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Govt must use windfall tax revenue for critical infrastructure projects-OAU Prof of Economic History
Govt must use windfall tax revenue for critical infrastructure projects-OAU Prof of Economic History
A Professor of Economic History at the Obafemi Awolowo University, Ile Ife, Adetunji Ogunyemi, speaks on the amendment of the Finance Act 2020 by the National Assembly to accommodate windfall levy on banks’ profits on foreign exchange transactions. The lawyer, public finance expert submits that the policy is perfectly in order, asking banks to see it as contribution to national development. Excerpts:
The windfall levy generated some debate in the polity with government justifying it as the right thing to do in order to strike a balance in the key sectors of the economy. How justified is this levy on banks’ foreign exchange gains?
Nigeria is currently in dire straits financially and generally speaking economically. It is within the power of the government of the Federation going by its stated exclusive jurisdiction in the First Schedule Part I of the constitution of the Federal Republic of Nigeria to make such laws and to direct such policies and actions as to ensure peace, good order and good government in Nigeria. Therefore, if Nigeria is in dire straits and some Nigerians, whether persons or bodies or corporate organisations, that have been feeding fat on the system, especially when that feeding fat is not directly a function of their own productive energies, then it behoves the Federal Government to ensure a balancing of duties and responsibilities within the system such that a resource-deficient sector of the economy can benefit from the resource-surplus part through what is called economic stabilisation. So, to me, it is perfectly in order to amend the Finance Act 2020 in order to accommodate the collection of this one-off levy on the windfall that the banks in the financial system have benefited from on foreign exchange transactions in the last one year. To me, it is perfectly in order and it is part of the duties of the government to stabilise the economy and also redistribute wealth.
Part of the arguments of those kicking against the policy is that allowing the windfall levy on banks may create uncertainty about the future as government may come with another windfall tax in some other sectors. Is this fear justified?
A situation of paralysis needs a shock therapy to bring it to normalcy. In 1929 up to 1932, there were decisions made in the United States under Herbert Hoover to stabilise the economy by ensuring that government deliberately pumps into the economy huge expenditure financed under public-private partnership arrangement. Nigeria is in such a situation now as the United States was under Hoover. So, it is not out of place to request that that banks that have made unplanned, spontaneous, unpredicted, sudden income to donate to the system a portion of their profits. This levy is actually on their windfall which is not part of their projections in their respective budgets. So, there is nothing that is malicious about this levy. After all, the levy is not for the benefit of persons. It is for the benefit of the public and it is in order.
Naturally, the Chartered Institute of Bankers of Nigeria (CIBN) has risen in defence of the banks to say asking them to pay a windfall levy amounts to double taxation because banks have already paid Companies Income Tax. What do you make of this argument?
I disagree absolutely with such stance from CIBN. What of the progressive deductions that the banks have been making with respect to ATM withdrawals by both the depositors and the withdrawers? Banks charge N20 per transaction and at times N50. Many of these deductions are actually illegal and the CBN should have asked them to return the money to their customers. These deductions run into billions of naira. But it would seem that the CBN did not want to rock the boat and has allowed the banks to earn some income for their stabilisation so that when a request for re-capitalisation would come, they would have something to use for that purpose. So, the banks can’t approbate and reprobate at the same time. They can’t be placing unlimited charges on their customers and expect government not to come in with a decision to stabilise the system. The windfall levy is a patriotic call made on the banks to contribute to the system. The banks should not see it as a tax. After all, it is a one-off levy. At any rate, why are the banks trying to shy away from their responsibility of contributing to the system? Their wealth comes from the commonwealth of Nigeria. Is that not? If your wealth comes from the commonwealth of a country and that country is in dire straits and it calls upon you to pay a levy on profits arising from your unpredicted income, I don’t think that it is out of place for them to obey such call to help fatherland.
Are there special benefits from a windfall tax?
