Presidency lampoons OBJ for warning Tinubu govt may dwarf Buhari’s ‘fraud’ index

Former President Olusegun Obasanjo has launched a scathing critique of former President Muhammadu Buhari’s administration, declaring it the worst in Nigeria’s democratic history.

Obasanjo, however, said the current government of President Bola Tinubu appears to be following the same path of misgovernance and corruption and may surpass Buhari’s record.

The former president made these assertions in the first chapter of his newly released book, “Nigeria: Past and Future.”

The book was one of the two new books the former President unveiled last week in commemoration of his 88th birthday.

Obasanjo, in the book, as reported by The PUNCH on Thursday, described the N15.6tn Lagos-Calabar Coastal highway project as wasteful and corrupt.

He also slammed Tinubu’s administration for spending N21bn on a new official residence for Vice President Kashim Shettima, calling it a misplaced priority and conduit designed to embezzle public funds.

He said, “Typical examples of waste, corruption and misplaced priority are the mucky Lagos-Calabar Coastal Road on which the President had turned deaf ears to protests and the new Vice-President’s official residence built at a cost of N21bn in the time of economic hardship to showcase the administration hitting the ground running and to show the importance of the office of the Vice-President. What small minds!”

The former President, however, said corruption was worst under Buhari’s watch, with the strong support of his Minister of Justice and Attorney General of the Federation, Abubakar Malami (SAN).

“The most atrocious waste, enthronement of corruption and discouragement of officials fighting corruption took place under the watch of President Buhari and the devil’s workshop, his Attorney General, Abubakar Malami,” Obasanjo said.

He, however, asserted that the Tinubu government might surpass Buhari’s record.

“Given about two years of President Tinubu in office, it appears that the game of short-changing the over 230 million Nigerians continues because everything is said to be transactional and the slogan is ‘It is my turn to chop,’” Obasanjo added.

Buhari could not be reached for comment on Thursday as his spokesman, Garba Shehu, did not respond to calls and text messages on the allegations against the ex-president.

Malami also declined to react to the book, saying he had not read it.

Malami said in a voice note, “Indeed, I will be able to respond. However, I would not like to comment on mere speculations. I am not certain such allegations were made. Even in his own case, if you recall, during a Hard Talk interview, similar allegations of corruption were raised against him, and he is well aware of that.

“In light of the fact that His Excellency, President Obasanjo, has also been a victim of unsubstantiated allegations of corruption over time, I find it unlikely that he would make similar claims without specific references—such as who provided the alleged bribe, when it was given, how much was involved, under what circumstances, and who facilitated it.

“All these details are necessary when making an allegation. But if the claim remains vague, I find it difficult to conclude that His Excellency indeed made such an assertion—especially given that he himself has faced similar accusations in the past.

“So, kindly refer me to the specific page, and if possible, provide a scan or an extract so that I can respond objectively. I have not yet gone through the book to confirm whether such allegations were indeed made by His Excellency, President Olusegun Obasanjo.”

The PUNCH later sent some relevant pages of the book to the former AGF. He had yet to respond as of press time on Thursday.

The Presidency, however, came hard on former President Obasanjo on the controversial Lagos-Calabar Coastal highway.

The Special Adviser to President Bola Tinubu on Media and Public Communications, Sunday Dare, during an interview on Television Continental, stated that the N15.6tn coastal highway was a visionary legacy project with enormous economic potential.

The Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, in a post on X, said “Former President Obasanjo seems to see himself as the only Nigerian created by God who knows what is good for Nigeria per time.

“If, as President for eight years, he couldn’t fix the Lagos-Ibadan Expressway and Lagos-Abeokuta road, we can’t take his latest view on the Lagos-Calabar highway as well-informed.”

The Minister of Works, David Umahi, speaking in Akure, Ondo State, said, “The project is not wasteful and corrupt. I have read on social media where people were saying that why is the government or the contractor not explaining, but as the Minister of Works, I am qualified to explain the project.

“It is natural and normal for people to criticise, but I’ve run the benefits of the project and the cost analysis. The jobs are already done about 70 per cent and the project will bring a lot of prosperity to the citizens. I’ll ask those criticising it not to follow the road.”

Emphasising that the first section of the project would be completed next year, Umahi said, “I want to commend the President. His peers are jealous and angry but that means he is doing very well, especially on what nobody has been able to do.

