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Reform Bills propose 55 per cent VAT revenue for states

Published

2 years ago

November 29, 2024

Reform Bills propose 55 per cent VAT revenue for states

More insights into the Tax Reform Bills under consideration by the National Assembly were given yesterday during a debate at the Senate.

Should the Bills be passed as proposed and signed by the President, states will get 55 per cent of the Value Added Tax (VAT).

Senate Leader Opeyemi Bamidele made this know during the debate, which proceeded the passage of the Bills through first and second reading.

In the House of Representatives, lawmakers chose to continue consultations on the Bill until the next legislative day (Tuesday).

The four Tax Reform Bills sent by the Executive are:

•A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombudsman for the harmonisation, coordination and settlement of disputes arising from revenue administration in Nigeria and for related matters, 2024.

•A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007 and enact the Nigeria Revenue Service (Establishment) Act to Establish the Nigeria Revenue Service, charged with powers of assessment, collection of, and accounting for revenue accruable to the Government of the Federation, and for related matters, 2024.

•A Bill for an Act to Provide for the assessment, collection of, and accounting for revenue accruing to the Federation, Federal, States and Local Governments; prescribe the powers and functions of tax authorities, and for related matters, 2024.

•A Bill for an Act to Repeal certain Acts on taxation and consolidate the legal frameworks relating to taxation and enact the Nigeria Tax Act to provide for taxation of income, transactions and instruments, and for related matters, 2024.”

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Bamidele, who sponsored the bills, shed light on the sharing formula, saying: “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% of VAT revenue from the current 15% to 10% sharing formula.”

But former Senate Chief Whip Ali Ndume, who opposed the bills, called for their withdrawal to allow for more consultations with stakeholders.

On Wednesday, when Presidential Economic Team members appeared before the Senate to explain the content of the bills, Ndume and Senator Abdul Ningi tried to stop them but the attempt was futile.

The Senate held a one-hour closed door session, where the senators agreed to debate the general principles of the bills.

Leading the debate, Bamidele said the proposals should be seen as part of the required legislative intervention to support ongoing fiscal and tax reforms needed to reposition the economy for growth and productivity.

Bamidele said: “These bills should be considered with great sense of patriotism and exercise of the powers of the National Assembly under Section 59 of the Constitution regarding imposition of taxes. I therefore, urge my colleagues to support these bills for second reading.”

Explaining the elements of the bills, the Senate Leader said they would overhaul the country’s tax system, simplify the tax landscape, reduce the burden on small business and streamline how taxes are collected.

He stressed: “In broad terms, the four bills seek to ensure uniformity in tax revenue administration in Nigeria in accordance with the provisions of the Constitution, eliminate the incidents of double taxation across the country, deploy taxation as a tool to encourage private sector investments in critical industries and boost individual disposal incomes through targeted tax exemptions as captured in the various bills.

“In the area of tax exemptions, there is a proposal to exempt those whose salaries are not more than the minimum wage from P.A.Y.E deductions while small businesses with annual turnover of N50, 000,000 or less are equally exempted from payment of taxes.

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“Similarly, there is a proposed huge reduction in company income tax from the current 30% to 25% by 2026.

“As part of deliberate attempt to curtail double taxation and multiplicity of taxes and levies, multiple taxes hitherto paid by companies under various tax heads, namely 2.5% education tax and 0.25% NASENI tax have been harmonised into a development level of 2% which by 2030, will be applied to fund the newly established student loan scheme, which will benefit many Nigerian youths.

“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, e.t.c., 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.

“Contrary to misrepresentations in the public domain regarding the intendment of the Bills under consideration, I wish to state that these Bills contains innovative 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.”

The Chairman of Senate Committee on Finance, Sani Musa (APC – Niger East) supported the bills.

The senator representing Bayelsa West, Seriake Dickson, commended the Executive for coming up with the landmark tax reform bills.

He said the fiscal legislation would entrench fiscal federalism in Nigeria, if passed into law.

Dickson noted that Nigerians were paying taxes and the government at various levels has been using it to carry out developmental projects since the colonial era.

He said the situation changed when oil was discovered and the sub-national governments started relying on the Federation Accounts monthly allocations.

He pointed out that some stakeholders objected to the bills because there had not been proper consultation.

Dickson said: “The position of the Nigerian Governors Forum is legitimate. The Executive should carry out more enlightenment on the bills.

“The derivation is meant to encourage governors to be more productive. The proposed bills would enable states to boost revenue by creating enabling environment that could encourage investment.

