NEC recommends withdrawal of Tinubu’s tax reform bills

The National Executive Council has recommended the withdrawal of the four tax reform bills sent to the parliament by President Bola Tinubu.

The NEC, presided over by Vice President Kashim Shettima, took the decision at its meeting held at the Presidential Villa on Thursday. Membership of the NEC includes the governors of Nigeria’s 36 states.

Governor Seyi Makinde of Oyo State, who was one of the attendees who briefed journalists after the meeting, said the NEC called for the withdrawal so that “we can have wider consultations and also build consensus around these reforms…”

PREMIUM TIMES reported the controversy the bills have generated with the Northern Governors Forum rejecting them.

President Tinubu sent the four bills to the National Assembly as part of efforts to overhaul Nigeria’s tax system.

The bills seek to, among others, create a central revenue service that will collect all government revenues including those currently being collected by agencies like the customs and the ports authority.

The bills also seek to allocate more VAT revenues to states but would allow states where the VATs are generated to get the lion’s share. It is that latter position that northern leaders believe would not favour states in the region.

At its meeting, the NEC noted the need for sufficient alignment between and amongst the stakeholders for such proposed reforms, Mr Makinde said, noting that, there’s really a lot of miscommunication at the moment.

Earlier, President Tinubu’s spokesperson said the proposed laws will not increase the number of taxes currently in operation. Instead, they are designed to optimise and simplify existing tax frameworks.

“The tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians,” Mr Onanuga said.

He added that the reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy, he said.

“At the moment, tax administration lacks coordination among federal, state, and local tax authorities, often resulting in overlapping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist.”

On concerns raised among government agencies, Mr Onanuga said the proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.

“Importantly, these laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonise revenue collection and administration across the federation to ensure efficiency and cooperation.”

On the proposed derivation-based VAT distribution model, which the Northern governors oppose, Mr Onanuga said the new tax model is designed to create an even fairer system.

The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services.

“This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states,” Mr Onanuga said, adding that, the ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.

By Kabir Yusuf, Premium Times

Nigerian MP apologises after viral taxi slapping video

Nigerian MP Alex Ikwechegh has apologised after a video went viral of him slapping and verbally abusing a taxi driver who had come to deliver food to his house.

“I sincerely apologise for my words and actions during this incident… As a public servant, I understand the weight of my role and how my words can impact others,” said the politician who was questioned by police over the incident on Sunday evening.

Bolt driver Stephen Abuwatseya accepted a job to deliver some snails to Ikwechegh’s home in the capital, Abuja, and began recording their conversation after an argument started over payment.

The lawmaker had accused the driver of disrespecting him and went on to slap him in the clip.

What appeared to have angered the 44-year-old politician from Abia state in south-eastern Nigeria was the driver’s request that he come outside to collect the delivery.

“So, you think I will give you my money with the way you have spoken to me?” he asked in the video recording.

Mr Abuwatseya responded: “I did a job for you, and you have to pay me, sir.”

The MP then phoned the snail seller to complain about the driver’s behaviour: “How can this stupid idiot come to my house and tell me that I’m supposed to come and meet him in his car and pick up snail that I’m buying from you?

“Can you imagine this rat? I can make this man to disappear in the whole of Nigeria and nothing would happen.”

He then turned back to the driver and continued the argument, asking if he knew who he was, repeatedly saying: “How dare you?”

He continued: “I will beat you up. I will show you that I’m a big brother to you. I will slap the hell out of you, lie you down, and lock you in my generator house. How dare you?”

When Mr Abuwatseya later made it clear he was recording, the MP challenged him to call the police chief.

The recording stopped when it appears the MP grabbed at the phone. In a later clip the driver is seen bare-chested and alleges the politician tore his shirt off and had slapped him three times in total.

In a statement on Monday, the police said they were investigating the matter and urged people to refrain from using the inspector general of police’s name “to intimidate others”.

In his statement, released on Tuesday, Ikwechegh extended his “heartfelt apologies” to the police chief “ recognising the unintended disparagement my remarks may have caused to his person, his office, and the entire institution”.