The benefits are many. One, insofar as the government will not pump the revenue arising from this windfall levy on banks into the general budget, then there is no problem. But if government puts the revenue into the general budget and uses it to fund recurrent expenditure, that is going to be unacceptable. However, if government pumps the money from the windfall tax specifically into certain projects, for example, the Sokoto-Badagry Highway, the coastal road, the Port Harcourt-Maiduguri railway, etc, it is going to be absolutely correct. It can also be used for industrial development through the Bank of Industry or specifically into some agricultural projects such as dam development and so on. These are the specific areas the money can be channelled into. But I would advise that the government uses the revenue to fund critical projects such as the Lagos-Calabar Coastal road, the Sokoto-Badagry Highway, Port Harcourt-Maiduguri rail line, expansion of the standard gauge from Ibadan to Abuja and then onward to Kaduna. These are the critical projects that will create a trickle-down effect on the economy to jumpstart it from its doldrums and provoke productive enterprises among business concerns.
The three tiers of government have been smiling to the banks every month on account of huge revenue collected by the FederaI Inland Revenue Service (FIRS) for the Federation. Shouldn’t focus shift to the other two tiers of government who have been getting more money since the removal of petrol subsidy by President Bola Tinubu?
That is what we call financial injustice in the system.
Actually, many governors in Nigeria, maybe for political correctness, did not say much about the issue of workers conflicting with the Federal Government on the issue of minimum wage neither did they support the Federal Government to do at least some defence within the realm so that citizens will not be unnecessarily agitated and then begin disturbances. But the truth of the matter is that the respective governments of the states of the federation today are now earning at least 40 per cent more than what they were earning before. It behoves them to come forward to explain to Nigerians why some A, and B, C policies have been done in their favour by the Federal Government. For example, the removal of subsidy from petrol has helped states that were previously in debts like Osun State to begin to successfully and significantly exit those debts and be able to pay workers. But do they give the credit to the Federal Government? The answer is No. The states have been giving the credit to themselves as if they conjured up the fat allocations they are now getting. Whereas, we know it is directly as a result of the fact that the FAAC has been to get more money through removal of subsidy and the efficient revenue collection by FIRS. This is why the states have now been financially strong to do their capital projects. Some of these states are even doing a kind of subtle blackmail to give a dog a bad name in order to hang it. Otherwise, if your income has increased as a result of government policy, why can’t the states explain to their citizens and spend the money to make things better for the citizens in their respective states? They have put all the burden on the Federal Government. It is a shame.
Do you think the recent Supreme Court judgment which states that allocations should be paid directly into the accounts of local government areas will also help bring down tension and enhance development at the grassroots?
I support the Federal Government’s view, position and policy on this and for the Attorney General of the Federation to approach the Supreme Court for interpretation of the constitution and to make declarative orders. This is perfectly in order. This is actually how to govern a country. Do not forget that the local government councils in Nigeria are 768 and not 774. This is provided in Section 3 subsection 6 of the 1999 Constitution as amended. There six area councils in Abuja and if you add this number, you will get 774. But the area councils in Abuja are not local government councils.
The Supreme Court ruled on this in 2002 in the Attorney General of the Federation versus Attorney General of Abia State and 35 others. But let us not go there. The truth of the matter is that the 768 local government councils in Nigeria will now directly benefit from their allocations pursuant to Section 162 of the Constitution. The Supreme Court judgment is just half of the battle won. The other half of the battle to be won is to ensure that election into local government councils is not conducted by State Independent Electoral Commissions (SIECs). There should be an amendment to the Electoral Act for that purpose so that the same election will be conducted by INEC in order that there will be a level-playing field. The SIECs are actually not independent of the governors who appoint their officers. But it is a good thing that local governments are now going to get their allocations directly from FAAC beginning from this month, that is July.
Quote “The windfall levy is a patriotic call made on the banks to contribute to the system. The banks should not see it as a tax. After all, it is a one-off levy.”
