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Tinubu Moves To Bar Customs, NPA, Others From Revenue Collection

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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.

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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.

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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.

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READ ALSO: Naira: CBN Announces Fresh FX Code, Demands Compliance From Banks, BDCs, Others

“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.

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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.

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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.

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“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.

READ ALSO: CBN Introduces Electronic Foreign Exchange Matching To Curb Speculation

“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.”

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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.

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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.

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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.

Recall 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.

READ ALSO: ‘I’m Sorry, It’s Not Biblical’ – Pastor Adeboye Apologises For Saying Those Who Don’t Pay Tithe Won’t Make [VIDEO]

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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.

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“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.

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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.

READ ALSO: Tinubu Approves Funds For States To Tackle Flood, Erosion

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.

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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.

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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.”

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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.

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Nigeria Army Alone Cannot Defeat Bandits — Sheikh Gumi

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Islamic cleric Sheikh Ahmad Gumi has said the Nigerian military cannot defeat bandit groups through force, arguing that dialogue remains the only path to resolving insecurity in the northwest and other regions.

In an interview with the BBC, Gumi stated that modern armies worldwide struggle against guerrilla fighters, and Nigeria is no exception.

“But even the military says that in dealing with this civil unrest and criminality, only 25% is kinetic action; the rest depends on the government, politics, and local communities. The military cannot do everything,” he said. “Where have you ever seen the military defeat guerrilla fighters? Nowhere.”

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His comments come as President Bola Tinubu’s administration introduces sweeping security reforms, including changes in military leadership and a nationwide security emergency aimed at tackling violent groups responsible for kidnappings, extortion and rural attacks.

READ ALSO:Gumi Reacts As Saudi Bars Him From Hajj

Addressing accusations of maintaining ties with bandit leaders, Gumi said he has had no contact with them since 2021, when the federal government formally designated the groups as terrorists. “I never went there alone,” he said.

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“It was in 2021 when I was trying to see how we could bring them together. But unfortunately, the government at the time, the federal government, was not interested. They declared them terrorists, and since that time we have completely disengaged from all contact with them.”

Despite criticism that his advocacy emboldens armed groups, Gumi maintained that negotiation with non-state actors is a global practice. “When they say we don’t negotiate with terrorists, I don’t know where they got that from,” he said. “It is not in the Bible, it is not in the Quran. America had an office negotiating with the Taliban in Qatar. Everyone negotiates with outlaws if it will stop bloodshed.”

He described the armed groups as largely “Fulani herdsmen” engaged in what he called an “existential war” linked to threats to their traditional livelihoods of cattle rearing. “They want to exist. That is their life.

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READ ALSO:Insecurity: What Sheikh Gumi Told Me After Visiting Bandits Hideouts — Obasanjo

They know where to graze and how to care for their cattle,” he said, adding that the crisis has grown from farmer–herder tensions into widespread criminality.

Gumi has long faced public backlash for his engagements with bandits and for remarks such as his earlier claim that kidnapping schoolchildren is a “lesser evil” than killing soldiers.

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Meanwhile, Gumi, in the same interview, also restated his view that the abduction of schoolchildren by armed groups constitutes a “lesser evil” than attacks on Nigerian soldiers, while emphasising that both acts are unacceptable.

“I think part of what I said then is correct and part of it wrong,” Gumi said, referring to his controversial 2021 statement.

“Saying kidnapping children is a lesser evil than killing soldiers, definitely it is lesser. But all of them are evil. All evils are not the same.”

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How France Helped Benin Foil Coup Detat

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France helped the authorities in Benin thwart a coup attempt at the weekend, an aide to President Emmanuel Macron said Tuesday, revealing a French role in a regional effort that foiled the latest bid to stage a putsch in West Africa.

Macron led a “coordination effort” by speaking with key regional leaders, the aide, asking not to be named, told reporters, two days after Sunday’s failed coup bid.

France — at the request of the Beninese authorities — provided assistance “in terms of surveillance, observation and logistical support” to the Benin armed forces, the aide added.

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Further details on the nature of the assistance were not immediately available.

A group of soldiers on Sunday took over Benin’s national television station and announced that President Patrice Talon had been deposed.

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But loyalist army forces ultimately defeated the attempted putsch with the help of neighbouring Nigeria, which carried out military strikes on Cotonou and deployed troops.

West Africa has endured a sequence of coups in recent years that have severely eroded French influence and presence in what were French colonies until independence.

Mali saw coups in 2020 and 2021, followed by Burkina Faso in 2022 and then Niger in 2023. French forces that had been deployed in these countries for an anti-jihadist operation were consequently forced to withdraw.

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A successful putsch in Benin, also a former French colony, would have been seen as a new blow to the standing of Paris and Macron in the region.
Guinea-Bissau, a former Portuguese colony, was meanwhile rocked by a coup in November after elections which led to military authorities taking over.
– ‘Caused serious concern’ –

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On Sunday, Macron spoke with Talon as well as the leaders of top regional power Nigeria and Sierra Leone, which holds the presidency of West African regional bloc ECOWAS, the Elysee aide said.

