Indian Prime Minister, Shri Narendra Modi‘s state visit to Nigeria from 17-18 November 17 – 18 to “strengthen the current India-Nigeria Strategic Partnership” was but a renewal of over six decades of bilateral relationship between India and Nigeria dating back to 1958 – two years before Nigeria secured her independence from Britain. While the two leaders spoke of the immense potential for collaboration in the fields of trade, investment, education, energy, health, culture, Prime Minister Modi also offered India’s experience in agriculture, transportation, affordable medicine, renewable energy, and digital transformation to Nigeria.

Nigeria has always benefitted from her close relationship with India. For instance, besides the support of India teachers and doctors which Nigeria enjoyed immediately after independence, it is on record that it was India that established the National Defence Academy in Kaduna and the Naval War College, Port Harcourt. Today there are about 60,000-strong Indian expatriate community in Nigeria and over 200 Indian companies with investment portfolio of over $27 billion.

As post-colonial nation-states created by Britain to satisfy her greed for continued exploitation of resources of conquered and colonized territories, India and Nigeria share some parallels. Both are heterogeneous and multicultural societies where groups at different levels of cultural development were forcibly merged together without consultation. While Nigeria with a population of over 200m has about 350 ethnic groups, India with a population of about 1.4 billion has over 2000 ethnic groups. Sowing the seeds of future instability by Britain was not by accident. British officials, after all, had earlier boasted that it was their presence alone that had prevented the newly created states of Africa and Asia ‘from disastrous descent into turmoil of warring sects’. Institutionalising a federal arrangement for strange bed-fellows as a strategy for exploiting ethnic consciousness of federating ethnic nationalities was not out of place.

 India is ethnically diverse with significant diversity within regions; almost every state and several districts have its own distinct mixture of ethnicities, traditions, and culture. But India, unlike Nigeria has been able to manage her diversity because India’s political elite saw their pluralism as strength and accepted the challenge of living together. They saw nothing wrong with tribes and made conscious effort to create states on basis of languages spoken by citizens such as Maharashtra, Punjab and West Bengal.

The federal system of India provides equality to all the citizens as well as freedom of expression and freedom to practice their religion, etc. In terms of financial relations, India follows a system of fiscal federalism, where financial resources are distributed between the central and state governments. The constitution provides for the sharing of taxes and grants-in-aid to ensure financial autonomy for the states.

Like India, our own 1957 constitution also laid down the framework for a federal system of government clearly defining the powers and responsibilities of the central and regional governments. The regional list includes subjects of local or regional importance, such as police, public health, and agriculture. The concurrent list includes subjects on which both the central and state governments can legislate. Fiscal federalism ensures or guarantees financial autonomy of federating regions.

Sadly,  unlike India’s elite, our deceitful political elite undermined our own federal arrangement by unconstitutionally interfering in the affairs of the regions, and assaulting the tribes, the building block for African societies, claiming, albeit falsely, that it is possible to love Nigeria more than your family or your tribe which will be like climbing the palm tree from the top.

 Despite the provision of the 1957 constitution, the feudal lords in the north did not allow freedom of religion. The 1963 republican constitution, the first to be wholly midwifed by Nigerian elite provided the coalition partners an opportunity to insert a clause that would allow them to arrest and detain people without court order for expressing their opinion. The first victim was Obafemi Awolowo who was detained for criticizing Anglo-Nigerian defence pact.

However, while India was busy setting up technology special schools (India Institute of Technology (IITS), the India Institute of Science (IISc) and National Institute of Technology (NITS) that attracted the best brains among India’s youths which has today resulted in Indian engineers heading most of the leading tech companies in the world, we were busy replicating federal government unity schools across Nigeria.

India started the arduous task by first taming the feudal lords, who had to be replaced by the capitalist class who know how to mobilise the people to secure power. India did this without underestimating the intrigues of the metropolitan powers. As President Bola Tinubu moves from France to Britain and to Germany, he must not forget the duplicitous role of Britain as foremost promoter of ethnic consciousness, secret supporter of Fulani claim of ownership of Nigeria, and betrayer of  Biafra that had expected her support  as chief promoter of ethnic consciousness.

India therefore emerged as a union of nationalist groups that respect the culture and values of federating members. Apart from Hindi, the official language spoken by about 40 percent, there are about 20 other recognized languages. They understand their challenges include taming the feudal lords who have to be replaced by the capitalist class. They did not underestimate the intrigues of the metropolitan powers in the guise of promoting ethnic consciousness. Or preventing the disintegration of areas amalgamated without consideration for their level of cultural development and favoured one group above the other.

Patriotism for Indians is not about loving India. That comes naturally from the union of nationalities. They don’t have to set up unity schools, institutionalize quota system of admission to tertiary institutions or into bureaucracy, discriminatory admission marks for JAMB or decree a National Youth Service in pursuit of elusive unity.

Instead, they set up competitive tech schools that attract the best of their youths. The result today is that most of the best tech companies in the world are headed by Indians.  Indian leaders don’t need to decree patriotism. The billions of dollars repatriated back to India yearly by their tech experts in high demand in Europe and North America speak louder than the voices of those turned their brainwaves to state policies.

India’s visionary leaders didn’t have to mouth unity or patriotism. All they did was to invest in the education of their youths. The product of such schools are today in charge of India’s economy, ranked fifth in the world by GDP and in fact projected to become the third largest economy by the end of the decade.

We institutionalized quota system of admission into the unity schools to accommodate those who as a result of lower scores could not compete with their counterparts. In the name of unity, we set up JAMB to accommodate those who have no business in the universities, and quota system of recruiting third class graduates at the expense of first class graduates into the bureaucracy.

