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VAT Discourse And Tinubu’s Pan-Nigerian View By Salamah Akindeko
VAT Discourse And Tinubu’s Pan-Nigerian View
By Salamah Akindeko
If we agree with the utilitarianist view that one thing a leader must do is consider making choices that produce the greatest good for the greatest number of people, then Nigerians should commend President Bola Tinubu for choosing to break away from the past by elevating common national interest to a new level. And this did not start when he became president as this leadership trait had been demonstrated in various spheres he had held sway. His antecedents speak for him.
In May last year, President Bola Tinubu reinforced this view that he is for all. He pledged to govern Nigeria impartially and in accordance with the Constitution as well as the rule of law. He went further to task the citizenry to embrace national affinity and brotherhood. To observers who look at things dispassionately, this avowed commitment of the President has largely reflected in how he has been running his administration since he took over the reins of government.
President Tinubu, in his inaugural speech, among other things, said: “Today, let us recommit our very selves to placing Nigeria in our hearts as the indispensable home for each and every one of us regardless of creed, ethnicity, or place of birth…The South must not only seek good for itself but must understand that its interests are served when good comes to the North. The North must see the South likewise,” he had said.
One area where President Tinubu has again shown fidelity to his commitment is on the discourse around sharing formula for Value-Added Tax (VAT). Let me use this opportunity to correct erroneous impression that the North is against the president’s tax bills. The disagreement voiced by some northern leaders is on the proposed adoption of derivation model/approach to sharing of VAT revenue. VAT is only a portion of the bills. For emphasis, the four bills currently being scrutinized by the parliament seek to overhaul and modernise the country’s fiscal landscape in a way that brings benefits to the citizens and the three tiers of government.
Revealing President Tinubu’s position at an interactive session with members of the parliament recently, chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, said the president is concerned that Lagos and three other states go home with 70% of VAT revenue monthly, with Lagos (the president’s state) collecting the lion’s share of 42%.
“Today, I just signed the data on VAT [sharing] for October. Lagos will take 42% of the VAT[revenue], Rivers will take 16%, Oyo State will take 5.2%, and the FCT will take 10%. Go and check; these three states [and the FCT] are taking more than 70%. Why? Because those are the places where the head offices of those companies.…states like Borno and Bauchi collect only 0.32% and 0.4% of VAT proceeds respectively, compared to Lagos’ 42%.
“Any day I sign off on the data, I don’t feel like I am a Nigerian because this is not what we represent in our prayer as a nation. That is why, in the wisdom of Mr. President, we need to change this structure,” Adedeji told the lawmakers.
Listening to Adedeji, one would know that President Tinubu is a fair and just leader. He could have directed that status quo be maintained when some northern leaders apparently misjudged his intention on the subject. After all, Lagos and two other states will continue to cash out, while majority of the states will be left with what they currently get from the pool. So, the current attempt at reengineering the tax system is a big sacrifice for which Tinubu should be commended.
While there has been opposition to an aspect of the bills from the North, it is salutary that there are equally voices of reason who have studied the Bills and have seen the goodness of the heart of President Tinubu. A pro-North former Kaduna senator, Shehu Sani, while commending the Bills, said they are not in any way anti-North. According to the fiery critic,” It’s in fact economically beneficial and fair to all parts. People should keep aside sentiments and read the Bills carefully. It is a comprehensive and bold move to harmonise and simplify tax administration and streamline its operations and enforcement “
The Speaker of the House of Representatives, Tajudeen Abass, at the interactive session, located the controversy surrounding the VAT aspect of the Bills rightly, describing it as a reflection of their importance. For him, such debates are healthy and necessary in a democracy.
Apart from the fact that these Bills will when passed into law and assented to make states to look inwards and rethink, the issues of imbalance, fairness would be addressed by promotion of equitable distribution of the VAT revenue. These are some of the grey areas the reforms seek to address.
That noted, the total benefits of the bills should have been considered by those raising issues on VAT. People forget easily the confusing overlap of multiple tax laws. For example, why should small businesses pay taxes to the three tiers of government, a development that makes taxation unnecessarily complex? Why should there be multiple laws dealing with almost similar aspects of taxes in such a way that compliance with tax obligation is made difficult for taxpayers? Why should Nigeria not have a law that regulates cryptocurrency operations within its territory? Why in 2024 should we as a country be operating under laws that were made in 1939 (Stamp Duty Act), laws that are archaic and unfit for businesses in this modern time? The Federal Inland Revenue Service (FIRS) has to give way for the Nigeria Revenue Service (NRS) in order to accurately reflect the agency’s comprehensive services.
