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OPINION: Why President Tinubu Should Sack Umahi As Minister

Published

8 months ago

November 6, 2024

Editor

By Edwin Chukwudi

Former governor of Ebonyi state, David Umahi now minister of works under president Bola Tinubu is seen by many as one of the few performing Ministers in the administration. Therefore, it was not surprising to many that he survived the recent cabinet reshuffle. However, for professional engineers, Umahi represents a poor showing as a Minister.

Umahi who was appointed based on his apparent antecedents in office as Ebonyi state governor is regarded by the discerning mind and professional engineer as a product of media hype and packaging. He was touted as having built concrete roads and infrastructure in Ebonyi state. But the reality which has been hidden from most Nigerians is that all the concrete roads built by him in Ebonyi state failed completely.

The concrete roads were riddled with potholes and immediate crack which caused land/sand slides at the edges of all the roads. In many parts of the state the roads became unmotorable, the incumbent governor had award fresh contracts to cover that failed concrete roads with asphalt. The question then is, if Umahi is fully aware that the concrete roads idea was a colossal failure in Ebonyi state why then is he insisting on the introduction of concrete roads across the entire country?

Another white elephant in Ebonyi state which gave Umahi so much national praise is Ebonyi state airport which he built. It is interesting to note that till date , the Ebonyi state airport is yet to receive certification from FAAN and NCAA due to poorly executed civil works. Before the first plane landed on the airport, the concrete runway Tarmac was already cracking. These cracks were hastily covered with a layer of asphalt in order to hide it from the public. This was a joke, as Umahi failed to appreciate the basic engineering principle that asphalt should only be put on a solid base and not on a cracked surface. Umahi failed to realize that asphalt is more flexible and can handle temperature changes better. Such flexibility helps asphalt to resist cracks, particularly in areas with fluctuating temperatures. Also, since runways are critical infrastructure, they need resurfacing to maintain safety and smoothness.

Asphalt runway can easily be resurfaced by adding new layers without having to completely tear up the old surface, thereby making maintenance more efficient and cost effective. Such quick repairability is essential for safety. Asphalt also provide smoother surface for takeoff and landing. This smoothness reduces tear and wear on the plane”s landing gear and increases safety by providing better friction between tyres and the runway, especially under wet conditions. Unfortunately, Umahi chose to use concrete for the runway and endanger Nigerian lives, as concrete runway are preferably used in countries with winter and extreme temperature conditions.

Umahi”s unprofessional decisions in Ebonyi state are now being replicated across the country under his leadership as minister of works. This has impacted negatively on the nation”s economy since infrastructure is at the base of every thriving economy.

For instance, it is obvious that most production, industrial and import/export facilities are concentrated in South, while other end agricultural production is predominantly in the North. Hence, lack of access to good road infrastructure will inevitably bring the economy to a standstill. The previous administration under Babatunde Fashola organized for the repairs of critical roads with firm contracts with reputable contractors. But Umahi simply revoked these contracts arrangements, and also openly disrespected contractors who have been working in Nigeria for decades.

He exhibited dictatorial tendencies that he was known for as governor of Ebonyi state, threatening to throw them out if they refused to obey his directives which lacked inputs from them(contractors).

He introduced policies such as suspension of VOP, rescoping existing contracts and refusing to adapt the contract prices despite the huge devaluation of the Naira. He introduced compulsory concrete pavements in already existing contracts, and outright cancellation of contracts without regards to provisions of the contract and non performance of Federal Ministry of Works as regards payments for certificates of jobs completed as well as delay in release of payments.

The minister of works is reportedly forcing all contractors to switch from their previous administration contracts by using concrete. This is not minding that the contractors do not have the proper equipment, and no proper designs presented. These policies by Umahi are delaying delivery of roads, especially in the last one year. Many believe that the minister is deploying such harsh tactics in order to drop established contractors with the ministry and replace them with his cronies.

The roads policy of Umahi is very questionable. He does not appear to be given President Tinubu the right advise on policy direction. His proposal for the execution of the Calabar- Lagos/Badagry-Sokoto road is ill timed. While this road might be needed in a long term policy, it is certainly not a priority now compared to the need to fix critical roads like Warri to Lokoja, the super important Abuja to Kano road, especially as the axis of Abuja to Kaduna has become a travellers nightmare. Instead of implementing traditional repairs and upgrade of existing infrastructure, Umahi is more interested in executing his diabolical concrete roads idea at the Federal level. In about five years down the line such reckless policy will open the country to potentially the biggest roads failure in Nigeria”s history.

The style of Umahi is to gamble with tax payers money by exclusively awarding these humongous contracts to the big Oligarchs companies on a paddy paddy basis, and bypass requisite bid tendering and not complying with the Procurement Act. Although, Dangote cement company has been consistent and efficient in executing the concrete roads projects, but that cannot be said of others.