We don’t need to search far as to why India has become choice destination for Nigeria’s medical tourism, why our best graduates are moving in droves to seek greener pastures in Europe, Canada and USA and why India’s elite has been able to stabilize their democracy, their economy, sent satellite to the moon and became a nuclear power while our own elite remain the scourge of our nation.

• Foreign investments safe, says Tinubu

South Africa is exploring an investment opportunity in Nigeria’s solid minerals sector to boost industrialisation and transport system.

Highlighting the elements of the investment drive, President Cyril Ramaphosa said his country would collaborate with Nigeria to harness lithium to drive the green energy transition and electric vehicles (EV) batteries.

The South African leader, who expressed his country’s interest at the Nigeria -South Africa Business Roundtable in Cape Town, said Nigeria’s vast lithium reserves could serve as a cornerstone for industrialisation in the EV sector.

At the session, President Bola Ahmed Tinubu said Nigeria is a safe haven for investments, adding that there is a guarantee for ease of doing business under his administration.

Presidential Adviser on Information and Strategy Bayo Onanuga said in a statement that during the interaction, President Ramaphosa urged the private sector and development finance institutions to collaborate in building infrastructure and developing the manufacturing capabilities in this sector.

Emphasising the role of critical minerals in the global shift to a low-carbon economy, the South African leader called for collaboration in mineral processing and beneficiation at the source.

He said such partnerships would ensure that both nations maximise the value derived from their resources while bolstering their positions in the rapidly growing clean energy manufacturing sector.

President Ramaphosa alluded to the ‘South Africa’s Just Transition Framework and Investment Plan,’ which anticipates significant investments in renewable energy and the green economy over the next few years.

He said the approach aligned with global efforts to achieve sustainable development while reducing carbon emissions.

Ramaphosa also drew attention to the opportunities in pharmaceuticals, underscoring how the two countries are strategically positioned to benefit from burgeoning industries tied to clean energy and innovation.

He urged businesses from both nations to actively engage in initiatives that support green energy and sustainable industrialisation.

President Ramaphosa stressed:”There is also much opportunity for cooperation on pharmaceuticals. Our two countries are strategically positioned to benefit from the rapid growth of clean energy manufacturing industries.

“South Africa has developed a Just Transition Framework and an Investment Plan that anticipates massive investments in renewable energy and the green economy over the next few years.

“As part of the broader global transition to a low-carbon economy, we must leverage the abundant natural resources that exist in our countries to promote green industrialisation.

“We should leverage each other’s capabilities in minerals processing. We must work together to ensure critical minerals are beneficiated at source. We call on businesses to support and involve themselves in these initiatives.”

G20: South Africa to endorse Nigeria

The South African leader said his country will “keenly” support Nigeria, “a valued sister country”, to become a member of the G20 club of the world’s major economies.

He gave the promise at the official launch of South Africa’s presidency of the G20 in Cape Town, few minutes before he received President Tinubu at Tuynhuys to co-chair the 11th Bi-National Commission between Nigeria and South Africa,

South Africa and the African Union are the continent’s only representatives in the G20.

Ramaphosa said other key African countries should also be admitted to the club “so that we can raise the voice from Africa, the neglected continent for the longest time.”

He said South Africa had been the lone voice for Africa in the G20 before the admission of the African Union last year after his country had lobbied for it to become a member.

He said: “We have a voice, we have a presence, and we will be the biggest growth story in years to come.

“Our population is going to grow by leaps and bounds, and therefore, as a continent, we are going to be a big noise, and we want that big noise to be recognised in the form of countries that will be part of the G20 right now.”

Nigeria safe for investment, says Tinubu

President Tinubu said Nigeria is safe for investment, urging South African businessmen not to entertain any fear.

To boost mutual confidence, Nigeria and South Africa fully operationalised the Joint Ministerial Advisory Council on Industry, Trade, and Investment to enhance economic cooperation between the two leading African economies.

President Tinubu said Nigeria is open for business and ready to guarantee stability, security and the rule of law.

He promised to address the issues that discourage South African investors from growing their businesses and franchises in Nigeria, urging South Africa to reciprocate by allowing Nigerian companies to operate and flourish in the country.

President Tinubu said Nigerian officials would collaborate with their South African counterparts to facilitate the implementation of the agreed mandates under the Bi-National Commission.

He said: “Nigeria and South Africa are co-joined twins tied by the hips not only for survival but for the prosperity of the people.”

President Tinubu also said Nigeria is undergoing very stringent positive economic reforms to serve Nigerians and bring prosperity to Africa.

He added: “The reforms have begun to see the light of the day. You have no better investment than in Nigeria. You cannot earn better on your investments elsewhere except in Nigeria.”

President Ramaphosa, who shed light on the Joint Ministerial Advisory Council on Trade, said it was launched during his state visit to Nigeria in 2021.

Its aim was to address trade and investment challenges, foster policy alignment, and create a conducive environment for business growth in both countries.

President Ramaphosa said: “Today, we agreed on the full operationalisation of the Council. This will support a conducive environment for improved trade and investment. Through the Council, we hope to ensure the efficient resolution of trade- and investment-related challenges.”

He acknowledged the strategic importance of both nations in their respective regions and the need to diversify trade relations to move beyond oil and gas dependency.

Ramaphosa added: “South Africa runs a large trade deficit with Nigeria, mainly due to oil and gas imports. We need to diversify our trade to ensure a mutually beneficial partnership.

“We are greatly encouraged by the presence of South African companies in Nigeria, just as we welcome Nigerian companies in South Africa.

