The tax regime in Nigeria is made up of a complex web of disjointed tax laws which leave much to be desired in terms of efficiency and effectiveness both in administration and in achieving the nation’s fiscal policy goals. Sequel to this, President Bola Ahmed Tinubu GCFR established the Fiscal Policy and Tax Reforms Committee in August 2023 to address the pressing need for comprehensive tax reform in Nigeria. Recently, the President transmitted four tax reform bills to the National Assembly proposing significant changes to the face and character of the tax landscape.

The Tax Bills are: The Nigeria Tax Bill (NTB) 2024, the Nigeria Tax Administration Bill (NTAB), the Nigeria Revenue Service (Establishment) Bill (NRSEB); and the Joint Revenue Board (Establishment) Bill (JRBEB).

The enactment of the NTB will lead to the repeal of 11 laws, while 13 other laws will experience consequential amendments. The NTB will also revoke one subsidiary legislation and consequential amendments on two other subsidiary legislations.

Crucially, the NTB included a supremacy clause in Section 202, which states that” this Act shall take precedence over any other law with regards to the imposition of tax,” this clause effectively elevates the NTB to be Nigeria’s supreme legislation on taxes.

This Article appraises the four Tax Bills highlighted above with particular focus on the Nigeria Tax Bill, which seeks to harmonise all the major taxes such as corporate income tax, personal income tax, and value-added tax etc., discussing key provisions and significant changes.

As a comprehensive tax legislation, the NTB harmonizes all tax laws in the country into a more simplified and manageable single piece of legislation. Section 1 of the NTB provides that the objective of the Act is to provide a unified fiscal legislation governing taxation in Nigeria.

Hence, various taxes which were previously administered under different tax legislations are by the provisions of the NTB unified and compressed into one simplified law and administered accordingly.  This simplification is intended to ease compliance for businesses and individuals, making it easier for them to understand their tax obligations.

Contrary to most speculations on social media, the NTB adopts a progressive personal income tax system and provides tax relief for low-income earners. Particularly, incomes below (800,000.00) eight hundred thousand naira are completely exempted, and higher earners are taxed progressively according to their earnings. It follows, therefore, that the tax burden on low-income earners is reduced, and that the tax burden is generally spread to reflect equity and fairness in wealth distribution. The annual tax rate, as outlined in the Fourth Schedule of the bill, is as follows: (a) First N800k – 0% (b) Next N2.2m – 15% (c) Next N9m – 18% (d) Next N13m – 21% (e) Next N25m – 23% and (f) Above N50m – 25%.

Currently, a low-income earner who earns N25,000 monthly, which translates to N300,000 annually, is required to pay 7% income tax, the new rates proposed in the Nigeria Tax Bill exempt individuals who earn N800,000 or less annually from paying any income tax. In effect, every minimum wage earner in Nigeria would be exempted from personal income tax.

However, with the new provisions in Section 28 of NTAB, financial institutions are now mandated to furnish tax authorities with details of individuals whose monthly cumulative transactions amount to N25 million or more. This would bring more high-income earners into the tax net.

Also, the Bill progressively redesigned the capital gains tax regime, for example, Section 51 of the bill exempts an individual from paying tax on the proceeds of the sale of his residential property or land adjoining his residential property up to a distance of one acre.

In Section 50, the bill exempts compensation paid to individuals for personal injuries. The current provision of the subsisting Capital Gains Tax Act is that compensation for loss of office, etc, is subject to capital gains tax on the portion of the income above N10 million at 10%.

The Bill aims to ensure ease of doing business, which has long been a hurdle in Nigeria’s economic growth. By streamlining tax rules, the NTB 2024 simplifies compliance, enabling businesses to focus more on innovation and expansion rather than wading through bureaucratic red tape.

The Bill in Section 20(1)(a)-(l) also indirectly reduces the taxable income of companies by increasing the deductions allowed from the company’s gross earnings before ascertaining the company’s profit, which is eventually taxed. The bill also eliminates a minimum income tax of around 1% of gross earnings hitherto imposed on companies that did not declare profit. 

For corporate entities, the NTB pursuant to Section 56 provides for a reduction of the current 30% rate for corporate income tax, and proposes 27.5% in 2025 and 25% in 2026, while completely exempting small companies. This significantly reduces the tax obligation of corporate bodies and is rather conservative compared to 27% and 30% rates in sister African countries like South Africa and Kenya. Additionally, the NTB raises the threshold for corporate tax emption from 25 million naira to 50 million naira in annual turnover, thereby exempting many small businesses from corporate tax. Furthermore, the NTB tackles the problem of multiplicity of taxes for corporate bodies by harmonizing multiple levels of taxes by introducing a 4% development levy which will regress to 2% by 2030.

The bill went further in Section 59 to harmonise all the special deductions on companies’ profit into a single development levy that is expected to progressively decline from a rate of 4% in 2025 and 2026 assessment years to just 2% in 2030.

Also, the NTB effectively handed over the revenue collection duty of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to the NRS (FIRS). The Seventh Schedule of the Bill prescribed the royalties all production of petroleum would be subjected to, which are to be collected on behalf of the Federation by the NRS (FIRS) with the royalties so collected by the NRS administered following provisions of the Nigeria Tax Administration Bill (Act).

