NEWS AGENCY OF NIGERIA
Minister of Information and National Orientation, Alhaji Mohammed Idris
General News

Tax bills: Tinubu committed to accountability- Information Minister

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By Emmanuel Mogbede

Minister of Information and National Orientation, Alhaji Mohammed Idris, says President Bola Tinubu is committed to accountability on tax bills and will always act in the best interest of Nigerians.

 

Idris said this in a statement on Wednesday in Abuja, while reacting to the ongoing nationwide debate on the new tax reform bills currently before the National Assembly.

 

He said it was very inspiring to see Nigerians from all walks of life coming out to express their views and opinions on the new bills which were a matter of critical national importance.

 

“This is the very essence and meaning of democracy,” the minister said, adding that all commentators and groups should keep up the spirit of informed engagements.

 

Idris said that they should also strive to be respectful and understanding at all times in spite of the diversity of opinions.

 

“In the spirit of democratic engagement, there should be no room for name-calling or for 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 agency.

 

“Instead, they will bring relief to tens of millions of hard-working Nigerians across the country and empower and position our states and the 774 local governments for sustainable growth and development,” he stated.

 

The minister said that the president was implementing an ambitious fiscal reform agenda that would devolve more resources to states and local governments, and ultimately, to Nigerians.

 

This, he said, was in the spirit of harnessing democracy that works for the people, adding that government had nothing sinister to warrant the suggestion that the process was being rushed.

 

Idris added that in line with the established legislative procedure, the Federal Government welcomed meaningful inputs that could address grey areas in the bills.

 

“In this vein, 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.

 

“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,” the minister said.

 

According to him, the financial autonomy for local government will significantly empower that tier of government which is the closest to the people.

 

He expressed optimism that in all, the reforms would facilitate increased revenues without imposing additional tax burdens on the people.

 

Idris added that it would 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 that the Tinubu-led administration would continue to champion policies that would close the loopholes and gaps through which Nigeria’s valuable public resources had been frittered away for decades.

 

“On top of this necessary foundation, the resources being conserved and realised from these reforms will be invested in critical infrastructure, including healthcare, education, transportation and digital technology, among others,” he said.

 

The minister also said that the resources from the reforms would be channelled to social investments beneficial to Nigerians and ensure that no one was left behind.

“This is the promise and the reality of the Renewed Hope Agenda,” the minister stated. (NAN) (www.nannews.ng)

Edited by Yakubu Uba

Sen. Ned Nwoko
General News

New tax reforms’ll provide stronger social safety net- Nwoko

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By Deborah Coker

Sen. Ned Nwoko (PDP-Delta) has said that the four new tax reform bills presently before the National Assembly would provide a stronger safety net for Nigerians.

 

Nwoko, who is representing Delta North Senatorial District and a member of the Senate Committee on Constitutional Amendment as well as Finance, said this while speaking with the News Agency of Nigeria (NAN), in Abuja on Wednesday.

 

He said this was particularly so, if the presidency adopted his proposed model for National Social Security Agency.

 

According to him, Nigeria’s tax system has long been due for reform, and the four bills currently before the National Assembly, offers us a critical opportunity to address the deep-rooted fiscal challenges we face.

 

“Nigeria, with one of the lowest tax-to-GDP ratios in the world, our revenue framework is not fit to support a population of more than 220 million people.

 

“Importantly, this overhaul can also provide a stronger social safety net, particularly if the presidency adopts my proposed model for a National Social Security Agency.

 

“I proposed contributions from taxes and the private sector as part of sustainable funding mechanisms for the Agency.

 

“However, for this promise to be realised, we must pair reform with strong accountability mechanisms and a commitment to effective implementation.

 

“This is not just about raising taxes; it’s about making them work better for everyone. Nigeria cannot afford to keep postponing these tough but necessary decisions.”

 

The lawmaker also said that it was not taxation that was the problem, but how the revenues were utilised for the benefit of the people.

 

He added that the concerns raised in opposition were not unique to Nigeria.

 

“Countries that have successfully implemented tax reforms, faced initial challenges but ultimately created systems that are fairer.

 

“The principle of progressive taxation is central to the success of these reforms, which is protecting small businesses and low-income earners while ensuring that those with higher incomes contribute proportionately,” he said.

 

NAN reports that the Senate on Nov. 28, passed for second reading, the tax reform bills forwarded to it by President Bola Tinubu in October.

 

The bill was thereafter referred to the Committee on Finance, which was asked to revert within six weeks.

