₦airaland Forum

aswani:
Who effectively removed the subsidy by not budgeting for it?

Which of the candidates would have kept it?

I keep telling you Obidients, Nigeria doesn't have enough money to pay all our bills, also thanks to PDP, oil money revenue for the next X amount of years has been borrowed against and people like Diezani have made a fortune as a, result.

Nigerians would have been subjected to higher prices even if Peter Obi won.

There are strong indications that some former ministers of ex-President Muhammadu Buhari will move en masse to the Social Democratic Party.

A senator in the ninth Assembly, who spoke to Saturday PUNCH on condition of anonymity, said at least 10 former members of the Buhari cabinet were moving to the SDP.

“What they’re waiting for is the finalisation of the party structure in their respective states,” the source said.

Our correspondents gathered that leading Buhari’s loyalists in the defections are the former National Chairman of the All Progressives Congress, Abdullahi Adamu; ex-Attorney General of the Federation and Minister of Justice, Abubakar Malami; and former Senate President, Ahmed Lawan.

El-Rufai makes first move

One of Buhari’s loyalists and former governor of Kaduna State, Mallam Nasir El-Rufai, on Monday, defected to the SDP, citing a growing misalignment between his personal values and the current direction of the APC as the primary reason for his decision.

“Developments in the last two years confirm that those who currently control and run the APC do not desire to acknowledge, much less address, the party’s unhealthy situation.

“I have raised concerns in private and, more recently, in public regarding the party’s capricious trajectory. Therefore, at this point in my political journey, I have come to the conclusion that I must seek another political platform to pursue the progressive values I cherish,” he said.

El-Rufai, who is a vocal critic of President Bola Tinubu’s administration, disclosed on Wednesday that he sought Buhari’s approval before leaving the APC.

“I left the APC with his (Buhari’s) full knowledge. I visited him on a Friday and informed him of my decision to leave the party because I involve and consult with him on all my matters.

“I have those I consult with in everything I do. I inform them of anything I intend to do, and when they demand that I keep off, I do. My first godfather is Muhammadu Buhari.

“For the rest, I will not mention them because if I do, they’ll be pressured,” El-Rufai told the BBC Hausa service in an interview.

CPC bloc to work against Tinubu

El-Rufai’s defection and Buhari’s purported approval opened a floodgate of defections as some other members of the APC in the North, especially those of CPC extraction, have also been dumping the party.

Buhari, El-Rufai, Malami, and Lawan were leaders of the Congress for Progress Change until the party joined the Action Congress of Nigeria, a part of the All Progressives Grand Alliance, and members of the New Peoples Democratic Party to form the APC in 2013.

The former Kaduna governor’s statement also revealed the long-talked-about coalition involving some aggrieved leaders of the APC.

Following El-Rufai’s defection, a chieftain of the APC, Ahmad Kaita, who is a former senator, and member of the House of Representatives from Katsina, also joined the SDP.

Kaita is also a former member of the CPC.

Similarly, former Kaduna State commissioners for Agriculture, Ibrahim Hussaini; Justice, Aisha Dikko; Health, Amina Baloni; and Education, Halima Lawal; as well as former Head of Service, Hajiya Bari’atu Mohammed, also dumped the APC for the SDP.

Also, the Campaign Secretary of the APC in Gombe State during the 2015 general elections, Adamu Modibbo, has left the party. Modibbo is now the chairman of the SDP in the state.

A former Publicity Secretary of the APC in Borno State, Abdulaziz Galadima, while confirming his defection to the SDP to our correspondent, said he left the party because it deviated from the principles and ideology on which it was founded.

Galadima also confirmed that many original CPC members would leave the APC for “SDP or another party.”

Other politicians leaving

Saturday PUNCH reached out to Malami for comments on the matter, but the SAN neither answered calls nor responded to messages sent to his mobile phone.

However, one of his closest aides confirmed his involvement in the coalition move.