The notable implication of the tax bills to the States is the changes regarding revenue sharing generated from Value Added Tax (VAT). Pursuant to Section 77 of the NTAB, the new sharing formula has the States and Local Governments receiving the bulk of the VAT revenue. Precisely, 55% and 35% of the VAT revenue is accruable to the State and Local Governments respectively, while 10% goes to the federal government.

It is noteworthy to state that the VAT derivation model pursuant to Section 77 which potentially redistributes revenues amongst state governments equitably, incurs significant losses to some state governments. Based on the 60% derivation model, states that contribute more in VAT revenue will earn more while states that contribute less might earn significantly less.

BENEFIT TO LAWYERS

Advise on Compliance And Regulatory Services: Lawyers will be essential in guiding businesses and individuals on what the new tax bill is all about and how to navigate the tax law and structure their businesses efficiently to ensure compliance and avoid penalties.

•Tax Dispute Resolution: A unified Tax law means that lawyers can quickly identify the applicable rules when briefed on tax-related matters, helping lawyers to conduct dispute resolution more efficiently and reducing the complexity involved in representing clients in tax-related matters.

Other Notable Highlights of the Tax Reform Bills

• Establishment of the Nigeria Revenue Service (NRS) and Joint Revenue Board (JRB): Pursuant to the NRSEB the NRS replaces the FIRS and the JRBEB established the JRB to replace the current Joint Tax Board (JTB). Additionally, the bill also established the office of the tax ombudsman to protect taxpayers and ensure tax simplification.

• Promotion of Exports and International Trade: Exports of goods, services, and intellectual property will benefit from zero-rated VAT alongside additional incentives aimed at boosting Nigeria’s competitiveness in international trade.

• Simplifying and Rationalising Taxes: Over 50 nuisance taxes are to be repealed, with remaining levies harmonised into a few number of taxes.

• A Tax System Based on Equity and Fairness: the bills implement progressive rates for personal income tax, VAT, and capital gains tax, ensuring protection for low-income earners.

• Equity Among States: VAT revenue will be allocated to states using a fairer model that rewards their actual economic contributions.

• Tax Accountability and Transparency: With the establishment of the Tax Ombudsman vulnerable taxpayers are protected thereby ensuring equity and fairness in tax administration.

In conclusion, the tax reform bills seek to foster economic equity, encourage exportation, extend the tax net to reflect current global trends and create a business-friendly environment to attract local and foreign investments. The bills further strengthen fiscal federalism and facilitate cooperation between taxpayers, subnational governments and MDAs for a vibrant and prosperous economy.

•Atoyebi is a Senior Advocate of Nigeria (SAN), FCIArb (U.K.)

The Economic Community of West African States (ECOWAS) is ramping up preparations to introduce its single currency, ECO, following a consensus reached during its 65th Ordinary Session.

This announcement was made in a communiqué released after the 66th ordinary session of the heads of state and government meeting, which was held in Abuja on Sunday.

Initially scheduled for launch in 2020, the rollout of the ECO was postponed due to the impact of the coronavirus pandemic. The new target date for its introduction is now set for 2027.

The Authority confirmed that it has adopted selection criteria proposed by the High-Level Committee to identify member states that will initially adopt the ECO and those that may join later. In collaboration with the West African Monetary Agency (WAMA), it has tasked the Commission to integrate these criteria into the protocol for establishing the ECOWAS Monetary Union Agreement.

Additionally, the Authority endorsed the High-Level Committee’s recommendations regarding the financial aspects—costs, funding sources, and modalities—necessary for implementing the reforms and institutions required for the ECO’s launch.

Member states and central banks have been urged to take immediate action to fulfil their financial commitments to operationalise these institutions once the official launch date for the ECOWAS single currency is confirmed.

The heads of State also called on the High-Level Committee and the ECOWAS Commission to accelerate efforts to meet the established deadlines for creating and operationalising the institutions essential for the ECO’s launch.

Moreover, the Authority acknowledged the progress in executing the ECOWAS Agricultural Policy (ECOWAP) as part of efforts to enhance food security and nutrition in the region. Recognising the vital role of agriculture in the socio-economic development of member states, the Authority directed the Commission to implement regional strategies promptly focused on livestock farming, the Regional Rice Self-sufficiency Initiative, and the Comprehensive African Agriculture Development Programme (CAADP) Action Plan for 2026-2035.

The Authority also welcomed the strengthening of partnerships with technical and financial stakeholders and urged member states to collaborate with community institutions to achieve these regional food security initiatives.

The introduction of the ECOWAS currency is expected to facilitate trade and stimulate economic growth within the region.

[Leadership]

The Joint Tax Board (JTB) has called for the taxation of High Net-Worth Individuals (HNWI) as part of drive to bridge unfair tax practices in the country.

The board made the call in a communique signed by M.L. Abubakar , Chairman, JTB and Olusegun Adesokan, Secretary, JTB at the end of of its 156th meeting held on 10th and 11th December 2024 in Port Harcourt, Rivers State.

Part of the communique read: “The Joint Tax Board notes that taxation of high net-worth individuals (HNWIs) in Nigeria has increasingly come under focus given the perceived unfairness in the distribution of the tax burden among this category of taxpayers in relation to other taxpayers.

