Idris: Tax Reforms Will Empower 36 States, LGAs for Development

•Says resources will be invested in infrastructure, education, transportation 

•Reveals president has directed Ministry of Justice to work with NASS on proposed legislations 

•Senate: We’re doing wider consultations on bills

•Kukah, CITN back bills, say reform will reduce elite’s financial recklessness  

•Kano House rejects bills, insists its anti-north 

•We have no hand in drafting proposed legislations, Alpha-Beta stresses

Chuks Okocha, Olawale Ajimotokan, Sunday Aborisade, Emmanuel Addeh, Onyebuchi Ezigbo in Abuja and Ahmad Sorondinki in Kano

The federal government yesterday assured Nigerians that the controversial tax reform bills before the National Assembly would cushion the burden of millions of Nigerians across the country, empower and position the States and 774 local government areas (LGAs) for sustainable growth and development.

The Minister of Information and National Orientation, Mohammed Idris, stated this yesterday while itemising the benefits of the nationwide debate on the new tax reform bills currently before the National Assembly.

Idris said this same day the Senate said it would embark on wider consultations with critical stakeholders before embarking on the public hearing over the landmark tax reform bills.

Also weighing on the raging controversy surrounding the bills, the Catholic Bishop of Sokoto Diocese, Matthew Kukah and the President of the Chartered Institute of Taxation of Nigeria (CITN), Samuel Agbeluyi yesterday backed the ongoing attempts by the federal government to reform the country’s tax system.

However, Kano State House of Assembly following deliberations by its members led by the Speaker, Ismailia Falgore, strongly opposed the tax reform bills.

The tax bills currently before the National Assembly, have received mixed reactions from stakeholders, receiving commendations from a cross-section of Nigerians and condemnation from some other parts.

Speaking further, Idris said the resources to be conserved and realised from the reforms would be invested in critical infrastructure, including healthcare, education, transportation, digital technology, and social investments that will benefit all Nigerians and ensure that no one is left behind.

The minister stressed that President Bola Tinubu would always act in the interest of the Nigerian people. He described as inspiring and a definition of the very essence and meaning of democracy the views expressed by Nigerians from all walks of life on the matter which is of critical national importance.

“I call on all commentators and groups to keep up the spirit of informed engagement and to strive to be respectful and understanding at all times despite the diversity of opinions.

“In the spirit of democratic engagement, there should be no room for name-calling, or the injection of unnecessary ethnic and regional slurs into this important national conversation.

“Similarly, it is important to be aware that there is a lot of misinformation and fake news circulating around the tax bills and the overall reform agenda of the Tinubu Administration. The fiscal reforms will not impoverish any State or region of the country neither will they lead to the scrapping or weakening of any federal agencies.

“Instead, they will bring relief to tens of millions of hardworking Nigerians across the country and empower and position our States and the 774 Local Governments for sustainable growth and development,” Idris stated.

The minister explained that Tinubu was implementing an ambitious fiscal reform agenda that would devolve more resources to Nigeria’s state and local governments and ultimately to the Nigerian people, in the spirit of harnessing democracy that works for the people.

He equally assured that the government has no hidden motive that would warrant the suggestion that the process is being rushed, stressing that in line with the established legislative procedure, the federal government welcomes meaningful inputs that can address whatever grey areas there may be in the bill.

 Idris also noted that in line with the concern, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.

The minister stated: “We are indeed witnessing, at this moment in the history of Nigeria, the most far-reaching, impactful and beneficial set of fiscal reforms that Nigeria has seen in decades.

“In addition to the four tax bills being debated and deliberated upon, there is also the 2023 Supreme Court ruling on financial autonomy for local governments, which will significantly empower the tier of government that is closest to the Nigerian people.

“In all, these reforms will not only facilitate increased revenues (without imposing additional tax burdens on the people), they will also make it possible for citizens to demand and enjoy greater accountability in the management of public resources at all levels of government.”

 He assured the public that in keeping with the Renewed Hope Agenda, the Tinubu administration would continue to champion policies that close the loopholes and gaps through which Nigeria’s valuable public resources have been frittered away for decades.

Senate: We’re Doing Wider Consultations On Tax Reform Bills

The Senate yesterday said it will embark on wider consultations with critical stakeholders before embarking on the public hearing over the landmark tax reform bills.

Chairman, Senate Committee on Finance, Senator Sani Musa, disclosed this while briefing journalists.

He said the tax reform bills are sensitive fiscal documents that should be handled with care even as he said it was the way to go.

He said, “Another aspect which is very sensitive is tax reform. Every country that wants its economy to change will, from time to time have to look at those parameters to move the country forward.