These unwholesome policies of the minister of works is already affecting the economy in very bad manner. It has degraded the transport and logistics business, caused increases in transportation costs. Loss on transit time of goods, repair costs etc. The negative impact on the Nigerian economy and on the Naira cannot be over emphasized. Indeed, the short, medium and long term implications of these bad roads are inestimable.

It also has serious implications on foreign investments, as foreign contractors operating in Nigeria will have to have a rethink about equipment and capital importation. Most especially, as Umahi does not respect signed agreements and contracts of his predecessor. How is it possible for contractors to be buying new equipment with huge financial implications intermittently and based on changing government policies?

One of the greatest drawbacks of Umahi”s policies is his contravention of ECOWAS road rules. The minister of works is authorizing the importation of cheap Trucks from China that are well over the road weight limit recommended by ECOWAS. With such Trucks plying the concrete roads it would be matter of time before the roads will fail woefully.

With the present economic situation this is not the time to further compound the challenges faced by the President Tinubu administration with avoidable poor road policies. It is equally not the time to compensate a former governor known for his dictatorial tendencies and failed roads and airport projects with an important ministry like that of works.

It is time for President Tinubu to sack Umahi, or redeploy him to a less visible ministry. A stitch in time saves nine.

Chukwudi, a Lagos based trained civil engineer. He can be reached on echukwudi80@gmail.com

Views expressed in the above article are strictly of the writer and not of Info Daily Media.

News

BREAKING: Renowned Businessman, Aminu Dantata, Is Dead

Published

2 hours ago

June 28, 2025

Editor

Alhaji Aminu Alhassan Dantata, a renowned Nigerian businessman and philanthropist, has passed away at the age of 94.

The news of billionaire businessman’s demise was disclosed via a social media post on Saturday by the Deputy National Treasurer of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Uba Tanko Mijinyawa.

According to him, details of the Muslim funeral prayer (Jana’iza) for Dantata will be announced in due course.

“Inna Lillahi wa’inna ilaihi Raji’un. Allah ya yi wa babanmu Dattijo, Alhaji Aminu Alhassan Dantata, rasuwa. Muna addu’a Allah ya jikan sa, ya gafarta masa. Za a sanar da lokacin jana’izarsa,” Tanko wrote in Hausa language.

Tanko’s message about the late philanthropist, who is also an uncle to Africa’s richest man, Aliko Dangote, was translated as “Indeed, we belong to Allah and to Him we shall return. May Allah have mercy on our father and elder, Alhaji Aminu Alhassan Dantata. We pray for his forgiveness. The time of his funeral will be announced.”

Also confirming the news, his Principal Private Secretary, Mustapha Abdullahi Junaid, disclosed in a statement Saturday morning that the Janazah details will be shared later.

Junaid wrote, “Innalillahi wa inna ilaihi rajiun. Innalillahi wa inna ilaihi rajiun. It is with heavy heart that I announce the passing of our beloved father, Alhaji Aminu Alhassan Dantata. May Allah grant him Jannatul Firdaus and forgive his shortcomings. The Janazah details will be shared later insha Allah.”

Alhaji Aminu Dantata, who was the founder of Express Petroleum & Gas Company Ltd., is also credited with having played a key role in the establishment of Nigeria’s first non-interest (Islamic) bank, Jaiz Bank.

News

EYIF: Utilize N2m Grant Provided By The Govt, Edo Deputy Gov Urges Youths

Published

11 hours ago

June 27, 2025

Editor

…says 1,500 applicants screened, 30 met requirements

Deputy Governor of Edo State, Hon. Dennis Idahosa, has urged youths in the state to make the best use of the N2 million start-up grant provided by the state government under the Edo Youth Impact Forum (EYIF).

Idahosa added that the youths must be innovative as they tapped into the two million start-up grant.

In a statement, the Chief Press Secretary to the Deputy Governor, Friday Aghedo, said Idahosa made the remarks during an incubation class of EYIF.

The Edo number two citizen, while noting that EYIF was parts of the government’s drive to build a new generation of entrepreneurs that would impact and shape the state’s financial economy, showed them how to position themselves in the entrepreneurial space to boost the local economy.

Idahosa encouraged the youths to put behind their challenges and make the best of the opportunity provided by the Senator Monday Okpebholo-led government.

According to him,
though 1,500 applicants got screened ahead of the finale scheduled for July 2, 2025, only 30 met the requirement and thus scaled the initial process.

“This number has again been pruned to 10 participants today and will eventually be reduced further to five finalists at the end of the day.