“The project is transparent, it is great in return of investment. I want to urge everyone to ignore distractions.”

In his book, Obasanjo particularly criticised Buhari for failing to live up to the ideals he once championed as a military ruler in 1983.

Recalling how Buhari justified his coup against the civilian administration of Alhaji Shehu Shagari by condemning corruption and electoral malpractice, Obasanjo regretted that Buhari presided over a government that became the worst in Nigeria’s civil administration.

He explained that in 1983 when giving the reasons why the democratically-elected government of the late Alhaji Shehu Shagari was toppled by the military, Gen Buhari (retd) had cited mismanagement of public funds hurting and making the country’s economy to be weak, lack of credible polls, among others as the reason for the military take-over.

In the book, Buhari was quoted to have said, “The last general election was anything but free and fair…There is ample evidence that rigging and thuggery were relative to the resources available to the political parties.

“This conclusively proved to us that the parties have not developed in the presidential system of government in which the nation invested so much materials and human resources.

“The corrupt, inept and insensitive leadership in the last four years have been the source of immorality and impropriety in our society…We deplore corruption in all its facets.”

Obasanjo, however, said that as good as Buhari’s 1983 speech was, he failed woefully to match his words with actions, even when he had the opportunity to serve the country for eight years as a democratically elected President, his administration was the worst in the nation’s history of civil governance.

He said “Good points and good words which Buhari failed to follow when he became president eleven years later.

“Words are cheap and what needed to be done was left undone during Buhari’s civil administration regime from 2015 to 2023, the worst civil administration regime so far in Nigerian history.

“Maybe those ideas and thoughts were not his; he just came to read them as  written for him. Only Bola Tinubu’s administration seems to be competing with Buhari’s for now.”

In the chapter titled “From the Beginning Till Now: The Missing Key,” Obasanjo reflected on Nigeria’s post-independence leadership, highlighting bad governance, corruption, and self-interest as persistent obstacles to national progress.

He said successive governments, both military and civilian, have always identified bad governance, bad leadership, and corruption as major contributing factors to the country’s stagnated development and abject poverty, but would eventually do little or nothing to change the narrative.

The former President had scathing remarks for some of the officials under the watch of former President Buhari.

He said though it was difficult for the Economic and Financial Crimes Commission and Independent Corrupt Practices and Other Related Offences Commission to secure convictions of VIPs involved in grand corruption, this difficult task was achieved with the jailing of former governor of Plateau State, Joshua Dariye, for 10 years and his Taraba counterpart, Jolly Nyame for 12 years over N1.126bn and N1.64bn embezzlement of state funds respectively.

Dariye and Nyame were released from the correctional facility in the Kuje council area of the Federal Capital Territory on August 8, 2022, four months after they were granted state pardon.

At a Council of State meeting presided over by former President Buhari in April 2022, Dariye and Nyame were among 159 inmates pardoned.

The two former governors, who were both jailed for fraud, were granted pardon on the grounds of age and ill-health.

Nyame was convicted in 2018 and given 14 years imprisonment for diverting public funds, but his sentence was later reduced to 12 years in 2020, following a ruling by the Supreme Court which affirmed the judgment of the court of appeal on the matter.

Dariye was sentenced to 14 years in prison for N1.126bn fraud, but his jail term was reduced by four years, following a verdict by the Supreme Court affirming an earlier judgment by the appellate court.

Speaking on their pardon, Obasanjo said it was based on the strong advice of Malami as AGF.

The former president said Buhari sought the advice of the Council of State to grant the two former governors presidential pardon on health grounds.

“But for my absence at the Council of State meeting when the governors were granted the presidential pardon, I would have rather said that the governors should be released from jail on health grounds and not granted presidential pardon.

“Words circulated later that neither of them had a life-threatening illness; it was all made up.

“It was all part of Malami’s financial shenanigans and he played many of such to his advantage. His principal concurred, condoned, turned a blind eye and a deaf ear and paid lip service to fight corruption while cohabitating comfortably with corruption in multifarious ways.

“I was made to understand that some officials of the EFCC were terribly disappointed, discouraged, downcast and lost the pep in doing their work of fighting corruption as a result of this government action,” Obasanjo said.

He noted that another sore thumb in the administration of Buhari was the shameful way the project of a new national carrier for the country was handled by the former aviation minister, Hadi Sirika, said to be a close blood relation of Buhari.