 

NAN also reports that  Tinubu on Tuesday, directed the Ministry of Justice to work closely with the National Assembly to address the concerns within and outside the legislature.

 

The Minister of Information and National Orientation, Mohammed Idris, revealed this in a statement he signed Tuesday titled ‘President Tinubu committed to accountability on tax bills, directs Ministry of Justice to work with NASS on concerns.’

 

Mohammed said, “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.

 

“In this vein, 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 Federal Government says the bills are aimed at overhauling the nation’s tax system.

 

These are the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

 

The federal government said that the proposed legislation seeks to consolidate existing tax laws, establish clearer frameworks for tax administration, and create bodies like the Tax Appeal Tribunal and the Office of the Tax Ombudsman.

 

However, critics argue that the reforms could disrupt the balance of fiscal federalism, potentially centralising tax authority and diminishing state revenues.

 

Notably, at a meeting on Oct. 28, the 19 Northern States, under the platform of the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the tax reform bills.

 

They argued that the changes might adversely affect their regions’ financial autonomy. (NAN)(www.nannews.ng)

edited by Sadiya Hamza

General News

Tax reforms not targeted at regions- Presidency

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By Salif Atojoko

The Presidency has dismissed allegations that the tax reform bills before the National Assembly are designed to impoverish certain regions.

In a statement on Monday, Mr Bayo Onanuga, Special Adviser to the President on Information and Strategy stated that the bills aim to improve the lives of disadvantaged Nigerians without harming any region’s economy.

Onanuga stressed that the tax reform bills would not disproportionately benefit Lagos or Rivers states at the expense of other regions.

He criticised some commentators for spreading misinformation and attempting to incite public opposition to lawmakers.

He further explained that the bills do not propose the abolition of agencies such as NASENI, TETFUND, and NITDA.

Instead, they seek to consolidate earmarked taxes into a single tax that will be shared with these key agencies as beneficiaries.

“President Bola Tinubu initiated the Tax and Fiscal Policy Reforms to streamline tax administration, create a more conducive environment for businesses, and address the issue of multiple taxes, which have complicated the economic landscape,” Onanuga stated.

He urged stakeholders and public analysts to familiarise themselves with the contents of the bills and refrain from misleading the public.

Onanuga welcomed the public interest generated by the proposed reforms and encouraged leaders and stakeholders to participate in the Public Hearings organised by the National Assembly to share their views on the bills. (NAN) (www.nannews.ng)

Edited by Abiemwense Moru

Politics

Progressive Governors to back Tax Reform bills

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By Naomi Sharang

The Chairman of the Progressive Governors’ Forum (PGF) and Governor of Imo State, Hope Uzodimma, has announced that the Forum will collaborate closely with the National Assembly to strengthen engagement on the proposed Tax Reform Bills.

Uzodimma disclosed this while addressing journalists after a closed-door meeting with progressive governors in Abuja on Wednesday.

He reiterated the Forum’s commitment to supporting the Federal Government’s reform initiatives, particularly the proposed Tax Reform Bills, which aim to improve Nigeria’s taxation system and administration.

The bills under consideration include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board Establishment Bill.

Addressing security concerns in parts of the North-West, Uzodimma noted that security agencies are actively tackling the situation and assured the Forum’s continued support to enhance national safety.

He added that the governors discussed key national issues, including measures to back the Federal Government’s reforms and create additional palliative programmes to mitigate their effects on citizens.

Uzodimma stressed the importance of unity among the governors to support President Bola Tinubu’s efforts in driving national prosperity. (NAN)(www.nannews.ng)

Edited by Abiemwense Moru

 

General News

NEC recommends withdrawal of tax reforms bill

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By Salisu Sani-Idris

The National Economic Council (NEC) has advised that the Tax Reforms Bill, currently before the National Assembly, be withdrawn.

This recommendation was made on Thursday, following the council’s 145th meeting in Abuja.

Gov. Seyi Makinde of Oyo, explained that the NEC noted the need for sufficient alignment among stakeholders regarding the proposed tax reforms.

He cited the prevalence of miscommunication and misinformation surrounding the bill, emphasising the need for wider consultation and consensus building.

Makinde said the council acknowledged the country’s underperformance in major revenue sources.

He said the council also considered the Presidential Committee on Physical Policy and Tax Reforms presentation of a report focusing on fair taxation, responsible borrowing, and sustainable spending.