 “We do recognise that challenges still exist within our respective operating environments that limit the expansion of investment and sometimes impact on the operations of companies.”

Bitcoin has shattered the $100,000 milestone, riding a wave of investor confidence sparked by U.S. president-elect Donald Trump’s pro-crypto pivot.

The world’s largest cryptocurrency surged as high as $103,800 on Thursday, marking a 50 per cent rise since Trump’s November election win.

The rally intensified after Trump nominated crypto advocate, Paul Atkins, to lead the Securities and Exchange Commission (SEC), signaling a shift toward a more favorable regulatory environment.

Atkins’ appointment, along with Trump’s pledge to make the U.S. “the bitcoin superpower of the world,” has electrified the market. 

“Bitcoin reaching $100k is an incredible milestone for our movement,” said Kris Marszalek, CEO of Crypto.com. “We never doubted. We never wavered. And we will never stop building.”

Trump’s crypto-friendly administration has also tapped Howard Lutnick for the Commerce Department and Elon Musk to co-lead the “Department of Government Efficiency,” humorously dubbed “DOGE” after the popular cryptocurrency Dogecoin, which has soared 150 per cent since election day.

According to Financial Times on Thursday, this surge marks a stark contrast to the sector’s downturn two years ago, when the collapse of FTX and regulatory crackdowns sent Bitcoin plummeting to $16,000.

Now, institutional money is flowing in, with BlackRock’s Bitcoin ETF alone managing $45 billion in assets.

Cameron Winklevoss, co-founder of Gemini, summed up the sentiment: “This bitcoin bull run is different. We have a pro-tech president-elect, a red Senate, a red House, and a mandate from the country to build.”

With $4.4 billion pouring into crypto ETFs since November, and companies like MicroStrategy planning to raise $42 billion for further Bitcoin investments, analysts predict a “golden era” for digital assets under the incoming administration.

Earlier in the first weeks of November, PUNCH Online reported Bitcoin smashed through the $80,000 milestone, reaching an all-time high of $81,858 amid post-election optimism in the US, as pro-crypto policies appear more likely under Trump.

Barely three days after, the world’s largest cryptocurrency reached a record high above $90,000.

Meanwhile, a check by PUNCH Online as at 5.33am on Coin Market Cap placed the coin at $102,724.32 with over 7 per cent increase in the last 24 hours.

Notably, Trump’s previous administration leaned heavily towards scepticism regarding digital currencies, but the president-elect has since embraced crypto, pledging to make the US the “crypto capital of the planet.”

CNBC noted that Trump had promised to retain “100 per cent of all the Bitcoin the US government currently holds or acquires in the future” and to dismiss SEC Chair Gary Gensler, whose tenure saw over 100 regulatory actions against crypto firms.

[Punch]

Human beings naturally resist change. When comfortable where we are, we find it extremely difficult to embrace an uncharted path or seek greater glory. Those who are risk averse often don’t want to venture out to embrace unfamiliar territories no matter how tempting the possible reward may appear. We should not, however, be so imprisoned by the fear of the unknown not to explore new possibilities because we find our present circumstances satisfying enough.

Since the public debate around the Tax Reform Bills started, the strongest push back against it has come largely from the north. Borno State Governor, Professor Babagana Zulum has become the face of the resistance for the reasons he has pushed forward, even when some of them didn’t speak to the facts and provisions of the bills.

If Governor Zulum and other voices of resistance who think the states will be shortchanged had actually taken time to examine the four executive Bills, they will see how progressive and transformative the Bills are. They will also discern the thought behind them which is primarily to make both the Federal and sub-nationals fiscally stronger and buoyant.

In his public presentations and the most recent being the Channels TV Town Hall moderated by Seun Okinbaloye Monday evening, Chairman of Presidential Committee on Tax and Fiscal Policy Reforms, Taiwo Oyedele and other panelists again made convincing arguments for the passage of the Bills before the National Assembly.

Here are the 10 ways the Tax Bills will serve the states better and enhance their capacity to earn more revenue:

1. The federal government will cede 5% out of its current 15% share of VAT revenue to states.

2. The Bills will transfer income from the Electronic Money Transfer levy exclusively to states as part of stamp duties.

3. The Bills seek to repeal obsolete stamp duties law and re-enactment of a simplified law to enhance the revenue for states.

4. Under the new dispensation the Tax Bills will usher in, states will be entitled to the tax of Limited Liability Partnerships.

5. When passed by the National Assembly, the Tax Bills will enable the state government to enjoy tax exemption on their bonds to be at par with federal government bonds.

6. Under the proposed tax reform, states will enjoy a more equitable model for VAT attribution and distribution that will lead to higher VAT income.

7. Integrated tax administration will provide tax intelligence to states, strengthen capacity development and collaboration, and scope of Tax Appeal Tribunal to cover taxpayer disputes on state taxes.

8. The proposed tax laws grant powers for Accountant General of the Federation to deduct taxes unremitted by a government or MDA and pay to the beneficiary sub-national government on personal income tax of workers of federal institutions in states.

9. Framework to grant autonomy for states internal revenue service and enhanced Joint Revenue Board to promote collaborative fiscal federalism.

10. Legal framework for taxation of lottery and gaming and introduction of withholding tax for the benefit of states.

From the aforementioned, it is clear that the Tax Bills are not in any way injurious to the states. Apart from streamlining the tax system in Nigeria and catalysing economic output, the tax and fiscal policy reforms provide incentives for states to become economic powerhouses. The challenge for governors will be to put on their thinking cap by investing in manpower and critical social and physical infrastructure in their states that will support businesses and socio-economic activities to flourish.