Business
Adron Homes at 14: From Shimawa to Over 60 Livable Communities, Building Cities Beyond Estates
Adron Homes at 14: From Shimawa to Over 60 Livable Communities, Building Cities Beyond Estates
Fourteen years ago, what began as a visionary real estate development effort in Shimawa, Ogun State, has evolved into one of Nigeria’s most recognizable housing success stories. Today, Adron Homes & Properties stands as a major force in structured urban development, with over 60 livable communities and estate dwellings spread across key regions of the country. Its journey reflects a deliberate mission that is not just to sell land, but to build functional cities where Nigerians can live with dignity, security, and a strong sense of community.
At a time when Nigeria faces rapid urbanization and an ever-growing housing deficit, Adron Homes has embraced an approach rooted in planning and affordability. From its earliest developments, the company adopted a city-building model that integrates structured layouts, accessible infrastructure, and community-focused design. Roads, drainage systems, green areas, and designated social spaces are incorporated into estate planning, transforming empty land into organized residential hubs.
The story of Adron’s growth mirrors Nigeria’s evolving urban landscape. Beginning in Shimawa, the company strategically expanded into major growth corridors, including Lagos, Ogun, Oyo, Osun, Ekiti, Abuja, Nasarawa, Niger, and beyond. Its estates have not only provided shelter but have also influenced the emergence of new residential districts, encouraging organized expansion and helping to reduce the challenges associated with unplanned settlements.
Central to the company’s success is its commitment to affordability. Through flexible payment structures and innovative housing initiatives, Adron Homes has opened the door to homeownership for thousands of Nigerians who previously considered property ownership out of reach. This democratization of housing has empowered families, strengthened communities, and supported economic growth through increased property investment and local business opportunities within estates.
Beyond physical structures, Adron Homes prioritizes community building. Estates are designed as living ecosystems where families interact, children grow in secure environments, and entrepreneurs find opportunities to thrive. The emphasis on social cohesion has helped transform residential spaces into vibrant neighborhoods, reinforcing the idea that housing development should nurture human connection as much as physical infrastructure.
As Nigeria continues to urbanize, Adron Homes’ model demonstrates that real estate development can be both commercially viable and socially impactful. Its projects serve as reference points for emerging residential corridors, attracting further investment and setting standards for organized development across multiple regions.
Celebrating fourteen years of growth and innovation, Adron Homes remains committed to shaping Nigeria’s urban future through sustainable planning, inclusive housing solutions, and community-driven development. From its humble beginnings in Shimawa to a nationwide network of livable communities, the company’s journey stands as a testament to the power of vision, resilience, and a steadfast belief that cities are built not just with structures, but with people at their heart.
Business
14 Years of Democratizing Landownership: How Adron Homes Is Redefining Mass Housing in Nigeria
14 Years of Democratizing Landownership: How Adron Homes Is Redefining Mass Housing in Nigeria
For decades, homeownership in Nigeria remained an elusive dream for millions, restricted by rising rents, unstable housing markets, and mortgage systems beyond the reach of the average citizen. Fourteen years ago, Adron Homes and Properties Limited set out to challenge this reality with a bold and disruptive vision: to make land and homeownership affordable, accessible, and achievable for everyday Nigerians.
Founded on the principle that housing should be a right and not a privilege, Adron Homes has steadily emerged as one of Nigeria’s most influential mass housing developers. At the heart of its success is an affordability-driven model that prioritizes inclusion without compromising quality. Through flexible payment plans, low initial deposits, and extended installment options, the company has broken long-standing financial barriers that once excluded civil servants, young professionals, artisans, traders, and Nigerians in the diaspora from owning property.
Fourteen years on, this vision has translated into tangible impact across over 60 estates nationwide, strategically located in major and emerging growth corridors including Ibeju-Lekki, Lekki–Epe, Badagry, Shimawa, Papalanto, Sagamu, Abeokuta, Ibadan, Osun, Ekiti, Abuja, Nasarawa, and Niger State. Each estate represents more than infrastructure, it reflects Adron Homes’ commitment to decentralizing development and expanding access to property ownership beyond traditional urban centers.
