Headline
Tax Reform Bills Offer 55% To States In New Sharing Formula

The Senate has passed for second reading the Tax Reform Bills, a set of four legislative proposals. Among other things, they seek to increase the Value-Added Tax (VAT) distributable to states to 55 percent while reducing the Federal Government’s share to 10 percent.
The new legislative regimes also proposed zero VAT on exports and essential commodities, and to reduce company income tax from 30 to 25 per cent among others.
While the bills were referred to the Committee on Finance to carry out other legislative action, it was tasked to invite all the stakeholders to a public hearing to address all areas of concern and report back to the Senate in six weeks.
These far-reaching initiatives were contained in the lead debate of Senate Leader, Senator Opeyemi Bamidele on the Tax Reform Bills.
The Federal Executive Council, FEC, had proposed the Tax Reform Bills comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024 and Nigeria Tax Bill, 2024.
The bills elicited interests among lawmakers and stakeholders across party lines, a situation that led the leadership of the Senate to invite Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele and Chairman, Federal Inland Revenue Service, Dr. Zacch Adedeji to brief its plenary.
Leading debate at the plenary, Bamidele reeled out far-reaching proposals contained in the Tax Reform Bills, which according to him, aim at simplifying the tax landscape, reducing the burden on small businesses and streamlining how taxes are collected.
Tax exemptions
On tax exemptions, Bamidele pointed out that those whose salaries are not more than the minimum wage are exempted from Pay As You Earn, PAYE, deductions.
He also said small businesses with annual turnover of N50 million or less “are equally exempted from payment of taxes,” a key pro-business initiative that encourages job creation; deepens ease of doing business and incentivises more investments.
Similarly, the Senate Leader explained that there is a proposed huge reduction in company income tax from the current 30 per cent to 25 per cent that will last for at least two years.
He said: “As part of a deliberate attempt to curtail the incidence of double taxation and multiplicity of taxes and levies, multiple taxes hitherto paid by companies under various tax heads namely 2.5 per cent education tax, and 0.25 per cent NASENI tax have been harmonized into a development levy of 2 per cent, which by 2030 will be applied to fund the newly established student loans scheme which will benefit many Nigerian youths.
READ ALSO: Why I’m Against Tax Reform Bills — Ndume
“Unlike what is obtainable under the existing tax regime whereby the Federal Government takes a lion share of VAT revenues, it is proposed that the sharing formula should allow state governments share 55 per cent of VAT revenue from the current 15 to 10 per cent sharing formula.
“However, local governments’ share of VAT revenue remains unaffected. Relatedly, basic items consumed by Nigerian households such as food items, medical services and pharmaceuticals, educational fees, electricity etc. are exempted from VAT.
“Again, as part of efforts to ease the administration of income taxes and levies across the Federation, there is a reasonable effort made to consolidate core tax statutes and related tax legislations,” Bamidele explained.
Pro-poor proposals
Contrary to misrepresentations in the public domain regarding the intendment of the Bills under consideration, Bamidele explained that the bills contained innovative and people-oriented proposals as part of government’s deliberate fiscal and tax reform measures to cushion the effect of ongoing broader economic policies such as the removal of subsidy on petroleum products, renewed efforts to implement cost-reflective electricity tariffs in the power sector, etc on Nigerian citizens.
In his contribution, former Chief Whip of the Senate, Senator Ali Ndume (APC, Borno South) claimed that his problem is about timing and the issue of derivation.
He added that the Constitution of the Federal Republic of Nigeria, 1999 (as amended) must be amended before the Tax Reform Bills could take effect, therefore calling for its immediate withdrawal.
Ndume observed: “I am not against the reform, my problem is timing and the issue of derivation make the reform contagious. The 1999 Constitution has to be amended before the bills can be effective.”
However, Chief Whip of the Senate, Senator Mohammed Monguno (Borno North) expressed strong objection to Ndume’s submissions, asking the Senate to disregard it and pass the bills for second reading.
Monguno urged the Senate to pass the bill into second reading, advocating that all areas of concern will be addressed at the public hearing stage.
After the exhaustive debate to which Chairman, Senate Committee on Finance, Senator Sani Musa and Chairman, Senate Committee on Ecology, Senator Seriake Dickson meaningfully contributed, the Senate unanimously passed the bills into second reading following Monguno’s final position.
READ ALSO: JUST IN: Tinubu’s Tax Reform Bills Pass Second Reading At Senate
Bills referred to committee
In his remarks, President of the Senate, Senator Godswill Akpabio referred the bill to the Committee on Finance led by Senator Sani Musa (APC, Niger East), to carry out other legislative action, invite all the stakeholders to a public hearing to address all areas of concern and report back to the Senate in six weeks.
