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Tax Reform: Akume Plays Down Northern Opposition As Senate Meets AGF

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The Secretary to the Government of the Federation, Senator George Akume, has rejected claims that northerners are opposed to the proposed Tax Reform Bills.

He stated that he had consulted with senior citizens, leaders, and religious figures from the region, all of whom expressed their support for the bills.

The bills, including the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, the Nigeria Revenue Service (Establishment) Bill, 2024, and the Nigeria Tax Bill, 2024, have sparked widespread debate since their introduction in the National Assembly.

Speaking during a program on TVC News on Sunday, the SGF dismissed claims that the bills were aimed at the North.

He said, “People say it’s against a certain section. I come from that part of that section and I am 100 per cent supportive of these bills. I have spoken to quite a number of notable northerners and they’re not against these bills. These bills have nothing to do with any one section of this country. It’s not proposed against the north. I am also a northerner.

“There are others who are attacking the bills purely from the perspective of opposition politics, ‘It is coming from the party in power. Therefore, we have to attack it in order to gain support for 2027.’

“But the truth is I have also spoken to notable northerners. And they’re not against these bills. Some of them are religious people, leaders. Others are senior citizens of Nigeria from the North.

“So, my candid advice would be that the final analysis will be going to the National Assembly. And therefore, if they have any comment to make, they can put it down in writing. Or whenever the Assembly decides to hold a public hearing, they can make their views. But you said, no, let us go on protest.”

The SGF also emphasized that the bills were specifically designed to help the country’s poorer citizens.

“Those who earn less than N800,000 per annum are exempt from paying personal income tax. And it is also pro-growth. Those in small businesses with revenues below N550m will not pay company tax.

“And education, hospitals, and so on, are exempted from payment of that. So, you see, why we say it is pro-poor, these bills are nationalistic.”

Akume also pointed out that the Federal Government had restructured VAT revenue distribution, increasing the share for states and local governments to 55 percent and 35 percent respectively.

He said, “If you look at the issue of VAT, where the Federal Government was taking 15 per cent in the present arrangement, the Federal Government has dropped five per cent out of the 15 per cent, which was added to the states. So, the state governments now have to benefit. Their benefit is about 55 per cent, while the local government would take 35 percent.

“So, you see, in this arrangement, we have even more local governments in the north, or more states in the north. So, more money is going to come in. And basically, what I’m saying is, ‘let’s give the bills a chance.’”

Meanwhile, the Northern Caucus senators are withholding their position on the controversial tax bills until the Senate Special Committee completes its meeting with the Minister of Justice and Attorney-General of the Federation, Lateef Fagbemi, SAN.

Some of the lawmakers, who spoke on condition of anonymity, said the outcome of the meeting would determine whether they would support or oppose the bills.

Following the controversy surrounding the proposed bill, President Bola Tinubu last week directed the Federal Ministry of Justice to liaise with the federal lawmakers to reach a common ground in the interest of the country.

In response to the directive, the Senate constituted a committee to meet with the AGF to resolve the grey areas in the bills.

The committee members include Senator Abba Moro (PDP, Benue South) as the head of the special committee, which also includes Senators Adamu Aliero (PDP, Kebbi Central), Orji Uzor Kalu (APC, Abia North), Seriake Dickson (PDP, Bayelsa West), Titus Zam (APC, Benue North-West), Abdullahi Yahaya (PDP, Kebbi North), Adeola Olamilekan (APC, Ogun West), Sani Musa (APC, Niger East), Adetokunbo Abiru (APC, Lagos East), and Kaka Shehu, SAN, (APC, Borno Central).

The senate committees were scheduled to meet with the AGF last week, as announced by Senate President Godswill Akpabio, but The PUNCH gathered that the meeting did not take place as planned.

The AGF was out of the country and reportedly told the lawmakers that he had not received an official invite from the Senate.

“I have only seen the invite on the pages of newspapers and TV screens. No formal invite has been sent to my office,” the AGF reportedly told one of the lawmakers who called him last week, according to a source in the Senate.