Through this mass housing initiative, thousands of Nigerians have successfully transitioned from tenants to landlords, many achieving property ownership for the first time. Unlike conventional real estate models that emphasize exclusivity and luxury, Adron Homes has consistently aligned its offerings with the real income realities of the Nigerian population, ensuring that housing solutions remain practical, inclusive, and sustainable.
Beyond affordability, trust has remained a defining pillar of the Adron Homes brand. The company places strong emphasis on secure land titles, transparent documentation, and regulatory compliance, protecting subscribers from land disputes and fraudulent transactions. This focus on integrity has strengthened customer confidence and positioned Adron Homes as a dependable gateway to long-term wealth creation through real estate.
As Adron Homes marks its 14th anniversary, its mass housing journey stands as more than a corporate achievement but a national intervention. By restoring dignity, promoting financial security, and transforming thousands of property ownership dreams into reality, Adron Homes continues to play a vital role in shaping Nigeria’s housing landscape and building a future where more citizens can truly call a place their own.
Business
Deadline of Compliance: Nigeria’s Urgent Call for Tax Return Filing
Deadline of Compliance: Nigeria’s Urgent Call for Tax Return Filing
By George Omagbemi Sylvester | Published by SaharaWeeklyNG.com
“Shift or Structural Demand? A Declaration of Civic Duty in a Nation at a Fiscal Crossroads.”
In the unfolding narrative of national development and economic reform, few instruments are as defining as tax compliance. For Nigeria, a nation perpetually grappling with revenue shortfalls, structural dependency on a single export commodity, and entrenched informal economic behaviour, the Federal Government’s recent clarification on tax return deadlines is not mere bureaucratic noise. It is a deliberate and inescapable declaration: the social contract between citizen and state must be honoured through transparent, lawful and timely tax reporting.
At its core, the government’s pronouncement is stark in its simplicity and radical in its implications. Federal authorities, speaking through the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, have made it unequivocally clear that every Nigerian, whether employer or individual taxpayer, must file annual tax returns under the law. This encompasses self-assessment filings by individuals that too many assumed ended once employers deducted pay-as-you-earn taxes from their salaries.
This is not an optional civic suggestion, it is mandatory, backed by statute, and tied to a broader vision of national fiscal responsibility. Citizens can no longer hide behind ignorance, apathy, or false assumptions. “Many people assume that if their employer deducts tax from their salaries, their obligations end there. That is wrong,” Oyedele warned, emphasizing that the obligation to file remains with the individual under both existing and newly reformed tax laws.
The Deadlines and the Reality They Reveal.
Across the federation, state and federal revenue authorities have reaffirmed statutory deadlines in pursuit of compliance. The Lagos State Internal Revenue Service, for instance, moved to extend its filing date for employer returns by a narrow window, reflecting the reality that compliance often lags behind legal timelines. The extension was intended not as leniency, but as a pragmatic effort to allow accurate and complete submissions, underscoring that true compliance rises above mere mechanical ticking of a box.
At the federal level, Oyedele’s intervention was even more fundamental. He reminded Nigerians that annual tax returns for the preceding year must be filed in good faith, with integrity and in respect of the law. This applies regardless of income level including low-income earners who have historically believed that they are outside the tax net. “All of us must file our returns, including those earning low income,” he stated.
Herein lies one of the most challenging truths of contemporary Nigerian governance: widespread tax non-compliance is not just a technical breach of law, it is a deep cultural and structural issue that reflects decades of mistrust between citizens and the state.
The Root of the Problem: Non-Compliance as a Symptom.
Nigeria’s tax culture has long been under scrutiny. Public discourse and economic analysis consistently show that a significant majority of eligible taxpayers do not file annual returns. Oyedele highlighted that even in states widely regarded as tax administration leaders, compliance remains strikingly low, often below five percent.
This widespread non-compliance stems from multiple sources:
A long history of weak tax administration systems, where enforcement was inconsistent and penalties were rarely applied.
A perception that public services do not reflect the taxes collected, eroding the citizenry’s belief in reciprocity.
