islamic cleric, Alhaji Muyideen Bello.
His passing was announced by another prominent Islamic scholar, Alfa Aribidesi of At-Tawdeeh Islamic Da’awah, on Friday morning.
Born in 1940 in Ibadan, Alhaji Bello was widely respected for his profound teachings and unwavering dedication to Islamic scholarship.
Corroborating the news of the demise, popular cleric and follower of the late Bello, who is also an Islamic singer, Alhaji Basit Olarenwaju, popularly known as Aponle Anabi, also shared the image of the 84-year-old scholar with tearful emojis on his official Facebook page on Friday.
Multiple reports from local media in Oyo State have also reported the demise of the revered cleric.
The Police Service Commission (PSC) has approved the dismissal of 18 senior police officers and the demotion of 19 others as part of its recent disciplinary actions.
In a statement released on Friday by PSC spokesperson Ikechukwu Ani, the Commission disclosed that those dismissed included ten Assistant Superintendents, four Deputy Superintendents, two Chief Superintendents, and one Superintendent of Police.
Among the demoted officers were one Assistant Commissioner of Police, one Chief Superintendent, two Superintendents, two Deputy Superintendents, and thirteen Assistant Superintendents.
The decisions were made during the final session of the PSC’s first Plenary Meeting in Abuja, chaired by Commission Chairman DIG Hashimu Argungu (Rtd).
According to the statement, “Most of the officers dismissed are also to be prosecuted by the Legal Unit of the Nigeria Police Force. The Commission considered 110 Pending Disciplinary Matters (PDM), 23 appeals and petitions, and 13 court judgements seeking compliance.”
The PSC also issued varying levels of reprimand, warnings, and severe reprimands to other officers found guilty in different cases.
Three pending disciplinary matters were stepped down, with the Inspector General of Police requested to provide further information.
DIG Argungu said the Commission will subsequently consider Police Disciplinary matters with dispatch to free Police Officers who do not want to continue their career progression and those found guilty to serve their punishments.
He warned that the Commission would not spare Police Officers who indulge in civil matters like land disputes, marital issues and rent-related disputes.
Argungu said the courts should be allowed to do their duties while the Police should pay more attention to criminal matters and threats to life.
Prominent legal scholar and Senior Advocate of Nigeria (SAN), Itse Sagay has advised President Bola Tinubu against implementing the World Bank and International Monetary Fund (IMF) recommended policies.
He warned that the policies would not alleviate the suffering of Nigerians.
Speaking during an interview with Punch, Sagay criticised the decision to remove the petrol subsidy based on advice from the Bretton Woods Institutions, describing it as ill-timed and detrimental to the economy.
He noted that historically, IMF and World Bank policies have failed in developing countries, plunging them into deeper economic difficulties.
The legal practitioner said, “I was against the removal of subsidy before we became self-sufficient in internal production of petrol.
“The removal has caused severe economic hardships, including a dramatic crash of the naira and soaring costs of food and transportation.”
He highlighted the suffering of Nigerians, citing the increase in transportation costs, such as a trip from Lagos to Delta State rising from ₦5,000 to ₦65,000, and called for a reversal of these policies.
Sagay further stated that the IMF and World Bank often propose “harsh and counterproductive” policies to developing nations, leading to failure and misery in countries that adopt them.
Sagay said, “Before Tinubu took power, I urged him not to remove the subsidy on petrol until we are fully producing it internally. Unfortunately, that was not done and that petrol subsidy removal has plunged us into various serious economic, life hardship.
“My personal belief is that the IMF, World Bank and these Western economic institutions always prescribe very harsh policies for developing countries.
“I do not know any developing country that has adopted these policies which have been successful economically. All those who adopted it in the past failed because their situation got worse until they tossed out those policies and started again.
“From our experience with other African countries, these IMF, and World Bank policies have always failed and have always brought suffering, and misery to the countries to which they are applied. So I hope that somewhere along the way, these policies will be reversed.”
On tax reform bills, Sagay expressed support, arguing that the reforms would push states to increase productivity and reduce the inequities in tax revenue distribution.
“Lagos, for example, bears the burden of providing infrastructure for a large population but does not get revenue commensurate with this responsibility,” Sagay noted. “A reform that ties earnings to productivity is fair and will encourage states to be more self-reliant.”