The aide, who spoke on condition of anonymity, said, “It is not about ousting Tinubu in 2027 but about our conviction that we have better and more credible constitutional alternatives to offer Nigerians in governance, particularly with regard to institutionalising a human-centred approach to governance.

“We collectively abhor the prevailing order in which governance is commercialised to the detriment of Nigerians and their welfare. It seems to be a marriage of tendencies that cut across the existing political parties with high-profile politicians from PDP, defunct CPC, ACN and APC among others.

“In personality sense, those involved across the geographical zones include serving and former governors and senators, former ministers, and past and present party officials.”

The highly credible source mentioned former governors of Rivers, Imo, Cross Rivers, Sokoto and Osun states, Rotimi Amaechi, Emeka Ihedioha, Liyel Imoke, Aminu Tambuwal and Rauf Aregbesola, respectively, as part of the stakeholders in the coalition movement.

A former Senate President, David Mark; ex-national chairman of APC, Chief John Odigie-Oyegun; a former Buhari’s Minister of State for Education, Emeka Nwajiuba, and the senator representing Borno South, Ali Ndume, among others, were also involved in the coalition.

Speaking with Saturday PUNCH, a chieftain of the APC in Imo State confirmed that the CPC extraction in the APC had concluded plans to leave the party for a coalition.

“That some ministers who served under Buhari are leaving or will leave the APC is confirmed. However, they may not join the SDP, but I know they are part of the coalition movement,” said the chieftain, who spoke on condition of anonymity.

According to him, no fewer than 10 ministers and many senators in the ninth National Assembly were leaving the APC.

He said, “President Tinubu has mismanaged the success of our party, and it is painful that things are going awry every day. APC bigwigs, both in the North and South, are not happy, and the President doesn’t care. You don’t grow by reducing in size. The APC is reducing in size.

“The CPC bloc of the party has also been leaving. You will agree with me that the CPC is a strong bloc in the APC, and if it is gone, I doubt if the APC will remain the same.

“Those leaving the APC are foundation members who have genuine followers. Apart from El-Rufai, other former governors are also involved in the political movement. These are not paperweight politicians.”

Similarly, a former Minister of Sports and Youth Development, Solomon Lalong, in an interview with Saturday PUNCH, said he was aware that many Nigerians, including former ministers, were involved in some political discussions.

Lalong, who left the APC for the SDP in 2022, said, “We are in discussions with many people across the country, including former ministers and senators. But because it is at the level of discussion, I will have to protect their identities.

“However, I can assure you that, from what is going on, a large number of the political class from across the political parties in Nigeria are coming together to have a common front.

“This problem Tinubu found himself in is self-inflicted. It is caused by his ego. He is an egoistic personality who sees himself as an emperor. He thinks he has conquered Nigeria. But I’m telling you that unless he changes his method of governance, we will soon know who Nigerians are.”

Lalong also accused President Tinubu of not treating Buhari fairly.

“The two of them aligned in 2014 to form the APC, which won the election. Buhari conceded the vice president to Tinubu and five other ministers, and he supported his presidential ambition.

“Currently, Tinubu cannot mention a single special adviser he considered for Buhari in his administration. The President is not treating Buhari fairly,” he added.

Aregbesola’s media adviser, Sola Fasure, declined to comment on the purported plan by the former Minister of Interior to join the SDP.

“We will talk about our political movement at the right time,” he said.

But one of Aregbesola’s loyalists, who spoke to Saturday PUNCH on condition of anonymity, said the former governor had been invited to join the SDP.

According to the insider, Aregbesola is part of a political movement involving some of his colleagues from the Buhari administration and other prominent politicians in the country.

He said, “I can’t confirm whether it is the SDP we are joining, but I know there is an ongoing political movement. Some ministers and former APC officials are involved.

“The movement is even bigger than any single political party. From my understanding, even if we join the SDP, the African Democratic Congress, or any other party, it will only serve as a structure. Eventually, all these smaller parties will collapse into a coalition in 2027. A coalition is the main game.”