He also apologised to the House of Representatives, which, according to local media, has since referred the matter to its ethics committee.

“This incident has been a humbling reminder of the necessity for restraint and self-control, especially in challenging circumstances,” the legislator said.

“I am committed to using this experience as an opportunity for growth, both as a citizen and as a more empathetic representative of the people.”

Ikwechegh said he and Mr Abuwatseya had “explored alternative dispute resolution methods” to sort out the issue and had reached a “respectful resolution”.

By Lucy Fleming, BBC

Dangote says refinery has 500 million litres of petrol in storage, can meet Nigeria's demand

Nigeria's Dangote oil refinery has a stockpile of 500 million litres of petrol, its billionaire founder said, countering claims by marketers who asserted they needed to supplement Dangote's supplies with imports to meet fuel shortages.

Nigeria's President, Bola Tinubu, had summoned oil regulators, the head of the state-owned NNPC, the finance minister, and Aliko Dangote to a meeting in Abuja on Tuesday.

The purpose was to review a policy requiring NNPC to sell crude oil to the Dangote refinery in local naira currency in an effort to ease foreign exchange pressure and help the mega refinery secure enough crude to meet its 650,000-barrel-per-day capacity.

Following the meeting, Dangote clarified that his business is not involved in retailing petrol and he should not be blamed for fuel shortages in Africa's top oil producing country.

He also said that keeping fuel in storage tanks is costing him money.

"I expect the NNPC and marketers to stop importing. They should come and collect; we have everything they need," said Dangote.

Two weeks ago, local fuel traders began increasing imports, claiming that the Dangote refinery was unable to meet domestic demand, exacerbating fuel shortages.

The Dangote Oil Refinery in Lagos began processing petrol in September, initially setting out to supply 25 million litres per day. The goal is to gradually increase production to 35 million litres daily, which Dangote believes will be sufficient to meet local demand.

At an oil conference in Lagos on Monday, however, the sector regulator said Nigeria’s daily petrol demand is between 45 and 50 million litres.

In a statement issued by a government spokesperson, President Tinubu urged stakeholders to focus on supplying enough petrol for local consumption to reduce dependence on imports.

He also directed them to use Afreximbank, the financial adviser for the naira crude sale scheme, as the settlement bank for naira pricing of crude and refined products.

Dangote previously had to buy crude on the international market, but it filed a complaint saying oil majors were blocking its access to locally produced oil by selling it above market price or claiming it was unavailable, forcing the refinery to rely on expensive imports.

Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the plan to sell crude in naira would remain in place, and the government would not intervene in determining the exchange rate for the oil sector.

Nigeria aims to end the importation of petroleum products once the Dangote Refinery reaches full operational capacity.

By Isaac Anyaogu, Reuters

Related story: Video - Nigeria ends state oil firm's role as Dangote refinery's sole buyer

Video - Nigeria ends state oil firm's role as Dangote refinery's sole buyer

Nigeria's Minister of Finance says the new arrangement which allows independent marketers to also purchase products directly from the refinery will encourage a wider supply chain for products across the nation. However, energy experts say the government will need to revitalize more refineries that have been dysfunctional for years.

CGTN

Video - Building collapse in Nigeria's capital leaves at least 7 dead

A building collapsed in a suburban area of Nigeria’s capital over the weekend, killing at least seven people, police said Monday.

The building, located in the Sabon-Lugbe area of Abuja, had already been partly demolished and its structure was further compromised by scavengers looking for scrap metal, the Abuja police said.

Abuja police spokesperson Josephine Adeh said five people were rescued from the rubble on Sunday.

Building collapses are becoming increasingly common in Nigeria, with more than a dozen such incidents recorded in the last two years. Authorities often blame such disasters on failures to enforce building safety regulations and on poor maintenance.

Nigeria, Africa’s most populous country, has recorded 22 building collapses between January and July this year, according to the Council for the Regulation of Engineering in Nigeria.

In July, a two-story school collapsed in north-central Nigeria, killing 22 students. The Saints Academy college in Plateau state’s Busa Buji community collapsed shortly after students, many of whom were 15 years old or younger, arrived for classes. 

By Dyepkazah Shibayan, AP