“Therefore the Joint Tax Board recognises the need for improved intelligence gathering to Identify, track, and profile (HNWIs) in Nigeria and  encourages regular review and evaluation of the effectiveness of adopted strategies and initiatives, and support needful adjustments where and when necessary, to ensure taxation of HNWIs in Nigeria,”

The communique also called for broad based collaboration with relevant national and sub-national agencies  to strengthen the data collection and analytics capabilities of sub-national revenue authorities  and foster international cooperation to improve tax compliance and curtall cross-border tax evasion to ensure that HNWIs are taxed fairly and transparently.

The board also noted the urgent need to accurately classify Electronic Money Transfer Levy (EMTL) disbursements, stamp duties, withholding taxes and other revenue items as tax, adding that “Such items should be credited to the internally generated revenue (IGR) accounts of the respective sub-nationals, rather than to the respective Federation Account Allocation Committee (FAAC) accounts, for purposes of assuring accuracy in reporting, and appropriate accounting,”

The JTB also advocated public enlightenment and sensitisation prior to any introduction of new rates for driver’s licence and vehicle number plates to afford members of the public the opportunity to be well informed in advance while educating them on the rationale behind the decision.

[DailyTrust]

"And it came to pass, when Ahab saw Elijah, that Ahab said unto him, Art thou he that troubleth Israel? And he answered, I have not troubled Israel; but thou, and thy father's house..." 1 Kings 18: 17 - 18).

There are occasions when a writer sets out to write one thing but ends up writing another. For me, this is one of such occasions! I have had many in the past, though! This time around, I set out to write on Kemi Badenoch’s differentiation between her being a Nigerian and her Yoruba ancestry. And the title I quickly scribbled down was “Which is higher: Ethnic identity or Nigerian nationality?”

The ruling All Progressives Congress chieftain and CEO of the Nigerians in Diaspora Commission, Abike Dabiri-Erewa, started it all when she disclosed that the newly-elected UK Conservative Party leader, Mrs. Kemi Badenoch, snubbed her when she made efforts to congratulate and identify with her on the landmark achievement of being the first black person (and, ostensibly, Nigerian) to be so elected. The floodgate of reactions that followed was varied: Some scolded Abike while others lambasted Kemi.

In response, Badenoch justified her action, saying she was not ready to do Nigeria’s PR; meaning, she did not want Nigeria to piggyback on her to white-wash its stained linen of a “fantastically corrupt” country, as a former British Prime Minister, David Cameron, had described her right to the face of former President Muhammadu Buhari, who was too dumb-founded and subdued to fight back.

Nigeria, being a country of one scandal, one week, everyone thought the matter had died down - thanks to the Dele Farotimi versus Chief Afe Babalola tango - until the vice-president, Kashim Shettima, chose to stir the hornets’ nest again as he lambasted the British Leader of Opposition for “denigrating” her Nigerian identity, sarcastically advising her to renounce her Nigerian name, Kemi!

At that point, the tango became high profile! It also became more interesting! But it was a most unwise thing for Shettima to have done! The spat from the Nigerian side should have been left at the lower level of Abike Dabiri. Jumping into the fray diminishes the person and office of the country’s Number Two citizen. Did Shettima consider the dignity of his office? Again, the question of what level of training in diplomatic etiquette our leaders get comes to the fore.

One such diplomatic gaffe that has refused to go away but appears to have snowballed into the splintering of the ECOWAS (and the collateral damage of the Lukarawa terrorist threat in Nigeria itself), was the hasty and scantily-considered decision taken on the coup leaders of Niger Republic. Don’t we have seasoned professional diplomats any more? Or is it that our leaders don’t listen to robust and informed advice?

Badenoch’s response to Shettima was more dangerous and damaging than the one she offered Abike Dabiri. She minced no words as she emphasized her preference for her Yoruba ancestry, adding, to boot, that she had no affinity with what she described as a North whacked by Islamism and Boko Haram ideology!

Mrs. Badenoch’s full names are Olukemi Olufunto Badenoch (nee Adegoke). She bears no “English” name. She is proudly and unapologetically Yoruba. She has no “Nigerian name” to renounce, if I may add. There are no Nigerian names, anyway, but there are English, Arabic, Yoruba, Igbo, Efik, Ijaw, Tiv, Igala, Hausa, etc names. Are there even Nigerians in the real sense of the word? I doubt if there are! What we have are people pretending, aping and/or hoping to be one! But there are Fulani, Hausa, Tiv, Idoma, Igbo, Yoruba, Ijaw, etc. - all cohabiting in the space or geographical expression called Nigeria - so named by the British colonialists.

In Libya in 1989 on the ticket of Pascal Bafyau’s NLC for the Organization of African Trade Union Unity (OATUU) conference, we met the leader of the Benin Republic delegation who was delighted to hear that we were “Yoruba from Nigeria” Immediately, the language barrier between him and those of us who were Yoruba evaporated. Benin Republic, colonized by the French, speaks French while Nigeria, colonized by the British, speaks English. The moment he asked us if we understood “Anago”, which is what the Yoruba in the French-speaking West African countries call Yoruba, and we replied in the affirmative, we began to flow in the Yoruba language! He was Yoruba from Benin Republic while we were Yoruba from Nigeria.

