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Dare Adekanmbi: Understanding Tinubu’s tax bills of reliefs for Nigerians, businesses

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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.

Dare Adekanmbi: Understanding Tinubu’s tax bills of reliefs for Nigerians, businesses

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.

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Among His Peers, Oba Orin Saheed Osupa Stands Out : The Fuji Star’s Storytelling Legacy By Alhaji Arems

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Among His Peers, Oba Orin Saheed Osupa Stands Out : The Fuji Star's Storytelling Legacy By Alhaji Arems

Among His Peers, Oba Orin Saheed Osupa Stands Out : The Fuji Star’s Storytelling Legacy

By Alhaji Arems

 

In the vibrant world of Fuji music, where the artistry of storytelling and cultural commentary thrive, Saheed Osupa has carved out a unique role as both an artist and an influencer of thought. Recently, his name has been lighting up social media discussions and generating significant buzz—not just because of his music but because of the depth of his words. Osupa’s trending status is rooted in his ability to subtly address pressing issues, particularly those surrounding the ongoing tension between fellow Fuji musicians Taye Currency and Pasuma Wonder.

 

 

Osupa’s recent contributions to this situation have not been straightforward; rather, he has adopted an artistic approach, using parables and proverbs—sometimes through complex storytelling—to impart wisdom. These nuanced messages, often hidden within his lyrics, resonate with fans who appreciate the clever way he brings age-old Yoruba wisdom into contemporary issues. One notable example involves a story about an animal (traditionally symbolizing patience and resilience) that many believe reflects Osupa’s thoughts on rivalry and pride. Through this parable, he seems to suggest the importance of self-reflection and restraint, especially in the heat of conflict.

Among His Peers, Oba Orin Saheed Osupa Stands Out : The Fuji Star's Storytelling Legacy

By Alhaji Arems

In a genre that values not only musicality but also the power of words, Osupa has long been seen as a master of *itan*, or storytelling. His recent songs echo the traditional Yoruba way of imparting wisdom through tales that serve as lessons. This is a skill that few artists have mastered, making his approach particularly impactful in today’s fast-paced digital world, where nuanced messages can often be overlooked.

Beyond the Taye Currency-Pasuma Wonder issue, Osupa’s trending status is also due to his reputation as a voice of reason and maturity in Fuji music. As a genre that is often vibrant and full of competitive spirit, Fuji has its share of rivalries. Yet, Osupa has often stood out by promoting unity and peaceful dialogue among Fuji artists. By sharing these reflective stories in his music, he adds layers of meaning that fans continue to unpack and discuss, drawing new audiences who appreciate both the artistry and wisdom behind his words.

The charm of Saheed Osupa lies in his timeless approach. In a world where trends are fleeting, he reminds fans of the importance of timeless values, urging reflection, humility, and understanding. As fans interpret and share his latest stories, Osupa’s message continues to resonate widely—proof that, in Fuji, the power of words can be as influential as the beat of the drum.

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What You Need To Know About Award-Winning Nigerian Actor, Mustapha Sholagbade

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What You Need To Know About Award-Winning Nigerian Actor, Mustapha Sholagbade

What You Need To Know About Award-Winning Nigerian Actor, Mustapha Sholagbade

 

Mustapha Ololade Sholagbade, born on January 1, 1989, in Ebute Metta, Lagos, is an accomplished Nigerian actor, producer, and filmmaker with a deep passion for Yoruba cinema. Originally from Abeokuta, Ogun State, he is the first child in his family. Sholagbade began his education at Kadara Primary School and continued at Sojomen Talabi High School, Akute, and Nawairudeen Secondary School, Ebute Metta. He later earned an Ordinary Narional Diploma in Business Administration from the Lagos State Polytechnic. Pursuing his passion for acting, he trained at Odunfa Caucus, where he graduated in 2010.