Senator Akpabio said that during the public hearing experts will be invited as well as Governors under the aegis of Nigeria Governors Forum, NGF, traditional rulers and other stakeholders, assuring that at the end of the day, “the Senate will give to Nigerians and the country what is good.”
How senators passed bills for second reading
Prior to debate on the bills, the Senators had gone into a closed-door session from 11.55am to 12.42pm.
The resolution of the Senate was sequel to presentation of the lead debate on the general principles of the bills by the Senate Leader, Senator Opeyemi Bamidele (APC, Ekiti Central).
After lead debate presentations, most of the senators, who made contributions like Senators Sani Musa (APC, Niger East), Seriake Dickson (PDP, Bayelsa West), Abba Moro (PDP, Benue South) and Senate Whip, Tahir Monguno (APC, Borno North) supported the bill.
However, former Senate Leader, Senator Ali Ndume (APC, Borno South) kicked against the reform bills.
Ndume kicks
Ndume said: “Reforms are necessary if we have to move forward. I am not against reforms. And I am not against these reforms, tax reforms. My problem is the timing. The timing, as it is today, when you talk about reforms in Nigeria, whether good or bad, they’re misconceived.
“There are four or three things there. But, as you said, the time for that would be at the public hearing or when we pass it for second reading. But let it be on record that my problem with the bills is the timing. Number two, the issue of derivation made the reform contagious, contaminated, and contradictory in some cases. Because the Constitution has to be amended in order for some of these proposals to be effective. I’m glad we are doing a constitutional review. So even if it means reviewing the constitution. This is the general principle.
READ ALSO: Tax Reform Bills: Drama In Senate As Tinubu’s Economic Team Attends Plenary
“As you said, or as the Senators decided, we should not throw away the baby with the bath water. I would have preferred we remove the baby and throw away the water, and that is to go with what the governors and NEC proposed: that these bills should be withdrawn, they are not saying that the bills should be killed. You withdraw the bill, bring it back to the National Assembly again after getting the buy-in of the governors and NEC and even our traditional rulers.”
“In conclusion, Mr. President, the third problem I mentioned is the people through the governors and then and the traditional rulers say that the bills should be withdrawn, make some necessary amendments. And then bring it back and we can pass it in 24 hours. That is my position, Mr. President.”
Monguno disagrees with Ndume
Supporting the bills, the Senate Whip, Senator Mohammed Monguno (APC, Borno North) said: “With all due respect to Senator Ndume, I beg to disagree with you that these bills should be withdrawn first and consultation should be held with the Nigeria Governors Forum and traditional rulers.
“We have a procedure which is clearly and ambiguously stated in our Rule book for the process of lawmaking. And the Constitution, in a very clear and unambiguous tab, gave us the power to regulate our proceedings in Section 60. Pursuant to Section 60 of the 1999 Constitution as amended, we get these rules to ourselves in order to guide our proceedings. And then the process of lawmaking is very clear and unambiguous as per this book. That second reading, it will be now transmitted to the Committee for Public Hearing. In the course of the public hearing, Nigerians of all walks of life, of all groups, will come and aggregate, including the governors and traditional rulers, are free to come and ventilate their opinion.”
On his part, Senator Dickson said: “Tax revenue is something that I fully support. I am aware that some issues have been raised, and that is legitimate in a country of diverse people, cultures, and expectations. All we are expected to do is to harness all of these and enact laws in the national interest, which I believe, following our rules.
“At the committee stage, during the public hearing, anybody who has anything to say will be invited to say it, as the Chairman of the Committee has said. Now, there are issues I am concerned with. Some of these issues that have been raised are also as a result of insufficient consensus-building and consultation prior to the introduction. It’s understandable.
READ ALSO: Tinubu Rejects National Economic Council Advice, Vows To Continue With Tax Reforms Bill
“As a former governor, while some governors were interested in some of these, some expressed concerns. That is legitimate. That consultation should have taken place. And I believe between now and at the end of our legislative activities, more consultations will happen. But that does not detract from the essence of the legislation that have been sent to us.
“For example, there is emphasis on derivation according to taxation. And the attempt now is to encourage states to be productive.
“I am concerned about where I come from, from the experiences you and I have, where oil workers are flown onto oil platforms in Eket and Ibeno in Akwa Ibom, or flown into Bonny and other areas in River State, or flown into Brass in Bayelsa, and in the Southern Niger area, and in Delta State, in Ogoni and Forcados.
“We are interested that this is an opportunity for the taxes from those oil workers to be calculated and paid to the oil-producing states where those activities are generated. Now the gains are being calculated and paid where the head office is located, as has been the case, where the tax is registered.
“And from the general principles underlying this bill, there is a move and a commitment by the executive to address that issue of revenue derivation, to ensure that payee taxes, even for the oil workers that are flown in and flown out every day after their work, be calculated and paid. If that is done, it is a good move that should be supported.