The World Bank has allocated approximately $24 billion in loans and grants to assist some of the most impoverished nations globally, which could generate an unprecedented $100 billion in overall spending capacity.
The fund allocation was confirmed in a statement issued on Thursday by Ajay Banga, President of the World Bank Group.
According to Banga, donor nations have pledged $23.7 billion to replenish its concessional lending division, referred to as the International Development Association (IDA).
This year’s contributions, he said, represent a modest increase from the approximately $23.5 billion that was committed during the previous fundraising cycle three years prior.
“Today, we are proud to announce the results of that effort. After months of negotiation, partnership, and unwavering commitment from our donor community, the 21st replenishment of the International Development Association (IDA) has raised $24 billion in donor contributions.
“Thanks to IDA’s unique leveraging model, this $24 billion will generate a total of $100 billion in affordable financing—the largest replenishment in IDA’s history. This is made possible because of donor generosity but also the work we have done to better optimize our balance sheet, take on more risk, and increase our leverage capacity.
“The funding will be deployed to support the 78 countries “that need it most”, providing resources to invest in health, education, infrastructure, and climate resilience; stabilise economies, create jobs, and “build the foundation for a better future; and empower nations to navigate an uncertain world and unlock their full potential,” the statement reads.
Speaking further, Banga said the replenishment is not just about resources but about how they are delivered.
“IDA’s operational framework has grown increasingly complex over the years, with over 1,100 different requirements and metrics. While well-intentioned, this complexity has often slowed us down and overburdened those we serve.
“During this replenishment cycle, we worked closely with our partners to streamline IDA’s operations, cutting the number of required metrics in half to 500. This will make IDA simpler, faster, and more responsive to the needs of our clients. It means fewer bureaucratic hurdles and more time spent delivering results on the ground,” the World Bank chief noted.
Speaking of why IDA matters, the bank said that during its 60 years of existence, 35 countries have graduated from IDA, including many who are now generous donors, giving back so that others may prosper.
Banga said: “Throughout, IDA has stood as a critical partner for the world’s poorest countries. It is a lifeline that delivers what few others can:
“Affordable financing through zero- and low-interest loans and grants to nations with limited financing options.
“Unmatched development knowledge gained from decades of experience in nearly every corner of the globe.
“The power to leverage every donor dollar 3.5 to 4 times, transforming modest contributions into life-changing investments.”
This model, Banga said, has enabled IDA to mobilise and deploy $270 billion over the last decade alone, with $179 billion directed to Africa.
“IDA has become the largest provider of concessional climate financing, investing $85 billion globally in the last 10 years, with over half dedicated to climate adaptation—protecting communities from rising seas, building heat-resistant schools, and ensuring farmers have the right seeds for the right conditions,” he added.
He stated that throughout the reviewed period, the investments have produced significant outcomes, including 900 million individuals receiving health services, 117 million people gaining access to dependable electricity, 94 million individuals obtaining clean water, and more than 18 million farmers benefiting from crucial technology.
This is the reason why IDA is frequently referred to as the most advantageous investment in development. It transcends mere financial allocation; it is fundamentally about transforming lives, he remarked.
“Even as we celebrate these accomplishments and today’s achievements, the challenges ahead will demand even more of our attention. In many of the countries IDA serves, governments are constrained by rising debt and limited fiscal space. For these nations, IDA’s concessional financing is often the only viable source of investment in job-creating sectors.
“This is particularly crucial as a vast generation of 1.2 billion young people prepares to enter the workforce. With current projections indicating only 420 million jobs will be created, nearly 800 million young people face the risk of unemployment—a threat to societal stability and economic growth.
“The World Bank Group recognizes this challenge and is prepared to meet it head-on, which is why we are working to ensure job creation is not a byproduct of our projects but an explicit aim of them.
“Throughout history, jobs have been the surest and most lasting solution to poverty. They bring dignity, empower women, give hope to younger generations, and build stronger communities.
“In this context, IDA is not just a financial instrument; it is a catalyst for job creation. It provides countries with the resources to build infrastructure, improve education and health systems, and foster private sector growth—all of which are critical for creating jobs and economic opportunities.
“This link between the World Bank Group’s public sector experience and our private sector financing and access to deliver across such a continuum with depth and width globally underpins our jobs agenda. This effort is comprehensive and a paradigm shift for the institution,” Banga explained.
