Seek new sharing formula for VAT

Nigerian governors have expressed their support for Tinubu’s tax reform bills.

The decision followed a meeting of the Nigeria Governors’ Forum (NGF) and the Presidential Tax Reform Committee on Thursday.

The governors’ stance is a major boost for advocates of the bills that have caused much controversy in the country.

The bills before the National Assembly have caused a lot of division in the country, including even among the lawmakers.

However, even though the governors accepted the tax reform bills, they are proposing a new sharing formula for the value-added tax (VAT), an area that made northern governors and lawmakers reject the bills.

Governors under the aegis of the Nigerian Governors Forum (NGF) have unanimously opposed any increase in the Value-Added Tax (VAT) rate.

This stance was expressed in their communiqué after their high-level meeting with the Presidential Tax Reform Committee on Thursday in Abuja.

The governors emphasised the importance of maintaining economic stability and safeguarding the welfare of citizens during ongoing fiscal reforms.

In a significant move to address inequities in resource allocation, the forum suggested a revised VAT sharing formula: 50 percent  based on equality, 30 percent based on derivation, and 20 percent based on population.

This formula aims to promote fairness and balance in resource distribution across the country, addressing the needs of smaller states while incentivizing revenue generation at the subnational level.

The NGF firmly opposed raising VAT rates, citing the potential impact on consumers and businesses.

The governors also advocated the continued exemption of essential goods and agricultural produce from VAT, emphasising the need to protect the most vulnerable and promote food security.

The forum endorsed the ongoing legislative process at the National Assembly to enact comprehensive Tax Reform Bills.

The governors also recommended the retention of development levies allocated to key national agencies, including the Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA), without terminal clauses.

Chairman of the NGF and Kwara State governor AbdulRahman AbdulRazaq stated, “The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws.

”Members acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.

“Members agreed that to maintain economic stability, the VAT rate should not increase or Corporate Income Tax (CIT) should be reduced at this time.

The Central Bank of Nigeria has unveiled two digital innovations—the Document Flow System and the Ministries, Departments, and Agencies Naira Payment Solution—at an event held on Wednesday, January 15, 2025, at its headquarters in Abuja.

A press statement released on Thursday described the projects as part of the “Digital First” transformation initiative launched by the Governor, Olayemi Cardoso, in December 2023.

The statement read: “The Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, has launched two transformative initiatives, the Document Flow System and the Ministries, Departments, and Agencies Naira Payment Solution.”

Cardoso, in his remarks, stressed the significance of the DocFlow system in overhauling document management processes within the Bank.

He explained that the system aims to digitise operations, reduce paper use, and streamline approval workflows to enhance efficiency.

He also described the MDAs Naira Payment Solution as a vital tool for automating cash withdrawal processes for MDAs, noting its potential to improve service delivery and client support.

Cardoso praised the in-house development of both systems, citing the associated cost savings and their contribution to sustainability through technological progress.

The Deputy Governor of Operations, Emem Usoro, said the launch highlighted the Bank’s commitment to innovation and operational excellence.

She highlighted the MDAs Naira Payment Solution’s benefits, including improved service delivery, reduced errors, and stronger measures against fraud.

The Acting Director of the CBN’s Information Technology Department, Mrs Jide-Samuel, stated that the MDAs Naira Payment Solution had been successfully tested with several MDAs and aligns with the Bank’s goal of “Excellence in Central Banking Operations.”

The statement added, “The MDAs Naira Payment Solution is considered a game-changer in the CBN’s financial transaction management. It is projected to improve payment turnaround time by 70 per cent and further enhance Nigeria’s financial ecosystem.”

A traditional Nigerian dish, Akara, has become an integral part of Brazilian cuisine, earning an annual celebration known as the Acarajé Festival.

The dish, a deep-fried cake made from beans, was reportedly introduced to Brazil by enslaved West Africans, who were taken from their homelands to South America decades ago.

In West Africa, particularly in Nigeria, Akara is a staple food that can include various fillings such as fish, eggs, and vegetables.

Akara is typically fried with either vegetable oil or palm oil and is often served with other foods such as pap, bread, or custard.

According to TRT Afrika, Acarajé has evolved into a popular street food in Brazil, especially in the northeastern state of Bahia.

The dish is traditionally prepared and sold by Brazil’s Baianas women, who proudly carry on the culinary traditions of their enslaved ancestors. 

“These slaves, mostly of Yoruba heritage from western Nigeria, were abducted from their homelands and taken across stormy seas to Bahia.

