…Orders Integrity Review Of Nigeria’s Waterways, Dams

…Says 321 Dead In 34 States On Account Of Flooding

…Tinubu Not Against Northerners With Tax Reform Bills — Presidency

The National Economic Council (NEC), on Thursday, prevailed on President Bola Tinubu to with­draw the Tax Reforms Bills from the National Assembly.

NEC hinged it on the need to allow for wider consultations and consensus building among stake­holders, particularly Nigerians.

Oyo State governor, Seyi Ma­kinde, who briefed State House correspondents on the develop­ment, said this formed part of resolutions reached at the 144th meeting of the NECouncil at the State House, Abuja.

According to Makinde, the council members agreed that it was necessary to allow for consen­sus building and understanding of the bills among Nigerians.

President Bola Tinubu and the Federal Executive Council (FEC) recently endorsed new policy ini­tiatives to streamline Nigeria’s tax administration processes.

The Federal Government hinged it on the need to enhance efficiency and eliminate redun­dancies across the nation’s tax operations.

The reforms emerged after a review of existing tax laws since August 2023. The National Assem­bly is considering four executive bills containing these tax reform efforts.

NEC’s decision came days after the Northern governors kicked against the reform bills.

At a meeting on October 28, 2024, governors of the 19 North­ern states, on the platform of the Northern Governors’ Forum, re­jected the new derivation-based model for Value-Added Tax dis­tribution in the new tax reform bills before the National Assembly.

A communiqué read by the Chairman of the forum, Gov­ernor Muhammed Yahaya of Gombe State, said the proposition negates the interest of the North and other sub-nationals.

Makinde said, “NEC today took a presentation from the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. Their main focus is fair taxation, responsible borrow­ing and sustainable spending.

“The council acknowledged that the country is underperform­ing on all indices as regards huge losses from major revenue sourc­es, also tax to GDP ratio and so on.

“So after extensive delibera­tion, NEC noted the need for suf­ficient alignment between and among the stakeholders for the proposed reforms.

“Council, therefore, recom­mend the need to withdraw the bill currently before the National Assembly on tax reforms so that we can have wider consultations and also build consensus around these reforms for the benefit of the entire country, and also to give people, for them to know the vision and where we are moving the country in terms of a tax re­form, because there’s really a lot of miscommunication, misinfor­mation.

“The bills will be drawn from the National Assembly, then there will be consultations afterwards”.

NEC OrdersIntegrity ReviewOf Nigeria’s Waterways, Dams

Meanwhile, the National Eco­nomic Council (NEC) on Thurs­day also directed the Ministry of Water Resources and Sanitation to commence a comprehensive integrity review of Nigeria’s wa­terways and dams.

The move is intended to miti­gate the ravaging impact of flood­ing in the country.

Anambra State governor, Prof. Chukwuma Soludo, disclosed this while briefing State House corre­spondents at the Presidential Vil­la, Abuja, after the NEC meeting presided over by Vice President Kashim Shettima.

He said that the Minister of Water Resources and Sanitation, Prof. Joseph Utsev, had briefed members of NEC on the Federal Government’s intervention activ­ities across the country regarding the impact of this year’s flooding which has become a major nation­al disaster.

The Water Resources Minis­try had earlier identified 148 local government areas in the country spanning 31 states as high flood risk areas for 2024 beginning from April to November.

According to Prof. Soludo, after receiving the presentation from the minister, NEC resolved that “the Federal Ministry of Water Resources and Sanitation should conduct an integrity review of all the waterways and dams across the country.

“There was a serious empha­sis on the need for a massive pro­gramme of dredging of the wa­terways. The council also urged governors who have not submit­ted their reports on the situation of flooding and management in their states to do so immediately.

“Council also noted that the Green Climate Fund should have an infrastructure resilient fund component and it was also noted that there are some critical parts of the country that are very mas­sively ravaged by this flooding particularly the South East and the South South that are com­pletely omitted in the ongoing programmes of the construction of dams at least to act as speed bumps along the highways par­ticularly in the River Niger.”

Prof. Soludo also said that the council considered the national emergency and the responses on the damages and the coordination taking place between the states and the Federal Government and outlined further steps that should be taken.

It was gathered that Prof. Utsev during his presentation informed the NEC that a techni­cal sub-committee appointed by President Tinubu October 8, 2024, is ongoing with its assignment and will be putting together an interim report to be presented to the Inter-Ministerial Committee for onward transmission to the president.

NEC also confirmed that 321 persons lost their lives in the flood disaster which has so far ravaged 34 states of the federation.