“When we get to the committee stage, we’ll look at the specific details but there’s nothing wrong in saying that the telephone calls that are made in Bayelsa or Akwa Ibom or Sokoto or Kano, the VAT on those things that are consumed, be calculated and paid to those states. And we are told that that is the essence of these bills. And there’s nothing wrong about it.
“Because VAT is a consumption tax, it is not a production tax. Those who are in the states who consume services, the VAT accruing to those should be calculated and paid. I’m sure when we look at the details, we’ll see whether there’s enough mechanism to guarantee transparency and accuracy in terms of administration.”
VANGUARD
Headline
Trump Threatens To Unleash ‘Hell’ On Hamas

US President Donald Trump has given Hamas until 2200 GMT on Sunday to accept his 20-point plan for peace in Gaza, warning the Palestinian militant group faced “all hell” if it did not agree to the terms.
The US leader set the deadline — which would fall at 1:00 a.m. Monday in Gaza — after an official for the Islamist movement told AFP earlier on Friday that the group still needed time to study the proposal to end nearly two years of devastating war in the Palestinian territory.
“If this LAST CHANCE agreement is not reached, all HELL, like no one has ever seen before, will break out against Hamas,” Trump posted on his Truth Social platform.
The proposal, backed by Israeli Prime Minister Benjamin Netanyahu, calls for a ceasefire, the release of hostages within 72 hours, Hamas’s disarmament and a gradual Israeli withdrawal from Gaza.
READ ALSO:Israeli Forces Strike Gaza Despite Trump’s Ceasefire Call
That would be followed by a post-war transitional authority headed by Trump himself.
“Hamas is still continuing consultations regarding Trump’s plan… and has informed mediators that the consultations are ongoing and need some time,” the official said on condition of anonymity because they were not authorised to speak publicly on the matter.
On Tuesday, Trump gave Hamas “three or four days” to accept his plan, which has been welcomed by world powers, including Arab and Muslim nations.
Mohammad Nazzal, a member of Hamas’s political bureau, said in a statement Friday that the “plan has points of concern, and we will announce our position on it soon.”
READ ALSO:Israel Strikes Hamas Leadership, Explosions Reported In Qatar’s Capital
As Hamas mulled Trump’s peace plan this week, a Palestinian source close to the group’s leadership told AFP on Wednesday that the Islamist movement wanted to amend some clauses, including the one on disarmament.
Hamas leaders also want “international guarantees” for a full Israeli withdrawal and that no assassination attempts would be made inside or outside Gaza, the source added.
Another source familiar with the negotiations told AFP that the group was split over Trump’s plan.
Structurally, the group’s leadership is divided between officials based in the Gaza Strip and those abroad, particularly in Qatar.
READ ALSO:Spain Cancels $825m Israel Arms Deal Over Gaza
Much of Hamas’s leadership has also been wiped out in Israeli attacks throughout the war.
The source told AFP that “the first (opinion) supports unconditional approval, as the priority is a ceasefire under Trump’s guarantees, with mediators ensuring Israel implements the plan”.
“The second has serious reservations regarding key clauses… They favour conditional approval with clarifications reflecting Hamas’s and the resistance factions’ demands,” the source added.
Hugh Lovatt, a senior policy fellow at the European Council on Foreign Relations, said “ultimately it’s not just about convincing Hamas leadership in Doha, but also the leadership in Gaza, as well as Hamas members and fighters in Gaza.”
READ ALSO:Israel Begins Ground Offensive In Gaza Despite International Criticism
“Additionally, Hamas must then be able to convince other factions in Gaza,” he added.
The war was triggered by Hamas’s October 7, 2023 attack on Israel, which resulted in the deaths of 1,219 people, mostly civilians, according to an AFP tally of Israeli official figures.
Israel’s retaliatory offensive has killed at least 66,288 Palestinians, according to health ministry figures in the Hamas-run territory that the United Nations considers reliable.
Their data does not distinguish between civilians and combatants, but indicates that more than half of the dead are women and children.
Headline
Israeli Forces Strike Gaza Despite Trump’s Ceasefire Call

Gaza’s civil defence agency said Saturday that Israel carried out dozens of attacks on Gaza City despite US President Donald Trump’s appeal to end bombardments after Hamas accepted a ceasefire deal.
“It was a very violent night, during which the (Israeli army) carried out dozens of air strikes and artillery shelling on Gaza City and other areas in the Strip, despite President Trump’s call to halt the bombing,” civil defence spokesman Mahmud Bassal told AFP.
Bassal, whose agency is a rescue force which operates under Hamas authority, added that 20 homes were destroyed in the overnight bombardments.
