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

ZENITH BANK EMERGES ‘BANK OF THE YEAR, NIGERIA’ IN THE BANKER AWARDS 2024

Zenith Bank Plc has emerged as ‘Bank of the Year, Nigeria’ in The Banker’s Bank of the Year Awards 2024. The award, which was announced by The Banker Magazine, Financial Times Group, United Kingdom, during the awards ceremony held in London on December 4, 2024, is in recognition of the bank’s strong management, sound business model and strategy, and approach to sustainability and ESG banking practices.

The Banker’s ‘Bank of the Year’ accolade is among the most coveted and widely regarded award in the banking industry. Often contested by the world’s leading financial institutions, the winners span across Africa, Asia-Pacific, Central & Eastern Europe, Latin America, the Middle East, North America and Western Europe.

Commenting on the award, the Group Managing Director/Chief Executive of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON, said “We are delighted and honored to have been recognized as the Bank of the Year, Nigeria in The Banker’s Bank of the Year Awards 2024. This award is a testament to the unwavering trust and loyalty of our esteemed customers, the unparalleled leadership and guidance of the Board and Management as well as the hard work and dedication of our staff. It also reflects our bank’s steadfast commitment to delivering excellent services to our customers and contributing to the growth and development of the Nigerian economy. We will continue to invest in innovative technologies, expand our range of products and services, and maintain our commitment to exceptional customer service in order to sustain our position as Nigeria’s Number One Bank.” She lauded the Founder and Chairman of Zenith Bank Plc, Jim Ovia, CFR, for his visionary role in laying the foundation for a reputable, dominant and globally recognised financial institution known for innovation, superior performance, and the creation of premium value for all stakeholders.

In November 2024, Zenith Bank commissioned its Paris Branch following the granting of the final approval by France’s banking regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR). This is part of the bank’s global expansion strategy, and its commitment to serving clients wherever their businesses are around the world.

Zenith Bank has continued to earn numerous awards, with this latest accolade coming on the heels of several recognitions. These include being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking, published by The Banker Magazine. The Bank was also awarded the Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020 and 2022; and Most Sustainable Bank, Nigeria in the International Banker 2023 and 2024 Banking Awards.

Further recognitions include Best Bank in Nigeria for four years from 2020 to 2024 in the Global Finance World’s Best Banks Awards and Best Commercial Bank, Nigeria for four consecutive years from 2021 to 2024 in the World Finance Banking Awards. Additionally, Zenith Bank has been acknowledged as the Best Corporate Governance Bank, Nigeria, in the World Finance Corporate Governance Awards for 2022, 2023 and 2024 and ‘Best in Corporate Governance’ Financial Services’ Africa for four consecutive years from 2020 to 2023 by the Ethical Boardroom.

The Bank’s commitment to excellence saw it being named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands for 2020 and 2021, and Retail Bank of the Year for three consecutive years from 2020 to 2022 as well as Bank of the Year, 2023 at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards. The Bank also received the accolades of Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria, in the International Banker 2022 Banking Awards. Zenith Bank was named Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, Best in MSME Trade Finance, 2023 by Nairametrics and Most Responsible Organisation in Africa 2021 by SERAS Awards.

20-Day Christmas Festival Launches in Style at MMA2 with Optiva Capital and Partners

The festive season officially arrived in grand style at the Murtala Muhammed Airport Terminal 2 (MMA2) as Optiva Capital Partners, Africa’s premier wealth management and retention firm, alongside MBR Signature and Bi-Courtney Aviation Services, lit up the terminal in a dazzling display of Christmas lights and decorations. The ribbon-cutting ceremony, which signified the kickoff of the highly anticipated 20-Day Christmas Festival, marked the beginning of an unforgettable holiday experience for travelers and visitors alike.

Caption Chief Executive Officer, Optiva Capital Partners, Dr. Jane Kimemia, flanked by Member, Board of Directors, BI-Courtney Aviation Services, Dr. Segun Amodu (Left), Executive Director, Optiva Capital Partners, AMB. Amaka Diane Okeke (Right) and DMD, MBR Signature at the Light-Up Show of the MBR Christmas Festival powered by Optiva Capital Partners at MMA2.