It also confirmed that 217 local government areas, 1,374,557 per­sons were adversely affected by the flood across Nigeria as at today.

Soludo, who also reeled out the statistics after the NEC meeting, said the various State Emergency Management Agencies (SEMA) have been directed to up their game to bring succour to the af­fected states.

“You know the country is facing the national emergency with regards to flooding and the reports so far identify a major na­tional disaster. We’ve been called upon to note that to date, that about 34 states have been affect­ed, 217 local government areas, 1,374,557 persons already affect­ed. And 740,743 were displaced nationwide. 321 persons dead and 2,854 persons injured and 281,000 houses, 258,000 cultivated farm­lands also destroyed, or affected by the ravaging flood.

“Council deliberated on the actions, particularly at the sub national level, and got up on the the SEMA, the various state emer­gency management agencies, to up their game and increase the collaboration with the National Emergency Management Agen­cy (NEMA).

“There was serious emphasis and the need for massive pro­gramme of dredging, or desilt­ing of the waterways and have a firm programme of continuous desilting

almost on annual basis of the waterways.”

Tinubu Not Against Northerners With Tax Reform Bills — Presidency

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, has de­fended the proposed bills from the presidency seeking reforms in tax collection processes.

Recall that the Federal Ex­ecutive Council (FEC), which President Tinubu presided over recently, had endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration pro­cesses, enhancing efficiency and eliminating redundancies across the nation’s tax operations.

But the governors of the 19 Northern states, on the platform of the Northern Governors’ Fo­rum, at their meeting recently, picked holes in the new deriva­tion-based model for Value-Added Tax (VAT) distribution in the new tax reform bills before the Nation­al Assembly.

Chairman of the forum, Gov­ernor Muhammed Inuwa Yahaya of Gombe State, presided over the meeting where the northern elite opposed the policy.

Onanuga, while reacting on be­half of the president, explained that these reforms emerged after an extensive review of existing tax laws.

He noted that the National Assembly is considering four executive bills designed to trans­form and modernise Nigeria’s tax landscape.

“First is the Nigeria Tax Bill, which aims to eliminate unin­tended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.

“The Nigeria Tax Adminis­tration Bill (NTAB) proposes new rules governing the administra­tion of all taxes in the country. Its objective is to harmonise tax ad­ministrative processes across fed­eral, state and local jurisdictions for ease of compliance for taxpay­ers in all parts of the country.

“The Nigeria Revenue Ser­vice (Establishment) Bill seeks to rename the Federal Inland Reve­nue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the service as the revenue agency for the en­tire federation, not just the Federal Government,” Onanuga stated.

He explained that the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering fed­eral and all states’ tax authorities.

According to him, the bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.

He reiterated that it was in­structive to note that these pro­posed laws will not increase the number of taxes currently in op­eration. Instead, they are designed to optimise and simplify existing tax frameworks.

He also insisted that the tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax ob­ligations without adding to the burden on Nigerians.

The presidential media aide stated, “The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by sup­porting a dynamic, growth-ori­ented economy.

“Importantly, these laws will not absorb or eliminate the duties of any existing department, agen­cy, or ministry. Instead, they aim to harmonise revenue collection and administration across the fed­eration to ensure efficiency and cooperation.

“At the moment, tax adminis­tration lacks coordination among federal, state, and local tax author­ities, often resulting in overlap­ping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist.

“The proposed laws aim to co­ordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.

“Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Cap­ital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Edu­cation Tax (TET), Value-Added Tax (VAT), and other taxing pro­visions in numerous laws are administered separately, with individual legislative frameworks.

“The proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a uni­fied structure to reduce adminis­trative fragmentation.

“On the proposed deriva­tion-based VAT distribution model, which the Northern governors op­pose, it must be stressed that the new proposal, as enunciated in the bill, is designed to create a fairer system.

“The current model for distrib­uting VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed. The ongoing tax re­form seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.

“The new proposal before the National Assembly outlines a dif­ferent form of derivation which considers the place of supply or consumption for relevant goods and services. This means that states in the Northern region that produce the food we eat should not lose out just because their prod­ucts are VAT-exempt or consumed in other states.

“These reforms are critical to improving the lives of Nigeri­ans and were not put forward by President Tinubu to undermine any part of the country. There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need”.

The Joint Action Committee of the Non-Academic Staff Union of Educational and Associated Institutions and the Senior Staff Association of Nigerian Universities said the ongoing strike is a long-term battle involving even vice-chancellors, bursars and registrars.

On Monday, the JAC of SSANU and NASU embarked on an indefinite strike over its four-month withheld salary.