Gov. Babagana Zulum of Borno, also affirmed the council’s advice to withdraw the bill to allow for consensus building.

The News Agency of Nigeria (NAN) reports that the Tax Reforms Bill, endorsed by President Bola Tinubu and the Federal Executive Council, seeks to enhance Nigeria’s tax administration efficiency and eliminate redundancies.(NAN)(www.nannews.ng)

Edited by Abiemwense Moru

General News

Onanuga addresses misconceptions on tax reform

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By Salif Atojoko

Mr Bayo Onanuga, Special Adviser to the President on Information and Strategy, has addressed the misconceptions surrounding the tax reform initiated by the current administration.

He noted that the Northern Governors’ Forum on Oct. 28, led by Gov. Muhammed Inuwa Yahaya of Gombe State, expressed opposition to the new derivation-based model for Value-Added Tax (VAT) distribution in the tax reform bills before the National Assembly.

He said the meeting also had traditional rulers from the region in attendance, led by Muhammadu Sa’ad Abubakar III, the Sultan of Sokoto, Onanuga said this in a statement on Thursday in Abuja.

He explained that the tax reform bills, endorsed by President Bola Tinubu and the Federal Executive Council, aimed to streamline Nigeria’s tax administration processes, enhance efficiency, and eliminate redundancies.

“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,” he said.

According to him, the third bill, the Nigeria Revenue Service (Establishment) Bill, seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS).

Onanuga assured that the reforms would not increase taxes, lead to job losses, or absorb existing departments’ duties, instead, they aimed to optimise and simplify tax frameworks, ensuring a more equitable distribution of tax obligations.

He said the reforms also sought to consolidate multiple taxes into a unified structure, reducing administrative fragmentation.

Regarding the proposed derivation-based VAT distribution model, Onanuga explained that the new proposal aimed to create a fairer system, considering the place of supply or consumption for relevant goods and services.

He said the reform would benefit states in the Northern region that produced VAT-exempt goods, ensuring they did not lose out on revenue.

“These reforms are crucial to improving Nigerians’ lives and were not intended to undermine any part of the country, Onanuga stated.

He said the bills would overhaul the country’s tax systems, generating revenue for all tiers of government to fund development projects.(NAN) (www.nannews.ng)

Edited by Abiemwense Moru

Economy/Business

FIRS allays fears over reforms, says no new taxes

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By Naomi Sharang

Chairman of Federal Inland Revenue Service (FIRS), Zacch Adedeji, has allayed the fears of Nigerians on possible introduction of new taxes through proposed tax reform laws.

Adedeji made this known during an interactive session with members of the Senate Committee on Finance in Abuja on Tuesday.

He assured Nigerians that the tax reform laws would not entail introduction of new taxes or increase in the already existing ones.

“Tax reform will not introduce any tax or increase the percentage of the existing ones but it will reduce the number of taxes being paid by Nigerians.

“No agency will be merged in the process of carrying out the reform and no job will be taken from anybody.

“The tax reform basically seeks to increase the simplicity and efficiency of tax administration in Nigeria,” he said.

Adedeji said that there were four executive bills already forwarded to both chambers of the National Assembly to legalise the reform.

The bills, according to him, include: Nigeria Tax Bill, Nigeria Tax Administration Act (amendment) bill, Nigeria Revenue Service bill and Joint Revenue Board (establishment ) bill.

Adedeji said that the four bills, when passed, would, among others, help to harmonise the multiple tax laws in the country.

“They will drive efficiency and modernisation, simplify tax laws and ensure synergy among the agencies involved.

“The bills will also increase efficiency and effectiveness in government savings, promote transparency and integrity in revenue collection, align with international standards and broaden Nigeria’s tax base,” he said.

When asked why FIRS, as contained in one of the bills, would be changed to Nigeria Revenue Service (NRS), Adedeji said the present name of the agency did not cover the scope of its services.

“Like the Value Added Tax (VAT), 85 per cent are remitted to states while the federal government gets the remaining 15 per cent,” he said.

In his remarks, Chairman of the committee, Sen. Sani Musa said that the purpose of the interactive session was for FIRS to update the committee on what the tax reform bills were aiming at.

“Tax reforms lie at the heart of government’s agenda and require constructive inputs from all stakeholders,” Musa said.

He commended the FIRS boss for meeting up with the revenue targets set in the fiscal year, even as he urged him to go beyond the target. (NAN) www.nannews.ng

Edited by Kevin Okunzuwa and ‘Wale Sadeeq

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