The recent submission of four executive tax reform bills to the National Assembly by President Bola Tinubu has sparked intense debate. Central to the controversy is Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), whose clarifications on the reforms have yet to clear the air but intensified discussions. At first glance, the four bills appear to serve distinct purposes: The Nigeria Tax Bill seeks to harmonise various tax laws to reduce multiplicity; the Nigeria Tax Administration Bill focuses on standardising tax processes and compliance requirements; the Nigeria Revenue Service Bill aims to replace the FIRS Act and establish a National Revenue Service (NRS) to be responsible for collecting both domestic and international revenues; and the Joint Revenue Board Bill will create a framework for resolving revenue conflicts between states and local governments. A key aspect of these proposals involves replacing the FIRS with the NRS, which would become a central and most powerful revenue service in the history of Nigeria with the task of being the only agency responsible for collecting all government revenues, including those currently managed by other agencies in oil, customs, and port and other sectors. It will be more powerful and influential than the Central Bank of Nigeria (CBN) and Nigeria National Petroleum Company NNPC and others. Another contentious point is the proposed Value Added Tax (VAT) distribution model. Under the new framework, states receiving VAT collections would retain significant revenue. However, some northern leaders fear this model will disproportionately benefit states where companies are headquartered rather than those where goods and services are consumed. In a statement from Alhaji Muhammad Inuwa Yahaya, Gombe State’s Governor and Chairman of the Northern Governors Forum, northern governors opposed the proposed derivation-based VAT distribution model, citing concerns that it would disadvantage their states. They urged National Assembly members to reject any legislation perceived as unfavourable to any region of the country. The communiqué stated: “The Forum is concerned by the recent Tax Reform Bill sent to the National Assembly, especially the proposed shift to a derivation-based VAT distribution model, which disadvantages the North.” The governors reaffirmed their commitment to national development while emphasising the need for equity in policy implementation to prevent any geopolitical zone from feeling marginalised. Consequently, the following day, the National Economic Council (NEC), chaired by Vice President Kashim Shettima, recommended President Tinubu withdraw the Tax Reform Bills from the National Assembly. The NEC convened for its 144th meeting at the State House in Abuja, where state governors and Federal Executive Council members, including Finance Minister Wale Edun and Budget and National Planning Minister Abubakar Bagudu, participated. Oyo State Governor Seyi Makinde remarked that the council recognised the necessity for further understanding and alignment on the bills, emphasising that more comprehensive consultation would be in the nation’s best interest. Despite this recommendation by Nigerian governors and federal cabinet members in NEC, President Tinubu asserted that he would not withdraw the proposed tax reform bills. His spokesperson, Bayo Onanuga, indicated that the president believes the legislative process should continue, allowing room for input and adjustments through public hearings. Tinubu remains committed to reforming Nigeria’s tax system. Through these proposed bills, the government aims to streamline tax administration, enhance efficiency, and align with global best practices. The bills—the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board Establishment Bill—seek to unify tax processes, reduce overlapping responsibilities, and simplify compliance for both businesses and individuals. It is widely believed that Zacch Adedeji, as the Executive Chairman of the Federal Inland Revenue Service (FIRS), is the driving force behind these reform proposals. His educational background, prior positions, and current role have established him as one of the most influential figures in Tinubu’s administration. Born on January 8, 1978, in Ogbomosho, Oyo State, Adedeji graduated with first-class honors in Accountancy from Obafemi Awolowo University (OAU), Ile-Ife, where he also obtained his Master’s and PhD in the same field. He began his professional journey at Procter & Gamble (P&G) as Corporate Finance Manager for West Africa and later as Finance Leader for SAP Implementation. He also served as Finance Commissioner in Oyo State under Governor Isiaka Ajimobi (2011–2015). He was appointed Executive Secretary of the National Sugar Development Council (NSDC) by President Muhammadu Buhari before becoming the Executive Chairman of FIRS under President Tinubu. While his political ambition is fuzzy—having avoided any major controversy—some suspect his positions on tax reform and proposed legislation