“Irrespective of who emerges as finalists, I want you to know that you are all winners. We are here as a government to encourage the youths because any society that strives to grow must have an active youth involvement,” Idahosa reiterated.

Earlier, the Special Adviser to the Governor on Finance, Investment and Revenue Generation, Mr. Kizito Okpebholo, presented the participants to the deputy governor.

News

Things To Know About Nigeria’s New Tax Laws

Published

12 hours ago

June 27, 2025

Editor

President Bola Tinubu on Thursday signed four new tax laws aimed at modernising and streamlining the country’s tax system.

In the new tax law, the Value Added Tax rate remains at 7.5 per cent despite initial proposals to increase to 12.5 per cent, but its scope is expanded.

Essential items—such as food, education, healthcare, public transport, residential rent, and exports—are zero-rated to ease inflationary pressure.

For revenue allocation is restructured: now 30 per cent of VAT proceeds are distributed based on consumption (rather than contribution), 50 per cent equally among states, and 20 per cent to population-based allocation.

With the latest development, it is expected that state revenue streams will increase, and it will also discourage tax evasion.

Overview of the four new laws

Nigeria Tax Act: Consolidates various tax rules into a single, simplified code, eliminating over 50 small, overlapping taxes. This reduces complexity and duplication, making it easier for businesses to comply.

Tax Administration Act: Establishes uniform rules for tax collection across federal, state, and local governments, ensuring consistency and reducing administrative conflicts.

Nigeria Revenue Service Act: Replaces the Federal Inland Revenue Service with the independent Nigeria Revenue Service, aiming for greater efficiency and autonomy in tax administration.

Joint Revenue Board Act: Enhances coordination between different government levels and introduces a Tax Ombudsman and Tax Appeal Tribunal to handle disputes fairly.

Key objectives of the new tax rules

Simplify Tax System: Reduces bureaucratic hurdles and overlapping taxes to make compliance easier, especially for small businesses and informal traders.

Increase Revenue Efficiency: Aims to boost Nigeria’s tax-to-GDP ratio from 10% (below the African average of 16–18%) to 18 per cent by 2026 without raising taxes on essential goods.

Reduce Financial Burden: Provides relief for low-income households and small businesses while ensuring high-income earners and luxury consumers contribute more.

Fund Public Services: Increased revenue will support infrastructure, healthcare, and education, reducing reliance on borrowing.

Who benefits and how
Low-Income Households:
Individuals earning up to ₦1 million ($650) annually receive a ₦200,000 rent relief, reducing taxable income to ₦800,000, exempting them from income tax.

VAT exemptions on essential goods and services (food, healthcare, education, rent, power, baby products) lower living costs.

Small businesses:

Businesses with an annual turnover below ₦50 million ($32,400) are exempt from company income tax.
Simplified tax filing without requiring audited accounts reduces compliance costs.

Large businesses:

Corporate tax rates drop from 30 per cent to 27.5 per cent in 2025 and 25 per cent thereafter.
Tax credits for VAT paid on expenses and assets allow businesses to recover the 7.5 per cent VAT.

Charitable, educational, and religious organisations:

Tax incentives for non-commercial earnings, encouraging community-focused activities.
Impact on different groups
Low-Income Earners: Benefit most from income tax exemptions and lower costs for essentials, increasing disposable income.

Small Businesses and informal traders: Simplified rules and tax exemptions encourage compliance and reduce financial strain, potentially formalising more businesses.

High-income earners and luxury consumers face higher VAT on luxury goods and premium services, plus capital gains tax on large share sales.

Government: Expects increased revenue for public services without overburdening vulnerable citizens.

Why reforms were needed

Nigeria’s tax system was outdated, inefficient, and disproportionately harsh on low-income groups.
The low tax-to-GDP ratio (10%) limited funding for critical services like healthcare and infrastructure.
Overlapping taxes and complex rules deterred compliance, especially among small businesses and informal traders.
Public and expert reactions

Positive sentiment: Small business owners welcome tax exemptions but seek clarity on enforcement to avoid unexpected levies.

Low-income earners appreciate relief on essentials but remain cautious about implementation.
Taiwo Oyedele, head of the Presidential Fiscal Policy and Tax Reform Committee, claims 90% public support, emphasising that success depends on awareness and trust.

The reforms align with Tinubu’s administration’s goal to reduce economic inequality and boost fiscal capacity without overburdening citizens.

By encouraging voluntary compliance and reducing reliance on loans, Nigeria aims to strengthen its economy and fund development projects.

These reforms mark a significant step toward a fairer, more efficient tax system, with a focus on supporting vulnerable groups while fostering economic growth. However, their success hinges on transparent enforcement and public trust. For further details, you can refer to official statements from the Nigerian government or credible news sources covering the reforms.
(PUNCH)