All across the West Coast where there is a large population of Yoruba (Anago) people, that is how it is! In Europe as well, I met people who never stepped a foot into Nigeria but who described themselves as “Yoruba" from Cuba or Brazil or Jamaica. If you think Yoruba are the only “Nigerians” with this tribal mentality or ethnic consciousness, you are wrong! It spreads across! That was why Buhari as military Head of State voted for a fellow Fulani man from another country at an international forum while snubbing his own fellow Nigerian (of Igbo extraction, if I remember correctly) vying for the same position!

There is no Nigerian in the real sense of the word! The Nigerian nationality remains, at best, a wish; a desire or mere wishful thinking. Efforts, if any, to mesh the various ethnic groups that inhabit the space called Nigeria into a nation have so far ended in calamitous failure.

Taking a cue from Buhari - and why not? - it will be unrealistic of Shettima to expect the average Yoruba person, proud of his or her Yoruba ancestry, just like Olukemi Olutoyin Badenoch (nee Adegoke) is proud of hers, to file behind the VP in his snide remarks about this illustrious daughter of Yoruba land. Take note that she is our daughter! And we shall make our stand with her in our millions!

Now to the point that I originally set out to make! When they think they have got rid - or been rid - of one Yoruba gadfly or “irritant” or the other and that Nigeria can now heave a sigh of relief, another pops up and rears its “ugly” head! Why have the Yoruba been “the main issue (not only) in Nigerian politics” (to quote the military dictator, Gen. Ibrahim Babangida’s definition of Awo) but also the benchmark against whom every detractor and competitor measures their performance?

Herbert Macaulay, a Yoruba man, was the doyen of the nationalist struggle. Obafemi Awolowo was the poster boy of the First Republic. The most radical Nigerian woman in history was Funmilayo Ransome-Kuti. The name that struck most fear in friends and foes alike during the Nigerian Civil War (1967 - 70) was “Black Scorpion” Benjamin Adekunle. The most patriotic, most selfless, and most self-sacrificing Nigerian military officer ever was Francis Adekunle Fajuyi, who chose to die with his boss, the then Head of State, JTU Aguiyi-Ironsi. The first black Nobel Laureate (in Literature), Prof. Wole Soyinka, is Yoruba! Remember, he was detained for years by the government of Yakubu Gowon over his principled and selfless sympathy for the Igbo (Biafra) during the civil war!

Now, when we come to the theatre of the radicals and “hot-heads”, the Yoruba also lead, beginning, again, with the same Funmilayo Ransome-Kuti, who led the Egba women to chase the Alake of Egbaland out of his palace. What of her son, the irrepressible Fela Anikulapo-Kuti? Or his younger brother, Beko? Alao Aka-Bashorun was the first radical NBA president. What of Tunji Braithwaite and Kanmi Ishola-Osobu who followed in his footsteps? We can mention Tai Solarin. What of the stormy petrel himself, Chief Gani Fawehinmi? We can mention a string of NADECO leaders who fought the military to a standstill - Adekunle Ajasin, Abraham Adesanya, among others! And with the death of Gani, enters Femi Falana!

The only free and fair elections accepted as such by everyone was won by MKO Abiola, a Yoruba man. When Fulani herdsmen ran riot all over the country, the only governor daring enough to look them and President Buhari straight in the face was Ayodele Fayose of Ekiti State. Where angels feared to tread; what Goodluck Jonathan and Buhari ran away from is what Asiwaju Bola Ahmed Tinubu is tackling with uncommon courage and confidence.

Now, Dele Farotimi, the man who has volunteered that his head be used to crack the coconut of the malfeasance that we all know has enveloped the Nigerian state in its entirety, is Yoruba. The Yoruba stood up like one man and fought for the actualization of June 12. As if the raging Dele Farotimi tsunami was not enough, the Kemi Badenoch hurricane joined the fray!

What is in the DNA of the Yoruba that makes them selfless warriors for the common good, regardless of whose ox is gored and not minding the danger to self; making someone to ask: "Why are you people (the Yoruba) always the problem of Nigeria"? I can not claim to have the answer! Is it in the water that our ancestors drank and which has been passed on from generations unto generations? Or will the answer be found in ourQ "Omoluwabi" ethos? One thing is certain, though: Nigeria is not likely to enjoy respite until the troublers of the virtues and principles that the Yoruba hold dear cease their invidious activities!

I need help!

Are you wondering, what help? Yes, because it is very much unlike me. Sixty-eight-year-old Anthony Isidahomen suffers from a heart condition and needs to urgently undergo surgery. His entire family attended my parish before he relocated to the village. He functioned dutifully as an usher while his daughter till date is the Assistant Choir Leader. His wife was a dutiful motivator in the Good women group. This is very, very urgent. Kindly private chat me if you have a leading in this direction: 0803 251 0193, 0705 263 1058 (also WhatsApp).

Nollywood star, Daniel Etim Effiong’s wife, Toyosi Effiong, has revealed that she doesn’t have 100 per cent trust in her husband after several years of marriage.

She hosted the actor in the latest episode of her ‘The Toyosi’ podcast and the movie star asked if she has 100 per cent trust in him.

Responding, she said she trusts her husband to a large extent but not completely.

Etim Effiong: “Do you trust me 100 per cent after seven years of marriage?”

Toyosi: “Do I trust you a hundred per cent? No, but I trust that you will always keep me in the loop [laughs].