Aregbesola’s group, Omoluabi Progressives, left the APC a few months ago, citing ostracism, suspension, and expulsion of members without fair hearing, as well as the perceived neglect and marginalisation of the group within the APC structure.

When contacted, Buhari’s media aide, Garba Shehu, said he would have to reach the former president before commenting on the reported defection plan of his ministers.

But Buhari has reiterated that he is a loyal member of the APC and would like to be addressed as such.

Moroccoguy:
Obi must not useless himself by becoming VP to any president.

AfonjaPriest:
Remember, if it's free, you could lose your freedom.

Obaaderemi2:
We like to deceive ourselves in this country. A liter of petrol in Saudi is about 900 naira. Saudi is the largest producer and the people don't actually pay tax. So how can a liter of petrol be #400 in Nigeria at a time when debt payment was choking us?

galserv:
I feel like knocking your head severally

Who ever places the cart before the horse

For decades, your recommendation is what many presidents have followed yet it got us nowhere until Tinubu took the bull by the horn

There is no free lunch in life. Ole!

Mandate1:
the clear reduction in prices by Dangote has shown that the entire subsidy regime was a charade.

I don't know what was chasing Mr. Tinubu to hurriedly remove subsidy when he can wait few months for Dangote to come up.

Cajal:
Sorry
Subsidy is gone
U can look elsewhere for free money
Sorry...
Dualization of foreign exchange is gone for good
You can source your dollars from trump

teeteepeejay:
Lamentations. Make hunger no kill you and your family like this

babat89:
Tell your Papa make e go contest as President naw?

surgical:
From which he was able to buy the presidency

DeOTR:
Given enough time, nothing is achieved. It's not you that'll decide if the country will recover or not. It's already recovering.

Bosman17:
How would that have happened? See the war Dangote fought and the pressure Nigerians hipped on NNPC before allowing Dangote operate? If we were still paying subsidy, Dangote refinery won’t have seen the light of day!!! Also who are we truly subsidising? You with one car and a generator? No!!! The people smuggling out the petrol to sell to neighbouring countries are the true beneficiaries….

creativejagaban:
Today is one of my happiest day. A day to make sure that i.pob elements renew their lamentation.

My God, my single prayer is: may the following people continue to wallow in pain, hatred, wailing, bigotry, cursing and sadness:

Bobloco
Mrvitalis
Raccoon
Obi
Ezekwesilly
Nnamdi Kanu
...

May the same people continue to love el rufai, Natasha.

Amen


We will not forget January 15, 1966.

belikewater:
Most people just dey yarn rubbish above, if Dangote had not activated his refinery una for dey buy petrol at N2,000 per litre now. Tinubu should have waited for the refinery to be operational before removing subsidy, the real hero here is Dangote and NOT Tinubu. Sai Dangote!

wellmax:
Suspending subsidy and stabilising the forex exchange are steps every right minded politician knows needed to be done. but no one had the courage.

Tinubu had the courage and has done it once and for all. Why postpone a needed change.

You think Dangote will sell at N167, or you suggest we pay subsidy to Dangote too? `will that change anything?

God bless Tinubu for his courage

The House of Representatives has retained Value Added Tax, VAT, at 7.5 per cent and rejected a staggered increase to 15 per cent by 2030 as proposed in the Tax Reform Bills being debated at the National Assembly.


The House also rejected the proposed reintroduction of inheritance tax under the guise of taxation of family income.

Meanwhile, the Nigerian Chamber of Commerce Industry Mines and Agriculture, NACCIMA, said it would await details of what was approved before making any comment.

On its part, the Movement for Socialist Alternative, MSA, a member of the Joint Action Front, JAF, the umbrella body of pro-people civil society organisations, CSO, urged Nigerians not to yet.