“When companies are established in their states, the Pay As You Earn taxes that would be collected from workers of those companies will be paid to the state governments.

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“As a federalist, which I’ve been all my adult life, I see these bills as a move towards entrenching fiscal federalism in Nigeria, which I fully support.

“I use this opportunity to call on all my colleagues to agree that these bills, all four of them, should be passed for second reading to enable our committee, the experts and the general public participate in accordance with our rules.

Ndume, who opposed the bills, said he is against the timing of the bills, the provision for sharing tax revenue based on derivation and lack of broad-based consultation before they were presented.

Ndume’s position was countered by Senator Mohammed Tahir Monguno (APC Borno North), who said the views of stakeholders who oppose the bills should be collated at the public hearing.

He said the governors and traditional rulers are free to ventilate their opinions at the public hearing.

Monguno said Ndume’s position was not only strange to legislative process, but also a mere academic exercise’.

He said it was curious that Ndume, who was a Minority Leader in the House of Representatives, a Senate Leader, and immediate past Chief Whip of the Senate, could in spite of the cognate experience about lawmaking, come up with such arguments.

Monguno said: “I get to disagree with you that this bills should be withdrawn first and consultation should be held with the Nigerian Governors Forum and traditional rulers.

“We have a procedure, which is clearly and unambiguously stated in our rulebook for the process of lawmaking, and the Constitution, in a very clear and unambiguous manner, gave us the power to regulate our proceedings.

“Pursuant to Section 60 of the 1999 Constitution, as amended, we gave these rules to ourselves in order to guide our proceedings.

“The process of lawmaking is very clear and unambiguous as per this rule book. That after second reading, it will now be transmitted to the Committee for Public Hearing.

“In the course of the public hearing, Nigerians of all walks of life, will come, including the governors and traditional rulers. They are free to come and ventilate their opinion.”

Reform Bills propose 55 per cent VAT revenue for states

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FG meets Dangote, oil marketers to ensure fair petrol prices

Published

10 hours ago

July 6, 2026

Trends Admin

FG meets Dangote, oil marketers to ensure fair petrol prices

The Federal Government has intensified efforts to ensure Nigerians benefit from falling global crude oil prices by convening a high-level meeting with Dangote Petroleum Refinery, petroleum marketers and regulators to develop a fair and transparent petrol pricing framework.

The stakeholders’ meeting, held on Monday at the headquarters of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, was attended by representatives of Dangote Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO) and other key operators in the downstream petroleum sector.

The meeting was convened amid growing public concern that the recent decline in international crude oil prices has not been reflected in retail petrol prices across the country.

Speaking during the meeting, the Chief Executive Officer of the NMDPRA, Rabiu Umar, said the engagement was held on the directive of the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, to promote cost-reflective, transparent and consumer-friendly pricing of Premium Motor Spirit (PMS) in Nigeria’s deregulated downstream petroleum market.

According to Umar, the regulator is not seeking to impose prices on operators but to facilitate constructive discussions that will balance business sustainability with consumer protection.

“Our objective is not to dictate prices but to collaborate with all stakeholders in finding practical solutions that strengthen the downstream petroleum sector,” he said.

He explained that discussions focused on market surveillance, inventory management, strengthening the National Strategic Stock (NSS) and improving transparency across the fuel supply chain to safeguard Nigeria’s energy security.

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Umar noted that international crude oil prices have declined in recent weeks following the easing of geopolitical tensions, reducing the cost of importing petroleum products and lowering replacement costs.

Despite this development, he observed that petrol pump prices have remained largely unchanged in many parts of the country.

According to him, the regulator considers it necessary to work with refiners, depot operators and marketers to identify the factors responsible for the gap between declining crude oil prices and persistent retail fuel prices.

He emphasised that while deregulation allows operators to recover legitimate business costs and make reasonable profits, consumers should also benefit whenever market conditions reduce the cost of supplying fuel.

Umar further stated that President Bola Tinubu’s administration has laid the foundation for a competitive, investment-driven petroleum industry, stressing that petrol price deregulation should not be used to justify market distortions, anti-competitive practices or unfair pricing.

Also speaking, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, urged all stakeholders to work together in ensuring that fuel prices reflect prevailing market realities.

The minister noted that the prices of petrol and diesel directly influence transportation costs, food prices, manufacturing expenses and the overall cost of living, making fair pricing essential for economic stability.

