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Dare Adekanmbi: Understanding Tinubu’s tax bills of reliefs for Nigerians, businesses
Dare Adekanmbi: Understanding Tinubu’s tax bills of reliefs for Nigerians, businesses
The transmission of four bills that aim to overhaul Nigeria’s tax system to the National Assembly two weeks ago by President Bola Tinubu has sparked debates in the polity about the purpose of the bills. Some have expressed fears that the bills may encapsulate proposals calling for a raise in tax rates in a way that will further burden the citizens. Some Nigerians have received the news with mixed feelings, while others have chosen to wait for details before commenting on the development.
There is no basis to entertain any fear about these bills. If anything, Nigerians are going to commend President Tinubu for focusing on laying a solid foundation that will ensure fiscal stability of the country. When Nigerians get to know the details of the in the documents, they will know that the president is actually working to bring reliefs to them and their businesses.
The four executive bills seek to tidy up the fiscal policy and legislation environment in the country. They are: Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill. These bills seek to translate the recommendations by the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, into implementable legislative framework for the benefits of Nigerians.
It is common knowledge that one factor which has continued to impede efficiency in Nigeria’s tax system and has negatively impacted revenue is multiplicity of taxes. President Tinubu, in his inauguration speech, had pledged to address the issue of multiple taxation and remove all hurdles against investment in the country. Multiplicity of taxes is one of the issues that the Nigeria Tax Bill seeks to end. This will certainly bring reliefs to corporate Nigeria. Imposition of tax by more than one agency or level of government, without a shadow of doubt, constitutes a chokehold on businesses, especially micro and small businesses as well as individuals.
How will this bill address multiplicity of taxes? In Nigeria today, laws dealing with various aspects of taxation are scattered in different legislations. Some of these laws are: Companies Income Tax Act, Personal Income Tax Act, Capital Gains Tax Act, Value-Added Tax Act, Stamp Duties Act, Petroleum Profits Act, Tertiary Education Fund Act, Petroleum Industry Act and so on. In addition to the tax-specific laws, there are plethora of tax provisions in non-tax laws such as the NLNG Act, Tertiary Education Trust Fund Act, NASENI Act, Lottery Act, Companies and Allied Matters Act, etc. The list is seemingly endless.
In enforcing these disparate tax provisions, unintended multiple taxation occurs and this is one of the things that the bill seeks to address. The Nigeria Tax Bill aims to codify of all taxing provisions into one single document to be known as the Nigeria Tax Act when passed into law. In the bill, chapters are devoted to the various tax types in a simplified format. The proposed tax law is also written in a simple language that anyone with basic literary education can read and understand. The complexity of the extant law, for instance, is such that it will be pretty difficult for a Professor of Mathematics to compute his personal income tax on his own because of all the inter-twinning provisions that will befuddle him as to what income is taxable or what deduction is allowable. All these complications and complexities have been removed in the new proposals.
In the proposed law, companies doing businesses within the country have been re-classified into two: small and large. This is done in accordance with the companies’ respective turnover thresholds. A company will be deemed small if its turnover is N50m or less in a year. Under the extant law, any company which records a turnover of N25m or less is not required to pay Companies Income Tax (CIT). In the new tax bill, companies with yearly turnover that is up to N50m will not pay CIT. As regards large companies, that is, those whose turnover thresholds are above N50m, there is a proposal in the bill to give some relief to them. The objective of this succour for such companies is in line with President Tinubu’s avowed commitment to protect small businesses and eliminate inhibitions that negatively impact entrepreneurship in the country.
Perhaps the game-changer among the several pleasant provisions of this document is what the bill seeks to do with VAT. It is an eloquently testimony to the fact that President Tinubu has listened and harkened to the complaints by Nigerians, particularly the ordinary Nigerians who are bearing the substantial brunt of the initial pain of the government’s economic reformation policies. In the proposed law, VAT will not be charged on all items that have direct existential impact on the common people. Items such as food, medicals, education, transport business and agriculture are not chargeable to VAT. For instance, tuition fee or rent paid by proprietors or purchases made by school owners for the purpose of the business of educating Nigerians will be free from VAT. It is the same for owners of hospitals, those in agricbusiness as well as those who buy vehicles for transportation. These are the areas where the lives of the common people will be significantly positively affected, especially in view of the temporary pain of the ongoing reforms.