“Hadi Sirika believed that he was fooling Nigerians when after N85bn had been budgeted for the establishment of Nigeria Air and released, the dishonourable minister reputed to be a close blood relation of Buhari hired an aircraft from Ethiopia Airline, painted it in Nigerian colours and left it as a parting gift to Nigeria and Nigerians.

“Later, he denied having spent N85bn on the project and that, from 2016 to 2023, all of the money voted and budgeted for Nigeria Air was N5bn.

“Where has the money budgeted for the establishment of Nigeria Air gone? Neither the outgoing president nor the incoming president has done enough about it.

“You can do anything, and no matter how atrocious, if you are rightly connected, there will be no consequence. In the circumstances of outgoing and incoming presidents, you can get away with murder unless you do not rightly belong. There are selective justices and selective consequences at best.

“For the minister of aviation, it was the most reckless and condemnable audacity, barefaced stealing with the encouragement and condonation of the presidency.

“About 230 million Nigerians were being taken for a ride as if we were all stupid fools. Without consequence, he would get away with his action and others would do worse,” Obasanjo stated.

He added that there were many more in Malami and Sirika’s class within the cohorts of the Buhari administration.

The EFCC is currently prosecuting Sirika and three others, Fatima Hadi Sirika, Jalal Sule Hamma and Al Buraq Global Investment on six count amended charges bordering on contract fraud to the tune of N2,825,032,220.97.

The former President feared that Tinubu’s cohorts may outdo Buhari, judging by the first one or two years in office.

The octogenarian said he blew the whistle on his ex-minister for power and steel, Dr Olu Agunloye, on the alleged fraudulent $6bn Mambilla Power Project contract to tackle the sore and repulsive corrupt practices of officeholders in the country.

Obasanjo laments wastes

Speaking on how the chief executives both at the federal and state levels encouraged waste and corruption, he cited the examples of Agunloye, Buhari, and late President Umaru Yar’Adua.

He said while some waste could be inadvertently occasioned by lack of knowledge, capacity and general inadequacy to do otherwise, some are deliberate and have cost the nation a fortune.

Obasanjo explained that under the military leadership of the late Gen Murtala Mohammed whom he served as his Vice, the nation lost $150m on balloon communication for the Ministry of Communication in the eagerness to improve on telecommunications.

He said, “The contractor and our external and internal consultants along with engineers in the ministry assured us that the balloon communication would work, but it had to be abandoned as unworkable after close to $150m had been expended.”

Obasanjo said this was a good example of inadvertent waste just like continuous issues of gas flaring said to have cost the nation a revenue loss of a whopping $59bn as of the end of 2023.

The former President, however, observed that the decision of Buhari during his military leadership to arbitrarily cancel the contract for the metro line in Lagos State, which was meticulously negotiated by the then governor of the state, the late Lateef Jakande, was a grievous error.

The contractor, Interinfra, reportedly went to court in Europe and obtained 650m French francs which is about $100m, almost the amount of money the project would have cost.

He said that was how, his successor, Yar’Adua, also disregarded the legal counsel and cancelled the concession agreement on the Ajaokuta Steel Plant with the affiliate facility of the Iron Ore Mining Company with Global Steel Holding Ltd.

“The contract would have lawfully become null and void and the government entitled to more than $26 million as damages from the Indian firm.

“This was because the firm appeared unable to pay the first tranche for the Ajaokuta shares before the first anniversary of the agreement (May 25, 2008). This failure would have given Nigeria a right to over $26 million as liquidated damages under Clause 12 of the Ajaokuta Share Purchase Agreement.

“Instead, the Federal Government agreed to part with about $496 million to settle a $5.23bn claim by the Indian firm. It was another waste of resources that could have gone for the provision of infrastructure for Nigeria,” he lamented.

He disclosed further that “With the heavy payment by Nigeria for inappropriate actions of revocation of agreements and contracts by Presidents Buhari and Yar’Adua, there seems to have developed a new industry in Nigeria of local contractors and foreign contractor seeking old contracts and agreements, purchases and transactions that can be unearthed to punch holes in them to make bogus claims with the arbitrator, judge or mediator being procured to join the sharing formula.

“This, I believe, is the case of Sunrise Power and Transmission Company Ltd and Olu Agunloye for Mambilla on which I blew the whistle.  Agunloye and his cohorts, for personal aggrandisement, were taking Nigeria for a ride.