“Maybe not keep me in the loop. I’ve spent these years with you, I know you to a large extent and I’m getting to know you better.

“I think that you will do your absolute best to honour your vows and honour what we have. But I’m also aware that, I don’t want to say anything can happen, but things happen more or less.

“And I feel like if anything ever happens, I would know.”

[DailyPost]

When Funke Akindele conceived the fictitious character Jenifa in 2006, little did she know that she had created one character that will outlive all the characters she has ever played in her almost three decades of acting.

Though the 47-year-old thespian, who hails from Ikorodu, Lagos State, has gone ahead to create other characters and released other productions but none has stood out like Jenifa, a native village girl, who was born Suliat but adopted the name Jenifa (Jennifer) to desperately get a new lease of life at any cost after which luck smiled on her and she navigates her own world.

Without doubts, Jenifa was an instant success that got its own life immediately after the release of the first franchise in 2008. Like many popular franchises, Akindele released the second instalment, ‘Return of Jenifa,’ in 2010 and this was not only an instant success but cemented Akindele’s status on the Nigerian film and music scene.

Unknown to many, the Return of Jenifa heralded Akindele’s romance with the world of cinema to which she has since not looked.

Akindele was smart enough to allow Jenifa to breathe her own life as brand endorsements rolled in while she focused on creating other characters and films for a mixed audience across the globe.

It is no news that between 2008 and 2024, Akindele’s luck changed for the better with the production of Jenifa, which starred her as the lead actress. The character portrayed by Akindele gained fame and earned several award nominations including but not limited to four nominations at the Africa Movie Academy Awards in 2008. Akindele was not oblivious of the fact that Jenifa was responsible for her increased fan base which grew immeasurably.

Following the massive success of the film, which grossed N35m at that time, Akindele understood she has created a character that will crest her name on the sands of time. She went on to thrive on the Nollywood scene with spin-off series – Jenifa’s Diary, Aiyetoro, and Jenifa on Lockdown – while leveraging the new media and network TV stations to push the Jenifa brand.

Unknown to many, while Jenifa’s Diary was being watched on the NTA network, AIT network and Africa Magic channels, ‘Aiyetoro’ and ‘Jenifa on Lockdown’ kept appealing to youngsters and consumers of new media contents.

In ensuring Jenifa was further taken care of, the actress cum director and producer also went ahead to launch the Jenifa Foundation as well as Jenifa mobile game. The Jenifa mobile game aims to help players improve and better their spelling ability and use of the English language as the Jenifa character battles with the use of English and spelling.

Jenifa also brought out the philanthropic side of Akindele with the creation of Jenifa Foundation.

Speaking on the achievements of the Jenifa Foundation, Akindele said, “I’m thrilled to share with you a glimpse into the impactful work I’ve been dedicated to over the years. My life’s purpose is centred around empowering others, unlocking their full potential, and spreading joy. This is just a small glimpse into the remarkable journey of ‘The Jenifa Foundation,’ and its transformative efforts. I’m grateful for your unwavering support, and I invite you to continue joining me on this mission to create a lasting difference in the lives of others.”

For 16 years after the release of the first franchise and 14 years after the release of the second franchise, Akindele has wet the ground for the release of the third franchise, ‘Everybody Loves Jenifa.’

It was no surprise when Akindele projected a N5 billion box office success for the third franchise. “We are making N5 billion this year,” she said ahead of the premiere, which took place last weekend.

Interestingly, Akindele wasn’t just making a project based on emotions, rather he projection is borne out of the strategy put in place to achieve the sum. The film will screen in cinemas across 33 different countries – including Nigeria, Ghana and the United Kingdom.

It is believed that if Akindele’s last effort, ‘A Tribe called Judah,’ could amass over one billion Naira screening in Nigeria and few other countries, ‘Everybody Loves Jenifa,’ which has a history, will do much more.

[TheNation]

The reaffirmation by the Acting Director of Corporate Communications, Hakama Sidi-Ali, Central Bank of Nigeria, that the Supreme Court of Nigeria’s ruling of December 29, 2023, that old N1,000, N500 and N200 notes remain valid indefinitely and will be used pari passu with the new notes proves that government knows why cash is scare and cannot do anything about it.

But to hide her intentions, Sidi-Ali had coyly said, “The Central Bank of Nigeria has observed the misinformation regarding the validity of the old N1,000, N500 and N200 banknotes currently in circulation.”

Sid-Ali’s unnecessary reiteration of what Nigerians already know justifies her charge to Nigerians “to use alternative payment channels (which include well-funded PoS and unfunded ATMs) as well as report any case of… capping and hoarding by banks or PoS agents to the CBN…”

Currently, banks ration cash in the banking halls and the ATM Galleries. And Nigerians are left in a state of confusion, wondering why the problem that started under the tenure of former CBN Governor Godwin Emefiele persists.

Emefiele was rumoured to have embarked upon a redesign, which turned out to be a re-colouring of some denomination of the naira notes, to hamstring the presidential ambition of Bola Tinubu, who eventually won the oyster despite the odds.

This fits into the narrative attributed to the current CBN that some politicians are already mopping up cash as war chests in preparation for the anticipated vote-buying jamboree of the approaching 2027 general elections.