If there is any state that should be bellyaching over the proposal on restructuring of VAT sharing formula, it should be Lagos State. If there is any region whose voice should be loudest against the bills, it should be the South-West. But Lagos and the South-West understand where the President is coming from and have strong faith in his capacity to act in the best interest of the country.
With the town hall meeting held by Channels TV on the subject and with the kind of end-of-discussion explanation provided by Mr Taiwo Oyedele, who chaired the presidential committee on the matter, all opposition should stop henceforth. The National Assembly is there to look into the concerns raised by a few people and seek out ways to iron out those issues with vitiating the general objective of the Bills. It will not serve the interest of those speaking against the Bills if Lagos, which is going to be the biggest loser in the proposed VAT regime, sees reason to challenge either the status quo ante or the proposal. It will be recalled that in the immediate past administration, the issue of VAT sharing was litigated. A political option was sought to prevent the matter from running its full course.
Salamah Akindeko, a finance enthusiast, writes from Ila, Osun State
GTCO Plc Releases 2025 Full Year Audited Result
…Declares Another Record Dividend of ₦12.76k; Re-affirming Unrivalled Capacity to Creating Value
Guaranty Trust Holding Company Plc (“GTCO” or the “Group”) has released its Audited Consolidated and Separate Financial Statements for the year ended December 31, 2025, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).
The Group reported profit before tax of ₦1.23trillion underpinned by strong growth in core earnings, with interest income and fee income increasing y-o-y by 23.2% and 25.9%, respectively. The performance reaffirms its capacity to generate sustainable earnings and builds on the momentum from 2024, when GTCO delivered a record profit of ₦1.27trillion, driven in part by ₦517.5billion in fair value gains, which did not recur in 2025.
The Group’s 2025 profit after tax came in at ₦865.75billion against ₦1.02trillion recorded in 2024. The profit after tax reflects the impact of recent fiscal policy adjustments to the taxation of investment securities, notably withholding tax on short-term instruments. However, when normalised for this effect, underlying earnings remain robust, driven by growth in core operating income.
The Group continues to maintain a well-structured, healthy, and diversified balance sheet in all the jurisdictions wherein it operates a Banking franchise, as well as across its Payments, Pension and Funds Management business verticals. Total assets and shareholders’ funds closed at ₦17.8trillion and ₦3.4trillion, respectively. Capital Adequacy Ratio (CAR) remained very robust and strong, closing at 43.8%, likewise asset quality improved as evidenced by IFRS 9 Stage 3 Loans which closed at 3.4% and 5.0% at Bank and Group level in FY-2025 (Bank, 3.5%, and Group, 5.2% in December 2024). Cost of Risk (COR) also improved to 2.2% from 4.9% in December 2024. In specific terms, the Group’s loan book (net) grew by 12.4% from ₦2.79trillion as of December 2024 to ₦3.13trillion in December 2025. Similarly, deposit liabilities grew by 23.8% from ₦10.40trillion to ₦12.87trillion during the same period.
Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr. Segun Agbaje, said: “Our 2025 result underscores the resilience and depth of our earnings capacity. Following a record 2024, which included significant fair value gains, our focus has been on strengthening the sustainability of our earnings by driving growth across our core banking and ecosystem businesses. The strength of our underlying earnings, despite a stronger Naira and tighter regulatory parameters, reflects the quality of our franchise and the discipline with which we execute our strategy. Importantly, this strong core earnings performance underpins our capacity to sustain and grow shareholder returns. Our record dividend payout this year is not only a reflection of our current profitability but also of our confidence in the Group’s long-term earnings potential. Looking ahead, we remain focused on scaling our ecosystem, driving innovation across our financial services platform, and delivering consistent, high-quality earnings that support superior value creation for our shareholders.”
Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services Industry in terms of key financial ratios i.e., Post-Tax Return on Equity (ROAE) of 28.3%, Post-Tax Return on Assets (ROAA) of 5.3%, Capital Adequacy Ratio (CAR) of 43.8% and Cost to Income Ratio of 27.9%.