“Some families are spuriously appearing for properties developed by governments more than 50  years ago or more acquired, paid for and developed by government and these families are claiming compensation again with the support and collusion of people in government. The government has to be milked dry once the claimants’ mouths are watered. What a people!”

Presidency defends project

The Presidency described the N15.6tn Lagos-Calabar coastal highway as a visionary legacy project with enormous economic potential.

Darem in an interview of TVC, said the coastal road would bring enormous economic potential to the country, adding that the project would be one of the best infrastructure in the country.

“Lagos-Calabar coastal highway is a visionary legacy project with enormous economic potential.

“Recall when the Lekki-Epe corridor was opened, everyone thought that President Bola Tinubu, who was then Governor of Lagos, didn’t know what he was doing.

“That corridor has opened up in the last 15 years, and some of the highest rates of real estate have sprung up. We’ve seen the Dangote refinery, we’ve seen the Lagos Free Trade Zone and a lot of developments along that corridor.

“Lagos-Calabar coastal highway, when completed and fully utilised, will be one of the best projects ever put out by any President of this country.”

Also speaking, the Special Assistant to the President on Social Media, Dada Olusegun, in a statement on his X handle, said “While it is common for many elder statesmen to write books aimed at sanctifying their days as the leader of the country, despite obvious flaws, another elder statesman, former President Olusegun Obasanjo, has just published a memoir containing claims that would further relegate his integrity as the leader who opened Nigeria to the cankerworms of corruption, by neglecting important projects that could have changed the trajectory of this country if he had focused on what mattered in his days.

“By underplaying the importance of the Lagos-Calabar project in his latest book, OBJ has not only affirmed to those who witnessed his administration’s several failures to address the needs of the country when he had the opportunity, but he has also put in written form, a position which generations to come will indeed question when the road that will end up as one of the most significant endeavours of any Federal Government in the history of the country finally becomes a reality.

“Despite spending eight years in government and failing in his attempt to force himself on Nigerians for a further four years, Baba Obasanjo failed woefully in addressing the infrastructural needs of his state; indeed, it took former President Buhari just three years to deliver the first modern rail to pass through baba’s backyard in Abeokuta.

“The Lagos-Ibadan Expressway was southwest and indeed one of Nigeria’s most important road projects in recent times, both baba and the PDP spent 16 years without getting the project beyond 30 per cent completion until Buhari happened.

“What about the Lagos-Abeokuta expressway that has now been inherited by Governor (Dapo) Abiodun in 2024 because the President who hailed from the state failed to make it a reality, despite having all the power and goodwill to do so?”

The presidential aide queried the corruption allegations in the Obasanjo administration, as he asked the former president to attempt to explain to Nigerians why he failed to help the country transit into a great country under his leadership.

He said, “Should we delve into the corruption that brought Nigeria’s power sector to its knees despite the claims of spending billions of dollars to fix the same under his administration? Or his failure to revive our refineries, killing our steel industry and fraudulent privatisation of NITEL, among others?

“President Obasanjo must emulate others before him by returning to his writing board to at least attempt to explain to Nigerians why he failed to help Nigeria transition into a proper country under his leadership, despite emerging at a time when the goodwill was at an all-time high, compared to these days when President Tinubu now has to take all the decisions they failed to take.

“Like the Sokoto-Badagry Highway and Lagos-Abuja Highway, the Lagos-Calabar Coastal Road is a project that will change the economic landscape of our country for life and former President OBJ must pretend not to be jealous of the master strategist who is rewriting the history of the southwestern presidency by fixing all that needs to be fixed across the country.”

He concluded that Tinubu would not be deterred by distractions, adding that Nigerians who understood development would also not be distracted.

The trial of suspended Deputy Commissioner of Police, Abba Kyari, over alleged non-disclosure of assets resumed on Thursday at the Federal High Court in Abuja, with a prosecution witness revealing that investigations uncovered over ₦200 million in Kyari’s accounts, exceeding his official earnings.

Naija News reports that the witness, a Chief Investigator with the National Drug Law Enforcement Agency (NDLEA), Ahmed Yero, told the court that the money was traced through Kyari’s Bank Verification Number (BVN) linked to 12 accounts, 10 of which were active.

Yero, testifying as the ninth prosecution witness (PW-9), said his team was assigned on February 14, 2022, to investigate the defendant’s financial activities under the NDLEA’s Directorate of Assets & Financial Investigation.