Speaking about the next steps among lawmakers, a senator said, “I am still keeping my fingers crossed. I and some of my colleagues are waiting to see the outcome of the meeting with the AGF before we openly take a stance.

“No doubt, the bills are good, but we need the faulty areas to be addressed. We haven’t met again since the last meeting; the outcome of the meeting with the AGF will determine our next line of action.

“But we trust the committee to do what is in the interest of Nigerians as representatives of the people. We wouldn’t pass any law that will compound the hardship of Nigerians.”

Senator Ali Ndume, representing Borno South, also maintained his stance on the withdrawal of the bill.

He argued that withdrawing the bill was the best decision for the executive to allow for broader consultation.

In an interview on Sunday, the senior senator stated, “This issue of VAT and derivation is one of the major issues in the bills. Also, why introduce a taxing system instead of solving critical issues like problems with the budget?”

He further explained that over 50 per cent of the country’s budget is spent on recurrent expenditure and debt servicing.

“Yes, reform. But even with reforms, you have to prioritize, time it correctly, and ensure the buy-in of Nigerians because this is a democracy. It is the government of the people, for the people, and by the people. We should be looking at cutting down our recurrent expenditure if we are trying to save money, not tax.

“I have studied this. I have consulted with professionals, even lecturers who taught those promoting it. I approached some of them, and they said, ‘Look, this tax reform is good, it is good to do tax reform, but the timing is wrong.’”

Ndume added, “The introduction of the tax bills at this time is an unnecessary distraction for the country. It is just heating up the polity for no reason. That’s why I am advocating that the executive withdraw the bills, consult more widely, and remove the parts that clash with the Constitution.

“They are just confusing themselves with these bills that contradict the Constitution. So, seeing all their errors, I think they should just withdraw the bills, do the proper things, and resend them to the National Assembly for consideration.”

Ndume also argued that Northern senators were not divided, adding that anyone who supported the passage of the bills should openly express their stance.

He said, “We are not divided. Northern senators who are in support of the bills should come out openly and bear their fathers’ names. I have openly expressed my stance on the bills, they should do the same.

“Even if we, who are opposed to the bills, are in the minority, the majority will have their way, but the minority will have their say.”

BIG STORY

‘Bandit Kingpin’ Dogo Isah Killed As Rival Gangs Clash In Kaduna Forest

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Dogo Isah, a notorious bandit leader, has reportedly been killed during a violent clash with a rival group in Kaduna state.

Isah, “infamous for leading high-profile attacks and terrorising residents in Kachia and parts of Kajuru LGA,” was involved in a confrontation over cattle rustling in Kachia forest on January 7. He was a cousin to Tukur Sharme, another bandit leader killed in a similar fratricidal clash in September 2024.

Zagazola Makama, a counter-insurgency publication covering the Lake Chad region, reported that Isah and his gang attempted to rustle cattle from a camp led by Kachalla Musa, a repentant bandit leader, which led to the confrontation.

Isah died alongside two of his gang members during the ensuing gun battle. Musa and his faction had recently embraced a peace initiative from the Kaduna state government and security agencies, following a meeting with stakeholders in Tsohon Gaya village, Chikun LGA.

“The initiative, which encourages former bandits to surrender and cease hostilities, had been extended to Dogo Isah, but he rejected the offer and continued his criminal activities, including cattle rustling and violent attacks,” the report noted.

“Dogo Isah’s group has been responsible for several high-profile attacks in the region, including the deaths of members of the 305 Artillery Demo Regiment in Makaranta Forest, Kagarko LGA, and an officer of the defunct Sect 4 OPWP near Gadan Mallam village along the Abuja-Kaduna road in 2022.”

“More recently, Dogo Isah’s group attacked Nigerian Navy personnel at a checkpoint in Kujama on January 5, 2025, resulting in the deaths of two Navy personnel and the theft of their AK-47 rifles.”