Ajayi is the senior special assistant to the president on media and publicity

Mele Kyari, group chief executive officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, says it is not a crime to blend petroleum products at the old Port Harcourt refinery.

Kyari, who spoke at the commissioning of the NUPENG Towers in Lagos on Wednesday, said the refinery is up and running, with loading operations in full swing.

On November 26, the refinery commenced crude oil processing after several years of being moribund.

The state-owned plant also commenced the loading of petroleum products for trucks.

The national oil firm disclosed that the refinery commenced production of daily outputs of straight-run petrol (naphtha), which is blended into 1.4 million litres of petrol.

Some Nigerians have questioned the ongoing blending at the refinery when the plant ought to be refining crude,

Speaking on the issue, Kyari said blending is not a crime as it is an integral part of the refining process.

“If you don’t blend, you will bring out off-spec products which will destroy your vehicles,” he said.

“Every refinery blends because what is on specification in the United States of America will be off-spec in Nigeria and elsewhere.

“Blending is necessary to bring products to the specification of different countries or regions.”

Kyari also invited those in doubt about the operationalisation of the refinery, including Femi Falana, human rights activist and lawyer, to join him on a tour of the Port Harcourt, Warri, and Kaduna refineries to verify their various statuses.

He congratulated NUPENG on the successful completion of the NUPENG Towers, urging the union to continue to prioritise dialogue and cooperation in its relationship with the NNPC and the federal government.

The GCEO said the president’s interventions in the oil and gas industry by way of executive orders are yielding positive results, with more investments coming in and prospects of more jobs in the industry.

[TheCable]

•Says tax reform bills necessary to end struggles by Nigeria’s poorest 

•Insists consultants won’t be involved in collection

•Senate suspends further action on public hearing, sets up ‘elders’ committee to douse tension

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, yesterday argued that derivation formula in the tax reform will reduce inequitable distribution of resources. He stated that some states pushing back on the proposed 60 per cent Value Added Tax (VAT) derivation formula may end up with 100 per cent if the courts eventually decide so.

The Senate proceeded to set up a 10-member committee  of ‘elders’ led by Senate Minority Leader, Abba Moro  to  meet with Attorney General of the Federation’s team on areas of concerns in the bills to douse the lingering tension of the tax reform.

Speaking on Arise Television, Oyedele said that it was surprising that the same states for which the committee was fighting were the ones kicking against the passage of the tax reform bills.

The tax expert’s remarks came as the Senate yesterday directed its committee on Finance to stop further action on the landmark tax reform bills, pending when grey areas of concern raised on the proposed legislations by stakeholders are properly addressed.

But Oyedele explained that the current VAT allocation formula, based on 20 per cent derivation, 50 per cent equality of states, and 30 per cent population, was flawed.

He cited litigation initiated by Lagos and Rivers States, in which they argued that VAT collection should be under state control, since it is not explicitly mentioned in the constitution, arguing that if the case goes their way, it will mean that VAT will be based on 100 per cent derivation, further deepening the current inequity among states.

He defended the urgency of the tax reform bills, emphasising the need to address economic challenges, promote fairness, and ensure equity in revenue sharing, outlining how the reforms aim to resolve systemic issues in the VAT system and provide relief for struggling Nigerians.

He said: “Most likely, if we get the judgement from the Supreme Court, it will say states should administer it. When a state administers VAT, then it becomes 100 per cent derivation.

“It is important for us to understand that our proposal to move derivation to 60 per cent is actually a middle ground. If we lose the opportunity of getting this 60 per cent derivation, we are likely to end up with 100 per cent derivation, which, to be honest, is not bad but is going to create a lot of problems for businesses and economic growth.”

Asked why the federal government was in a rush to ensure that the bills were pushed for emergency passage, Oyedele maintained that the challenge of streamline Nigeria’s tax system was indeed an urgent matter.

“We are at a stage today where the majority of people are struggling. Small businesses face over 60 official levies and taxes, over 200 unofficial ones. If you want to provide relief for your people, you should do it in a hurry because it’s urgent; it’s an emergency,” he pointed out.

According to him,  the current system which attributes VAT revenue to states where payments are made rather than where consumption occurs,  disproportionately benefits Lagos State and to a lesser extent Rivers state.

 In 2023 alone, Oyedele said that Lagos accounted for over 80 per cent of VAT revenue, despite its economy being about 30 per cent of the national total, urging those opposed to the current bills to imagine a situation where Lagos collects all its VAT.

“To promote equity and stimulate economic activities across the country, the reform proposes attributing VAT to where consumption takes place and increasing the share of VAT revenue states retain,” he stressed.

Oyedele, who also responded to insinuations that adequate consultation was not carried out by the committee, said that there were at least four meetings with  finance commissioners as well as revenue service chairpersons, and with governors, to a lesser extent.

“We also had engagement with the governors themselves, but you would imagine that if you manage to get the airtime to speak to governors, either through the governors’ forum or the national economic council, they are unlikely to give you one hour or two hours, so there was a particular meeting where we got 15 minutes,” he disclosed .

He added: “We understand they have a very busy schedule.  We also recognise that they may not be in the best place to deal with the technicalities of what we were dealing, that is why we spent more time with their finance commissioners and with the revenue service chairpersons across Nigeria.”

Stressing that Tinubu has never interfered in the work of the committee, he said that the body was able to convince the federal government to reduce its share of VAT from 15 per cent to 10 per cent, reallocating the remaining 5 per cent to states,.

 “This amount exceeds what states currently collect from multiple consumption taxes and ensures efficient, centralised tax collection,” Oyedele argued.

