President Bola Tinubu may bar revenue-generating agencies from collecting revenues on behalf of the Federal Government as he plans to introduce a single agency – Nigeria Revenue Service – to handle the task.
This came as the Federal Government instituted a comprehensive set of fresh tax reforms aimed at significantly boosting revenue collection.
The reforms, designed to enhance the efficiency of collecting direct taxes, along with various levies that are imposed on behalf of the government, will bar the Nigerian Customs Service, Nigerian Ports Authority, and 60 other revenue collection agencies from participating in revenue collection activities, but will lead to the creation of the Nigeria Revenue Service.
By implementing these changes, the government seeks to streamline the tax collection process, ensuring that all taxable entities contribute their fair share and that the revenue generated is maximised to support public services and infrastructure development.
The policy directive was instituted on Thursday when the President forwarded four executive bills to the National Assembly for consideration, aiming to implement significant tax reforms. Nigeria is contending with a revenue challenge that cuts across all government tiers but wants to attain a minimum tax-to-GDP ratio of 18 per cent. The country’s tax-to-GDP ratio is below Africa’s average and ranks as one of the lowest in the world.
This has led to fiscal deficit and over-reliance on borrowing to finance public spending resulting in a cycle of inadequate funding for socio-economic development.
One of the key proposals is the renaming of the Federal Inland Revenue Service to the Nigeria Revenue Service.
A source at the Presidency, however, hinted that the new bill would not lead to a merger but seek to remove the revenue collection arm from the agencies and allocate its function to the Nigerian Revenue Services.
“There is no merger of agencies. The bill will only take the revenue collection arm of each agency involved and take it to the Nigerian Revenue Service.
“The plan is that the new revenue agency will be like the US or UK revenue agency that collects all government revenues while other revenue agencies like NIMASA, NPA, Customs, etc, will now focus on their core mandate, which is trade facilitation. There is no merger at all,” the official said.
The bill seeking the name change for FIRS was outlined in a letter read by Senate President, Godswill Akpabio, and the Speaker, House of Representatives, Tajudeen Abbas, during the plenary sessions.
The proposed law, titled the Nigeria Revenue Service (Establishment) Bill, seeks to repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007, and establish the Nigeria Revenue Service.
According to Tinubu, the new agency will be responsible for assessing, collecting, and accounting for revenue accruing to the government.
In addition to the name change, Tinubu submitted three other tax reform bills under the title, ‘Transmission of Fiscal Policy and Tax Reform Bills’ to the National Assembly.
The President also transmitted to the parliament the Joint Revenue Board Establishment Bill, which seeks to create a Tax Tribunal and a Tax Ombudsman.
He wrote, “The Nigeria Tax Bill: This bill seeks to provide a consolidated fiscal framework for taxation in the country.
“The Nigeria Tax Administration Bill: Aimed at offering a clear and concise legal framework, this bill will ensure the fair, consistent, and efficient administration of tax laws, facilitating ease of tax compliance, reducing disputes, and optimizing revenue collection.
“The Joint Revenue Board (Establishment) Bill: This proposal seeks to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman, which will work to harmonise, coordinate, and resolve disputes arising from revenue administration in Nigeria.” Tinubu emphasised that the proposed tax bills would have far-reaching benefits for the country, promoting taxpayer compliance, strengthening fiscal institutions, and fostering a more effective and transparent fiscal regime.
“I am confident that the bills, when passed, will encourage investment, boost consumer spending, and stimulate Nigeria’s economic growth,” Tinubu stated.
On the floor of the House of Representatives, Speaker, Abbas, confirmed receipt of the bills, stressing that they were designed in line with the objectives of the present administration.
He noted that when passed into law, the bills would encourage the growth and sustainability of the economy.
The House also consolidated six bills seeking the repeal of the Fiscal Responsibility Act, 2007 to enact the Fiscal Responsibility Bill, 2024.
The bill aims at ensuring prudent management of the nation’s resources, ensuring long-term macro-economic stability of the national economy; and securing greater accountability and transparency in fiscal operations within the medium-term fiscal policy framework.