“I have said it times without number on the floor that tax is not a tool of economic growth, what you will see that will change the face of the economy of any nation is production and it is out of that production that you can make and realise the taxes.

“So, for me,  the issue of Tax Reform is before us and we are doing wider consultation.

“It’s not about this region or that region. For me, it’s about Nigeria and what is good for me should also be good for my brothers while what is good for my brothers should also be good for me.

“Nigerians should allow the committee and the National Assembly to do the needful and at the right time, we shall make the right statement about this.”

Meanwhile, the billionaire Chairman of the Senate Committee on Inter-parliamentary Relations, Senator Jimoh Ibrahim, has advocated the imposition of transactional taxes on rich Nigerians.

He told journalists at a press briefing in Abuja that the rich Nigerians are not paying adequate taxes to the federal government especially when they acquire luxury items.

The lawmaker, who is representing Ondo South Senatorial District in the National Assembly disclosed that he was working on a bill that would impose transactional tax on the rich.

He said, “The rich in  Nigeria aren’t paying adequate tax. They needs to pay more. It is comfortable for them to pay.

“I know they say they generate employment but they need to pay more on their luxury assets.

“This is the area we should develop. 

I am looking at a law that will actually impose transactional tax on the rich.

“Government provides incentives for your businesses. The GDP-to-tax ratio is 18 percent in Nigeria. About 72 percent are left out of the tax net.

“We should be worried that 72 percent are not in the tax net. I am not saying we should go and tax the poor population but the rich need to do more in this difficult times,” Ibrahim added.

Kukah, CITN Back FG’s Tax Bills, Seek More Transparency, Data-driven Decisions

The Catholic Bishop of Sokoto Diocese,  Matthew Kukah and the President, CITN, Samuel Agbeluyi also backed the ongoing attempts by the federal government to reform the country’s tax system.

Kukah, who spoke on national television, pointed out that when implemented, the proposed legislations have the potential to curb the financial recklessness of the political elite in the country.

Describing the reforms as a step towards better fiscal management and a remedy for financial mismanagement in the country, the vocal catholic cleric argued that effective reforms were essential to setting Nigeria on the path to sustainable progress.

“I am excited because this conversation offers an opportunity to address and end financial recklessness. It is ironic that Nigerians, despite living in a richly endowed country find themselves spectators to the rascality and irresponsibility of the elite who mismanage our resources.

“These reforms should help transform the narrative and ensure the efficient management of our resources. I am hopeful that this marks the beginning of a long journey towards fiscal responsibility and the development of the nation we all aspire to build,” Kukah maintained.

The founder of the Kukah Centre, however, advised the federal government to ensure that the ongoing reforms lead to the country’s development, insisting that any form of reform must get Nigeria’s dysfunctional system working again.

“The reforms should end the narrative of Nigerians living in a country that is so richly endowed but are spectators to the rascality and irresponsibility of the elite who continue to mismanage our resources.

“So I’m hopeful that this is the beginning of a very long journey of fiscal management and efficiency that can lead to the growth and development of the kind of country that we envision,” he said.

While urging the Bola Tinubu administration to effectively communicate the ongoing reforms, Kukah emphasised that issues of massive impoverishment persist in the country.

“I am convinced that this government has lofty ideas, but there is a total absence of a constructive strategy of engagement. This government needs communication strategies. The Nigerian government needs to convince Nigerians that there is light at the end of the tunnel, and encourage them to be a little patient,” he added.

For his part, Agbeluyi, who spoke on Arise Television, THISDAY’s broadcast arm, highlighted the need for a unified database to track income and expenditure to enhance efficient tax collection in Nigeria.

“The National Identification Number (NIN), Identity Card we carry, various government agencies having shallow database have to be harmonised. The Bank Verification Number (BVN) is a key point in this. Once you do electronic transactions, all your information can be captured,” he observed.

Describing the tax reforms as a necessary step towards addressing Nigeria’s revenue challenges, Agbeluyi said the proposed legislations were a positive development in moving Nigeria forward.

“The bill is a positive one, that is clear. I doubt if anybody is actually seeing it from a negative perspective. I also agree that there are issues that have been raised in the bill, but overall, the bill is what we need,” he added.

The tax expert highlighted the inefficiencies within the current tax structure, noting that over 60 different types of taxes currently exist, but only a handful generate meaningful revenue.

He said: “The sanity that is embedded in this bill is overdue and necessary,” stressing the importance of building public trust in the country’s tax system.”

On third-party tax collection, Agbeluyi explained that while their involvement was necessary, accountability and transparency must be ensured,  noting that private sector contractors could assist in data gathering and revenue generation, which will  increase the efficiency of tax collection.