harbour hidden agendas. In light of these concerns, he proactively engaged with members of the National Assembly following the submission of the bills. He addressed both the Senate Committee on Finance, chaired by Senator Sani Musa, and the House of Representatives Committee, led by Hon. James Faleke. Adedeji articulated the reforms’ goals, emphasising the need to harmonise existing tax laws, streamline administration, and align Nigeria’s tax system with global standards. He conveyed that the reforms aim to consolidate disparate tax laws and enhance transparency while improving efficiency in revenue collection. He highlighted that these changes would modernise Nigeria’s tax system, adapt to the realities of the digital economy, and position the country attractively for investment. He confirmed that no additional taxes would be introduced, aligning with President Tinubu’s commitment to “not taxing poverty and inflation.” However, until the full details of the bills are made public, speculation will undoubtedly continue. The discrepancy between President Tinubu’s stance and Vice President Shettima-led NEC’s recommendation only adds to the confusion. The contradictory stance of FEC and NEC is indeed puzzling, especially considering the All Progressive Congress (APC) controls governance at the national and state levels. A unified and diplomatic approach would have been more effective in addressing the tax reform proposals unless the drama was a deliberate script for political purposes. As the debate continues, Adedeji’s true intentions and the broader impact of these reforms on Nigeria’s economy remain in question. The outcome will undoubtedly shape the nation’s economic trajectory.
Yushau A. Shuaib is the publisher of PRNigeria and Economic Confidential. yashuaib@yashuaib.com
Ahead of the November 16 Governorship election in Ondo state, Kogi State Governor, Ahmed Usman Ododo has called on members of Egbira people in the state to vote for the All Progressives Congress (APC) and its candidate, Governor Lucky Aiyedatiwa to sustain the achievements of the APC government in the state. Governor Ododo who is the deputy chairman of the election management and strategy committee of the Ondo State Governorship Election Campaign Council made the call while addressing party supporters at the APC rally in Owo. The Governor described Ondo state as a second home for Egbiras and urged them to repeat the feat of the 2020 Governorship election during which the APC recorded overwhelming victory in the state. “I have come to thank you for the support you gave the APC in the last governorship election in Ondo state. “I am aware that we have a large population of our people in Owo, Ifo and Ose local government areas, as well as other parts of Ondo state and I want you to take our message to all of them. “Come November 16, 2024, I urge you to vote for the APC and Lucky Aiyedatiwa as the Governor of Ondo State.” Governor Ododo assured the people of Ondo State that the APC and its candidate, Lucky Aiyedatiwa will deliver the desired dividends of democracy to the people of the state by improving physical infrastructure, access to education, healthcare, water and sanitation, agricultural development, and security of lives and property across communities in the state. He reaffirmed the commitment of the APC administration at both national and sub-national levels to recognize and reward the people for the confidence reposed in the party. He described Governor Aiyedatiwa as a tested hand who can be trusted to build on the pedestal of growth and development already attained by Ondo state under the late Governor Oluwarotimi Akeredolu who died in December, 2023. “We know Governor Aiyedatiwa, he has been tested and can be trusted. We want continuity and consolidation and he has started very well. “I want to let you know that the Ebira, Igala and Okun communities in Ondo state are hundred percent behind you. They will all come out en masse on November 16 to vote for you.” This was even as Governor Aiyedatiwa emphasized the importance of unity and peaceful co-existence among ethnic groups residing in Ondo state. He promised to create more opportunities for non-indigenous communities in the state if elected in the November 16 election. At a courtesy visit earlier, the Ohinoyi of Anegbira in Owo, Adayi Isa Ahmed had expressed delight in receiving Governor Ododo, saying that Egbira people in Ondo will vote for the APC candidate, Governor Lucky Aiyedatiwa in the governorship election. He commended Governor Aiyedatiwa for appointing five members of the Egbira community into positions of authority in his administration and promised that the people will reciprocate the kind gesture by mobilizing more votes than what was achieved in the last governorship election in the state. The APC rally in Owo was attended by members of the Egbira community from Utose, Omolonge, Utelu, Agopanu and others from the six local government areas in Ondo north senatorial district and other parts of the state.
