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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

Alleged Fraud: Emefiele Loses Bid To Stop $4.5bn, N2.8bn Case

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The Lagos State Special Offences Court, on Wednesday, dismissed an application filed by former governor of the Central Bank of Nigeria, Godwin Emefiele, challenging the court’s jurisdiction to entertain the $4.5 billion and N2.8 billion fraud charges brought against him by the Economic and Financial Crimes Commission.

Justice Rahman Oshodi, in his ruling, held that the court had the jurisdiction to try Emefiele and his co-defendant, Henry Omoile.

The judge, however, struck out four of the 26 counts filed by the EFCC against the defendants for lack of jurisdiction.

“The objection challenging the court’s territorial jurisdiction over counts eight to 26 fails and is hereby dismissed.

“The prosecution has established sufficient territorial nexus in this case,” the court held.

To this end, the judge subsequently adjourned the case for trial continuation on February 24, 2025.

The EFCC had arraigned Emefiele on 26 charges, bordering on abuse of office and illegal allocation of $4.5 billion and N2.8 billion.

At the last adjourned date on December 12, 2024, Emefiele’s counsel, Mr. Olalekan Ojo (SAN), argued that the court lacked jurisdiction to hear the case in Lagos.

The embattled Emefiele was suspended as CBN governor on June 14, 2023, by President Bola Ahmed Tinubu’s government.

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BIG STORY

34 Terrorists Killed In Failed Ambush On Troops In Borno — Defence HQ

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The Defence Headquarters (DHQ) reported that 34 terrorists were killed in a firefight with troops deployed to Sabon Gari village in the Damboa LGA of Borno state.

In a statement on Wednesday, Edward Buba, the director of defence media operations, revealed that the incident took place on January 4 when the terrorists, riding motorcycles, attacked the troops.

Buba explained that the terrorists had aimed to surprise the troops in retaliation for the recent killing of their commander and combatants.

“The terrorists were taken by surprise when troops on a fighting patrol returning to base foiled their planned attack as soon as it commenced,” the statement reads.

“Additionally, a reinforcement team comprising elements of the Civilian Joint Task Force, vigilantes, and hybrid forces arrived at the scene in time to overpower the terrorists.”

He mentioned that the reinforcement team encountered an improvised explosive device (IED), which injured the vigilante commander.

The DHQ spokesperson added that the air component of operation Hadin Kai conducted an air interdiction on the fleeing terrorists.

“Battle damage assessment revealed several terrorists were killed, and weapons were recovered,” he said.

“On the whole, 34 terrorists were killed, and 23 AK-47 rifles were recovered. Troops also recovered over 200 rounds of 7.62mm special ammunition. Sadly, six personnel were killed in action.”

Buba stated that the names of the personnel killed during the attack were being withheld to allow for administrative procedures in notifying their next of kin.

“Overall, the Armed Forces of Nigeria remain profoundly conscious of their role and responsibility in ending insurgency and terrorism in the nation. Accordingly, troops remain committed to defeating the terrorists,” he added.

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BIG STORY

Telecoms Tariff Will Be Increased, But NOT By 100 Percent — Communications Minister Bosun Tijani

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Bosun Tijani, the minister of communications, innovation, and digital economy, has stated that telecoms tariffs will be increased but not by 100 percent.

Speaking at a stakeholders’ meeting on Wednesday in Abuja, Tijani emphasized the need for the telecommunications sector to establish proper regulations to ensure its growth.

Telecoms operators have recently been pressuring regulators to raise tariffs to address the declining investments in the sector.

On December 30, 2024, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) warned of service shedding if tariffs remain unadjusted.

Similarly, the Association of Telecommunications Companies of Nigeria (ATCON) urged the Nigerian Communications Commission (NCC) to review call tariffs upwards by the first quarter of 2025.

At the stakeholders’ meeting, Tijani assured that the Nigerian Communications Commission (NCC) would approve and announce the new tariff following ongoing consultations and engagements.

“You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs,” Tijani said.

“They are requesting for 100 per cent tariff increase.

“But it will not be by 100 per cent; the NCC will soon come up with a clear directive on how we will go about it.

“We want to strike the balance as a government, to protect our people, but also protect and ensure that these companies can continue to invest significantly.”

  • FG To Take Telecoms Investment Beyond Private Sector

The minister also revealed that the federal government will no longer rely solely on private companies for infrastructure investments in the sector.

“As a country, over time, we have left these investments in the hands of the private sector. They typically invest where they can see returns in the short to medium term,” he said.

“We will not want this conversation to just be about tariff increase. What the world is talking about today is meaningful connectivity, people want to have access to quality service.

“A part of it that the consumers may not be aware of is the investment that needs to go into the infrastructure that is used to deliver these services.”

Aminu Maida, the executive vice-chairman of the NCC, stated that the meeting focused on the sustainability of the industry.

He reiterated that a 100 percent tariff increase is unlikely.

“I know that Nigerians are agitated to hear the exact percentage approved. There is still some stakeholder engagements that we are going through, but you will hear from us within a week or two,” Maida said.

The executive vice-chairman also mentioned that the NCC has introduced tools to ensure compliance with service quality.

Maida asked mobile network operators (MNOs) to use simple templates to show Nigerians charges for voice calls, SMS, and data.

“We are moving away from the regime where you will have a main rate, then you will now have a bonus which is at a different rate,” Maida said.

“It makes it often complicated and difficult for Nigerians to actually understand what they are being charged for. There is this agitation that the MNOs are stealing our data.”

Dinesh Balsingh, the chief executive officer (CEO) of Airtel Nigeria, represented by Femi Adeniran, Airtel’s media spokesperson, explained that rising operational and capital costs made the tariff adjustments necessary.

Balsingh added that the increase is intended to ensure the sector’s long-term sustainability while offering significant benefits to Nigerian consumers.

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