The CBN is merely chasing shadows with its threat to slam banks that facilitate the illegal flow of mint cash to hawkers (who trade currency at social parties) and unscrupulous agents (and possibly POS operators) with a N150m fine.

Its plan to send “secret agents” into banking halls or bank ATM galleries to detect (or deter) cash hoarding begs the question. All that the CBN needs to do is to make enough cash available for Nigerians to meet their daily cash obligations. The CBN cannot pretend not to know that physical cash is crucial to the survival of the economy.

The President of the Association of Senior Staff of Banks, Insurance and Financial Institutions, Olusoji Oluwole, who obviously knows that the CBN emperor is not wearing any clothes, attributed the shortage of cash to the failure of the CBN to meet the cash needs of commercial banks.

Oluwole, who revealed that Nigerians required a (questionably meagre) N20m daily, looked the CBN in the eye and pointedly declared, “Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands, and retailers often sell cash for profit, making it harder for banks to access funds.”

While calling on security agencies to crack down on illegal currency trading, advocating for less dependency on cash and acknowledging that a cashless economy is cheaper, safer and more efficient, Oluwole, however, charged the “CBN to have clear statistics, so that they can understand where they are, how they are circulating and where they are circulating to.”

But Oluwole got it wrong or was just being politically correct when he told retailers who sell their daily cash takings to PoS operators, “You cannot sell your currency to people for a profit at discounted rates. It is not done anywhere.”

If the classic definition of economics remains “rational allocation of scarce resources” and the price consumption curve is still “the demand by one customer for a given product or service at different prices”, Oluwole could only blame the CBN, whose negligence creates the willing buyers and willing sellers of naira notes.

To translate two Yoruba proverbs into English for the benefit of Oluwole and other financial sector trade unionists, who may be too timid to speak truth to power, Oluwole should not use a crooked pole to kill a snake or put his words underneath his tongue.

He must call out the CBN and the Federal Government to end this agony by first determining the daily cash needs of Nigerians, determining if the physical cash in circulation is enough and looking for money to print more cash to save Nigerians from this agony.

Apart from being a store of value, in this cash-orientated economy, the naira serves as a means of exchange and lubricant for the economy. There is no doubt that the structural scarcity of the naira, caused by the failure of the CBN to simply make the currency available, is constricting the growth of the economy.

South Africa has edged Nigeria out of the (19 countries that have been strangely named) G-20, for the Group of 20 biggest economies of the world. This cash constraint may further contribute to keeping Nigeria at the nadir of the global economic totem pole.

The CBN must recognise that Nigerians still run into situations of cash-only transactions where any form of online banking—electronic transfers within banking halls or the use of apps—cannot work. Bus conductors, “mamaput” restaurant operators, and artisanal workers, like vulcanisers, tailors, electricians and plumbers, demand cash settlements for their transactions.

That explains the huge success of the PoS. Even the Nigeria Inter-Bank Settlement System reported that PoS transactions in 2022 and 2023 were N8.79tn and N10.73tn, respectively. That is more than 20 per cent of the N52.1tn  gross domestic product of Nigeria.

Though these figures are not exactly the total volume of cash transactions within the Nigerian economy in those two years, you may want to consider that roughly $2.26tn, or about eight per cent, of cash transactions took place within America’s $29.017tn economy in 2023.

This significant percentage of cash transactions within the American economy (which everyone thinks is a cashless society) confirms that cash is still king in some transactions. And it does not look like it will change significantly very soon, especially if you take into consideration that some transactions are deliberately carried out with cash to avoid the tax man or the security agencies.

CBN Governor Yemi Cardoso is not going to be able to act as if he does not quite know what is going wrong with the country’s cash disbursement system. And no longer can he and the government continue to scapegoat former CBN Governor Godwin Emefiele, who is currently facing his life trials.

The argument by some government apologists that the cash squeeze is a result of CBN’s policy to mop up excess cash in circulation to control inflation is laughable. The way to control the current high inflation rate is to control the foreign exchange rate.

The devaluation—or depreciation—of the naira (and the removal of subsidy from petrol and electricity) is the major cause of the current high headline inflation in Nigeria, and it is causing Nigerians to need more cash to buy the same volume of items they bought before the devaluation.

But if the Coordinating Minister of the Economy and other members of the economic management team can finagle an (albeit long-term) way to make the Nigerian economy produce at least strategic consumer goods, like food and petroleum products, the inflation should abate to an extent.

The CBN needs to admit that its plan to run a cashless economy, which started from the days of CBN Governor Sanusi Lamido Sanusi, is now probably a mission impossible.

• X:@lekansote1, lekansote.com

Last Saturday, December 7, 2024, Ghana had its ninth general election in its Fourth Republic, which started with the 1992 Constitution. On Monday, December 9, the Chairperson of the Electoral Commission of Ghana, Mrs Jean Mensa, officially declared John Dramani Mahama of the National Democratic Congress as the president-elect. The presidential poll, held across the 40,976 polling stations contested by 12 of the 15 registered political parties and four independents with 18,774,159 registered voters resulted in a landslide victory for the former president, Mahama. According to the EC chairperson who was the returning officer, Jean Mensa, Ex-president John Mahama polled 6,328,397 representing 56.55 per cent, while the Vice President and presidential candidate of the governing New Patriotic Party, Dr Mahamudu Bawumia, secured 4, 657, 304, representing 41.61 per cent, representing. Voter turnout was officially put at 60.9 per cent. A turnout “Big Brother” Nigeria still dream of.