In the wake of Nigeria’s #EndBadGovernance protests, which turned violent and demanded greater accountability, several teenagers largely arrested from Northern Nigeria are now facing trial. These minors, according to government allegations, participated in actions deemed treasonable, which included waving foreign flags and calling for a military takeover of the government. The situation has sparked widespread debate regarding the appropriateness of subjecting minors to trials on charges as severe as treason. Nigeria’s constitution defines treason as any act aimed at overthrowing the government or subverting state authority. Under the Criminal Code Act and Penal Code Act, treason carries severe penalties, including life imprisonment or even the death penalty in extreme cases. The government argues that the actions of these minors waving foreign flags and calling for military intervention constitute treason. However, such charges require evidence of clear intent to subvert the government. The severity of the charge has raised questions about whether teenagers fully understood the implications of their actions, given that many may have participated in the protest without comprehending its political consequences. Nigeria’s legal system provides specific protections for minors, defined as individuals under 18, under the Child Rights Act (CRA) and Child’s Rights Law. These laws emphasize rehabilitation and reintegration over punishment for minors involved in criminal activities, aiming to guide young offenders back toward positive contributions to society. The CRA requires that minors be tried within the juvenile justice system, which ensures confidentiality, considers the child’s age and circumstances, and generally prohibits harsh penalties. While the CRA has not been adopted by every state, its principles reflect Nigeria’s commitment to the welfare of minors. As a signatory to the United Nations Convention on the Rights of the Child (CRC), Nigeria is obligated to treat minors in ways that prioritize their best interests, focusing on rehabilitation rather than punishment. Article 40 of the CRC underscores that children in conflict with the law should be treated in a manner that fosters their reintegration and constructive role in society. The CRC further emphasizes that children should not be deprived of liberty except as a last resort and for the shortest possible time. Nigeria’s obligations under the CRC highlight the need for alternatives to punitive measures in cases involving minors, even if their actions are deemed unlawful. Furthermore, the trial of minors on charges of subversion or treason has precedence in various countries, with each case offering valuable lessons on the importance of proportionate responses. During and after the Gezi Park protests in 2013 and subsequent anti-government demonstrations, Turkey prosecuted a number of minors under terrorism and anti-state laws. Some teenagers were accused of inciting violence or being involved in plots against the state. Although Turkish law has provisions for juveniles, some minors faced serious charges in adult courts under anti-terrorism legislation. In the United States, there have been instances where minors in the United States were charged with serious offenses for participating in political protests. For example, during the Black Lives Matter protests, some teenagers were arrested on charges like rioting, incitement, or even terrorism in specific cases. However, these cases typically moved through the juvenile justice system, focusing on rehabilitation over punitive measures. In Hong Kong, China, during the 2019 pro-democracy protests, authorities charged minors with offenses related to national security. While some faced detention, many were later given probation or community service, with Hong Kong’s courts considering their age and level of involvement. In Iran, following recent anti-government protests, Iranian authorities arrested minors, charging them with sedition or threats to national security. The international community condemned these actions, emphasizing that minors’ involvement in politically motivated activities should not be grounds for harsh penalties without due process. In light of both national laws and international standards, Nigeria can adopt 3 measures to handle this sensitive case in a manner that aligns with legal standards and the best interests of minors. 1. Prioritize Juvenile Courts and Diversion Programs. Given the age of the alleged offenders, trials should be conducted within the juvenile justice system, which focuses on rehabilitation. 2. Consider Lesser Charges. Rather than pursuing treason charges, which carry extreme penalties, the government could consider charges such as unlawful assembly or disturbing the peace. This would acknowledge the importance of upholding the law while also recognizing that minors may not fully grasp the consequences of their actions. 3. Involve Community-Based Programs. Drawing on Nigeria’s tradition of community support and youth development, the government could involve community leaders, families, and NGOs in addressing minors’ grievances. Programs focused on civic education and conflict resolution could help these minors understand their rights and responsibilities in a way that promotes constructive future engagement. In conclusion, the ongoing trial of minors in Nigeria over their alleged participation in the #EndBadGovernance protests reflects a complex intersection of law, politics, and children’s rights. While the government is obligated to maintain order, it must also uphold Nigeria’s commitments to protecting minors under both national law and international conventions. By considering the age and understanding of the accused, focusing on rehabilitation, and potentially downgrading charges, Nigeria can handle this case in a manner that respects its legal obligations while addressing public order. Drawing lessons from other countries, Nigeria has an opportunity to demonstrate leadership in upholding the rights and welfare of children in politically sensitive situations. Abdulrazaq Hamzat is the Executive Director of Foundation for Peace Professionals.