He stressed that while government remains committed to deregulation, market liberalisation must also deliver tangible benefits to consumers through transparent pricing and healthy competition.

The meeting also examined measures to improve fuel availability nationwide, strengthen market monitoring and accelerate the implementation of the National Strategic Stock (NSS) as part of efforts to guarantee energy security and minimise supply disruptions.

The engagement follows recent concerns raised by the FCCPC, which warned against maintaining high pump prices based on old inventory purchased at previous costs when replacement costs have already declined.

Stakeholders agreed to sustain consultations aimed at building a more transparent and competitive downstream petroleum market that encourages investment while ensuring Nigerians enjoy the benefits of lower international crude oil prices whenever market conditions permit.

The Federal Government expressed optimism that continued collaboration among regulators, refiners and marketers would strengthen confidence in the deregulated petroleum sector and promote fair, competitive and sustainable petrol pricing across Nigeria.

FG meets Dangote, oil marketers to ensure fair petrol prices

Business

Elumelu to exit UBA board after 12 years, Nnorom takes over as chairman

Published

14 hours ago

July 6, 2026

Trends Admin

Elumelu to exit UBA board after 12 years as Emmanuel Nnorom takes over as chairman

Elumelu to exit UBA board after 12 years, Nnorom takes over as chairman

United Bank for Africa Plc has announced the retirement of its Group Chairman, Tony Elumelu, from the Board of Directors, bringing to an end a 12-year tenure that said to have strengthened the bank’s position as one of Africa’s leading financial institutions.

The bank disclosed on Monday that Elumelu would formally retire from the Board on August 21, 2026, in compliance with the Central Bank of Nigeria (CBN) Corporate Governance Guidelines, which prescribe a maximum tenure of 12 years for non-executive directors of commercial banks.

To ensure a seamless leadership transition, the Board has approved the appointment of Emmanuel Nnorom, a Non-Executive Director of the bank, as the new Group Chairman. His appointment will take effect on the same day Elumelu retires.

According to a statement issued after the Board meeting held on July 6, 2026, the leadership transition reflects the bank’s commitment to sound corporate governance, regulatory compliance and business continuity.

Elumelu’s retirement marks the close of a remarkable era in the history of UBA. During his 12 years as Group Chairman, the bank significantly expanded its operations, strengthening its presence across 20 African countries and extending its footprint to four major international financial centres.

Under his leadership, UBA grew its customer base to more than 50 million across Africa and beyond, while consolidating its reputation as a leading provider of banking and financial services on the continent.

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The bank also enhanced its digital banking platforms, strengthened corporate governance practices, improved operational resilience and expanded support for trade, investment and economic development across its markets.

Paying tribute to Elumelu’s contributions, the Board described his leadership as visionary and credited him with providing the strategic direction that transformed the bank into one of Africa’s most respected financial institutions.

“The Board places on record its profound appreciation to Mr. Elumelu for his visionary leadership and exceptional contribution to the strategic vision and institutional strength of the UBA Group,” the statement read.

According to the bank, Elumelu leaves behind a stronger institution built on robust governance structures, sustainable growth and a clear long-term strategic vision.

Reflecting on his retirement, Elumelu described his years of service as one of the most rewarding periods of his professional career.

“Serving United Bank for Africa has been one of the great privileges of my career. UBA has established a unique competitive position across Africa and globally, and I leave the Board with great confidence in the bank’s future,” he said.

Elumelu also expressed confidence in his successor, describing Emmanuel Nnorom as a leader with the experience, integrity and sound judgment required to guide the bank through its next phase of growth.

“Emmanuel Nnorom is a leader of integrity, experience and sound judgement, and I am confident that the bank will continue to thrive under his leadership,” he added.

The incoming chairman, Emmanuel Nnorom, is a chartered accountant and seasoned corporate executive with more than 40 years of experience in banking, finance, auditing and corporate governance.

Having served as a Non-Executive Director on the UBA Board, Nnorom is widely recognised for his deep understanding of the bank’s governance framework, operations and long-term strategic priorities.

The bank said his extensive professional experience and familiarity with its business position him to provide strong leadership as UBA pursues its next phase of expansion, innovation and value creation.

Responding to his appointment, Nnorom thanked the Board for the confidence reposed in him and pledged to build on the solid foundation established by his predecessor.

“I am honoured by the trust the Board has placed in me and deeply conscious of the legacy I inherit. I look forward to working closely with my colleagues on the Board, Management and employees across all our markets to sustain UBA’s momentum and continue delivering long-term value to our shareholders, customers and other stakeholders,” he said.