He also dismissed allegations of third-party involvement in tax administration, especially consultants, noting that the bills explicitly prohibit the use of such consultants for tax collection or assessment.

Separately, Special Adviser to  President Bola Tinubu on Policy Communication, Daniel Bwala, has said that the opposition from the north against the bill was just a mere plot for political negotiate

Speaking on Arise television programme, Prime Time, Bwala said: ”I have a feeling that this whole opposition thing, I see it even more of playing the politics for negotiation.”

Bwala, who hails from Borno, said contrary fears expressed in some quarters , the bills would not impoverish the north.

“I am from the north, and I am really saddened by the notion generated in the media that it is a north versus the south thing. This is not from the media in the sense of media people, but people creating the narrative that the tax reform bills are built or designed to afflict the north.

“I have seen lots of northerners who supported the bill, lots of them from different parts of the north, north-central and north-west. The very opposite is the point of the bill, because if you say that the bill is going to impoverish the north or is going to afflict poor people, it is actually this proposed bill that is addressing the problem that the poor people encounter.

“But the reason why I’m very emphatic about this issue of poverty is because I come from the north and the conversation in the north is that this will bring poverty to you, or this one will impoverish you. The tax is in favour of the poor,” he maintained.

Also yesterday, the Senate directed its committee on finance to stop further actions on the landmark tax reform bills pending when grey areas of concern raised on the proposed legislations are properly addressed.

The Deputy President of the Senate, Jibrin Barau, who stated this at plenary, specifically asked the Senate Committee on Finance, to put the proposed public hearing on hold for now.

He said a team of the Senate will today (Thursday), meet a delegation of the federal government led by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN).

Barau said: “It’s on this note that the Committee on Finance that the bills have been referred to, should put on hold further action on it, that is, public hearing and other issues until we resolve these issues.

“All sides will be given the opportunity and we shall resolve the issues before anything is allowed to go.”

Barau said the proposed meeting with the AGF was aimed at resolving the criticisms on the proposed tax reform bills currently before the two chambers of the National Assembly.

Barau said the meeting will be held at the National Assembly Complex, Abuja and that it was necessary for the lawmakers to have extensive interaction with the government officials before passing the tax reform bills.

He said the Senate Minority Leader, Abba Moro will lead the senators in the meeting. Other senators who will attend the meeting according to the Deputy Senate President are: the Senate Chief Whip, Tahir Monguno; Adamu Ailero, (PDP, Kebbi Central), and  Seriake Dickson (PDP, Bayelsa  West).

Others are:  Titus Zam (Benue South), Abdullahi Yahaya (Kebbi), Adeola Olamilekan (APC, Ogun West), Sani Musa (APC, Niger East) and Adetokunbo Abiru (APC, Lagos East).

Barau said: “Of the tax reform bills that are before us, this is in consonance with the fact that we understand at all times that this Senate is the highest assembly in this country.

“The Senate is composed of men and women of wisdom, of pedigree that this country has entrusted to legislate for them for the peace and tranquility and the development of this country. The Senate of the Federal Republic, as known by everyone and indeed other Senates in the entire world, are known to be the stabilisers of every country.

“When there are difficulties and disagreements, the Senate of this country comes in with solutions through dialogue and consensus at all times to solve such problems, and the Senate of the Federal Republic of Nigeria has been doing that since 1999.

“Because of this, we decided to put politics, ethnicity, and regionalism aside to sit among ourselves and find the way forward with respect to the issues surrounding the tax reform bills.

“It is on this note that we extended our view to the executive arm of government and it was agreed that there should be a forum to sit down to look at the areas that are creating disagreements to resolve them so that the entire country will remain united – united in our effort to solve our problems.

“Before the introduction of these bills,  we know we’ve been faced with several problems and insecurity that we’ve been trying to solve. The president has been trying, and we’re also working with him to solve issues about our economy, which is in line with global economic problems.

“We also agree that we shouldn’t allow anything else to aggravate our country’s problems. It is on this note that it has been agreed by the executive and also by us that there should be a forum that will sit with the Attorney General of the Federation (AGF)  so that we can sit down and sort out all these problems in the interest of this nation,” he stated.

He  therefore proposed that by tomorrow (Thursday) there will be a meeting with the committee to sit with the Attorney General of the Federation to look at the issues and resolve them.

President Bola Tinubu had on Tuesday directed the Ministry of Justice to work with the National Assembly to address some of the concerns generated by the Tax Reform Bill currently before the Legislature.

The Minister of Information and National Orientation, Mohammed Idris who disclosed this in statement he issued in Abuja, said the nationwide debate on the new tax reform bills was commendable.

Meanwhile, the Colleges of Education Academic Staff Union (COEASU) has warned of grave consequences for the Tertiary Education Trust Fund (TETFund), if the bills are passed and implemented

The teachers’ union said if the bill sails through in the National Assembly, the sources of funding for TETFund might become impeded, thereby stifling the tertiary education in the country.

In a statement issued in Abuja, COEASU President, Dr. Smart Olugbeko criticised aspects of the proposed tax administration reforms, which he said threaten to cut off TETFund’s critical funding sources.

He described the move as a “dangerous ambush” that could severely undermine the development of public tertiary institutions in Nigeria.

He argued:  “Our Union, COEASU, has noted with serious concern the inimical effect of the proposed tax reforms of the federal government on tertiary education in Nigeria.

“The tax reform is nothing but a dangerous ambush aimed at destroying public tertiary institutions in Nigeria. We strongly reject the aspects of the proposed tax administration which aims to withdraw or impede on the source of fund to TETFund.

“Such injury, if allowed to stand, is bound to undermine the development of public tertiary education in Nigeria,” Olugbeko added.

