metro
Northern govs reject proposed model for VAT distribution
Northern govs reject proposed model for VAT distribution
The Northern Governors Forum chaired by Gombe state Governor has rejected the derivation-based model for Value Added tax (VAT) distribution in the new tax bill currently in the National Assembly for deliberation.
In a communique signed by the Chairman of the Forum, Muhammed Inuwa Yahaya, Governor of Gombe state after the meeting between the elders and Governors of the Northern states, the forum frowned at the proposition stating it is against the interest of the North and other sub-nationals.
The forum called on members of the National Assembly to oppose the legislation and any other that jeopardise the interest of the people of the North.
It states, “Forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly. The contents of the Blare against the interests of the north and other sub-nationals especially the proposed amendment to the distribution of Value Added Tax (VAT) to Derivation-based Model. This is because companies remit VAT using location of their headquarters and tax office and not where the services and goods are consumed. In view of the foregoing, the Forum unanimously rejects the proposed Tax Amendments and calls on members of National Assembly to oppose any bill that can jeopardise the well-being of our people.”
The new tax bill currently on the floor of the National Assembly proposed a derivation principle in the distribution of VAT accruals between the federal government and subnationals.
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VAT distribution formular in Nigeria
Currently, according to Section 40 of the VAT Act, revenue is allocated as follows: 15% to the Federal Government, 50% to the States and FCT, and 35% to Local Governments. The distribution to states and local governments reflects a derivation principle of at least 20%.
- Although not explicitly outlined in the VAT Act, other factors influencing the distribution include 50% based on equality and 30% based on population. Additionally, a 4% collection fee is allocated to the FIRS, and 2% to the NCS for import VAT.
States dissatisfaction with current VAT distribution formular and issues arising
Some states mostly in the South have expressed dissatisfaction with the current VAT distribution formular noting that they do not get their fair share.
- In 2021, the Rivers state sued the Federal Inland Revenue Service (FIRS) to the federal high court in Port Harcourt where it got judgement in its favour stating that the Rivers state government is entitled to collect VAT in Rivers state.
- The judgment implied that each state would be responsible for administering VAT within its territory. Consequently, the FIRS would oversee VAT administration in the FCT and on non-import foreign transactions, while the Nigeria Customs Service would continue collecting import VAT on international trade.
- The FIRS successfully appealed the judgement of the Port Harcourt high court in the appeal court.
Northern govs reject proposed model for VAT distribution
metro
Police dispel rumour of sexual assault victim as Seyi Tinubu’s sister
Police dispel rumour of sexual assault victim as Seyi Tinubu’s sister
The Federal Capital Territory (FCT) police command has clarified that a sexual assault case involving Ebunoluwa Fatoyinbo is not connected to the family of President Bola Tinubu.
This clarification comes after widespread social media reports claimed Fatoyinbo is the sister of Seyi Tinubu, the president’s son. According to the reports, Oscar Ilochi allegedly assaulted Fatoyinbo while she was exercising alone in a gym basement, prompting an investigation that includes reviewing the facility’s CCTV footage.
In a statement released on Wednesday, Josephine Adeh, the FCT police spokesperson, confirmed that the command has launched an investigation based on a formal complaint filed by Fatoyinbo. However, she emphasised that the police have not established any familial link between Fatoyinbo and the Tinubu family.
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“The FCT Police Command is aware of a circulating publication on social media alleging that the Command has commenced an investigation into a case of sexual assault involving Miss Ebunoluwa, purportedly referred to as the sister of Mr. Seyi Tinubu, son of His Excellency, President Bola Ahmed Tinubu, GCFR,” the statement read.
“The Command wishes to clarify that a formal complaint of sexual assault was indeed lodged by Miss Ebunoluwa Mitchell Fatoyinbo against one Oscar Ilochi, a resident of the Apo Legislative Quarters, Abuja.”
Adeh urged the public, including media outlets and social media users, to verify information before publication and rely on official police channels for updates on ongoing investigations.
Police dispel rumour of sexual assault victim as Seyi Tinubu’s sister
metro
Niger Gov Bago makes U-turn on dreadlocks ban after backlash
Niger Gov Bago makes U-turn on dreadlocks ban after backlash
Governor Umar Bago of Niger State has reversed his controversial directive ordering the arrest of individuals with dreadlocks, following widespread backlash from the public and civil rights advocates.
Bago had earlier instructed security agencies to arrest anyone seen with dreadlocks across the state, linking the hairstyle to rising cult-related activities and insecurity, particularly in Minna, the state capital.
“Rascality in Minna: anybody that you find with a dreadlock, arrest him and barb his hair. From this moment, it’s fire for fire. Any attempt to harass any security officer is an attempt to harass the government of Niger State,” Bago had declared during a public address.
In addition to the dreadlocks directive, Bago also announced a 12-hour daily restriction on commercial motorcycles and tricycles, banning their operations from 6pm to 6am, as part of efforts to end violent crimes.
He also threatened to demolish any house found to be housing criminals or drug dealers, emphasising that his administration will “apply maximum force to restore order.”
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The governor’s early statements, notably the one targeting people with dreadlocks, provoked widespread condemnation on social media and from members of the public, who accused him of encouraging discrimination and lacking a thorough understanding of effective crime-fighting techniques.
In response to the anger, Bago reaffirmed his position on Wednesday at a ceremony in Minna, declaring the Bola Ahmed Tinubu International Airport as an alternative to Abuja’s Nnamdi Azikiwe International Airport.
“Yesterday, we read a riot act on hooliganism, and people misconstrued our words for people who have dreadlocks. We don’t have a problem with dreadlocks, but we have a problem with the cult here with dreadlocks.
So, if you have dreadlocks and you have business, please come to Niger State,” Bago said.
The state governor went on to describe the backlash as “media propaganda” and reiterated that the enforcement efforts are targeted specifically at criminal groups.
He said, “We are only driving that cult that is becoming a menace in Niger State. Thank you.”
Bago insisted that law-abiding residents are not at risk, claiming that the crackdown is primarily directed at criminal elements who utilize “cult” insignia, such as dreadlocks, to conceal their operations and elude law enforcement.
Niger Gov Bago makes U-turn on dreadlocks ban after backlash
metro
Cultists kill teen during anti-cultism walk in Lagos
Cultists kill teen during anti-cultism walk in Lagos
A 16-year-old kid named Mustapha was killed by a stray bullet during a suspected cult clash in the Oyingbo area of Ebute Metta, Lagos State, on Monday.
Chronicle NG gathered that the incident happened during a peace walk sponsored by several young people to address escalating cult-related violence in the town.
It was reported that the walk had hardly ended when an argument erupted between them.
A resident, who talked to our correspondent on the condition of anonymity, claimed the fight escalated when a suspected cultist pulled out a pistol and shot indiscriminately, injuring Mustapha with a stray bullet.
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Another resident told reporters that the teenager was not affiliated with any cult group.
“Mustapha just came out to support the walk. He was not part of any gang. He is a calm and respectful boy. He was taken to the hospital after the bullet hit him, but he died on the way,” the source said.
The incident was said to have caused chaos in the community, while the event ended abruptly.
Meanwhile, our correspondent reported that one of the organisers, who was struck by a gunshot, is in critical condition.
The Lagos State Police Public Relations Officer, SP Benjamin Hundeyin had yet to comment on the incident at the time of filing this report.
Cultists kill teen during anti-cultism walk in Lagos
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