Sholagbade launched his acting career in 2005, making a name for himself in Yoruba-language films. His portfolio includes roles in popular films like Olowo Ghetto, Alaimo, Ebun Mi, Esi, Gold and Treasure, Liam, Emilomo Babaolowo, Oko Aunty Mi, Broken Bond (Tude), and Last Born. In addition to acting, he has also produced several films, further cementing his influence in the industry.

Beyond the entertainment world, Sholagbade is a versatile professional with experience in railway engineering, IT support, and site management in the UK. He is also a farmer and general merchant, demonstrating his entrepreneurial spirit and diverse skill set.

Throughout his career, Sholagbade has collaborated with top figures in Yoruba cinema, such as Yinka Quadri, Taiwo “Ogogo” Hassan, Funke Akindele, Femi Adebayo, Odun Adekola, Oga Bello, Baba Wande, Jide Kosoko, Funsho Adeolu, Fathia William Balogun, Saidi Balogun, Wunmi Toriola, and Mide Martins.

Sholagbade’s hobbies include traveling, business, football, filmmaking, and meeting new people, reflecting his dynamic and outgoing personality.

Sholagbade’s talent and dedication to his craft have earned him numerous accolades, including: Best Actor Yoruba – BON Awards, 2024, Best Supporting Actor– Afro Nollywood Awards, UK, 2019, Best Supporting Actor– Heritage Awards, Atlanta, USA, Best Supporting Actor of the Year (Yoruba) – City People Movie Awards, Best New Actor of the Year (Yoruba) – City People Movie Awards.

With his achievements and versatility, Mustapha Ololade Sholagbade remains a notable force in the Nigerian film industry and a proud ambassador of Yoruba cinema worldwide.

What You Need To Know About Award-Winning Nigerian Actor, Mustapha Sholagbade

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Coalition Congratulates Oluyede on Appointment as Acting COAS

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Coalition Congratulates Oluyede on Appointment as Acting COAS

Coalition Congratulates Oluyede on Appointment as Acting COAS

 

The Coalition of Civil Society Groups against Terrorism in Nigeria has congratulated Major-General Olufemi Oluyede on his appointment as the acting Chief of Army Staff, (Ag COAS, Nigerian Army).

Coalition Congratulates Oluyede on Appointment as Acting COAS

The Convener of the Coalition, Comrade Oladimeji Odeyemi, in a statement, said General Oluyede has the responsibility to consolidate the success achieved by the Nigerian Army under General Taoreed Lagbaja.

President Bola Tinubu had on Wednesday, October 30, appointed Oluyede as acting COAS pending the return of the indisposed substantive Chief of Army Staff, General Taoreed Lagbaja.

The Coalition said his appointment is a welcome development. It said: “Major-General Olufemi Oluyede is well qualified for the position. He was a member of the 39th regular course and commissioned as an officer in 1987. Aged 56, he was promoted to the rank of Major-General in September 2020. A professional and top-notch security expert, he brings a lot of hope and inspiration to younger officers as acting chief of Army Staff.

“His appointment is the way to go. As the acting Chief of Army Staff, Oluyede has the responsibility to lead an army that will administratively manage the institution, consolidate on the success achieved by General Lagbaja and his team to mop up remnants of insurgents, bandits and the ragtag criminal elements in the North, and dismantle the ethnic militias in the Southeast to bring peace in the country.

“The 56-year-old Oluyede shares a long history with General Lagbaja, with a track record and excellent service to the nation. Both are members of the 39th Regular Course and were commissioned as officers in 1987.

“Oluyede’s meritorious career began as a Platoon commander and adjutant at 65 Battalion, advancing to Company commander at 177 Guards Battalion and later Staff Officer at the Guards Brigade and commandant of Amphibious Training School.

“Oluyede has been part of many notable operations, including the ECOMOG Mission in Liberia, Operation HARMONY IV in Bakassi, and Operation HADIN KAI in the Northeast, where he commanded the 27 Task Force Brigade.

“He has received honours, including the Corps Medal of Honour, and Grand Service Star, all recognition for passing the Staff Course and membership in the National Institute, and his dedication and achievements in service.”

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