“After the abolition of slavery in the late 19th century, the sale of Acarajé grew in popularity and became an important source of income for descendants of enslaved people,” the report stated.

It also noted that the dish has become a significant part of Brazilian culture, with an annual festival held in Rio de Janeiro to celebrate its “enduring legacy.”

During the recent Acarajé Festival held on 25 November, one vendor, Joelice Cavalcante, explained how the dish is made in Brazil and served with sauce, giving it a unique twist and flavours.

She described the batter as being made from black-eyed peas blended with onions. “The more you mix and blend it, the tastier it becomes,” she was quoted as saying.

The batter is then fried with palm oil, known as dende oil in Brazil. “It makes it crispy so that when you bite, you can feel the flavour,” she added.

The Acarajé Festival has reportedly attracted tourists from around the globe.

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The British national, Mr James Nolan, who jumped bail in the ongoing trial linked to alleged 9.6 billion dollars Process and Industrial Development (P&ID) Ltd scandal, on Thursday, said he does not intend to call any witness.

Nolan told Justice Obiora Egwuatu of a Federal High Court in Abuja through his lawyer, Michael Ajara.

The News Agency of Nigeria (NAN) reports that the Economic and Financial Crimes Commission (EFCC), in the 20-count charge, named Micad Project City Services Limited and Nolan as 1st and 2nd defendants in the money laundering offences.

Nolan and Micad Project, a company where he is a director, were arraigned in May 2022.
The duo pleaded not guilty to the charge and Nolan, who is also a director in P&ID Ltd, was remanded in Kuje Correctional Centre.

After he met his bail conditions of N100 million with a surety and was admitted to bail following the variation of the bail from N500 million, Nolan stopped attending court proceedings and fled Nigeria.

Nolan was declared wanted by the court and an order was made for his arrest anywhere he is sighted.

The EFCC lawyer, Bala Sanga, equally applied that Nolan should be tried in absentia and the prayer was granted.

Although NAN reported that the fleeing Briton was arrested by the International Criminal Police Organisation (INTERPOL) in Italy on Jan. 27, 2024, during a visit he paid to his wife, he was yet to be extradited back to Nigeria to face his trial.

Meanwhile, when the matter was called on Thursday, Sanga told the court that the business of the day would have been for the prosecution to call their last witness.

“But upon review of the case, we found that it is superfluous and therefore we are dispensing with the last witness,” he said.

Nolan’s counsel, Ajara, said he had no objection to the anti-graft agency lawyer’s submission.
He, however, said that after the evaluation of the EFCC’s evidence, they would be relying on the prosecution’s case.

“Based on the evidence already before the court adduced by the prosecution, we shall be resting our case on theirs.

“So we don’t intend to call any witness,”:he told the court.

Justice Egwuatu adjourned the matter until March 10 for adoption of final written addresses of the parties.
NAN recalls that a sister court presided over by Justice Donatus Okorowo had, on July 3, 2024, ordered the closure of two companies linked to Nolan, over the involvement in the P&ID Ltd fraud.

Justice Okorowo, who had since been elevated to the Appeal Court, in two separate judgments, held that the two companies were found guilty of money laundering offences.

Consequently, Okorowo ordered that the companies be wound up and their assets be forfeited to the federal government.

The companies were Trinity Biotech Nigeria Limited and Resorts Express Concept Nigeria Ltd.

A Federal High Court in Lagos on Thursday granted a warrant of arrest against Ezekiel Onyedikachukwu, the manager of gospel singer Mercy Chinwo.

Justice Alexander Owoeye granted the order following a motion exparte brought by the Economic and Financial Crimes Commission (EFCC) seeking the arrest of the manager.

When the case was called on Thursday, Mrs Bilikisu Buhari, announced an appearance for the EFCC.

She then informed the court of an application brought by EFCC under Section 35(1) (c) of the 1999 Constitution and Sections 35, 36, 37, 38 and 39 of the Administration of Criminal Justice Act, 2015.

The counsel consequently moved the application seeking an order to issue a warrant of arrest against the manager.

She said that the warrant would be to compel the manager’s appearance in court to answer to criminal offences he allegedly committed.

Buhari submitted that if the commission was not able to arrest the manager, it would bring a public summons to declare him wanted.

The court granted the application, and adjourned the case until Jan. 24, for the arraignment of the manager.

In an affidavit in support of the application, EFCC averred that it received a petition from Chinwo against the manager.

The affidavit was deposed to by Mr Michael Idoko, an investigator with the commission.

