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Nigeria’s Governance Structure Set Up For Bankruptcy — Lamido Sanusi

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The immediate past Emir of Kano and former Governor of the Central Bank of Nigeria, Muhammad Sanusi, has again said it is inevitable for Nigeria to be bankrupt with its current governance structure, which he described as too expensive and unsustainable.

The outspoken economist, who has repeatedly complained about the cost of governance in the country, said with the fiscal crisis the country is facing and looking at where Nigeria is headed post-COVID-19 crisis, it had become imperative for Nigeria to ask fundamental questions about the structure of its federation.

Speaking at a webinar hosted by Emmanuel Chapel, with the theme, ‘Mitigation of the economic impact of COVID-19 and the path to recovery’, Sanusi said when he was the CBN governor and the price of oil was over $100 per barrel, the government at the time spent 80 percent of its revenue on salaries and overheads. “Now, I’m sure that with the shortfall in revenues and where the oil price is, after debt service, we probably have to borrow to pay salaries. We have got to look at that structure,” he added.

He stated further, “If you have a company and you have extremely high overheads and you need a high contribution margin to break even, you would be looking at how to reduce cost. So, we have a constitution that says we should have a president and a vice-president, we must have a minister from every state of the federation, whether or not it’s 36 ministries; we should have 109 senators and 360 members of the House of Representatives.

“It also said we should have 36 governors, 36 deputy governors, each state with its House of Assembly and comprising many legislators, 774 local government chairmen, councilors, the personal assistants and special assistants (at all levels), staff members and vehicles.

“With these, you are already set up to be bankrupt. This is something I have been talking about for years. We need to ask ourselves; the structure that we have, does it leave us any option rather than to remain unsustainable over time? This is the kind of conversation we need to have as a country.

“Do we need a bicameral legislature; do we need close to 500 legislators in Abuja; do we need the hundreds of state legislators; what are they doing; do we need all these local government chairmen and councilors or do we need to look at that structure?”

At the event anchored by the founder/CEO, BFA Foundation, Olu Verheijen, Sanusi also said even if it wouldn’t reduce cost, the government could increase productivity by redeploying personnel from the civil service where many people do administrative works to areas like education and health care.

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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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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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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