Abbas, who presided over plenary, urged the Committee on Rules and Business to fix a date for debate on the general principles of the newly consolidated bills.
The PUNCH recalls that the tax reforms are policy recommendations from Taiwo Oyedele’s Presidential Fiscal Policy and Tax Reforms Committee, which seeks to reduce taxes in the country from the current 62 to a maximum of nine.
It also aligns with the recommendations of the President Tinubu Policy Advisory Council, which proposed declaring a state of emergency on revenue generation in the country.
Speaking in an earlier interview, Oyedele noted that fiscal reforms were needed to protect small businesses, the vulnerable and the poor while effectively taxing the rich.
He said, “Revenue transformation for us means we can no longer continue to celebrate incremental progress because the base was just so small and for us, it wasn’t about raising the taxes from existing taxpayers.
“In fact, one of the things we found out is that poor persons are those paying taxes, so it is time for them to take a break which means we have to look at the system to take that burden away from the vulnerable people, small businesses and let the middle class and the rich who can afford to pay do so.
“We have a brand new national fiscal policy that sets the framework for where we want to be, where we want to go, what we want to do, and what we want to stop doing as a country. We have identified company income tax, personal income tax, value-added tax, stamp duty, capital gains, and excise tax and we have redrafted new ones.” This new law will expunge the revenue collection function from 62 revenue-generating agencies and transfer the responsibility of revenue collection to a single agency to promote collection efficiency.
Some of the agencies include Federal Airports Authority of Nigeria, Nigerian Ports Authority, Federal Inland Revenue Service, Nigeria Deposit Insurance Corporation, Nigerian Meteorological Agency, National Agency for Food and Drug Administration and Control, Federal Road Safety Corps, Nigeria Customs Service, Standards Organisation of Nigeria and the Nigerian Airspace Management Agency.
Others are the Bank of Agriculture, Nigerian Bulk Electricity Trading, Tertiary Education Trust Fund, Federal Radio Corporation of Nigeria, Nigerian Railway Corporation, Federal Reporting Council of Nigeria, Nigerian Maritime Administration and Safety Agency, Corporate Affairs Commission, Nigeria Civil Aviation Authority, National Broadcasting Commission and Joint Admission Matriculation Board.
Commenting on the implications of the new law, a former National President of the National Association of Government Approved Freight Forwarders, Dr Eugene Nweke, faulted the bill. He added that customs all over the world were known for revenue collection.
“Customs all over the world are known for revenue collection. What it means is that they would outsource that function to a third party. Customs all over the world are known for revenue collection and anti-smuggling operations,” Nweke said.
According to him, revenue collection had lots of technicalities.
“What they should do with Customs is to train our importers and compel the NCS to go beyond the issues of scanning with a lot of compromises. The government should stop always thinking of how to protect a bill,” he advised.
also reacting, National Public Relations Officer, Association of Registered Freight Forwarders of Nigeria, Taiwo Fatobilola, said, “It is not possible, don’t mind the government. They think revenue collection is what anybody can wake up and start with? Do they know how much it takes to train people on something the NCS have been trained to do? Please don’t mind them, it’s not possible.” however, National Public Relations Officer, Nigeria Customs Service, Abdullahi Maiwada, said he was not aware of the bill.
“I am not aware of that, I am just hearing it from you,” Maiwada told The PUNCH.
The Minister of Solid Minerals Development, Dele Alake, has warned state governments against the closure of mining sites, stressing that sub-nationals lack the constitutional authority to do so. Alake stated that mining activities fall under the Federal Government’s exclusive jurisdiction and no state has the authority to interfere in mining operations. The ministers’ comment is in response to recent proclamations by state governors in Gombe and Kogi states and the closure of Segilola Mining Company by the Osun State Government over taxation and operational matters. The governors said the directive aims to protect host communities from exploitation and safeguard the environment from the adverse effects of unregulated mining.