Industry observers believe the carefully planned succession demonstrates UBA’s strong commitment to corporate governance, leadership continuity and regulatory compliance.

The transition is expected to preserve the bank’s long-term strategic direction while supporting continued growth, innovation and value creation across its operations in Africa and global markets.

The leadership change will officially take effect on August 21, 2026, ushering in a new chapter for one of Africa’s largest and most influential banking institutions.

Elumelu to exit UBA board after 12 years, Nnorom takes over as chairman

Business

NNPCL cuts petrol price as Dangote Refinery competition intensifies

Published

22 hours ago

July 6, 2026

Trends Admin

NNPCL cuts petrol price as Dangote Refinery competition intensifies

The Nigerian National Petroleum Company Limited (NNPCL) has further reduced the pump price of Premium Motor Spirit (PMS), popularly known as petrol, marking its second downward price review in less than two weeks as competition in Nigeria’s deregulated downstream petroleum sector continues to intensify.

A survey of several NNPCL retail stations on Sunday showed that the state-owned energy company reduced the petrol pump price from ₦1,210 to ₦1,150 per litre, giving motorists an immediate ₦60 per litre relief.

The latest adjustment brings the cumulative reduction in NNPCL’s petrol price to ₦110 per litre since June 27, 2026, reflecting the growing impact of market competition and changing wholesale prices on Nigeria’s fuel market.

The reduction comes at a time when consumers have continued to grapple with high transportation costs and rising living expenses, with many hoping that lower fuel prices will gradually translate into reduced transport fares and lower prices for goods and services.

The latest price cut also underscores the changing dynamics of Nigeria’s petroleum industry following the full deregulation of the downstream sector. Unlike the previous regulated pricing regime, marketers now adjust pump prices based on prevailing market conditions, supply costs, exchange rates and global crude oil prices.

Industry analysts say the latest move by NNPCL is largely a response to increasing competition triggered by the aggressive pricing strategy of the Dangote Petroleum Refinery, which has continued to lower its wholesale petrol prices.

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Only days earlier, the Dangote Refinery announced another reduction in its ex-depot (gantry) price of petrol, cutting the price from ₦1,125 to ₦1,075 per litre. The latest adjustment represents the refinery’s fourth downward price review within a relatively short period and is expected to further influence retail fuel prices across the country.

The refinery said the price adjustment reflects its commitment to making fuel more affordable for Nigerians while responding to evolving market realities. It also noted that although international crude oil prices have moderated in recent weeks, some refined products currently being supplied were produced from crude purchased when prices were significantly higher.

The pricing strategy adopted by the Dangote Refinery has continued to reshape Nigeria’s downstream petroleum market, forcing competing suppliers and independent marketers to review their retail prices in order to remain competitive.

Several independent petroleum marketers, including NIPCO, AA Rano and Ranoil, have already adjusted their pump prices to between ₦1,205 and ₦1,240 per litre, with industry observers expecting more filling stations to announce fresh reductions if wholesale prices continue their downward trend.

Energy experts say the increasing competition among suppliers is one of the strongest indicators that fuel market deregulation is beginning to deliver tangible benefits to consumers through more competitive pricing.

According to market analysts, additional price reductions remain possible if the current trend in international oil prices continues and the naira maintains relative stability against major foreign currencies.

The downward movement in domestic petrol prices has coincided with softer global crude oil prices. As of the weekend, Brent crude traded at around $72 per barrel, while West Texas Intermediate (WTI) crude sold for approximately $68 per barrel, reducing production costs for refined petroleum products worldwide.

Industry stakeholders also attribute the emerging price competition to increased local refining capacity, particularly from the 650,000-barrels-per-day Dangote Refinery, which has significantly reduced Nigeria’s dependence on imported petroleum products and introduced greater competition into the domestic fuel market.

The development is expected to benefit millions of Nigerians, especially commercial transport operators, manufacturers, small businesses and households facing rising operational costs.

Although marketers caution that future prices will continue to depend on global crude oil prices, foreign exchange movements, logistics costs and domestic supply conditions, many industry observers believe the current competitive environment could lead to further reductions in petrol pump prices if market fundamentals remain favourable.

For many consumers, the latest NNPCL petrol price reduction offers renewed hope that the cost of transportation and other essential goods may gradually decline as competition within Nigeria’s downstream petroleum sector continues to deepen.