Netflix: Nollywood Producers Embezzling Investment Funds From Streaming Platform - Basketmouth
AFOLABI
Veteran Nigerian comedian cum filmmaker, Bright Okpocha, better known as Basketmouth, has made a shocking revelation about the mismanagement of funds by Nollywood producers.
Naija News reports that Basketmouth, in an interview with Arise TV, alleged that movie producers are given huge amounts of money by streaming platforms.
However, the producers use only 10% of the funds to produce the movie and use the rest to buy houses and cars.
The comedian also alleged that some producers coerce actors to share their monies whenever streaming platforms bypass them to pay directly.
While Basketmouth refused to mention names, he added that the producers who embezzle funds from streaming platforms know themselves.
He said, “There was a lot of money when these streaming platforms came in and these producers use only 10 percent of the monies to make the movies.
“More than 70 percent of these producers, to the extent that the streaming platforms had to pay the actors directly, but some of the producers coerce the actors to give up the monies.
“They know themselves, but I won’t mention names.”
This comes amidst reports that international streaming platform, NETFLIX, has stopped giving Nigerian filmmakers funds to produce original content.
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Controversial Nigerian singer, Portable is now the King of Streets in Ondo State.
He was crowned king of streets recently after he made a trip to the state.
A video of the moment showed him in th midst of Yoruba traditional rulers in Ore, Ondo State, as he was crowned King of Streets.
Sharing the good news on his Instagram page, he wrote: "Congratulations to CEO zehnation label @portablebaeby on your title (king of street) at ore Ondo town ADE Ope Lori oooo"
Nigerians are often polarised – either on ethnic or religious grounds — when a big national decision is in the offing, especially during elections. But the ongoing nationwide rift is about the government’s attempt to reform a tax system adjudged to be lopsided and unfair.
President Bola Tinubu, in July 2023, approved the establishment of a committee on fiscal policy and tax reforms and appointed Taiwo Oyedele, an expert on tax matters from PricewaterhouseCoopers (PwC), as chairman.
Four months after its inauguration, the 38-member committee introduced 20 policy recommendations, tagged, ‘quick-wins’, as they were meant to be implemented immediately. The panel later proposed the economic stabilisation bills (ESBs) comprising four documents: the Nigeria tax bill, the Nigeria tax administration bill, the Nigeria revenue service establishment bill, and the joint revenue board establishment bill.
While the ESBs were approved by the federal executive council (FEC) on September 23, Tinubu had asked the national assembly to consider and pass the four bills.
However, the bills have received stiff opposition from northern elites under the umbrella of the Northern States Governors Forum (NSGF) — with the national economic council (NEC) asking Tinubu to withdraw them for further consultation.
The president has refused to withdraw the bills which have now scaled through the second reading at the national assemby.
With convictions, uncertainties, and questions spilling from various camps, Nigerians are torn apart on the provisions of the bills and their impact on the country’s economy.
WHY THE TAX BILLS?
The federal government wants to streamline tax processes and block leakages, thereby introducing ease, transparency, and accountability into the system.
The government also wants a harmonised tax system which would cut the total number of taxes across all levels of government to eight rather than the current 60 officially approved taxes and levies.
Oyedele had said the tax reform bills would remove nuisance taxes that have very low revenue yields, high collection costs, and are burdensome on the poor and small businesses.
The bills focus on high revenue-yielding taxes “that are broad-based and relatively easy to collect” while taxes and levies that are imposed on the same or similar tax base will be merged.
A tax base means the total assets or income of a business that the government can tax.
WHAT ARE THE SCOPE OF THE TAX BILLS?
As stated earlier, there are four tax bills. But the most controversial are the ‘Nigeria tax bill’ and the ‘Nigeria tax administration bill’, due to certain proposals.
The tax bill’s proposals cover income tax which includes personal income tax (PIT), company income tax (CIT), petroleum profit tax (PPT), and capital gains tax (CGT).
The bill also addresses issues on value-added tax (VAT), excise tax stamp duties, and development levy (tertiary education tax (TET), NITDA etc).
Customs duties, property tax (state and local government), and the harmonised levy (local government) are under the Nigeria tax bill.
WHAT ARE THE KEY STIPULATIONS IN THE NIGERIA TAX BILL?