Submitting the report during plenary in Abuja, yesterday, the Chairman of the House Committee on Finance, Mr. James Faleke said that the report “represents an extensive review of the Bills carried out by the committee, with careful consideration of public input.”

The bills include four distinct pieces of legislation aimed at overhauling Nigeria’s tax framework — the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

Key changes
The key changes made to the three major bills include:

The Nigeria Revenue Service Bill, the Joint Revenue Board (Establishment) Bill, and the Nigeria Tax Administration Bill includes.

Nigeria Revenue Service Bill
Significant amendments were made to Section 4 of this bill, which defines the functions of the Nigeria Revenue Service, NRS. The committee limited the NRS’s scope to exclude individual taxpayers in states and the Federal Capital Territory, FCT, shifting their focus to federal-level revenue.

The composition of the governing board was also revised. Section 7 now requires the board to include six executive directors, appointed by the president from each geo-political zone on a rotational basis. Additionally, one representative from each state and the FCT will sit on the board to ensure proper federal character representation.

Section 13 introduced new qualifications for the Secretary to the Board, who must be a lawyer, chartered accountant, or chartered secretary at the level of Assistant Director or higher. Amendments to the funding of the NRS introduced a fixed cost-of-collection rate of four per cent of total revenue, minus royalties, to be appropriated by the National Assembly.

Moreover, the NRS’s borrowing powers (Section 28) were tightened, requiring approvals from both the Federal Executive Council and the National Assembly before any loans can be secured.

Joint Revenue Board (Establish-ment) Bill
The Joint Revenue Board Bill saw adjustments aimed at improving oversight and transparency. Section 25, which previously outlined qualifications for Tax Appeal Commissioners, removed the requirement for commissioners to have experience managing businesses, which the committee deemed irrelevant.

The committee also emphasized the independence of the Tax Ombud’s office in Section 43 by funding it directly through the Consolidated Revenue Fund, eliminating gifts or grants that could introduce biases. Similarly, provisions were made for additional office expenses under Section 44.

The committee further introduced new regulations to ensure that the Evidence Act is strictly adhered to during tax appeal proceedings.

A significant change was the establishment of independent funding for the Tax Appeal Tribunal, TAT, freeing it from dependence on the Federal Inland Revenue Service, FIRS, to avoid conflicts of interest.

Nigeria Tax Administration Bill
Several practical amendments were introduced in the Nigeria Tax Administration Bill to enhance efficiency. Section 7 extended the timeline for issuing taxpayer identification numbers (Tax IDs) from two working days to five, allowing room for administrative delays. Additionally, a reduction in the timeline for companies ceasing operations to file their income tax returns (Section 11) from six months to three was introduced to prevent revenue loss.

The VAT system was also revised (Section 22) to ensure that taxable supplies are attributed to their place of consumption, irrespective of where returns are filed, addressing concerns of regional imbalances.

The committee introduced a VAT fiscalisation system (Section 23), requiring the development of further regulations to ensure the system’s effectiveness.

Amendments were made to the reporting thresholds for banking transactions (Section 28), raising them from N25 million to N50 million for individuals and from N100 million to N250 million for corporate entities.

Section 60 mandated court orders before the tax authority could seize movable assets, reinforcing the need for judicial oversight.

One of the most notable additions is the mandatory provision of access to electronically stored taxpayer information (Section 61), in light of the increasing shift from manual to electronic storage.
The committee also amended Section 77, introducing a new formula for distributing VAT revenues to local governments, ensuring that 70 per cent is distributed equally and 30 percent based on population.

Other Bills and general amendments
Other key amendments include maintaining the VAT rate at 7.5 per cent, despite initial proposals to increase it gradually to 15 per cent by 2030. The committee also made changes to income tax provisions for petroleum operations (Section 78), setting the tax rate for petroleum gains at 30 per cent instead of the previously higher rate of 85 percent.

Provisions related to excise duties were deleted across various bills due to concerns about their economic impact.

The committee also addressed definitions related to small companies, raising the turnover threshold for their classification to N100 million while maintaining the asset cap at N250 million.