In addition, certain input VAT which hitherto is not possible to claim under the current law can now be claimed. Another relief the president has put in the bill is that for VAT refunds will be made within 30 days upon completion of paper work by the such companies or entities. Already VAT is not being charged on diesel and petrol. The president had in July this year directed the suspension of duties, tariffs and taxes on importation of food commodities as part of measures to arrest the rising cost of living.
It may interest many to know that VAT rate of 7.5% currently being charged in Nigeria is the lowest on the continent and one of the lowest in the world. Madagascar and Morocco charged 20% VAT in 2022, while it is 19.25% in Cameroon. Many countries of the world, recognising the importance of tax revenue in providing public services, have this year reviewed their VAT upwards with one of the most striking examples being Saudi Arabia which upped its rate from 5% to 15% in July.
Further to the Nigeria Tax Bill, the table of tax rates for individuals has been restructured in a way that brings huge respite to low-income earners. It is worth mentioning that the Federal Inland Revenue Service (FIRS) does not collect taxes from individuals. It is within the jurisdiction of states’ revenue authorities to collect such income tax from individuals. The only set of individuals who pay personal income tax to FIRS are members of the Armed Forces, members of the diplomatic corps and foreigners earning income in Nigeria. In the new bill, individuals whose annual income is N800, 000 after the deductions of pension and deductible items will not be required to pay personal income tax (PAYEE). However, the elite who earn fat annually will pay more. This is in line with the global principle of progressive taxation which takes more tax from the high earners and a little lower tax from middle earners, while low income individuals pay very little. The pledge of Mr President is that his administration’s fiscal policy will tax prosperity and not poverty.
The second bill, the Nigeria Tax Administration Bill, basically seeks to consolidate administrative provisions for all taxes. This bill harmonises all tax administration issues such as registration, filing, payment, dispute resolution, etc for all tax-types and revenue authorities. It also clearly delineates the roles and objectives of all tax authorities in the country as well as their relevant jurisdictions. The aim of this bill is to promote the ease of tax administration, lessen tax compliance burden on the citizens and improve the ease of doing business in the country.
As for the proposed Joint Revenue Board (Establishment) Bill, this is seeking to replace the Joint Tax Board (JTB) which has been wobbly since its establishment because it was built on quicksand. The proposed replacement not only addresses the glaring shortcomings in JTB, but also retains the joint control of the body by the federal and state governments. It also seeks the creation of the office of Tax Ombudsto resolve all complaints that may arise from the operations of JRB.
Today, we cannot run away from the cryptocurrency ecosystem because it is the in-thing. But as it stands in Nigeria today, there is no law that regulates cryptocurrency operations. One key highlight of the Nigeria Tax Bill is that it seeks a legislation to regulate the digital currency market said to be worth $1trillion globally. The bill, when passed into law, will arrest the revenue the country has haemorrhaged in the sector. It will be recalled that some executives of one of the biggest cryptocurrency platforms, Binance, are in court for non-payment of taxes among other offences.
The Nigeria Revenue Service (Establishment) Bill is primarily proposing a change of name for the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service. This bill is one which seeks to correct the error of 2007 when Nigeria’s apex tax authority, FIRS, became autonomous as an operational arm of the Federal Board of Inland Revenue (FBIR). The mandate of FIRS is to administer tax laws to assess, collect and account for revenue accruable to the federation and not the Federal Government. Especially when we consider the current sharing formula on VAT revenue, only 15% goes to the Federal Government. The remaining 85% is shared between the states and the local government areas.
Today, tax revenue from FIRS is the main reason the 36 states and the local government councils smile to the banks monthly during their Federation Account Allocation Committee (FAAC) meeting. A total of N17.8trillion accrued to the Federation Account between January and July this year. FIRS tax revenue alone contributed N11.7trillion, representing 65.8 percent of the total money disbursed to the federal, state and local government councils to meet their needs.