It averred that the gospel singer alleged that the manager was receiving royalty on all her digital platforms and events  without disclosure.

According to the EFCC,  the gospel singer claimed that the manager diverted about 345,000 dollars without remitting her share.

It said  that  efforts to arrest the manager failed,  necessitating the application for a warrant of arrest.

The court adjourned the case until Jan. 24 for arraignment of the manager.

A middle-aged man, Tartor Ayihe has reportedly committed suicide after allegedly selling a plot of land to three different buyers at Ayihe village, Makurdi Local Government Area, LGA, of Benue State.

The deceased was reported to have drank a poisonous substance believed to be a snipper to take his own life.

Narrating the incident, a source in the community who preferred anonymity said the deceased took his own life Wednesday evening after he was asked by the community leaders to give a detailed account of how he sold the piece of land to three different buyers.

According to the witness, “After it was discovered that he sold a piece of family land to three different buyers, the matter was reported to the Kindred Head by those he deceived into buying the land.

“He was summoned to the home of the Kindred Head alongside the buyers. They all assembled for the matter to be addressed. But he suddenly left the meeting venue in the pretence that he wanted to pick something from his residence.

“We later heard that he rather went to provision stores to purchase poisonous chemicals believed to be snippers which he took home and drank, after switching off the phone.

“And after waiting for him for about an hour, people were sent to go and bring him back to the venue. But on getting to his home he was discovered motionless and empty bottles of the chemical he consumed littered the place. He was immediately rushed to the hospital but was already dead at the time of getting to the hospital.”

Contacted, the Police Public Relations Officer, Chief Superintendent, CSP, Catherine Anene who  confirmed the incident said, “Our operatives have been sent there to find out what happened.”

Ojomachenwu Adaidu, mother of Salome Adaidu, has recounted her last moment with her daughter who Oluwatimileyin Ajayi allegedly murdered.

Salome, 24, was a National Youth Service Corps (NYSC) member serving with Nicon Insurance in Abuja.

She was said to have visited Ajayi at his residence in Papalana, New Karshi in Karu Local Government Area of Nasarawa State before her death.

Ajayi was found on Sunday trying to dispose of her body.

Speaking recently with BBC Pidgin, mother of the deceased said: “I called her on Saturday and asked where she was. She told me she was washing clothes. I then asked if she was washing the clothes alone. She said yes and added that the firstborn child was in the living room cleaning it.

“She also told me that once she finished, she planned to go to the place where she does her NYSC training. Maybe it was from that training that this incident happened because the bag she took to the training was the same one the police brought, which I saw on Monday.”

The grieving mother demanded justice for her daughter.

“Maybe on her way to the place, she entered a ‘one-chance’ (a kind of scam often involving public transport), or someone used medicine (voodoo) on her because she doesn’t have friends like that. I want justice for my child,” she said.

Public Relations Officer of the Nasarawa State Police Command, SP Ramhan Nansel, earlier assured that the law would take its course.

“Investigation is ongoing and upon conclusion, he will be arraigned in court for prosecution. I want to assure the family and members of the public that this suspect will not be spared if found wanting,” Nansel said.

Major Hamza Al-Mustapha has emphasised the importance of responding quickly to pressing issues affecting Nigeria.

Speaking at the Sir Ahmadu Bello, the Sardauna of Sokoto Remembrance Day event in Kaduna yesterday, he emphasised the importance of Nigerians reflecting on the country’s potential, describing it as a “Blessed but disorganised land.”

He revisited historical events, particularly the 1963 disagreement over the introduction of petroleum in Nigeria.

According to him, “The late Sardauna of Sokoto’s insistence on refining oil in Nigeria played a significant role in his persecution.

“He made bold efforts to ensure Nigeria’s economic independence, a vision that remains unfulfilled.”

Al-Mustapha lamented the state of the Northern region, describing it as being left in a state of neglect following the loss of its leaders.

He added, “To restore the Northern region’s honour, security, education and economy, we have to have respect for traditional leaders and revive the values, fearlessness, courage, authenticity, and teamwork of Sardaunan.”

Earlier, the National President of the Rebuild Arewa Initiative for Development (RAID), Malam Balarabe Rufai urged Northern leaders to embrace the visionary leadership of the late Sir Ahmadu Bello, the Sardauna of Sokoto, as a blueprint for sustainable development in the region.

Rufai highlighted the exemplary leadership of the Sardauna, whose legacy focused on education, agricultural growth, and infrastructure development.