The bill proposes a zero percent VAT on food, education, and healthcare. Rent, transport, and electricity are also exempted from the consumption tax.
According to the document, the VAT rate on non-essential items (jewellery, electronics, and others) will be increased partly to offset the reduction on essential items which also include water, drugs, and others.
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The bill says VAT will increase from the current 7.5 percent in 2024 to 10 percent by 2025.
“VAT shall be charged on the value of all taxable supplies at the following rates (a) 2025 year of assessment 10%; (b) 2026, 2027 2028 and 2029 years of assessment 12.5% (c) 2030 year of assessment and thereafter 15%,” the document reads.
The proposed legislation said other consumption taxes would be discontinued, leaving only VAT charges where applicable.
It said businesses can recover VAT on their assets and services, thereby lowering their overall costs and reducing inflation. However, small businesses would have a zero percent VAT charge on their profits.
The bill is also seeking an increase in the annual tax threshold for small businesses from N25 million to N50 million, proposing a reduction in the CIT to 27.5 percent by 2025 — down from 30 percent — and a further cut to 25 percent by 2026.
“Tax shall be levied, for each year of assessment in respect of total profits of every company, in the case of; (a) a small company, at zero percent; and (b) any other company, at the rate of-(i) 27.5% in 2025 year of assessment, and(ii) 25% from 2026 year of assessment,” the document added.
“Notwithstanding any provision of this Act or any other enactment, where, in any year of assessment, the effective tax rate of a company is less than 15%, such company shall recompute and pay an additional tax that makes its effective tax rate equal to 15%.”
“The provisions of this section shall apply to (a) a company that is a constituent entity of an MNE group; and (b) any other company with an aggregate turnover of N20,000,000,000.00 and above in the relevant year of assessment.”
The tax bill also recommended the elimination of minimum tax on loss-making companies and introduced a top-up tax of up to 15 percent for multinationals and large domestic companies.
A top-up tax is an additional amount of tax paid by companies (or individuals) that have already reached a certain tax threshold or limit.
More so, the legislation proposes tax exemption for minimum wage earners, lower taxes for other low-income earners, and higher taxes for high-income earners.
In addition, the export of services and intellectual properties will attract zero percent VAT to facilitate export growth, introducing fiscalisation, electronic invoicing, and non-deductibility for income taxes.
Other provisions include the introduction of a 4 percent development levy, 5 percent tax on telecommunications services, and 5 percent excise duty on lottery and gaming income.
WHAT IS THE GROUSE OF THE NORTH
The ferocious opposition of the NSGF — a group of governors representing 19 northern states — was triggered by the revenue-sharing formula proposed in the Nigeria tax administration bill as it relates to VAT.
In the current VAT revenue-sharing formula, the federal government takes 15 percent, states get 50 percent while 35 percent goes to the local governments.
States normally use the 50:30:20 sharing ratio — 50 percent for equality, 30 percent for population, and 20 percent for derivation.
However, the bill proposes a different sharing formula that states thus:
“Notwithstanding any formula that may be prescribed by any other law, the net revenue accruing by virtue of the operation of chapter six of the Nigeria Tax Act shall be distributed as follows: (a) 10% to the Federal Government; (b) 55% to the State Governments and the Federal Capital Territory; and (c) 35% to the Local Governments. Provided that 60% of the amount standing to the credit of states and local governments shall be distributed among them on the basis of derivation,” the bill reads.
This section of the bill raises the VAT derivation from 20 percent to 60 percent as it intends to make more money available to states “fairly and equitably”.
Under this proposal, according to Oyedele during a stakeholders engagement session with chief financial officers (CFOs), states will use the sharing ratio of 20:20:60 — equality, population, and derivation — if the bill is passed.
WHAT IS NSGF’S POSITION?
The northern Nigeria leaders had argued the proposals would impoverish the region by transferring its wealth to economic hubs like Lagos and Rivers — two major states already benefitting from the current VAT distribution regime according to the tax committee.
Babagana Zulum, governor of Borno, on November 29, said he would rally lawmakers from the north to reject the tax bills. He believes the reforms would lead to poverty, hunger, and hardship in the north.
Abdullahi Sule, governor of Nasarawa, said the northern governors were only against the removal of VAT from the federation account allocation committee (FAAC).