New Penalties
New penalties were introduced for non-compliance by Virtual Assets Service Providers, VASPs, which include hefty fines and potential suspension of licenses.


While submitting the report, Faleke reaffirmed the importance of the Tax Reform Bills to Nigeria’s economic development. He said: “These Bills are critical to the implementation of a modern, transparent, and efficient tax system that will foster economic growth and improve revenue collection.

“During the retreat held from March 3 to 9, 2025, the committee reviewed submissions made by the public during the hearing. Representatives from key government agencies, including the Nigeria Export Processing Zones Authority, NEPZA, the National Agency for Science and Engineering Infrastructure, NASENI, the National Information Technology Development Agency, NITDA, and the Tertiary Education Trust Fund, TETFund, were also invited to provide further input.

“We carefully examined every submission to ensure that the public’s opinions were incorporated into the review process.” In addition, he said that the retreat involved a thorough review of existing laws proposed for repeal or amendment.

“The committee recommended amendments to various pieces of legislation, including the Companies Income Tax Act, CITA, Value Added Tax Act, VAT, Personal Income Tax Act, PITA, and the Federal Inland Revenue Service (Establishment) Act, among others. The Petroleum Industry Act, Nigeria Export Processing Zones Act, and Oil and Gas Free Trade Zone Act were also amended to reflect the proposed changes.”

The House of Representatives is expected to deliberate on the report in the coming weeks as part of its legislative process.


We await details of approval before comment — NACCIMA
President of NACCIMA, Dele Oye, which reacting to the development, said he would have to see the details of what was approved before making any comment.

His words: “I need to see what was approved. I cannot comment without details as we had alot of comments on the draft bill.”

Don’t celebrate yet, CSO advises Nigerians
Speaking through its General Secretary, Dagga Tolar, said: “We must not be in a hurry, to applaud this House of Representatives’ rejection of increase in VAT. It is not far reaching enough bearing in mind that this is only one feature of the Tax Reform Bill that aims to grasp more from the little never enough earnings of the working population, while granting a tax holiday to members of the billionaire club.

“Yes, the progressive VAT increases only adds more burden to the working population, members of the billionaire club who have their hands in the pie and bread buttered by the National cake have nothing to fear about VAT. Nearly all of their needs come via one direct or indirect link to the wealth of the country.

“It is the vast majority of the working population that are on their own, assailed by hunger, inflation, mass unemployment with poverty wages of N70,000 ($45) that is not even paid by all the states, and a majority of the private sector. Even at that, the current minimum wage has shrunk and is now lower than all previous minimum wages in its dollar value. The 2019 Buhari’s N30,000 with a dollar/N350 was $85. Go back to 1981 with minimum wage at N125 and a dollar/ N0.60k was $205.


“This is the pithole that the Tinubu regime continues to condemn us all into, refusing to make a break from Neoliberal capitalist dictations of the International Monetary Fund, IMF and World Bank that will not set us out to industrialise and compete with China, US and Europe. Not to forget, we run a rental economy. The ruling class has no interest in increasing the purchasing power of the working population. If this was the case, it would not be flying this Tax Reform Bill. The Babangida Book launch reveals to all of us that there is too much wealth in the hands of a few. What is their tax contribution to the coffers of the state?

“We cannot rely on the House of Representatives or the National Assembly or even the northern governors to provide a consistent opposition to VAT increase or the Tax Reform Bill. They are beneficiaries, we in the Movement for Socialist Alternative call on the Nigeria Labour Congress, NLC and Trade Union Congress of Nigeria, TUC, leadership demand a new minimum wage to march the rate of inflation immediately. Mobilise workers for one day warning strike in opposition to imposing new tax burden on workers. For a progressive tax that makes billionaires to pay more. To end the tax holiday granted to corporations. And for an emergency relief package of nothing less than a N100,000 for all workers and the unemployed in the country.”