No fewer than 76 teenagers appeared in a court in Abuja, Nigeria Federal Capital Territory (FCT) for arraignment on alleged treason charges for participating in the August #EndBadGovernance nationwide protest. Some of them collapsed inside the court as their trial commenced today, November 1.
The Nigerian Army, under 1 Division and defunct Operation WHIRL PUNCH (now Sector 1 Operation GANSAN YAMMA) has narrated how its men and offers mounted several pressures on bandits for the release of Dr. Ganiyat Nurudeen Popoola who was kidnapped along with her husband, Sqn Ldr Nurudeen Abiodun Popoola and teenage nephew, Master Folaranmi Abdul Mugniy on December 27, 2023, at their official residential home (Doctors’ Quarters at the National Eye Centre in Kaduna). The Army said in a statement today, November 1, that since her abduction, several kinetic and non-kinetic operations were undertaken to secure her release from the terrorists captivity, adding that the efforts yielded partial positive result with the release of her husband Sqn Ldr Popoola on March 8, 2024. “The terrorists had made several demands for ransome money amounting to more than one hundred million naira and some logistics items including motorcycles from the family members before the commencement of intense military kinetic operations that denied them freedom of movements out of their enclaves in the forests and access to basic logistics such as food. “The combined effects of this operation mounted so much pressure on the terrorists that eventually led to a plea by the terrorists for amnesty to enable them to surrender. Their plea was subsequently considered on some given conditions, including the immediate release of Dr. Ganiyat and her nephew among others. “The terrorists finally accepted the given conditions but also requested for the return or payment of compensation for their cattle killed or recovered during various kinetic operations which were handed over to Kaduna State Livestock Agency for custody and further necessary actions.
“The prolonged ordeal had inflicted immense emotional and psychological trauma on Dr Ganiyat’s immediate family and friends particularly her husband and five children including an infant who was being catered for by her extended family members. “Accordingly, Sqn Ldr Popoola and their three daughters; Muadha, Mazeeda and Mariam who are all pupils of Air Force Comprehensive Secondary School Kaduna have visited to see Dr Ganiyyat at 1 Division Medical Services and Hospital in Dalet Barracks Kaduna on 31 Oct 24 where she is presently being medically examined but in high spirits. She will thereafter be taken for debriefing and further psycho-social support by appropriate authorities.”
