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Bank Customers To Present Tax Card, TIN From January 2020

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Evidence of tax payment will be a condition for operating a bank account from January, according to the Financial bill passed by the National Assembly.

The Bill, submitted to the lawmakers with Budget 2020 by President Muhammadu Buhari, is designed to improve the financial operations of the country and streamline the tax regime.

It is expected to be signed with the budget before the end of the month, to actualize the return to the January – December budget cycle.

According to a section of the Bill, banks will require anybody opening an account to provide his Tax Identification Number (TIN)

Those who already have accounts with banks will also be required to provide their TIN.

There are 30 million Bank Verification Numbers (BVN)-linked accounts.

The intention is to make sure that more people are captured into the tax net.

According to the Joint Tax Board, the tax identification number (TIN) is a unique identifier for an individual or a company for tax remittance.

The TIN is prepared by the tax office and issued for proper identification and verification.

Applying for TIN is free. The TIN generation process is real-time and should not exceed 48 hours after a request is submitted.

Another major feature of the Financial Bill is the hike in Value Added Tax (VAT) to 7.5 per cent from the extant five per cent.

Also in the bill, emails will be accepted by the tax authorities as a formal channel of correspondence with taxpayers.

The bill will also strategically “promote fiscal equity by mitigating instances of regressive taxation; reform domestic tax laws to align with global best practices; introduce tax incentives for investments in infrastructure and capital markets; support small businesses in line with the ongoing Ease of Doing Business Reforms; and raise revenues for the Government by various fiscal measures.”

Under the proposed Personal Income Tax Act: the bill will state that pension contributions no longer require the approval of the Joint Tax Board (JTB) to be tax-deductible.

The bill when signed into law, will remove the tax exemption on withdrawals from pension schemes except the prescribed conditions are met.

The bill will come up with a penalty for failure to deduct tax by agents appointed for tax deduction. This penalty is 10 per cent of the tax not deducted, plus interest at the prevailing monetary policy rate of the Central Bank of Nigeria (CBN).

The conditions attached to tax exemption on gratuities will be removed by the bill, meaning that gratuities are unconditionally tax exempt. The duties currently performed by the Joint Tax Board (JTB) as it relates to administering the Personal Income Tax Act, will now be performed by the FIRS.

Another penalty that will come into effect when the bill becomes law will be the penalty for the late filing of the Value Added Tax (VAT) returns.

The penalty for failure to register for VAT will be reviewed upwards to N50,000 for the first month of default and N25,000 for each subsequent month of default.

The penalty for failure to notify FIRS of change in company address will be reviewed upwards to N50,000 for the first month of default and N25,000 for each subsequent month of default. This penalty also covers the failure to notify FIRS of permanent cessation of trade or business.

Similar to the VAT amendment, the bill is also introducing Capital Gains Tax (CGT) exemption on Group reorganizations, subject to the following conditions being met.

They are:

Assets are sold to a Nigerian company and is for the better organization of the trade or business;
The entities involved are within a recognized group 365 days before the transaction, and the relevant assets are not disposed of earlier than 365 days after the transaction.

The current practice is that companies send an approval request letter under CITA S29(9) to the FIRS, and include a CGT exemption request. Currently, the CGT Act imposes CGT on compensation for loss of employment above N10,000.

The bill seeks to expand the coverage of this provision by renaming it “compensation for loss” and increase the minimum threshold from N10,000 to N10 million.

BIG STORY

Stakeholders Engagement: Obasa Reels Out Renewed Hope Initiative Achievements

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  • “Renewed hope is not merely a slogan, but a call to action and a vision in progress,” – Obasa

 

Two years into President Bola Ahmed Tinubu administration’s Renewed Hope Agenda, Nigeria, according to Rt. Hon. Mudashiru Obasa, Speaker of the Lagos State House of Assembly, has witnessed an inspiring transformation – a rejuvenation of the economy, a renewal of the national spirit, and a reinvention of the Nigerian state.

Speaking at the 10th Constituency Stakeholders Engagement held inside the Agege Local Government Area secretariat hall on Thursday, Obasa disclosed that this year’s theme, ‘Governance in Action: The Gains of the Renewed Hope Agenda,’ was carefully chosen to highlight the tangible benefits of governance, particularly in alignment with the Renewed Hope Initiative of President Tinubu.

He stated, “This unique programme, which is holding across all the 40 constituencies in the state, gives us a viable opportunity to render an account of our stewardship as well as engage, interact, and strengthen our mutual relationship and solidarity, and to collectively address pressing matters affecting the growth, progress and development of our great community.”

According to Speaker Obasa, “Under the Renewed Hope agenda, the administration has aggressively tackled the challenges of economic stagnation and instability. Strategic economic reforms, including a re-engineering of fiscal policies and revenue-generating mechanisms, have boosted investor confidence and diversified our economy. These reforms have led to an improved credit rating and have laid a strong foundation for economic prosperity and sustainable development,” he said.