An informal economy where income often goes unrecorded, making filing seem irrelevant or impossible to many.
Lack of awareness, with many Nigerians genuinely believing that tax liability ends with employer deductions.
The government’s renewed push for compliance directly challenges these perceptions. It signals a shift from voluntary or lax compliance to structured accountability, a stance that aligns with best practices in modern public finance.
Why This Matters: Beyond Deadlines.
At its most profound level, the insistence on tax return filings is about nation-building and shared responsibility.
Scholars of public finance universally agree that a robust tax system is the backbone of sustainable development. As the eminent economist Dr. Joseph E. Stiglitz has observed, “A society that cannot mobilize its own resources through fair taxation undermines both its government’s legitimacy and its capacity to provide for its people.” Filing tax returns is not a mere administrative task, it is a declaration of participation in the collective project of national advancement.
In Nigeria’s context, this declaration carries weight. With the enactment of comprehensive tax reforms in recent years (including unified frameworks for tax administration and enforcement) authorities now possess broader statutory tools to ensure compliance and accountability. These measures, which include electronic filing platforms and stronger enforcement powers, have been framed as fair and equitable, targeting efficiency rather than arbitrariness.
Yet the success of these reforms depends heavily on citizens embracing their civic duties with sincerity. And this depends on mutual trust, the belief that paying taxes yields tangible benefits in infrastructure, education, healthcare, security and social services.
Voices From Experts: Fiscal Responsibility as a Public Ethic.
Tax law experts and economists, reflecting on the compliance push, have underscored a universal theme: taxation without transparency is inequity, but taxation with accountability is empowerment. When managed with fairness, a functional tax system can reduce dependency on volatile revenue sources, stabilise national budgets, and support long-term investment in human capital.
Professor Aisha Bello, a respected authority in fiscal policy, notes that “Tax compliance is not a burden; it is the foundation upon which social contracts are built. A citizen who honours tax obligations affirms the legitimacy of governance and demands better performance in return.”
Similarly, a leading tax scholar, Dr. Emeka Okon, argues that “The era when Nigerians could evade broader tax responsibilities simply because automatic deductions occur at source must end. For a modern economy, every eligible citizen must be part of the formal tax fold not as victims, but as stakeholders.”
These authoritative voices point to an unassailable truth: filing tax returns is both a legal requirement and a moral responsibility, an expression of citizenship in its fullest sense.
Challenges on the Ground: Compliance and Capacity.
While the rhetoric of compliance is compelling, the reality on the ground demands nuanced understanding. Many taxpayers (especially in the informal sector) lack meaningful access to digital platforms and resources for filing returns. For others, the fear of bureaucratic complexity and perceived punitive enforcement deters participation.
The government, for its part, has responded by promoting online systems and pledging greater taxpayer support. Tax authorities are increasingly engaging stakeholders to demystify filing processes, explain requirements and offer assistance. This mix of enforcement and facilitation is essential. As one seasoned revenue specialist observed: “The state cannot compel compliance through force alone; it must earn it through education, simplicity and fairness.”
The Broader Implication: A New Social Compact.
Ultimately, Nigeria’s renewed emphasis on tax return filing transcends administrative deadlines. It is an unequivocal declaration that national development is a shared responsibility, that citizens and state must engage in a transparent, accountable, and reciprocal relationship.
Tax compliance, therefore, becomes far more than a legal act; it becomes a moral claim on the nation’s future.
When citizens file their returns honestly, they affirm their stake in the nation’s destiny. When the government collects taxes transparently and deploys them effectively, it strengthens not only public services but civic trust itself.
In this sense, the deadlines proclaimed by Nigeria’s fiscal authorities mark not an end but a beginning; the beginning of a civic epoch in which accountability replaces apathy, participation replaces indifference and national purpose triumphs over fragmentation.
The road ahead will not be easy. But in demanding compliance, Nigeria is demanding more than tax returns. It is demanding commitment and that, ultimately, is the foundation on which nations are built.
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