Giving such a critical agency an appellation which suggests it is collecting tax solely for Federal Government is improper and must be corrected. Another error in the current name is contained in the word ‘Inland’ which restricts the agency to the collection of taxes within the interior territory of the country. Nigeria has huge revenue to collect from offshore transactions and only a repeal of FIRS (Establishment) Act 2007 to pave the way for the Nigeria Revenue Service (Establishment) Act can make that happen. Those suggesting that the proposed name change will translate to other revenue agencies being subsumed or merged with NRS need to get copies of the bill to clear their doubt.
The general principle of the four tax bills is not just to modernise the tax system in the country, but also to ensure that relief is created for ordinary Nigerians and businesses. And so, for insulating the poor from VAT payment through exemptions of good and services that directly impact their lives, for making VAT neutral for businesses through enabling deduction of input tax from out VAT, President Tinubu has demonstrated fidelity to his commitment that government policies must allow the poor to breathe and not suffocate. Tinubu deserves to be applauded as a leader who listens to the yearnings of the citizens.
Dare Adekanmbi is the Special Adviser on Media to the FIRS chairman.
Celebrating Sir Edwin Ogidi-Gbegbaje At 60 By Jimmy Enyeh
Majority of Deltans are unanimous in their submissions that the name of
Sir Edwin Ogidi-Gbegbaje, a celebrated top civil servant and retired permanent secretary in Delta State Government House has been recorded in the good side of history.
As he clocked 60 today, family members, friends, associates and well wishers have been falling over themselves to pay tribute to a kind hearted and jolly good fellow.
Edwin, a scion of the famous Gbegbaje family in Ekpan, Uvwie Local Government Area of Delta State, a family noted for producing top bureaucrats and influential public servants.
For 35 years until he retired in January 2024, he added values to Delta State civil service, deepening its positive nuances and was one of the people that nurtured the civil service of the young state upon creation in 1991 to its now enviable heights, setting it along with others on a trajectory that has made it one of the best in the country.
Gbegbaje’s story is far from the proverbial rags-to-riches . He was born into comfort and high society, but suddenly lost his affluent parents in his first and third years at the University of Jos, but with good counsel and guidance of relatives who were bureaucrats, Edwin Ogidi-Gbegbaje made a career choice that saw him becoming a permanent secretary at 46, a very rare feat in those days.
In an interview conducted three years ago to celebrate his 57 years, he offered a glimpse into his life, challenges and triumph. “I come from the larger Gbegbaje family in Ekpan, Uvwie Local Government Area of Delta State. We have quite several branches of the genealogical tree. We have the Abesan. The patriarch of the family is Chief Gbegbaje Dasone.
“We have Oloyo Gbegbaje and Ogidi Gbegbaje. My parents were civil servants like myself. My mum was a social welfare officer who rose through the ranks.During the late Ambrose Ali administration in Bendel State, she was appointed permanent secretary. My father was a medical doctor.
“He was the first radiologist in the defunct Bendel State and second in the country. My father was the chief consultant radiologist in Bendel State. I also have an uncle, Mr. K Gbegbaje who was a permanent secretary. When he retired, he became the Chairman of Bendel State Civil Service Commission. I have an uncle who was the first Accountant-General of Kwara State. He was in the northern civil service in the 60s.He later became Chairman of National Oil. I am from a family of bureaucrats. I attended Emotan Primary School in Benin.
“I proceeded to Edo College. When I left Edo College, I had the desire to leave Benin. Even when I was admitted into UNIBEN to study Economics and Statistics, I wasn’t enthusiastic. So, I got admission to study Political Science in Jos in 1981. Prof Emovon from UNIBEN was the Vice-Chancellor in Jos at the time. As I was entering, Jos ceased being a campus of the University of Ibadan. I was there from 1981 -1985. I graduated before my 21st birthday.