It is noteworthy that the NPP candidate and the outgoing Vice President of Ghana, Dr Mahamudu Bawumia, had on Sunday, December 8, showed statesmanship by calling his main rival, John Mahama, to concede victory and congratulate him. That singular action was taken ahead of the conclusion of the vote tallying deescalated tension in the country. It is quite exemplary! Mahama, Ghana’s president between 2012 and 2016 like Donald Trump had successfully staged a comeback to the Jubilee House after a series of losses to the outgoing President Nana Akufo Addo in 2016 and 2020. Another epochal thing with the just concluded election is that Ghana has made history by producing its first female Vice President-Elect, Prof. Naana Jane Opoku-Agyemang. She was the former vice-chancellor of the University of Cape Coast and later in 2013 appointed Minister of Education by John Mahama.

It is noteworthy that no political party has been able to win more than two elections back-to-back in Ghana since 1992. The electoral upset which led to the massive defeat of the ruling New Patriotic Party follows the political trajectory in Liberia in November 2023, Senegal in March 2024, the UK in July 2024, and the US in November 2024.  In these countries, opposition political parties were able to roundly defeat the party in power, thereby, causing political upset. The causative factors in all of these are the rising cost of living, inflation, and unemployment.

Though Ghana has long established itself as an oasis of democracy in what is regarded as the coup belt of Africa; last Saturday’s elections are not without flaws. According to the appraisal of the elections done by a Ghanaian newspaper, Myjoyonline, “The exercise, which started peacefully on Saturday morning, later escalated into chaos in some parts of the country due to issues of attempted rigging, and delays in the collation of results in some constituencies. The post-election violence has claimed three lives, with many others injured. The Ghana Police Service has so far arrested 89 people for various election-related offences.” There were also reported cases of vote buying on the internet.

I was on the Nigerian Television Authority flagship breakfast show called ‘Good Morning Nigeria” last Monday, December 9. I was an accredited observer under the platform of The Carter Centre in 2008 and I am of the view that Nigeria could learn a few things from its West Africa Anglophone neighbour.  Ghana, a country of over 34 million people with 16 administrative regions and 276 electoral constituencies shares a common history with Nigeria. Apart from being a former British colony, the country also had its fair share of military rule. Under Section 44 (2) of Ghana’s 1992 Constitution, the chairperson of the electoral commission is appointed on similar conditions as a Justice of the Court of Appeal.

Among the similarities between Nigeria and Ghana is: They are both in their Fourth Republic, running multiparty democracy. Despite having a de jure multiparty system, they are both de facto two-party countries. While the two dominant political parties in Nigeria are the All Progressives Congress and the Peoples Democratic Party, in Ghana, the dominant political parties are the New Patriotic Party and the National Democratic Congress.  Both countries are members of the Economic Community of West African States and long-time trade partners; both countries run a presidential system of government of four-year tenure and a maximum of two terms for executive positions. Both nations now sign peace accords ahead of presidential elections. The voting age in Ghana is 18 just like in Nigeria.

In Ghana, just like in Nigeria, there is no grant given to political parties. They source their money internally without limit while foreign donation is barred. According to Section 55 (15) of Ghana’s 1992 Constitution, only a citizen of Ghana can contribute or donate to a political party registered in Ghana.  What, however, is doubtful is whether there is strict enforcement of this clause. Party members in Ghana buy party souvenirs. I saw many of them with their party flags, mufflers, handkerchiefs, T-shirts, etc. The parties in turn provide free transport service to party members who may wish to travel to where they registered to vote.

Unlike in Nigeria, however, Ghana has provision for independent candidacy; voting hours are from 7 am–5 pm and there is no lockdown of the country as with the case in Nigeria.  Election day in Ghana is December 7 of the election year and the swearing-in date for the new president is January 7 of the new year. This is very much like the US, where the election is the first Tuesday in November of the election year and the inauguration is on January 20 of the following year. To win the presidential election in Ghana, a candidate needs to win 50+1 per cent of the valid votes cast. That means the absolute majority of the votes cast. To be eligible to run in the presidential election, candidates must be Ghanaian, 40 years or older, and registered voters. Candidates for parliamentary seats must be Ghanaians of 21 years or older and registered voters.  Candidates for the elections must not owe allegiance to any other country and must have settled all tax obligations.

Under the Ghana electoral system, there is a provision for voting by proxy and special or early voting. While voting by proxy allows a person to vote on behalf of another person, special voting is meant for electoral officials, media practitioners and members of armed forces, who are likely to be on election duty. Early voting takes place on December 2. In the just concluded elections, 1,291 voters cast their votes by proxy, allowing someone else to vote on their behalf. Ghana’s electoral system recognises voting by proxy for voters who are sick, outside the country, or unable to participate on election day. However, a proxy voter can only vote for one person.

Unlike Nigeria, which runs a bicameral legislature, Ghana has a unicameral legislature. Unlike Nigeria, which has two electoral management bodies, i.e. INEC and state independent electoral commissions, Ghana has only one, which is the Electoral Commission of Ghana, currently headed by a lady, Mrs Jean Mensa. Ghana’s electoral commission has seven members- a chairman, two deputy chairmen and four other members. Nigeria, on the other hand, has a 14-member commission- a chairman, 12 national commissioners and the secretary.