Makama warned that while Isah’s death may be seen as “a setback to banditry in Kaduna state, it has heightened fears among the recently repentant members of Kachalla Musa’s group.”

The report also added that Isah’s followers are now apprehensive and may be plotting a reprisal.

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BIG STORY

Court Summons Interior Minister Tunji-Ojo, AGF Over Proposed Expatriate Employment Levy

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A federal high court in Abuja has summoned Olubunmi Tunji-Ojo, the minister of interior, and Lateef Fagbemi, the attorney-general of the federation (AGF), over issues related to the expatriate employment levy (EEL).

The ministers are required to appear before the court on January 16 to justify why the proposed expatriates taxation regime should not be halted.

Inyang Ekwo, the presiding judge, issued this ruling on Thursday following a motion ex parte presented by Patrick Peter, counsel representing the plaintiff.

Ekwo directed that the minister and the AGF be served with the motion within three days of the order.

The suit, marked FHC/ABJ/CD/1780/2024, was filed by the Incorporated Trustees of New Kosol Welfare Initiative.

The group seeks an order of interim injunction to prevent the defendants from implementing the new expatriates’ taxation regime in Nigeria until the motion is heard and decided.

In the affidavit attached to the suit, Raphael Ezeh, programme implementation coordinator of the group, stated that the EEL taxation policy was announced by the federal government on Tuesday, February 27, 2024.

“According to KPMG and other online information analysts and dissemination agencies, the federal government intends to compel all companies and organisations who engage the services of foreign expatriates to pay tax E.E.L. as follows: For every expatriate on the level of a director — Fifteen Thousand United States Dollars ($15,000.00) equivalent to Twenty-Three Million Naira, by the current exchange rates (NW23,000,000.00) per annum,” he said.

“For every expatriate on a non-director level – Ten Thousand United States Dollars ($10,000.00) equivalent to Sixteen Million Naira, by the current exchange rates (N16,000,000.00) per annum.”

Ezeh stated that the federal government has also proposed additional regulations, including penalties and sanctions for non-compliance with the proposed taxation regime.

According to him, inaccurate or incomplete reporting will result in five years imprisonment and/or N1 million.

He explained that failure by a corporate entity to file EEL within 30 days will attract a penalty of N3 million.

Similarly, failure to register an employee within 30 days or the submission of false information will also incur a penalty of N3 million.

Ezeh added that failure to renew the EEL before its expiry date will attract a penalty of N3 million.

“The proposed taxation regime is totally an anti-people policy because of its radical effect on different aspects of the Nigerian economy, and it works like a choke-hold against the economic growth of the nation,” he said.

He emphasized that taxation is a sensitive issue, requiring collaboration between the executive and legislative arms of government under the 1999 Constitution (as amended).

He noted that, under section 59 of the constitution, the executive alone lacks the authority to impose taxes on corporate bodies and citizens.

Ezeh added that the current tax regime is “significantly more favourable to expatriates” compared to the proposed system.

“If the defendants are not restrained by an order of this honourable court, they will commence full implementation of the said programme, thereby threatening the nation’s economic sustainability,” he said.

The matter was adjourned to January 16 for the defendants to appear before the court and show cause.

The federal ministry of interior had suspended the implementation of the EEL in 2024 to allow for further consultations with the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and other stakeholders.

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BIG STORY

JUST IN: Court Remands Lagos Teacher For Assaulting 3-Yr-Old Boy

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A 45-year-old teacher from Christ-Mitots International School, Stella Nwadigbo, has been remanded by a Magistrate Court in Ogba for allegedly assaulting a three-year-old child in the Ikorodu Local Government Area of Lagos State.

Nwadigbo, who was suspended by the school management in response to public outcry, was remanded by the court at Kirikiri Correctional Facility, awaiting the next hearing on February 18, 2025.

The teacher was remanded on Thursday after the Police arraigned her for beating a pupil, “Micheal Abayomi,” who was unable to write the numbers 16 and 61 during school hours.

 

More to come…

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