“Unfortunately, I lost my dad as I was entering the university in 1981. When I was just getting into my third year, I lost my mum.
It wasn’t easy being the eldest among my siblings. In fact, I was encouraged to come for Christmas holiday in Benin without knowing that the evening of my arrival in Benin was the period of my mum’s service of songs.
“I didn’t have an inkling that such a thing had happened. I didn’t even hear that she was ill. I was shocked when I saw canopies in my compound at Ovie Whiskey Avenue close to Ekhewan Campus. A prominent Jos-based businessman from Ughelli encouraged me to visit home for Christmas.
“I graduated in 1985 and taught at a secondary school in Iko-Eket, Cross River State. Just as I was finishing, there were some advertisements for jobs. I didn’t see the one for NNPC early enough.Towards the end of 1988, my uncle who was the Chairman of Bendel State Civil Service Commission, said since I couldn’t get a private sector job, I should participate in extended interviews, especially since I had sat for ASCON examination.
“He advised me to start a career in the civil service. By the end of 1988, letters of appointment were out. I wasn’t conscious of the fact that the person who resumes first becomes the senior in service. I didn’t resume early. My uncle said I was supposed to have resumed instead of waiting to resume in the New Year. A few of my friends who were conscious of it had resumed and they became my seniors in service. I resumed on January 3, 1989.
“That was how my career started. We were supposed to come in as administrative officers Grade 7, but at that time there was a decree. So, by the time we came in, we were designated as personnel officers. We were regarded as the special class.
“Upon the creation of Delta State on August 27, 1991, we all had to move to Asaba. In fact, the movement was swift.
We were all not fully prepared for the swift movement. There was a surge of human beings into Asaba with the state creation. A lot of us couldn’t get accommodation in Asaba when we came. In fact, I stayed in Ibusa for nine years. It was when I met my wife that we moved to Asaba. A lot of my colleagues were sleeping in the offices then.
On his retirement, the Delta State governor praised Gbegbaje’s contribution to the growth of the state.
Delta State Governor, Rt. Hon. Sheriff Oborevwori, at the retirement thanks-giving service of Gbegbaje, urged civil servants in the state to emulate his virtues.
Speaking at a grand reception in honour of the celebrant at the Events Centre, Asaba, Governor Oborevwori described Ogidi-Gbegbaje as an intelligent, humble, diligent, transparent, process driven, selfless, accountable and compassionate bureaucrat.
While congratulating the retired Permanent Secretary for his diligent and patriotic service to the state, Oborevwori said Ogidi-Gbegbaje was very helpful in the last seven months of his administration.
According to him, “a lot has been said about Sir Eddy Ogidi-Gbegbaje and I also have a personal experience about him while I was Speaker and in the last seven months as Governor of Delta State, we have worked very closely and he helped me to settle down quickly.
“Sir Ogidi-Gbegbaje played his role very well, he is diligent in his duties and was always giving good and useful advise wherever he worked.
“Your service to humanity is something worth emulating and I must say that I enjoyed working with you. I congratulate you for 35 years of unblemished and meritorious service to the government and people of Delta State.
“We are going to miss you, the civil service will miss you, the machinery of government will miss you, you are retired but you are not tired, and your service is still needed.
“I want other civil servants to emulate your commitment to duty. So my message to other civil servants is that they should emulate Edwin Ogidi-Gbegbaje.
“If you look at his journey in the civil service from Bendel to Delta, you see his commitment to duty. Today, he has finished strong and we rejoice with him and his family”.
Chairman of the occasion and former Minister of Information, Professor Sam Oyovbaire, congratulated the celebrant for a successful retirement from service and urged other civil servants to emulate his kind virtues and commitment to duty.
From all indications, Edwin Ogidi-Gbagbaje is worth celebrating, he has touched numerous lives in the last six decades.