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The situation in Benin “caused serious concern for the president (Macron), who unequivocally condemned this attempt at destabilisation, which fortunately failed”, said the aide.

ECOWAS has said troops from Ghana, Ivory Coast, Nigeria and Sierra Leone were being deployed to Benin to help the government “preserve constitutional order”.
“Our community is in a state of emergency,” Omar Alieu Touray, president of the Economic Community of West African States (ECOWAS) said on Tuesday, highlighting the jihadist threat in the region as well as coups.

The bloc had threatened intervention during Niger’s 2023 coup that deposed president Mohamed Bazoum — an ally of Macron — but ultimately did not act.
France also did not carry out any intervention against the Niger coup.
“France has offered its full political support to ECOWAS, which made a very significant effort this weekend,” said the aide.

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At least a dozen plotters had been arrested and all hostages, including high-ranking officers, had been released by Monday, according to loyalist military sources.

Talon made his own television appearance late Sunday, assuring the country that the situation was “completely under control”.

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Talon, 67, is due to hand over the reins of power in April after the maximum-allowed two terms leading Benin, which in recent years has been hit by jihadist violence in the north.

On Tuesday, former Beninese president Thomas Boni Yayi, whose opposition Democrats party has been excluded from next year’s presidential elections, condemned the failed coup.

“I condemn most vigorously and strongly condemn this bloody and shameful attack on our country,” said Boni Yayi, a former chairman of the African Union who served as Benin’s president from 2006 to 2016.

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The transfer of state power “responds to a single cardinal and unconditional principle: that of the ballot box, that of the people, that of free and transparent elections”, Boni Yayi added in a video posted on Facebook.
(AFP)

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Reps Panel Grills TCN Officials Over Poor Grid Stability

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The House of Representatives Ad-Hoc Committee investigating multi-billion-naira power sector reforms on Tuesday interrogated officials of the Transmission Company of Nigeria (TCN), exposing fresh gaps between Nigeria’s installed power capacity and the electricity actually delivered to homes and industries.

Appearing before the committee chaired by Hon. Ibrahim Aliyu, TCN Managing Director, Dr. Sule Ahmad Abdulaziz, dismissed widely circulated claims that Nigeria currently generates 13,000 megawatts of electricity. He stressed that the figure reflects installed capacity—not what the national grid has ever produced.

The highest ever generated this year was 5,801MW,” Abdulaziz said. “Nigeria has never produced 13,000MW on the national grid. That number is installed capacity, not generated capacity.”

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He explained that until April 2024, the National Control Centre responsible for daily generation and dispatch records was under TCN’s direct supervision, giving the company access to “accurate and verifiable” data.

READ ALSO:Collapsed National Grid Restored – TCN

Responding to scrutiny from committee member Hon. Abubakar Fulata, who questioned why only about 6,000MW is typically wheeled despite supposedly higher available generation, Abdulaziz insisted TCN had never failed in transmission.
“Our transmission capacity today is 8,600MW,” he stated. “At no time has power been generated that TCN could not evacuate. Anyone claiming otherwise should produce the data.”

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On the company’s financial health, TCN’s Executive Director of Finance told lawmakers the company is weighed down by massive debts owed by electricity distribution companies (DisCos), revealing: N217 billion in electricity subsidy debt (Jan 2015–Dec 2020) taken over by the Federal Government
N450 billion owed by DisCos from Jan 2021 to date.

Clarifying controversies around grid instability, a senior TCN system operations official said the company recorded 11 grid collapses, contrary to the 22–23 often quoted.

Giving a breakdown of causes, he explained that six collapses were caused by generation issues, including gas shortages, four linked to vandalism of transmission towers, leading to sudden loss of load, one triggered by distribution network failures, often due to rainfall-induced feeder trips.

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READ ALSO:Blackout Looms As Vandals, Again, Attack Transmission Line – TCN

He emphasised that all three segments generation, transmission and distribution can trigger system collapse, adding that the Nigerian Electricity Regulatory Commission (NERC), with Central Bank support, had implemented Service Level Agreement (SLA) interventions to address systemic bottlenecks.

TCN officials further disclosed the company has over 100 ongoing transmission projects, many of which are 65%–90% complete but stalled for lack of funding.
Power infrastructure cannot be energised at 99%. It must be 100% complete,” an official noted.

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If outstanding debts are paid, we can finish priority projects and strengthen the grid.”

He added that TCN aims to expand wheeling capacity to 10,000MW by March next year through network upgrades and simulation-based grid optimisation.

Committee chairman Hon. Ibrahim Aliyu said the presentations had clarified earlier misconceptions about TCN’s role in the sector’s failures but expressed concern over the slow expansion of critical infrastructure, pledging the parliament intervention to address the anomaly in due course.

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