But responding in a statement signed by his Special Assistant on Media, Segun Tomori, on Friday, Alake said, “State governments’ ban on mining activities across the country is a point that is really sore and it is a constitution matter. “I want to use this opportunity to tell the entire Nigerian public that no state and I repeat no state, has the authority to interfere in mining operations. No state government has that authority. It is a no-brainer and is a constitutional matter. Mining belongs exclusively in the purview of the Federal Government. “According to the Constitution, it is in the exclusive legislative list and not in the residual or concurrent. It is in the exclusive legislative list and every item on this list belongs to the Federal Government.” He said it’s outright illegal for a state to regulate mining activities, just as it would be illegal for a state to ban oil exploration. The minister also noted that some state governors are not well grounded in the constitutional imperatives and dynamics of the sector and are in need of adequate education and enlightenment. “Indiscriminate closures of mining operations by subnationals raise the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies. “Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken.” Alake asserted.
The minister observed that the Federal Government has been marketing opportunities for investments in the solid minerals sector across the world and cautioned that the closure of mining operations by subnationals could abort efforts to attract Foreign Direct Investments and provoke divestment. “We are not against any state that wants to engage in mining operations as long as it follows the due process. If any state wants to engage in mining, it can form its own Special purpose vehicle, apply for a mining license from the office of the solid minerals minister, go through the due process and will be licensed if it meets all the criteria. That’s the law. “But for a state to wake up and say it’s regulating mining activities is like a state waking up to ban oil exploration. That’s downright illegal,” he said.
Alake further clarified, “We are engaging state executives, chairman of the Nigeria governors forum and I am going to address the national economic council soon to educate the states on what is happening. Some of them are not vast in the constitutional imperatives and dynamics of this sector and so there is a need for adequate education and enlightenment.” On the closure of the Segilola mining factory, the minister said it’s probing the claims and counter-claims of the Osun State Government over taxation and operational matters. He also said that a fact-finding team has been set up to engage both parties towards resolving the dispute and restoring industrial harmony. Led by Dr Mary Ogbe, the Permanent Secretary, Ministry of Solid Minerals Development, the committee will include representatives of the Federal Inland Revenue Service, the Ministry of Labour and Employment and the National Association of Chambers of Commerce, Industry, Mines and Agriculture. The minister reiterated the Federal Government’s interest in raising the tempo of productive activities nationwide to boost economic growth and increase employment and community development. He stressed that any cessation of industrial production would undermine the goals of economic prosperity, deny workers the opportunity to earn income, and further contribute to adversity. Alake further called on both parties to cooperate with the fact-finding team and allow production to continue while the issues are resolved.
“I hereby call on His Excellency, the Governor of Osun State, Sen. Ademola Adeleke and the management of Thor Exploration Limited to sue for peace and industrial harmony in the interest of the workers and their dependents who may be adversely affected by the closure of operations at the factory.” he appealed.
The case of two black women allegedly shot and fed to pigs by a white farmer and his workers has sparked widespread outrage in South Africa, BBC reports on Wednesday.
Maria Makgato, 45, and Lucia Ndlovu, 34, were reportedly searching for food on a farm near Polokwane in Limpopo province when they were shot in August.
Their bodies were then allegedly fed to pigs in an attempt to conceal the crime. The court is currently deciding whether to grant bail to the farm owner, Zachariah Johannes Olivier, 60, and his two employees, Adrian de Wet, 19, and William Musora, 50, as they await trial for murder.
None of the men have entered a formal plea yet.
BBC reports that protests erupted outside the courtroom in Polokwane, with demonstrators holding placards and demanding that the suspects be denied bail.
Inside the courtroom, families of the victims and the accused filled the benches as magistrate Ntilane Felleng allowed media coverage, citing public interest in the case.
The three accused also face charges of attempted murder for allegedly shooting at Ndlovu’s husband, Mabutho Ncube, who managed to survive the attack.
Ncube said he reported the incident to the police, who later found the decomposed bodies of his wife and Makgato in the farm’s pigsty.
According to the BBC, the incident has devastated the families of the victims, especially Makgato’s four sons, who range in age from five to 22.
Her eldest son, Ranti Makgato, tearfully told the BBC, “My mum died a painful death, she was a loving mother who did everything for us. We lacked nothing because of her.
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