At the cusp of his 60th anniversary, the social and the civil service landscapes pulse with milestones he has achieved thus reasserting his worth as a rare force of nature. As family and friends join him in celebrating his 60th birthday, the image that pops into head is that of his genius and the passionate intensity he possesses, literally squizing water from stone as far as the public service is concerned. His brilliant performance as a permanent secretary, Delta State Government House, has earned him another appointment. He is currently the Chairman, Delta State Bureau for Pension and has been giving a splendid account of himself.
“In All Life’s Hardships, Keep Your Smile” By Prudent Ludidi
Let’s talk about a powerful tool that can help you navigate life’s challenges with confidence, resilience, and hope. That tool is your smile.
Life can be tough. It can throw us curveballs, test our resolve, and push us to our limits. But in the midst of hardship, it’s easy to lose sight of what truly matters. We forget to smile, forget to laugh, and forget to live.
Your smile is more than just a facial expression. It’s a symbol of strength, courage, and determination. It’s a beacon of hope that shines brightly, even in the darkest moments.
When life gets tough, it’s tempting to frown, to cry, or to give up. But I urge you to do the opposite. Smile. Smile through the tears, smile through the pain, and smile through the struggles.
Smiling doesn’t mean you’re ignoring your problems or pretending everything is okay. It means you’re choosing to rise above, to find the silver lining, and to focus on the good.
Your smile has the power to transform your mindset, inspire others, diffuse tension, and heal emotional wounds. It’s a powerful antidote to stress, anxiety, and fear.
Think about it. When was the last time you smiled? Really smiled? Not just a polite smile or a forced grin, but a genuine, heartwarming smile?
Smiling can:
Reduce stress and anxiety
Boost your mood and energy
Improve your relationships
Increase your resilience
So, how can you keep your smile shining bright, even in the face of adversity?
Find the humor in difficult situations. Laughter is a powerful way to shift your perspective and lighten the load.
Practice gratitude daily. Focus on the good things in your life, no matter how small they may seem.
Surround yourself with positivity. Spend time with people who uplift and support you.
Take care of your physical and mental well-being. Get enough sleep, exercise regularly, and prioritize self-care.
Remember, your smile is contagious. It can light up a room, brighten someone’s day, and change the atmosphere.
In all life’s hardships, keep your smile. It’s a reminder that better days are ahead, that you’re stronger than you think, and that you’re not alone.
Your smile is your superpower. Use it to overcome obstacles, to uplift others, and to create a ripple effect of joy and positivity.
Don’t let life’s challenges steal your smile. Keep shining, keep smiling, and keep pushing forward.
You are stronger than you think.
You are braver than you feel.
And you are capable of overcoming anything that comes your way.
So, smile. Smile with confidence. Smile with courage. Smile with hope!
celebrity radar - gossips
Lagos State’s Stability is a Barometer for Nigeria’s Stability – Amb. Tukur Buratai
Lagos State’s Stability is a Barometer for Nigeria’s Stability – Amb. Tukur Buratai
The Former Chief of Army Staff (COAS, Nigerian Army) and Former Nigeria’s Ambassador to the Republic of Benin, Ambassador (Lt General rtd) Tukur Yusufu Buratai, CFR has said that Lagos State has all the qualifications of a modern city and is one of the most populated cities in Sub – Saharan Africa. He went further to affirm that Lagos is also indicative of the degree to which Nigeria’s economic, political, social, and cultural landscape is deeply embedded within the global system.
He made this assertion on Wednesday 20th November, 2024 as the keynote Speaker at the Second Edition of the Lagos State University of Education Security Summit, with the theme: Insecurity, Cost of Living and Good Governance in the 21st Century.
Ambassador Tukur Buratai, while delivering the lecture in a paper titled: Lagos in Nigeria’s National Security and Defence Architecture: An Analysis.
Ambassador Tukur Buratai postulated in his paper that, “The presence of strategic military installations, the verse Atlantic Ocean and extensive coastline has placed Lagos State on the strategic defense map of the Armed Forces of Nigeria”, He said further that, ” While the sea provides a strategic economic status it could also be vulnerable to external attacks across the ocean”.
In his paper, Ambassador Tukur Buratai reiterated that the Lagos State government should begin to look at the options and implications of having its own security.