 

A Spectacle of Light and Joy

The event, aptly dubbed the Light-Up Show, transformed MMA2 into a radiant wonderland. From the moment the ribbon was cut, the terminal came alive with the warm glow of thousands of twinkling Christmas lights. Guests marveled as the once-familiar terminal was reimagined into a festive haven, complete with stunning ornaments, towering Christmas trees, and breathtaking installations that captured the magic of the season.

The lighting of MMA2 was complemented by enchanting Christmas carols, with a standout performance of “That’s Christmas to Me” a song originally performed by the Pentatonix Group. Adding to the festive cheer, Precious Emmanuel, a talented and rising musical sensation, delivered soulful renditions that beautifully aligned with the spirit of the season. Known for his rich, melodious voice and emotive performances, Precious captured the hearts of the audience with songs that evoked the warmth and joy of Christmas. Flash mobs thrilled audiences in the departure lounge, seamlessly blending into the excitement with spontaneous dance routines, while renowned comedian Kenny Black added a dose of laughter, rounding out a perfect evening that set the tone for the celebrations ahead.

Uniting Communities Through Celebration

The Christmas Festival, a first-of-its-kind event in Nigeria, is a collaboration that underscores the power of partnerships—an embodiment of the United Nations Sustainable Development Goal 17. It’s more than just a celebration; it’s a testament to how businesses can come together to create experiences that unite communities, foster economic growth, and enhance travel moments.

 

Speaking at the Light-Up Show, Dr. Jane Kimemia, CEO of Optiva Capital Partners, shared her excitement:

“This lighting ceremony is symbolic of what this festival represents—hope, joy, and connection. At Optiva Capital Partners, we believe in creating memorable experiences that go beyond wealth creation. Through this festival, we are giving back to the community where we operate bringing the magic and wonder of Christmas. and the richness of its culture, proving that the magic of Christmas can be experienced right here at home.”

 

Bringing Christmas Home

Dr. Kimemia further emphasized how the festival aligns with Optiva’s mission of creating global access and enriching lives.

“For families who usually travel abroad for Christmas festivities, we’re bringing that wonder to Lagos. MMA2 is not just a transit hub during these 20 days—it’s a destination where families, friends, and communities can come together to make unforgettable memories.”

Rekindling the Spirit of the Holidays
Stanley Ezeani, Managing Director of MBR Signature and the visionary behind the festival, expressed his excitement as the Christmas Festival officially commenced. “The magic of Christmas is alive once more, and we’re thrilled to welcome members of the public to experience it firsthand. Through this festival, we’ve brought cherished traditions to life while creating new ones, ensuring everyone can enjoy the wonder and joy of the season. With MMA2 now lit up and brimming with activities, it’s the perfect destination to immerse yourself in the true essence of Christmas.”

Adding to the sentiments, Kola Bamigboye, Acting Chief Operating Officer of Bi-Courtney Aviation Services, celebrated the collaboration. “This partnership with Optiva Capital Partners and MBR Signature is proof of what we can achieve when we work together. The Light-Up Show and the activities to come will spread joy and unite our community during the most wonderful time of the year.”

What’s Ahead?

The 20-Day Christmas Festival at MMA2 is brimming with activities designed to captivate all ages. The festival features live music and comedy performances that promise to entertain visitors of all ages. Families can explore the enchanting Santa Claus Grotto, a magical space for children and parents to create joyful memories together. Guests will also enjoy festive treats and a free-to-play grand piano for skilled travelers who personally wish to give fellow travelers a melodious experience. Adding to the excitement are captivating performances by artists, ensuring a truly unforgettable experience.

With the lights now officially on and the festivities in full swing, travelers passing through MMA2 are in for a Christmas season like no other—one filled with warmth, joy, and the magic of shared experiences.

About Optiva Capital Partners

Optiva Capital Partners is a premier wealth management and retention firm offering bespoke solutions in four areas of specialization – investment immigration, investment advisory, insurance, and international real estate.