According to Yero, Kyari initially declared only three bank accounts, but forensic analysis of his BVN records, obtained from the Central Bank of Nigeria (CBN), revealed he owned and operated 10 active bank accounts, including domiciliary accounts in Dollars, Euros, and Pounds Sterling.

“One of the accounts is a salary account through which the 1st defendant (Kyari) received salaries and allowances from the Nigeria Police Force (NPF),” Yero said.

The witness added that NDLEA analyzed Kyari’s bank records for 16 years, from 2006 to 2022, and discovered that deposits into his accounts significantly exceeded his known police earnings.

The NDLEA investigator further disclosed that funds tagged as “operational funds” were wired directly from the CBN into Kyari’s accounts. However, a substantial portion of these funds was transferred to family members and associates.

“We calculated everything the defendant earned in salaries and other entitlements and compared it with inflows into his account. Our analysis showed that over ₦200 million was received beyond what he should have earned officially,” Yero testified.

The witness told the court that Kyari refused to provide a written statement to the NDLEA, insisting that he would only explain himself in court.

Meanwhile, the court admitted into evidence Kyari’s bank statements and BVN analysis, despite objections from his defence counsel, Dr. Onyechi Ikpeazu (SAN), who reserved his reasons for challenging the admissibility until later in the trial.

Kyari’s Agriculture Claim Lacks Evidence – Witness

Under cross-examination, the NDLEA witness acknowledged that Kyari was once regarded as a “super cop” due to his crime-fighting role but stated that the embattled officer failed to provide evidence to support his claim that he was involved in agriculture.

“He declared some assets, including landed properties in Maiduguri, Borno State, but failed to declare others,” Yero added.

When asked whether Kyari had ever been convicted before any court, Yero admitted he was not aware of any prior conviction. However, he noted that some of the undeclared assets traced to Kyari were claimed to belong to his late father or wife.

The witness also admitted that there is no law prohibiting a person from owning multiple bank accounts but maintained that Kyari’s accounts contained funds that exceeded his known income.

Earlier in the proceedings, a Compliance Officer from Sterling Bank, David Ajoma, tendered three bundles of documents, including statements of accounts linked to Kyari.

Following the witness’s testimony, Justice James Omotosho adjourned the trial till March 24, 2025, while the NDLEA disclosed plans to produce two additional witnesses in the case.

Aside from the 10-count charge on asset concealment, Kyari is also facing an eight-count charge in another case, where he and four members of his former Intelligence Response Team (IRT) are accused of tampering with cocaine seized from two convicted drug traffickers at the Akanu Ibiam International Airport, Enugu.

Kyari is on trial alongside ACP Sunday J. Ubia, ASP Bawa James, Insp. Simon Agirigba and Insp. John Nuhu.

All defendants have pleaded not guilty and remain in custody pending the determination of their cases.

President Bola Tinubu on Thursday declared that Nigeria was on the brink of bankruptcy before his administration swiftly ended the fuel subsidy and implemented critical economic reforms.

Speaking while receiving a delegation of former National Assembly colleagues from the aborted Third Republic at the State House in Abuja, Tinubu explained that the urgent measures were necessary to safeguard the nation’s financial future and protect coming generations.

Tinubu said, “For 50 years, Nigeria was spending money of generations yet unborn and servicing the West coast of our sub-region with fuel. “It was getting difficult to plan for our children’s future.”

Naija News reports that the Special Adviser to the President on Information and Strategy, Bayo Onanuga, detailed the president’s remarks in a statement titled, ‘For 50 years, we were spending the money of generations yet unborn: President Tinubu.’

Reflecting on the conditions upon assuming office, the President pointed out the severe economic and social challenges facing the country, stating that bold action was needed to avert financial collapse.

“We faced serious headwinds when I took over, very challenging times. Nigeria would have been bankrupt if we had not taken the actions that we took, and we had to prevent the economy’s collapse,” he said.

The President credited Nigerians for their resilience and support for his policies, noting that their sacrifices have contributed to the recent economic improvements, particularly in stabilizing the exchange rate and reducing food prices.

“Today, we are sitting pretty on a good foundation. We have reversed the problem; the exchange rate is stabilizing. Food prices are coming down, especially during Ramadan. We will have light at the end of the tunnel,” he assured.

Tinubu reiterated his commitment to democracy, calling it the best route for Nigeria’s economic, social, and political development.