President Bola Ahmed Tinubu has made it clear to the north and members of the National Economic Council (NEC), that he would not withdraw the Tax Reform Bills presently before the National Assembly. The National Economic Council, which made the recommendation to the President to withdraw the bills to allow for wider consultations, is made up of the Vice President as chairman, governors of the 36 states and other key officers. The Northern leaders, including the governors, traditional rulers and others had earlier raised eyebrows over, and rejected the contents of the bills. In a statement today, November 1, by Presidential Media Adviser on Information & Strategy, Bayo Onanuga, the President insisted that the bills would go through the necessary legislative processes. The President enjoined the State Governors who are members of the NEC chaired by Vice President Kashim Shettima, to make inputs during public hearing rather than asking him to withdraw the bills. President Tinubu commended the National Economic Council members, especially Vice President Kashim Shettima and the 36 State Governors, for their advice, saying however that the legislative process, which has already begun, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly. He advised the governors and others to allow the process to take its full course, even as he said that he is ready for further consultations and engagement with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage. Parts of Onanuga’s statement go thus: “President Bola Tinubu has received the National Economic Council’s recommendation that the tax reform bills already sent to the National Assembly be withdrawn for further consultation. “When President Tinubu set up the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, he had only one objective: to reposition the economy for better productivity and efficiency and make the operating environment for investment and businesses more conducive. This objective remains more critical even today than ever before. “The Committee worked for over a year and received inputs from various segments of society across the geopolitical zones, including trade associations, professional bodies, different Ministries and Government Agencies, Governors, traders, students, business owners, and the organised private sector. “The tax reform bills that emerged were distilled from the extensive work of the Presidential Committee. “The tax bills before the National Assembly aim to streamline Nigeria’s tax administration processes, completely overhaul the nation’s tax operations, and align them with global best practices. “Below are the major highlights of the four Bills. 1. The Nigeria Tax Bill: This Bill seeks to eliminate multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide. 2. The Nigeria Tax Administration Bill (NTAB): This Bill proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions to ease taxpayers’ compliance and enhance the revenue for all tiers of government. 3. The Nigeria Revenue Service (Establishment) Bill: The Bill seeks to re-establish the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect its mandate as the revenue agency for the entire federation, not just the Federal Government. 4. The Joint Revenue Board Establishment Bill: This Bill proposes creating a Joint Revenue Board to replace the Joint Tax Board, covering federal and all state tax authorities. The fourth bill will also establish the Office of Tax Ombudsman under the Joint Revenue Board, protecting taxpayers’ interests and facilitating dispute resolution. “The bills’ overarching objective is to effectively coordinate federal, state, and local tax authorities, thereby eliminating the overlapping responsibilities, confusion, and inefficiency that have plagued tax administration in Nigeria for decades. “Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks. “The proposed reforms seek to consolidate these numerous taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation. “While there may be differences in approach or specific provisions of the new tax bills, what is not in contention is the need to review our tax laws and how we administer them to serve our overall national development agenda. “President Tinubu will continue to respect and welcome the advice and recommendations of the National Economic Council, an essential constitutional organ of government on economic matters.”
The Niger State House of Assembly has called on the military to take decisive action against bandit groups reportedly operating on the grounds near the Kontagora Army Barracks.
The call came following the recent abduction of over 20 passengers traveling along the Mariga-Kontagora road on Thursday, October 31.
According to Barrister Abdulmalik Sarkin-Daji, the Speaker of the Niger Assembly and Mariga Constituency representative, bandits blocked the road between Baban-Lamba and Beri, seizing passengers from five vehicles and moving them to a forest near the military training ground.
Sarkin-Daji highlighted that victims previously held in the same area, after their families paid ransom, confirmed they were held in a forest within sight of the army barracks.
Despite military denials, the Speaker insists that the assembly’s findings reveal the bandits have been using the vicinity as a hideout to launch attacks and detain captives. He urged the military to thoroughly investigate local complaints and prevent the forest from being used as a “safe haven” for bandits.
“Dismissing these reports endangers our communities,” Sarkin-Daji stated, emphasizing the Assembly’s determination to seek federal intervention for the safety of their constituents.
The National Economic Council (NEC) has sought the withdrawal of the controversial Tax Reforms Bill from the National Assembly to allow for wider consultations. The Oyo Governor, Seyi Makinde, who made this known to Journalists at the end of the 145th NEC meeting at the presidential villa, Abuja today, October 31, said this decision formed part of resolutions reached at the meeting. Governor Makinde said that Council members agreed that it was necessary to allow for consensus building and understanding of the bill among Nigerians. “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bill.” Governor Makinde said that this decision is for the benefit of the country and emphasised the need for further consultations regarding the bill. NEC’s decision is coming about a week after the Northern Governors, traditional rulers and other leaders against the reforms bill, though the presidency took time today to explain the position of the bill which emanated from President Bola Tinubu At a meeting on October 28, the Northern Governors’ Forum and leaders rejected the new derivation-based model for Value-Added Tax distribution in the new tax reforms bill before the National Assembly.