Truth be told, Ghana has better political credentials than Nigeria and we can learn and borrow some useful ideas from our dear neighbour. Things like the civic political culture, provision for early voting, independent candidacy, robust political party management system and a constitutionally backed date for elections, the election of more women into executive and legislative positions, reduction of qualification age to run for state houses of assembly and councillorship positions from 25 to 21, and more issue-based campaigns are some of the useful lessons we can learn from the land of the Black Stars.
As the tenure of Prof Mahmood Yakubu as INEC chairman ends next year, President Bola Tinubu should scout for a virtuous woman to replace him. Ahead of the 2027 presidential poll, APC and PDP should think about having female vice presidential candidates.

X: @jideojong

The Edo State House of Assembly, on Tuesday, passed a resolution suspending the chairmen and vice chairmen of the 18 local government councils of the state for two months.

The House also mandated leaders of the legislative arms to take over leadership of their respective councils.

The suspension of the council chairmen and their deputies was sequel to a motion moved by the member representing Esan North East 1, Isibor Adeh and seconded by the member representing Akoko-Edo 2, Mr Donald Okogbe.

Governor Monday Okpebholo had earlier written a petition to the House over the refusal of the chairmen to submit financial records of their local government to the state government.

In the letter, the governor, who described the LG chairmen’s refusal as an act of insubordination and gross misconduct, requested the House to look into the matter.

When the matter came up for debate on Tuesday, 14 members supported the motion for the suspension of the LG chairmen, six lawmakers were opposed to the motion while three members maintained neutrality.

The Speaker of the House, Blessing Agbebaku, told the members that all of them must speak on the matter.

The Speaker said, “I will implore that all members of the House speak on this matter before a decision is taken.”

After they had all spoken, the Speaker directed the Clerk of the House, Yahaya Omogbai, to do a head count of the members who supported or opposed the suspension of the council’s chairmen and their deputies.

The opposition Peoples Democratic Party in the state condemned the suspension of the 18 local government chairman.

In a statement by the Edo PDP Caretaker Chairman, Tony Aziegbemi, the party said that the chairmen and their vice were not given the opportunity to defend themselves describing the suspension as unconstitutional.

“The Edo State chapter of the Peoples Democratic Party condemns in the strongest terms the illegal suspension of the Chairmen of the 18 Local Government Areas of Edo State by the Edo State House of Assembly, following the directive of Governor Monday Okpebholo.

“We want to clearly state that this action is unconstitutional, null, and void.

“The illegal suspension is a blatant disregard for the recent ruling of the Chief Judge of Edo State, Justice Daniel Okungbowa, and the Supreme Court’s decision, in a suit filed by the Attorney General of the Federation and Minister of Justice, which affirmed the autonomy and independence of local governments as guaranteed under the Constitution of the Federal Republic of Nigeria.”

The PDP contended that Governor Okpebholo lacked the power to demand the financial statements of the LGA in the light of the Supreme Court judgment granting LGs autonomy.

“How can a governor direct the state Assembly to suspend democratically elected chairmen of the 18 local councils for insubordination when these elected officials enjoy autonomy and independence as enshrined in the Constitution and are not subordinates of the governor, the State Assembly, or any other arm of government?

“We are also aware that the chairmen and their vices weren’t even given the opportunity to be heard in their defence and were suspended unheard on watery trumped-up charges, in total disregard to the Constitution.

“We want to restate that the Constitution remains supreme, and any attempt to undermine its provisions or disregard the judiciary and its rulings is not only illegal but also a direct attack on democracy and the rule of law.

“The Speaker of the Edo State House of Assembly and the entire Assembly have clearly overstepped their constitutional mandates with this illegal action and we urge them to immediately reverse its decision, with respect to the rule of law and democratic governance.”

In an interview with The PUNCH, one of the LG chairmen, who spoke anonymously because he was not been authorised to speak on the matter, said the Association of Local Government of Nigerian in the state would make his position known in the coming days.

He said, “We got the notice of the suspension but I cannot speak on the matter as I am not the  ALGON Chairman of the state.

“However, we will make our position known in the coming days.”

[Punch]

The minister of Aviation and Aerospace Development, Festus Keyamo, has likened Abia State governor Alex Otti’s time in the Labour Party to that of a prodigal son who will eventually find his way home.

Otti was a member of the All Progressives Congress in 2020 after leaving All Progressives Grand Alliance APGA, before joining the Labour Party where he contested in the governorship election and won in 2023.

Keyamo said this during his speech at the groundbreaking ceremony for the Abia International Airport.

“The President’s motivation was also the fact that he loves the governor of this state, he loves his spirit. I know the comments he has made about the governor of this state and how much people here love him so much.

“Today is not the day for politics, he strayed away, he was with us, he strayed away like the prodigal son.” He said

Speaking further Keyamo explained how it was upgraded to an international airport rather than the initially planned airstrip.

“When I called Dr Alex Otti and I broke the news to him, he said no, I will partner with you, I will also put in counterpart funding, let us upgrade it to an international airport. This was what happened. As minister of aviation, I’m just telling you the trajectory.”

[Vanguard]