He also praised those who remained steadfast in upholding democratic values, reflecting on his experience in the Third Republic and how it shaped his political journey.

Delegation Commends Tinubu’s Policies

Speaking on behalf of the visiting delegation, Senator Emmanuel Nwaka lauded the administration’s initiatives, particularly the Nigerian Education Loan Fund and the Nigerian Consumer Credit Corporation (CREDICORP), highlighting their role in easing financial burdens on citizens.

“I appreciate you for what you are giving to students because the student population is the largest demographic in the country. I’ve spoken with many of them, and many have benefited from it,” Nwaka said.

He further praised the credit scheme, saying: “CREDICORP is a major way of fighting corruption. You see a young man, fresh out of school, who wants to buy a car or house and has to pay in cash. But with this credit system, people can finance their needs properly. I’ve been following its activities, and we are delighted.”

Other members of the delegation included Senator Bako Musa, Terwase Orbunde, Hon. Wasiu Logun, Amina Aliyu, Obi Anoliefo, and Eze Nwauwa.

Former President Muhammadu Buhari has reiterated his unwavering loyalty to the All Progressives Congress (APC), stating that he remained a committed member of the ruling party and will continue to promote its ideals.

In a statement reaffirming his political allegiance, Buhari emphasised that he would never distance himself from the party that brought him to power and supported him through two terms in office as president.

“I am an APC member, and I like to be addressed as such,” he said. “I will try to popularise the party by all means.”

The former president expressed deep gratitude to the APC for the platform it provided him, describing his tenure as the highest honour of his political career.

He maintained that he had no further personal demands from the party but remained committed to strengthening its foundation.

Buhari also highlighted the sacrifices made by the party’s founding fathers, stressing that their efforts in establishing a strong political movement should not be taken for granted.

He called for the protection of democratic principles and the continued growth of the APC as a vehicle for national development.

Minister of Works, Engr David Umahi. has urged Nigerians to ignore comments that the Lagos-Calabar Coastal Highway was wasteful and corrupt.

Umahi stated this during his working visit to Ondo State for a 2nd interactive session on the Ondo State axis of the Lagos-Calabar Coastal Highway project. 

The meeting, which was held at the Government House in Akure, followed the first stakeholders’ meeting on the project, which was held on October 31, 2024.

According to the Minister, “This Lagos-Calabar Coastal Highway is one of Mr. President’s four legacy projects.”

Umahi asked those criticising the project and President Bola Tinubu’s other legacy projects not to pass through the roads when they are completed.

The minister, who insisted that the project was transparent, noted that people have the right to be jealous and angry.

While reminding Governor Lucky Aiyedatiwa to issue a revocation order on the route in line with the laws of the land, The Works Minister said the alignment reduced the route from 75km to 71km.

However, he informed Ondo residents that President Tinubu was determined to complete all inherited projects and his administration’s four legacy projects.

According to him, “The man deserves our respect. I have not read the book, but the Lagos-Calabar Coastal Highway is not wasteful and corrupt. Anyone criticising the project is waking up to say how one man (Tinubu) can be attributed to these types of projects.

“For those saying it is a waste of resources when the project is completed, they should not use the road.

“This is not a wasteful project, and it is not fraudulent. If someone is saying it’s a fraud, that person is also saying that I am a fraud, and I am not.

“This project has been very transparent, so we continue to engage the stakeholders. Every process step has been very transparent, and every detail is in the public domain.”

Speaking on other federal government projects in Ondo State, Engr. Umahi said they were looking into the issue of compensation so that the contract would not be stalled.

He said dualisation of the Ilesha-Akure-Benib Highway was stalled by funding but assured that the contractor was bound to make the road motorable.

The Minister, however, commended the government and people of the State for their support of the project, adding that all the necessary steps for its execution have been taken.

While commending Governor Aiyedatiwa for his keen interest in the state’s infrastructural development, Umahi promised that all Federal road projects in the State would be executed quickly.

A former Chairman of Ilaje Local Government Area, Banjo Okunomo, said the coastal communities would not allow any sentiments to delay the projects.

He assured that the community leadership would ensure easy implementation of the project.

The House of Representatives, on Thursday, approved a new Value Added Tax sharing formula, allocating 55% to states and 35% to local government councils.

This decision followed the adoption of a report by the House Committee on Finance on four tax bills transmitted to the National Assembly by President Bola Tinubu in October 2024.