Nigeria’s Presidency has assuaged the fear of the leaders of the Northern parts of the country, who rose from a crucial meeting last week, calling for the stoppage of the new tax bills currently before the National Assembly. In a statement today, October 31, Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga described the position of the northern leaders as “misunderstandings and misgivings around the tax reform.” Onanuga confirmed that President Tinubu and the Federal Executive Council recently endorsed new policy initiatives but that they are aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations. He said that the reforms emerged after an extensive review of existing tax laws, saying that the National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape. “First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide. “Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country. “Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government. “Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.” Onanuga said that the fourth bill is aimed at establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers. According to him, the proposed laws would not increase the number of taxes currently in operation, but that they are designed to optimise and simplify existing tax frameworks. He explained that tax rates or percentages would remain the same under the reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians. “The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.” Read the full text of Onanuga’s statement: Governors of 19 Northern States of Nigeria, under the platform of the Northern Governors’ Forum, at their meeting on Monday, October 28, 2024, expressed their opposition to the new derivation-based model for Value-Added Tax (VAT) distribution in the new tax reform bills before the National Assembly. Chairman of the forum, Governor Muhammed Inuwa Yahaya of Gombe State, read the communiqué. The Northern Governors’ Forum meeting also had traditional rulers from the region, led by the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III, in attendance. While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration. President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations. These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape. First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide. Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country. Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government. Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities. The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers. It is instructive to note that these proposed laws will not increase the number of taxes currently in operation. Instead, they are designed to optimise and simplify existing tax frameworks. The tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians. The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy. Importantly, these laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonise revenue collection and administration across the federation to ensure efficiency and cooperation. At the moment, tax administration lacks coordination among federal, state, and local tax authorities, often resulting in overlapping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist. The proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers. Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks. The proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation. On the proposed derivation-based VAT distribution model, which the Northern Governors oppose, it must be stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system. The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed. The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue. The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services. This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states. These reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country. There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need.
In the heart of West Africa, Nigeria stands as a nation rich in cultural diversity, natural resources, and potential. Yet, despite these advantages, the country grapples with a paradoxical reality: a growing population faced with biting hunger and an escalating cost of living. The interplay of these two phenomena not only threatens the livelihoods of millions but also poses a significant challenge to national stability and development. Hunger in Nigeria is not merely a consequence of food scarcity; it is a multifaceted issue exacerbated by economic, social, and political factors. According to the World Food Programme, approximately 25 million Nigerians are classified as food insecure, a statistic that underscores the gravity of the situation. The roots of this crisis can be traced to a combination of agricultural inefficiencies, climate change, conflict, and economic instability. Agriculture, which employs over 70% of the Nigerian population, is plagued by outdated farming techniques, inadequate infrastructure, and insufficient access to markets. Smallholder farmers, who constitute the backbone of food production, often struggle to secure financing and resources necessary for sustainable farming. Additionally, climate change has led to erratic weather patterns, resulting in droughts and floods that devastate crops and reduce yields. The ongoing insurgency in the northeastern regions further complicates matters, displacing farmers and disrupting supply chains. Concurrently, the cost of living in Nigeria has surged, driven by inflation, currency depreciation, and a lack of economic diversification. The Nigerian economy, heavily reliant on oil exports, has been vulnerable to fluctuations in global oil prices. When oil prices plummeted, the naira weakened, leading to increased costs for imported goods, including food staples. This situation has been exacerbated by government policies that often fail to address the underlying issues of economic inequality and poverty. As prices rise, essential commodities such as rice, beans, and cooking oil have become increasingly unaffordable for the average Nigerian. The inflation rate, which reached over 