“In the private sector, some people can do this better than the various internal revenue services across the country. Data don’t lie. We can do another simulation, reduce the 60 percent to 40 percent, or keep constant the derivation before and apply attribution.  Let us see what is going to come out—data will solve this,” he argued.

Alpha-Beta Denies Involvement in Drafting Tax Reform Bills

Alpha-Beta Consulting LLP yesterday refuted the insinuations of its involvement in the proposed tax reform bills currently under review by the National Assembly, describing it as baseless and  with the evil intent of  misleading  the general public.

Speaking on the matter, Managing Director of Alpha-Beta Consulting LLP, Akinsanya Doherty, in a statement made available to newsmen yesterday, pointed out that he “neither met nor had any discussions, dealings, or involvement with Mr. Taiwo Oyedele, Chairman of the Presidential Tax Policy and Fiscal Reform Committee, despite our shared profession.”

He added: “Furthermore, neither I nor the firm has made any input into the federal government’s tax reform bills. These allegations are false and should be dismissed outrightly.”

The statement was in tandem with Oyedele’s recent clarification during a Town Hall Meeting on the Tax Reform Bills, organised by Channels Television, where the Chairman of the Presidential Committee had explicitly denied plans to outsource federal tax collection to any consulting firm, including Alpha-Beta Consulting LLP.

He, however, emphasised that the reforms were designed to streamline tax administration without reliance on external consultants for its collection.

Meanwhile,  the Head of Corporate Communications for the organisation,  Kingsley Esonu, declared that, “Alpha-Beta Consulting LLP remains steadfast in its commitment to delivering technology-driven innovative solutions that enhance revenue administration and accountability.

“The company takes pride in its integrity, professionalism, and unwavering dedication to serving its clients,” the statement added.

Kano House of Assembly Rejects Tax Reform Bills Insists It’s Anti-north

The tax reform bills met strong opposition from the Kano State House of Assembly following deliberations by members of the House led by Speaker, Ismailia Falgore.

The House described the bill as controversial and anti-north, capable of creating more economic gap between the south and the northern part of the country.

During its deliberations yesterday, the Majority Leader, Lawan Husseini, expressed concerns that the bills would harm the northern region’s economy and increase hardship of the ordinary Nigerians.

This decision was taken after deliberations on the house floor, led by Falgore.

Falgore, argued that the proposed Value Added Tax (VAT) allocation would unfairly favor States like Lagos, where many major corporations are headquartered.

Speaking further, Husseini warned that this could also, weaken some northern states, making it difficult for them to pay salaries and have an increase in the number of poor Nigerians.

Other lawmakers, including Hon. Salisu Mohammed and Hon. Murtala Kadage, supported the motion, urging northern lawmakers to unite against the bill.

The Kano State Assembly urged northern senators, representatives, and conference of speakers to prevent the bills’ passage.

PENGASAN Raises Fears Over Possible Job Losses in Petroleum Sector

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASAN) expressed worry that some aspects of the bills may have negative impact on the job security of its members.

The association also said it has verified report on the commencement of operations by the old Port Harcourt Refinery, confirming that production of AGO, DPK, and blending of PMS were presently ongoing at the facility.

It also raised concern over alleged abuse of expatriate quota law by companies in the country’s oil and gas industry which it stated had led to the huge influx of foreigners coming to take up relatively low-skilled jobs reserved for Nigerians.

The president of PENGASAN, Festus Osifo who spoke at the National Executive Council (NEC) Meeting of the Association Held in Abuja, yesterday, said the association welcomed the tax reform bills but would need some clarity regarding revenue collection processes from oil and gas companies.

He said: “The Association notes the ongoing tax reforms and wish to demand that the tax relief exemptions that is given to those earning minimum wage and business should be expanded to accommodate more people and companies in that category.

“Clarity must be provided regarding revenue collection processes from oil and gas companies as some provisions in the bill have the likelihood of negatively impacting our members in some of our major branches like Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA).”

Osifo said PENGASAN would be participating actively in the public hearing where its position would be well articulated.

He urged the National Assembly to conduct a proper public hearing session where different views would be collated to amend the provisions in the bills.

On the controversy over the coming onstream of the Port Harcourt Refinery, Osifo said PENGASAN could confirm that the refinery was now operational producing, AGO, DPK and petrol.

Osifo said: “We can confirm authoritatively that the Port Harcourt Refinery is actually working.”

He said presently apart from diesel, kerosene, the refurbished refinery also produces “Nacter” which is further blended to produce petrol.

Osifo however advocated the implementation of NLNG privatisation model in the operation of the rehabilitated local refineries as part of measures to guarantee sustainability and operational efficiency.

On the massive divestment currently going on the country’s oil and gas sector, Osifo said PENGASAN had ensured that no job was lost in the process.