Sule they were concerned that the 60 percent formula would not work if the VAT is calculated based on the derivation and not consumption.
In response to the concerns, Oyedele, during a Channel Television’s town hall, clarified that the 60 percent VAT derivation would be distributed based on consumption as against the current system which mostly favours states with the headquarters of companies.
WHAT ARE THE KEY PROVISIONS OF OTHER BILLS?
The tax administration bill seeks the introduction of VAT fiscalisation system, which is essentially the deployment of technology for the real-time filing of returns.
It mandates all taxable persons to submit annual tax incentives returns covering income tax and “any incentive not generally available to all taxpayers”.
The said tax refund should be made within 90 days of “decision post audit with the option of set-off against any tax liability of the taxpayer”.
If passed into law, the accountant-general of the federation will be expected to open dedicated accounts for each tax type to pay money for tax refunds based on estimates provided by relevant tax authorities.
Agencies such as tertiary education trust fund (TETFUND), National Information Technology Development Agency (NITDA) and National Agency for Science and Engineering Infrastructure (NASENI) will be funded from budgetary allocations and no longer rely on taxes.
The administration tax bill makes provision for the creation of a state inland revenue service (IRS) that would be autonomous in its financial, technical, professional, and administrative affairs.
Meanwhile, the Nigeria revenue service establishment bill seeks to create the Nigeria Revenue Service (NRS), repealing the Federal Inland Revenue Service (FIRS).
The last bill intends to establish the Joint Revenue Board to streamline tax administration. The board would be responsible for maintaining the database of taxpayers’ identities in collaboration with NRS, states’ IRS, and LG revenue committee.
It would also guide the accreditation of tax agents, establish a tax appeal tribunal with jurisdiction to settle tax disputes arising from any tax laws made by the national assembly or house of assembly of a state.
Netflix has finally broken its silence over its alleged exit from Nigeria.
DAILY POST reports that there are speculations that Netflix has exited the Nigeria market due to the country’s economic challenges, as well as regulatory pressures.
Reacting to the viral reports, Netflix in a statement sent to TechCabal, stated that it remains firmly committed to its operations in Nigeria
While dismissing the rumors, the firm said it will continue to invest in Nigerian stories to delight its audience.
“We are not exiting Nigeria. We will continue to invest in the country’s stories to delight our members.”
DAILY POST reports that Netflix which entered the Nigerian market in 2016, has elevated many local content to a global audience.
Kebbi State Governor, Nasir Idris has announced the appointment of 200 youths from the All Progressives Congress (APC) as special assistants.
Idris made the announcement during a ceremony at the APC Secretariat in Birnin Kebbi on Thursday.
Speaking at the event, the state APC Chairman, Abubakar Kana-Zuru, commended the governor for fulfilling his campaign promises and prioritizing gender sensitivity.
Kana-Zuru pointed out several accomplishments of the Idris administration, including the free distribution of fertilizers and small business support to farmers, food aid to residents, the construction of roads with solar-powered street lights in the state capital, and the completion of the multibillion-naira ultra-modern state secretariat.
“If you haven’t visited Kebbi in the last one or two years, if you come today, you will never believe what your eyes are seeing.
“His Excellency runs an open and inclusive government. He wants everybody to enjoy the fruits of democracy; that’s why he always tells his appointees to exhibit the habit of free-will gifts.
“On several occasions, our amiable governor is fond of saying allow the dividends of democracy to filter down to the public; ensure that you make people happy at your level,” the chairman stated.
The APC Women Leader in Kebbi, A’isha Gulabi, expressed her gratitude on behalf of the beneficiaries, stating the broader impact of the appointments.
“Because the appointments are not for the appointees it’s for all of us, and many people stand to benefit from it.
“We Kebbi people are glad; God has blessed us with a governor who does good to both those who do good to him as well as those who do bad.” She said.
She urged the youths to remain loyal and respectful, appealing for patience from those who were yet to receive appointments, assuring them that opportunities would come their way soon.
Beneficiaries lauded Governor Idris, describing him as a leader committed to serving the people and ensuring the dividends of democracy reach all corners of Kebbi State.
The appointments are part of the governor’s broader strategy to engage youth and foster development across the state, signaling his administration’s resolve to fulfill its campaign pledges and deliver lasting progress.