20% recently, has eroded purchasing power, pushing many families into poverty. The World Bank estimates that over 40% of Nigerians live below the poverty line, a statistic that paints a stark picture of the economic challenges facing the nation. The relationship between hunger and the rising cost of living is cyclical and self-perpetuating. As food prices soar, families are forced to make difficult choices, often sacrificing quality and nutrition for quantity. This phenomenon has led to a rise in malnutrition, particularly among children, with detrimental effects on their physical and cognitive development. The consequences of malnutrition extend beyond the individual, impacting the workforce and the economy as a whole. Moreover, the stress of financial strain can exacerbate social tensions, leading to increased crime rates and civil unrest. In a country where the youth constitute a significant demographic, the lack of opportunities and rising discontent can result in a volatile environment, with potential implications for national security. The social fabric of Nigeria is also at risk as hunger and economic strain take a toll on communities. Families, once able to rely on local support networks, find themselves isolated as resources dwindle. The traditional roles within households shift, with women often bearing the brunt of the crisis as they strive to provide for their families. This situation can lead to increased domestic tensions and a rise in mental health issues, as individuals struggle to cope with the stress of their circumstances. Education, too, suffers in the face of hunger and economic hardship. Many children are forced to drop out of school to support their families or due to the inability to afford school fees and supplies. This loss of educational opportunities perpetuates the cycle of poverty, as the next generation is ill-equipped to break free from the constraints of their environment. Addressing the dual crises of hunger and rising living costs in Nigeria requires a multifaceted approach that encompasses agricultural reform, economic diversification, and social support systems. Investing in modern agricultural techniques, infrastructure, and access to financing can empower smallholder farmers and increase food production. Initiatives that promote sustainable farming practices and climate resilience can mitigate the adverse effects of climate change. Reducing reliance on oil by promoting other sectors, such as technology, manufacturing, and tourism, can create jobs and stimulate economic growth. A diversified economy is less vulnerable to external shocks and can provide a more stable environment for citizens. Implementing robust social safety nets, such as cash transfer programs and food assistance, can provide immediate relief to vulnerable populations. These programs should be designed to empower recipients, helping them to achieve long-term self-sufficiency. Investing in education and raising awareness about nutrition and health can equip communities with the knowledge they need to make informed choices. Programs that promote vocational training can also provide youth with the skills necessary for employment in a changing economy. The biting hunger and rising cost of living in Nigeria represent a profound challenge that requires urgent attention and collective action. As the country navigates these turbulent waters, it is imperative to recognize the interconnectedness of these issues and to adopt holistic solutions. By investing in agriculture, diversifying the economy, and strengthening social support systems, Nigeria can pave the way for a more equitable and prosperous future. The resilience of the Nigerian people, coupled with targeted interventions, holds the promise of overcoming these challenges and unlocking the nation’s potential for sustainable growth and development.
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“The prolonged ordeal had inflicted immense emotional and psychological trauma on Dr Ganiyat’s immediate family and friends particularly her husband and five children including an infant who was being catered for by her extended family members.
Tax Reform Bills: The Controversies Vs Position Of FIRS, By Yushau A. Shuaib
The recent submission of four executive tax reform bills to the National Assembly by President Bola Tinubu has sparked intense debate. Central to the controversy is Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), whose clarifications on the reforms have yet to clear the air but intensified discussions.
At first glance, the four bills appear to serve distinct purposes: The Nigeria Tax Bill seeks to harmonise various tax laws to reduce multiplicity; the Nigeria Tax Administration Bill focuses on standardising tax processes and compliance requirements; the Nigeria Revenue Service Bill aims to replace the FIRS Act and establish a National Revenue Service (NRS) to be responsible for collecting both domestic and international revenues; and the Joint Revenue Board Bill will create a framework for resolving revenue conflicts between states and local governments.
A key aspect of these proposals involves replacing the FIRS with the NRS, which would become a central and most powerful revenue service in the history of Nigeria with the task of being the only agency responsible for collecting all government revenues, including those currently managed by other agencies in oil, customs, and port and other sectors. It will be more powerful and influential than the Central Bank of Nigeria (CBN) and Nigeria National Petroleum Company NNPC and others.
Another contentious point is the proposed Value Added Tax (VAT) distribution model. Under the new framework, states receiving VAT collections would retain significant revenue. However, some northern leaders fear this model will disproportionately benefit states where companies are headquartered rather than those where goods and services are consumed.
In a statement from Alhaji Muhammad Inuwa Yahaya, Gombe State’s Governor and Chairman of the Northern Governors Forum, northern governors opposed the proposed derivation-based VAT distribution model, citing concerns that it would disadvantage their states.