Guaranty Trust Holding Company Plc is a leading financial services group with operations across Africa and the United Kingdom. Renowned for its strong corporate governance, innovative financial solutions, and customer-centric approach, the Group provides a wide range of banking and non-banking services including payments, funds management, and pension fund administration. GTCO Plc is committed to delivering long-term value to stakeholders while driving growth and development across its markets
ZENITH BANK OPENS MANCHESTER BRANCH TO SUPPORT CROSS-BORDER TRADE AND INVESTMENT
Zenith Bank Plc has announced the opening of a new branch in Manchester, United Kingdom, marking another significant milestone in the bank’s international growth and its commitment to strengthening financial connections between Africa and global markets.
The official opening ceremony, scheduled to hold on Tuesday, March 17, 2026, is expected to attract government officials from Nigeria and the United Kingdom, regulators, investors, customers, and business leaders from both countries, underscoring the growing economic ties and investment opportunities between the two markets.
The new Manchester branch will complement Zenith Bank’s existing operations in the United Kingdom and serve as a strategic hub for supporting businesses engaged in international trade and investment. Through the branch, the bank will provide corporate banking, trade finance, treasury and related financial services to clients operating across the United Kingdom, Europe and Africa.Speaking ahead of the launch, the Group Managing Director/Chief Executive Officer of Zenith Bank Plc, Dame Dr. Adaora Umeoji, OON, said: “The opening of our Manchester branch represents another important step in Zenith Bank’s growth as a leading African financial institution connecting businesses and markets across continents. Manchester is one of the United Kingdom’s most dynamic commercial centres, and our presence here will further strengthen financial connections between businesses in the UK and opportunities across Africa’s rapidly expanding markets.
”Founded in 1990 by its Founder and Chairman, Jim Ovia, CFR, Zenith Bank has grown into one of Africa’s most respected banking institutions, boasting a robust capital base and a remarkable history of year-on-year profitability. Built on a strong foundation of people, technology and service, the Bank has consistently delivered innovative financial solutions while maintaining a disciplined approach to growth and risk management. The impressive performance of the Bank has consistently earned it excellent ratings, recognition and endorsement from local and international agencies and institutions.Headquartered in Lagos, Nigeria, Zenith Bank operates over 500 branches and business offices across the 36 States of the Federation and the Federal Capital Territory (FCT). The Bank currently operates subsidiaries in several African countries including Ghana, Sierra Leone, Gambia, and Cote d’Ivoire, while maintaining a presence in major international financial centres including the United Kingdom, France, UAE and China.
In recent years, Zenith Bank has continued to expand its international network as part of its strategy to support global trade and investment flows involving Africa.Manchester, widely regarded as one of the United Kingdom’s most vibrant economic centres, hosts a diverse base of businesses across sectors such as manufacturing, engineering, logistics, technology and consumer goods. The city’s strong commercial ecosystem and international outlook align closely with Zenith Bank’s expertise in corporate banking, structured finance and trade finance.The Manchester branch will work closely with the Bank’s London operations and its broader international network to support clients seeking to expand across markets and unlock new opportunities in both the United Kingdom and Africa.
With the opening of the Manchester branch, Zenith Bank continues to advance its vision of building a truly global African banking institution that connects businesses, facilitates trade and investment, and creates stronger economic bridges between Africa and the world.
Alpha Morgan Bank Deepens Presence in Abuja with New Branch in Utako
Marking another milestone in its expansion drive, Alpha Morgan Bank has opened a new branch in Utako, Abuja, reinforcing its strategy of building closer institutional ties within key business communities and bringing its financial expertise closer to individuals, and enterprises driving the city’s growth.
The new branch, located at Plot 1121 Obafemi Awolowo Way, Utako, Abuja is strategically positioned to serve individuals, entrepreneurs, and corporate clients within Utako and surrounding districts.
The expansion follows the Bank’s recently concluded Economic Review Webinar held in February 2026, as the bank continues to position as a thought-leader in the financial services industry.
Speaking on the opening, Ade Buraimo, Managing Director of Alpha Morgan Bank, said the move underscores the Bank’s commitment to accessibility and service excellence.
“Proximity matters in banking. As communities grow and commercial activity expands, financial institutions also evolve to meet customers where they are. The Utako Branch allows us to deliver our services to people in that community efficiently while maintaining the high standards our customers expect,”
The Utako location will provide a full suite of retail and corporate banking services, including account opening, deposits, transfers, business banking solutions, and financial advisory support.
Customers and members of the public are invited to visit the new Utako Branch to experience the Bank’s approach to satisfying banking.
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