Emphasising the pivotal role of TETFund, Olugbeko noted that the fund was a product of decades-long advocacy by academic unions, particularly the Academic Staff Union of Universities (ASUU), adding that before its establishment, Nigeria’s tertiary institutions were grappling with decayed infrastructure and inadequate funding.

“It is shocking to note that no Nigerian government in the last two decades or more has committed up to 9 per cent of the annual budget to education despite UNESCO’s recommendation of 26 per cent,” the statement added.

COEASU warned that withdrawing TETFund’s funding source could push public tertiary institutions into the stock market, transforming them into profit-driven ventures accessible only to the wealthy.

“Except for TETFund, which has become the spine and lifeblood of public tertiary education funding, Nigerian universities, polytechnics, and colleges of education would have gone comatose.

“TETFund has been playing an indispensable role in the development of tertiary institutions in Nigeria, providing funding for infrastructure, research, teaching, and staff development,” Olugbeko stated.

COEASU accused the political elite of attempting to dismantle public tertiary institutions in favour of private, profit-driven alternatives, as was done with public secondary schools.

“Rather than killing TETFund through the purported tax reform, the federal government should strengthen and expand its revenue accrual sources with a view to sustaining the fund’s commendable efforts in our institutions,” Olugbeko stressed.

The controversy surrounding the proposed adjustment to the formula for sharing the states’ portion of the Value Added Tax (VAT), especially the derivation component, in the tax reform bills submitted to the National Assembly by President Bola Tinubu is yet to abate. What I find interesting is that many readers are asking for my take on the issue. When I respond with ‘Tinubu, Wike and the Politics of VAT’ published on this page on 16 September 2021, everyone to whom I have forwarded the column replied that it is worth publishing again because it addresses many of the issues that are currently in the public domain. As I wrote in the column almost two years before he became president, the VAT battle was ignited by Tinubu as Lagos State governor. But is he handling the issue well now that he is president of Nigeria?

Before I draw my conclusions on this vexatious issue, let me also state for the benefit of those who do not know me and may not be familiar with my writing that I am not the author of a piece being circulated on WhatsApp credited to one Olusegun S. Adeniyi. Aside the fact that Kwara State, from where I hail, is in the northern part of Nigeria, I don’t subscribe to unhelpful and divisive rhetoric. Now to the slightly abridged column of September 2021, before I conclude with my take on the current logjam.

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In September 2018, there was an interesting exchange in Premium Times between Vice President Yemi Osinbajo and his ‘illustrious predecessor’ (as he described him), Alhaji Atiku Abubakar. The issue in contention was restructuring of the country. The latter had taken on the former on his postulation that what Nigeria required was “managing resources properly and providing for the people properly.” To Atiku, Osinbajo failed “to appreciate the connection between Nigeria’s defective structure and its underperformance.” Defending his stance, Osinbajo argued that “good governance involves, inter alia, transparency and prudence in public finance,” before throwing this punchline: “Surprisingly, Alhaji Atiku leaves out the elephant in the room – corruption. And how grand corruption, fueled by a rentier economic structure benefits those who can use political positions or access to either loot the treasury or get favorable concessions to enrich themselves.”

I have spent considerable time in the past week investigating the VAT case under reference and my findings are quite revealing. In the statement of claim filed at the Supreme Court, the LASG under Tinubu had stated: “The House of Assembly of Lagos State of Nigeria is the body entitled, to the exclusion of any other legislative body, to enact laws with regard to the imposition and collection of tax on the supply of all goods and services within Lagos State of Nigeria and that Lagos State of Nigeria, or any agency of the State, is the body entitled, to the exclusion of any other body, to assess and collect such tax, and that the revenue of the Lagos State Government has been and continues to be affected by the enforcement of provisions of the Value Added Tax Act.”

Based on this claim, Lagos then urged the Supreme Court to determine “Whether upon the coming into effect of the Constitution of the Federal Republic of Nigeria, 1999, the said Value Added Tax Act is an existing law within the meaning of Section 315 of the said Constitution, being a federal legislation, which is deemed to be an Act of the National Assembly.”

Apparently mindful of the implications of the case against the background of some earlier rulings, the Supreme Court counselled Lagos to seek a political solution on the issue. That was understandable. A few years earlier, when the state challenged the powers of the federal government to grant licenses and permits to erect structures in Lagos without prior knowledge or consent, the Supreme Court ruled in favour of the state. The apex court held that any item “not expressly mentioned in the Exclusive Legislative List or Concurrent Legislative List is Residual and within the legislative competence of the state government.”

Knowing it had a solid case on VAT, Lagos refused to toe the suggested line of political solution. Eventually, the federal government filed a preliminary objection on technical point, asking the supreme court to strike out the case on grounds that there was no dispute between it and Lagos. The authority being challenged by Lagos, according to the federal government, was that of the Federal Inland Revenue Services (FIRS) hence the suit ought to have been filed at the Federal High Court (FHC). The federal government averred: “The Plaintiff’s cause of action relates to acts of a federal organ and cannot form the basis of invoking this Honourable Court’s Original Jurisdiction to entertain this suit; and the entire suit constitutes an abuse of court processes.”

In determining the case, the Supreme Court held that based on the affidavits filed, the grouse in question was about “…a dispute pertaining to the operation of an agency of the federal government.” With that, the Supreme Court concluded that it was the FHC “that was imbued with jurisdiction to the exclusion of any other court in civil causes and matters relating to the revenue of the government; connected with or pertaining to taxation of companies and other bodies; the operation and interpretation of the constitution in so far as it affected the federal government or any of its agencies.”