Presenting the report on Thursday, the chairman of the committee, Abiodun Faleke, summarised the extensive review process, which followed a public hearing held from February 26 to February 28, 2025.

The report was considered clause by clause and adopted in a session presided over by the Speaker, Tajudeen Abbas, on Thursday. 

The committee made 19 key recommendations under the Nigerian Tax Administration Bill, including a revised VAT distribution framework that had been a contentious issue between state governors and the Presidency.

Revised VAT sharing formula

Section 77 of the report introduces a new VAT distribution structure.

For states, 50% of the revenue is to be distributed equally, 20% based on population, and 30% based on consumption.

The emphasis is placed on the actual place of consumption, regardless of where tax returns are filed.

Local governments will receive 35% of VAT revenue under a similar formula.

Additionally, the timeline for issuing Taxpayer Identification Numbers has been extended from two to five working days to accommodate possible administrative challenges.

Any refusal to issue a TIN must be justified and communicated to the applicant.

Corporate tax filing

The timeframe for companies ceasing operations to file tax returns has been reduced from six months to three months to mitigate revenue losses.

The committee also recommended that taxable supply consumption should determine tax allocation, ensuring fairness in regions where company headquarters are concentrated.

On fiscalisation, the Federal Inland Revenue Service will establish further regulations to enforce the newly introduced system.

Additionally, Section 74 mandates that any tax remission by the President or a governor must receive approval from the National Assembly or respective state Houses of Assembly.

 Tax exemptions

Section 75 provides that presidential tax exemptions must be approved by the National Assembly.

Meanwhile, Section 76 authorises the Office of the Accountant General to deduct unremitted taxes from Ministries, Departments, and Agencies at the source, subject to National Assembly’s approval.

To enhance representation, the committee proposed appointing six Executive Directors to the FIRS Board, one from each geopolitical zone, in a rotational order.

Additionally, a representative from each state and the Federal Capital Territory will be appointed to ensure federal character compliance.

The committee recommended a fixed 4% cost of collection for FIRS, to be appropriated by the National Assembly.

It also proposed funding the Tax Appeal Tribunal from the Consolidated Revenue Fund, eliminating its current dependence on FIRS to ensure judicial neutrality.

Nigeria Tax Bill

Under the Nigeria Tax Bill, Section 27 now requires a Certificate of Acceptance for companies enjoying priority sector incentives to claim capital allowances.

The Industrial Inspectorate Department at the Federal Ministry of Industry, Trade, and Investment will be responsible for certifying qualifying expenditures.

The committee also scrapped the previously proposed staggered reduction of the corporate income tax rate.

Instead, companies will continue to be taxed at 30%, while those in priority sectors will enjoy a reduced rate of 25% for five years.

Development levy adjustments

The revised bill also expands the beneficiaries of the Development Levy.

The Tertiary Education Trust Fund will receive 50%, the Nigerian Education Loan Fund will get 3%, the National Information Technology Development Fund will receive 5%, and the National Agency for Science and Engineering Infrastructure will get 10%.

The Defence Infrastructure Fund will receive 10%, the Nigeria Police Trust Fund 5%, the National Sports Development Fund 5%, the Social Security Fund 10%, the National Board for Technological Incubation 10%, and the National Cybersecurity Fund 1%.

The bills are expected to be read for a third and final time before being passed into law next week.

A senior officer of the Nigerian Police Force (NPF), DSP Kenneth Ndu, slumped and died on Thursday while eating beans and plantains with colleagues at the command headquarters in Abia State.

Ndu had reportedly returned from an investigative operation with his team hours before he collapsed. He was rushed to the Federal Medical Centre (FMC) Umuahia, where doctors confirmed his death.

Speaking with THE WHISTLER, a top officer, who requested anonymity, clarified that Ndu was a team leader of the Swift Response Squad, Zone 9 Umuahia, not the Commander of the Rapid Response Squad (RRS), as some reports had suggested.

The report had read, “Tragedy struck at the Abia State Police Command on Thursday as the Commander of the DSP, Kenneth Ndu, slumped and died while eating with fellow officers.”

Confirming his death while clarifying, the source said, “Ndu was said to have died of cardiac arrest; the man is not a commander but a team leader at the Abia state command headquarters.”

THE WHISTLER also learnt that DSP Ndu was set to retire from the Nigerian Police Force in March 2025.