READ ALSO:Brazil Slams Israel’s Gaza Aid Interception, Demands Detainees’ Safety
“The situation is very serious in Gaza City,” Bassal said, adding that his teams were not able to reach all the casualties due to the “presence of tanks and the ongoing bombardment”.
Contacted by AFP, the Israeli military said it was “checking” reports of overnight bombardments on Gaza City.
Gaza City’s Baptist Hospital said in a statement that it received casualties from a strike on a home in Tuffah neighbourhood, including four dead and “several wounded”.
READ ALSO:Brazil Slams Israel’s Gaza Aid Interception, Demands Detainees’ Safety
Nasser Hospital in south Gaza’s Khan Yunis said two children were killed and eight people were wounded in a drone strike on a tent in a camp for displaced Gazans.
The peace plan for Gaza, presented by Trump this week and backed by Israeli Prime Minister Benjamin Netanyahu, calls for a ceasefire, the release of hostages within 72 hours, Hamas’s disarmament and a gradual Israeli withdrawal from Gaza.
Hamas said on Friday it was ready to release hostages held in Gaza under the Trump plan, but wanted negotiations on the details and a say in the future of the Palestinian territory.
AFP
Headline
Prosecutors Seek 11-year Sentence For Diddy, Citing ‘Lack Of Remorse’

Prosecutors urged a federal judge Friday to sentence Sean “Diddy” Combs to more than a decade behind bars for his conviction on two prostitution-related counts, saying the music mogul had shown a lack of remorse.
“This is not a person who has accepted responsibility,” prosecutor Christy Slavik told the New York court at Diddy’s sentencing hearing.
“His remorse was qualified. It’s as though he thinks the law doesn’t apply to him,” Slavik said in arguing for an 11-year prison sentence for the 55-year-old hip-hop innovator. ” “His respect for the law is just lip service.”
Combs’s lawyers have asked the judge for a 14-month sentence, which would effectively be time served.
Slavik said Combs had booked speaking engagements in Miami next week in anticipation of a light sentence, which she called “the height of hubris.”
READ ALSO:Jury Selection Begins In Sean ‘Diddy’ Combs Sex Crimes Trial
Judge Arun Subramanian for his part said federal sentencing guidelines suggested a prison term of between six and seven years although he has the latitude to impose more or less.
The judge also noted an apparent lack of remorse, saying Combs has “challenged his factual guilt full-throatedly.”
Combs was expected to address the court at the sentencing hearing after submitting a letter to the judge on Thursday pleading for mercy and saying he had “lost my way.”
Following two months of often searing testimony, jurors in July rejected the most serious charges of sex trafficking and racketeering against Combs, sparing him the prospect of life in prison.
Combs’s mother and six of his children were in court on Friday and have submitted letters to the judge in his support.
READ ALSO:Woman Who Accused Jay-Z, Diddy Of Rape Drops Lawsuit
In his plea to the judge, Combs apologised for his conduct, saying he was “scared to death” to be away from his family and vowing he “will never commit a crime again.”
“I lost my way,” he wrote. “I got lost in my journey. Lost in the drugs and the excess.”
Combs’s former girlfriend, Casandra Ventura, asked the judge in a letter of her own to consider “the many lives that Sean Combs has upended with his abuse and control.”
– ‘Humbled and broken’ –
Ventura, the 39-year-old singer known as Cassie, testified for days while heavily pregnant.
She described in wrenching detail physical, emotional and sexual abuse she suffered while in a more than decade-long relationship with Combs.
READ ALSO:Sean ‘Diddy’ Combs Reacts After Kanye West Calls For His Release From Prison
Ventura and another woman, identified as Jane, said they were coerced into performing so-called “freak-offs”: sexual marathons with hired men that Combs directed and sometimes filmed.
“The entire courtroom watched actual footage of Combs kicking and beating me as I tried to run away from a freak off in 2016,” Ventura wrote.
“People watched this footage dozens of times, seeing my body thrown to the ground, my hands over my head, curled into a fetal position to shield me from the worst blows,” she said, noting she has nightmares and flashbacks “on a regular, everyday basis.”
Ventura said she and her family had left the New York area for fear of “retribution” from Combs if he is released.
READ ALSO:Sean ‘Diddy’ Combs Reacts After Kanye West Calls For His Release From Prison
The defense didn’t deny Combs’s sexual activity but insisted it was consensual.
They also didn’t deny Combs’s years of violence against both romantic partners as well as employees — but they said it didn’t meet the legal threshold for the grave charges he faced.
Jurors took their side.
The conviction on lesser if still serious counts stemmed from a federal statute that makes it illegal to transport people across state lines for prostitution.
Combs has been incarcerated in Brooklyn for more than a year.
He said his time in prison has left him “reborn.”
“I have been humbled and broken to my core,” Combs wrote.
AFP
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