There were arguments at the time that the Supreme Court deliberately chose a clever route since Lagos was challenging the VAT Act enacted by the National Assembly and not FIRS as claimed by the federal government. But Lagos was left with the option to take the matter up at the FHC. Somewhere along the line, the state that had for 16 years been in opposition suddenly found itself in the ruling All Progressives Congress (APC) in 2015 and decided not to pursue the matter any further.

However, apparently taking a cue from Lagos, Rivers State under Governor Nyesom Wike filed a case against the FIRS at the FHC. And in his judgement, Justice Stephen Pam declared that FIRS “has no constitutional authority to enforce and administer taxes not expressly stipulated under Items 58 and 59, Part I, Second Schedule to the 1999 Constitution of the Federal Republic of Nigeria.” Following that decision, the Rivers State House of Assembly quickly enacted VAT Law No. 4 of 2021 to end the authority of the FIRS to administer, collect and enforce the VAT Act, 2007 in Rivers State. Lagos State that had pretended to be sleeping on the issue also jumped in with the accelerated passage of the VAT bill “in line with fiscal federalism that we have been talking about.”

I have always suspected that the VAT law would unravel one day. In a 2016 interview, former president of the Institute of Chartered Accountants of Nigeria (ICAN) and respected tax consultant, Mr Emmanuel Ijewere (he passed away last December), explained the mandate General Ibrahim Babangida gave the committee (which he chaired) that came up with the VAT law in 1993. “What was happening at that time was that there was a sales tax in several states, and there was no particular rule as to what they were charging. It was being used as a source of creating confusion, so the government now said let us standardize it.” Ijewere said his committee was told that “whatever money was collected in a state belongs to that state” while the VAT tax commission would retain 5% for administration. “Somewhere along the line, the federal government took it over, pushed the states aside, and that defeated the whole thing. It now turns out that the states that are generating a lot more VAT are not getting the commensurate amount of money from their economic activities and that was the unfair part of it.”

ENDNOTE: From the foregoing, it is clear that I saw this problem coming more than three years ago. I also suggested the way forward. “From my reading of the whole situation and given the experience of Lagos on this issue, a political solution appears the surest bet to the VAT imbroglio,” I wrote at the time. “For that to happen, President Muhammadu Buhari must show leadership. He can delegate Vice President Yemi Osinbajo to use the instrumentality of the National Economic Council (NEC) which he chairs to negotiate with the states.”

Not surprisingly, Buhari did nothing. And in dealing with the issue, his successor has compounded the problem. Not only did President Tinubu discard the NEC recommendation to withdraw the bills before the National Assembly to pave the way for more comprehensive consultation with key stakeholders in the country, he also dismissively told the council, headed by Vice President Kashim Shettima and comprising all the 36 governors, to direct their reservations to the National Assembly. That statement was in bad taste.

Considering recent Supreme Court rulings which suggest a stance to uphold the federal nature of our constitution, presidential handlers may feel that the law is on their side on this matter. But that will be a myopic reading of the situation in a country like ours. The Waziri Adio-led Agora Policy, a think tank focused on development and governance, has done extensive work on the tax bills and their implications in practical terms. The main takeaway from their interventions is that there will be losers and winners on the VAT issue, and it will impact revenue in many states. You don’t handle a policy like that the way this administration has gone about it.  

For instance, Agora Policy’s disaggregation of the ‘percentage gains and losses on actual and proposed VAT for states for October 2024’, indicates that no fewer than 14 states will suffer revenue deficit with ten of them from the North if the proposed VAT formula scales through with adjustment. But that does not even tell the whole story. Of the 22 states that will ‘gain’, only nine are from the North, and if you remove Kano (42.32%) and Kaduna (35.24%), the accruing benefits for the other northern states are marginal. In fact, my state (Kwara) would gain only 1.16%. Meanwhile, 13 of the 17 Southern states are projected to witness a massive revenue jump with an additional VAT revenue of 86.17% going to Delta, 62.43% to Ogun, 53.58% to Imo and 50.09% to Anambra. Such fundamental changes in fiscal outlook in each of the 36 states (for better or worse) cannot be treated in such a cavalier manner.

When the stakeholders (federal government, 36 states and 774 local governments) gather each month to share the proverbial ‘national cake’ at the meeting of the Federation Account Allocation Committee (FAAC), the main source used to be from Statutory Revenue: oil and gas plus solid minerals and all other taxes/levies from the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS). Not anymore. On 24 November when they last met to share accrued revenues for the month of October, for instance, only N206.32 billion came from that source (after sundry deductions, which is another story by itself). Meanwhile, that N206.32 billion from Statutory Revenue is about 15 percent of the net sum shared, raising questions about the management of the Federation Account. In contrast, of the N1.411 trillion shared at FAAC for the month, the VAT component was N622.3 billion!

Like the two policies of the current administration on fuel subsidy and Naira exchange rate, the motivations behind them may have been good but their reckless implementation has negatively impacted the people, to put the situation mildly. The same could happen with the tax bills, which ordinarily are not a bad idea. Because most states rely on money shared at FAAC to fund their budgets, it is no surprise that we now have a political crisis that has divided the country along sectional lines. I continue to urge President Tinubu to dialogue with the governors on this issue. If he bullies his way to get the laws passed by the National Assembly without the buy-in of critical stakeholders across board, the consequences may be too difficult to manage in a fragile country like Nigeria.

Ghana’s President Nana Akufo-Addo, who completes his mandatory two terms by 7 January 2025, has promised to leave office through peaceful and credible general elections on 7 December 2024.