They urged National Assembly members to reject any legislation perceived as unfavourable to any region of the country. The communiqué stated: “The Forum is concerned by the recent Tax Reform Bill sent to the National Assembly, especially the proposed shift to a derivation-based VAT distribution model, which disadvantages the North.”
The governors reaffirmed their commitment to national development while emphasising the need for equity in policy implementation to prevent any geopolitical zone from feeling marginalised.
Consequently, the following day, the National Economic Council (NEC), chaired by Vice President Kashim Shettima, recommended President Tinubu withdraw the Tax Reform Bills from the National Assembly. The NEC convened for its 144th meeting at the State House in Abuja, where state governors and Federal Executive Council members, including Finance Minister Wale Edun and Budget and National Planning Minister Abubakar Bagudu, participated.
Oyo State Governor Seyi Makinde remarked that the council recognised the necessity for further understanding and alignment on the bills, emphasising that more comprehensive consultation would be in the nation’s best interest.
Despite this recommendation by Nigerian governors and federal cabinet members in NEC, President Tinubu asserted that he would not withdraw the proposed tax reform bills. His spokesperson, Bayo Onanuga, indicated that the president believes the legislative process should continue, allowing room for input and adjustments through public hearings.
Tinubu remains committed to reforming Nigeria’s tax system. Through these proposed bills, the government aims to streamline tax administration, enhance efficiency, and align with global best practices. The bills—the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board Establishment Bill—seek to unify tax processes, reduce overlapping responsibilities, and simplify compliance for both businesses and individuals.
It is widely believed that Zacch Adedeji, as the Executive Chairman of the Federal Inland Revenue Service (FIRS), is the driving force behind these reform proposals. His educational background, prior positions, and current role have established him as one of the most influential figures in Tinubu’s administration.
Born on January 8, 1978, in Ogbomosho, Oyo State, Adedeji graduated with first-class honors in Accountancy from Obafemi Awolowo University (OAU), Ile-Ife, where he also obtained his Master’s and PhD in the same field. He began his professional journey at Procter & Gamble (P&G) as Corporate Finance Manager for West Africa and later as Finance Leader for SAP Implementation. He also served as Finance Commissioner in Oyo State under Governor Isiaka Ajimobi (2011–2015). He was appointed Executive Secretary of the National Sugar Development Council (NSDC) by President Muhammadu Buhari before becoming the Executive Chairman of FIRS under President Tinubu.
While his political ambition is fuzzy—having avoided any major controversy—some suspect his positions on tax reform and proposed legislation harbour hidden agendas. In light of these concerns, he proactively engaged with members of the National Assembly following the submission of the bills. He addressed both the Senate Committee on Finance, chaired by Senator Sani Musa, and the House of Representatives Committee, led by Hon. James Faleke.
Adedeji articulated the reforms’ goals, emphasising the need to harmonise existing tax laws, streamline administration, and align Nigeria’s tax system with global standards. He conveyed that the reforms aim to consolidate disparate tax laws and enhance transparency while improving efficiency in revenue collection. He highlighted that these changes would modernise Nigeria’s tax system, adapt to the realities of the digital economy, and position the country attractively for investment. He confirmed that no additional taxes would be introduced, aligning with President Tinubu’s commitment to “not taxing poverty and inflation.”
However, until the full details of the bills are made public, speculation will undoubtedly continue. The discrepancy between President Tinubu’s stance and Vice President Shettima-led NEC’s recommendation only adds to the confusion.
The contradictory stance of FEC and NEC is indeed puzzling, especially considering the All Progressive Congress (APC) controls governance at the national and state levels. A unified and diplomatic approach would have been more effective in addressing the tax reform proposals unless the drama was a deliberate script for political purposes.
As the debate continues, Adedeji’s true intentions and the broader impact of these reforms on Nigeria’s economy remain in question. The outcome will undoubtedly shape the nation’s economic trajectory.
Yushau A. Shuaib is the publisher of PRNigeria and Economic Confidential. yashuaib@yashuaib.com