Recognising that robust infrastructure is the backbone of development, Speaker Obasa disclosed that the Tinubu administration has launched transformative projects nationwide, including new road networks, upgraded ports, and state-of-the-art public facilities, which he said are not only enhancing the quality of life but also reinforcing Nigeria’s position as a hub for commerce and innovation.

Further, Speaker Obasa said that because agriculture remains central to Nigeria’s quest for food security and self-sufficiency, “The Renewed Hope Agenda has driven significant investments into mechanised farming and modern agricultural practices. Improved access to financing and expanded markets have empowered our farmers, increased production, and positioned Nigeria as a potential agricultural powerhouse.”

He also highlighted the Tinubu administration’s investment in human capital, especially the students’ loan initiative under the Nigerian Education Loan Fund (NELFUND), describing it as a landmark policy that has brought renewed hope to our youths. “Campuses are now more peaceful, infrastructure is improving, and there’s a measure of stability in the academic environment across the federation. Education is once again becoming the tool for empowerment and national development,” he added.

Thus, Obasa opined, “The Renewed Hope Agenda is not by chance; it is a deliberate blueprint for national recovery and sustainability. It is designed to lift millions out of poverty by unlocking economic opportunities for all Nigerians — young and old – men and women, in both urban and rural areas.”

The Speaker drew a parallel between what is happening at the centre and in Lagos State, saying, “In consonance with the national drive for progress, Governor Babajide Olusola Sanwo-Olu has been a pivotal partner in the realisation of this shared vision. His tenure is characterised by innovative urban renewal projects, efficient public service delivery, and legislative collaboration for sustainable growth.

“Lagos, as the commercial nerve centre of Nigeria, has seen groundbreaking infrastructural developments. Modern transport systems, sustainable housing projects, and pioneering urban planning initiatives have transformed our cityscape, making Lagos not only a city of opportunities but a beacon of modern urbanism.”

He added that the proactive engagement between the Executive arm and the House of Assembly has led to the passage of progressive laws that support social welfare, environmental sustainability, and infrastructural innovation. “This strong legislative backing has been instrumental in creating an enabling environment for private investments and public-private partnerships,” Obasa added.

As he reeled out a long list of federal and state government achievements, and those he singlehandedly facilitated in his Agege Constituency, Speaker Obasa was intermittently interrupted by excited constituents belting out popular and political songs, underscoring in no small measure, their appreciation for the man who had dedicated the past 24years of his life to serving them as a legislator.

In his welcome address, Hon. Abdul Ganiyu Vinod Obasa, the acting executive chairman of Agege LGA, was filled with praises for President Tinubu’s steadfast commitment to restoring Nigeria to the path of economic stability and prosperity through the Renewed Hope Agenda. He promised to emulate the president in ensuring that the dividends of democracy reach every member of his community.
The event was attended by constituents, party leaders, traditional rulers, religious leaders, and members of various trade associations, among others.

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BIG STORY

JUST IN: President Tinubu Departs For 10-Day Working Vacation In France, UK

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President Bola Tinubu has left Abuja to begin a 10-working-day “working vacation” in Europe as part of his 2025 annual leave, the Presidency announced on Thursday.

In a statement by Bayo Onanuga, Special Adviser on Information and Strategy, the president’s itinerary includes trips to France and the United Kingdom, after which he is expected to return to Nigeria .

The statement did not clarify whether Tinubu will transmit a formal leave notice to the National Assembly under Section 145(1) of the 1999 Constitution (as amended), which allows the Vice President to act in his stead. Notably, both chambers are currently on recess .

This marks another foreign excursion shortly after a diplomatic mission to Japan and Brazil in late August, where Tinubu pursued trade, aviation, and security agreements during meetings in Japan and with President Luiz Inácio Lula da Silva in Brazil .

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BIG STORY

I’m The Most Experienced Oyo Governorship Aspirant In APC — Adebayo Shittu

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Adebayo Shittu, current Minister of Communications, has positioned himself as the most experienced candidate in the All Progressives Congress (APC) contest for the Oyo State governorship.

In a statement to journalists in Ibadan, Shittu cited his extensive political track record—spanning roles as a member of the Oyo State House of Assembly in 1979, a two-time State Commissioner, and two previous governorship bids—as qualifications that set him apart from other aspirants. “I was a member of the State House of Assembly in 1979 and two-time Commissioner in the State. I have also contested the governorship seat in the state twice before I became a minister. These are experiences you cannot buy,” he insisted .

Shittu emphasized the importance of experience in governance and governance readiness, underscoring the complexity of Oyo State’s political landscape. He added, “Oyo is advanced and sophisticated to be handled by inexperienced administrators” .

Drawing on his historical ties to Nigeria’s political heritage, Shittu noted that he gleaned invaluable insights from Chief Obafemi Awolowo, a foundational figure of Nigeria’s politics. He argued that this lineage of political mentorship enhances his capacity to govern effectively.

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