Ambassador Tukur Buratai also emphasized the urgent necessity to bolster our nation’s troop level to 800,000. He said a larger and more robust force will enhance operational readiness, improve our country’s capacity to respond to various contingencies, and strengthen our alliance on the international stage.
He also called for the establishment of a Marine Corps for the Nigerian Navy to be strategically stationed in key regions such as Lagos, Borno, Cross River, and Port Harcourt.
He also raised the pressing issue of the persistent lack of stable power supply in Lagos. He asserted that the Lagos State Government must urgently prioritize the development of independent power generation.
Ambassador Tukur Buratai also lauded the Governor of Lagos State, Mr Babajide Sanwo-Olu’s strategy regarding security in Lagos, which provides an example for governor’s throughout Nigeria. He said the governor recognizes that genuine security transcends mere physical presence or reactive measures. He commended the governor’s innovative approach, which has redefined the urban governance, and has also set a benchmark for other states to follow.
Ambassador Tukur Buratai also recalled that during his tenure as the Chief of Army Staff, he had the distinct privilege of witnessing the fruitful collaboration between the Nigerian Army and Lagos State under the leadership of Former Governor Ambode and now Governor Babajide Sanwo-Olu.
Ambassador Buratai, during the lecture, also appluaded the Lagos State Government on its infrastructural development in Lagos State, especially the Red and Blue Railway lines.
Ambassador Tukur Buratai also commended the Federal Government interventions in the development of Lagos State, while applauding the construction of the Lagos to Calabar Highway, he adviced the Lagos State and Federal Government on the security implications of opening up the high way, he suggested to the government to be proactive by early planning for its security when opened and becomes operational.
Earlier, the Vice Chancellor of the Lagos State University of Education, Prof B. B Lafiaji-Okuneye welcomed Ambassador Tukur Buratai to the institution. In her words, she said, ” The great warlord and global peace ambassador is visiting our great institution for the first time. Sir, we appreciate you and what you stand for. Your desire for a Nigeria that is peaceful and safe, where the citizens and residents are free and are given every opportunity to prove their worth and contribute to the growth and development of the nation is evident “.
While making his contribution during the summit, the Commissioner of Tertiary Education, Lagos State, appreciated and commended Ambassador Buratai for adding value to the security summit and more importantly adding value to the Lagos State University of Education. The Commissioner also drew the attention of the participants of the summit to parts of Ambassador Buratai’s paper, where he elaborated on the strategy of social inclusiveness rather than the use of force to curb insecurity.
The Commissioner for Tertiary Education, Barr Tolani Sule on behalf of the Lagos State University of Education, presented a Plague of Honour to Ambassador Buratai for his role in nation building.
Other discussant at the Summit included, HRM, Oba Kamorudeen Animashaun, (Arolugbade 11, the Oloja of Epe Land and the Vice Chairman, Lagos State Council of Obas and Chiefs), HRM, Oba Momodu Afolabi Ashafa ( The Aladi of Ijanikin Kingdom), HRM, Oba (Dr) Aina Josiah Olanrewaju ( IKUYAMIKU 1, the Oloto of Oto Awori Kingdom) and HRH, Oba Babatunde Ogunlaja JP ( ALADESHOYIN, the Paramount Ruler of Odo – Noforija Kingdom), all of whom spoke on the theme :Insecurity, Cost of Living and Good Governance in the 21st Century.
The event which was attended by various Traditional Rulers, Members of the Governing Council and Senate of the Institution, the Commissioner of Tertiary Education in Lagos State, Barr Tolani Sule, Captain of Industries, Security and Para Military Chiefs in Lagos State, various invited guests and the students.
Ambassador Tukur Buratai’s delegation to the summit included, Lt General Lamidi Adeosun (rtd), Former Chief of Policy and Plans, Nigerian Army, Colonel Emmanuel Adegbola (rtd), Comrade Oladimeji Odeyemi, Alhaja Toyyibat Adeosun, Alhaji Isa Dogo amongst others.
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