“I came (to the office) as a result of a peaceful and credible election, and I want to go out through the same process,” to entrench the democratic tradition in Ghana, the Ghanaian leader told visiting ECOWAS Election Observation Mission led by former Nigerian Vice-President Mohammed Namadi Sambo during an audience at Jubilee House, Accra on Tuesday 3^rd December.

President Akufo-Addo said that ECOWAS as a community has been facing “challenges and negative developments”, including violent extremism and military incursions in politics, especially the decision of three member States to quit the regional economic bloc.

“The responsibility is on us to respond to these challenges with the conduct of free, fair and credible elections,” he said, adding that the upcoming presidential and parliamentary elections in Ghana, a founding and active member of ECOWAS, would be of particular resonance.

He assured that Ghana has institutions with experience in conducting credible elections under its fourth Republic from 1992, noting that the country values the contributions of ECOWAS, chairing its Authority of Heads of State and Government in the past.

In his remarks, Dr Sambo commended Ghana’s democratic tradition, which included the unbroken ninth cycle of regular elections and peaceful transfer of political power.

He urged the president to galvanise the nation to pull together for peaceful, transparent and credible elections and the consolidation of democracy in Ghana and the region.

The ECOWAS delegation included the Deputy Head of Mission, Baboucarr Blaise Jagne, Gambia’s former Foreign Minister, Ambassador Abdel-Fatau Musah, ECOWAS Commissioner for Political Affairs, Peace and Security, who is leading an Electoral Technical Support Team and Ambassador Mohamed Lawan Gana, ECOWAS Resident Representative in Ghana.

Accompanying President Akufo-Addo at the meeting were Ghana’s Foreign Minister Shirley Botchwey, recently appointed Commonwealth Secretary-General, Interior Minister Henry Quartey, Kow Essuma, Secretary to the President and Michael Afori-Attah, Director Regional Integration, Office of the President.

At a separate meeting with Mrs Jean Mensa, Chairperson of Ghana’s Electoral Commission, Dr Sambo called on the electoral umpire and other stakeholders, including the security agencies, to demonstrate high-level professionalism and neutrality in carrying out their duties.

The EC Chairperson briefed the ECOWAS Mission on the activities of the Commission, saying preparations were on course for a peaceful and credible presidential and parliamentary elections on 7 December.

The National Information Technology Development Agency (NITDA) has revealed that foreign digital companies operating in the country, including Google, Microsoft, and TikTok, among others, paid a total of N2.55 trillion in taxes in the first half of this year.

Hadiza Umar, director of corporate communications & media relations,
disclosed this in a statement on Tuesday quoting data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS).

NITDA commended Google, Microsoft, X, and TikTok for their compliance with the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries.

The code, which was issued jointly by the Nigerian Communications Commission (NCC), National Broadcasting Commission (NBC), and NITDA outlines clear guidelines for promoting online safety and managing harmful content.

While highlighting the impacts of the regulatory framework, NITDA noted that this has also boosted the government’s revenue through the payment of taxes by digital companies.

“Data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS) reveal that foreign digital companies, including interactive computer service platforms and internet intermediaries (such as social media platforms) operating in Nigeria, contributed over N2.55 trillion (approximately $1.5 billion) in taxes in H1 2024.

“This significant increase in revenue underscores the role of robust regulatory frameworks in shaping compliance and driving revenue growth in the digital economy,” NITDA stated.

Providing an update on the level of compliance with the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries, NITDA said all the digital platforms have been making efforts to address user safety concerns in line with the Code and the platforms’ community guidelines.

The highlight of the overall statistics across all the platforms shows that there were 4,125,283 registered complaints in 2023.

About 65.8 million contents were taken down, 379,433 were removed and re-uploaded after appeal by users and 12.09 million users closed and deactivated their accounts.

While commending the progress made, NITDA emphasised the need for continued collaboration and innovation to address emerging challenges and ensure a safer and more responsible digital space.

[Businessday]

Rivers State Governor, Siminalayi Fubara, has debunked claims of his administration engaging in excessive borrowing to fund governance.

Naija News reports that Fubara made the clarification on Wednesday at the inauguration of the 11.8km Okehi-Umuola-Eberi road, a vital link between two sister local government areas of Etche and Omuma.

The Governor noted that the only loan obtained by his administration was a ₦200 billion facility earmarked for the construction of the ring road project, an over 50km dual carriageway connecting six local government areas in the state.

Fubara further challenged those speculating reports of purported borrowing by his administration to verify his clarification with the Debt Management Office (DMO).

He reiterated his administration’s commitment to ensuring the happiness and development of Rivers State residents despite attempts to undermine his efforts.

Fubara also pledged to finish more roads and medical facilities for the residents of Etche and Omuma, adding that vengeance should not be the driving force behind governance, citing the previous administration’s decision to suspend a road via Etche that connected Rivers State to Imo State because it led to the home of an opposition figure.

Fubara Vows To End Unreasonable Violence In Rivers State

In related news, Fubara has vowed to put an end to what he described as unreasonable violence in Rivers State.

The Governor disclosed plans to implement the report of the State Commission of Inquiry on the destruction of local government secretariats.

Fubara stated this at the presentation of the Commission’s report by its chairman, Justice Ibiwengi Minakiri, a serving judge of the State High Court, at the Government House in Port Harcourt.

Fubara argued that politics should not be synonymous with violence but a contest of ideas without permanent enemies or friends.

The governor applauded the Commission for its resilience in completing the task despite attempts to derail the work, including legal challenges and other forms of obstruction.

He wondered why anyone would oppose a Commission dedicated to uncovering the truth and expressed disbelief that individuals who invested in building council complexes could later destroy their own legacies.

[NaijaNews]