Since then, activities have been grounded in universities across the country.

In an interview with The PUNCH on Wednesday, the National President of SSANU, Mr Mohammed Ibrahim, said university executives, including vice-chancellors, bursars, and registrars, did not receive salaries for four months.222A 

He said as a result, the universities would remain completely shut down until the payments were made.

He added that the unions reported massive compliance with the ongoing strike across all universities nationwide.

Ibrahim also revealed that there had been no invitation or any form of interference from the government.

He said, “It is a long-term battle because this strike also involves vice-chancellors, bursars, registrars, and other senior administrators who were not paid.

“The impact is significant, and no one from the government has reached out to us. We have withdrawn our services, and our members are resolute they will not return to work until all salaries are paid.”

He added that compliance with the strike was encouraging, achieving 98 per cent adherence.

“We have achieved 98 per cent compliance with the strike; it is a total strike if you look around. The remaining two per cent are those who held their congress today, and they will join fully tomorrow,” he said.

Both Ibrahim and Vice President of SSANU, Abdussobur Salaam, noted that there had been no official response from the government on the strike.

The former Minister of Education, Prof Tahir Mamman, was relieved of his position last week, and a new minister, Dr Tunji Alausa, is expected to take over today, following President Bola Tinubu’s directive that former ministers should hand over by October 30.

Prof Mamman was among the five ministers relieved of their positions by the President after a Federal Executive Council meeting on Monday.

One of the issues facing the substantive minister, Dr Alausa, as he assumes duty today is the SSANU and NASU strike.

Salaam, however, said there had been no official communication from the government regarding the ongoing strike by the union.

“There’s no update on the ongoing strike, it continues. Some informal contacts were made between the minister of state for education and our union executives, but there’s been no real progress, just an informal appeal.

“This issue has persisted for a long time, with repeated promises that have not been fulfilled.

“All our ultimatums have expired, and we still haven’t received any alerts. The recent invitation was just an informal call on the phone. We urge the authorities to take decisive action; we have come too far and can no longer accept empty promises. If we don’t get the alerts we won’t back down, Salaam said.

A statement made available to The PUNCH on Sunday and signed by National President, SSANU, Ibrahim and General Secretary, NASU, Peters Adeyemi, said the ultimatum it gave the Federal Government over its withheld salaries expired on Sunday midnight.

The unions were demanding, among others, the payment of the four-month withheld salaries, improved remuneration, earned allowances and implementation of the 2009 agreements with the government.

Also, the National Association of Academic Technologists, on Wednesday, announced a nationwide protest over the five-month withheld salaries and unfulfilled agreements with the Federal Government.

NAAT also said it would picket the Ministry of Finance on November 14 for the failure to implement the President’s directive that the withheld salaries should be paid.

The protest is expected to commence at midnight on November 6, 2024, with all branches of the union across universities, polytechnics, and colleges of education mobilised to press home their demands.

The President of NAAT, Ibeji Nwokoma, who declared the protest after the union’s National Executive Council meeting in Abuja, also gave the Federal Government a two-week ultimatum starting from October 30, 2024, as a final opportunity to resolve their grievances.

Nwokoma, at the media briefing in Abuja, reeled out a list of long-standing demands that included the payment of five and a half months of withheld salaries and the full implementation of a 2009 agreement with NAAT.

He said the agreement encompassed critical items such as allowances for academic technologists, provisions for student training programmes, and the enhancement of staff-to-student ratios.

It urged the government to, among other things, release funds for upgrading university laboratories and to address the broader issues of underfunding and proliferation of public universities.

Recall that the union had previously issued a three-week ultimatum on September 30, 2024, which expired on October 21.

According to Nwokoma, the ultimatum ended without any acknowledgement from government agencies, including the Federal Ministries of Education and Labour and Employment.

NAAT expressed frustration over what it described as government “insensitivity,” pointing to the President’s recent approval of the withheld salaries that, according to NAAT, had not yet been actioned by the finance ministry.

NAAT’s president announced that, within the two-week window, local branches would convene congresses to conduct a referendum on whether to escalate the protest into a full strike.

It warned that if the government failed to act by November 13, 2024, it would embark on an indefinite strike which would potentially impact academic calendars and critical research activities across the tertiary education system.

The prepared text read, “It is quite unfortunate and regrettable too, that despite the President Bola Ahmed Tinubu’s waiver and approval to pay five-and-half month salaries owed NAAT members, the refusal by the Minister of Finance and Coordinating Minister of the Economy to effect this approval raises more questions than answers on the true commitment and sincerity on the part of the Federal Government in resolving the issues.

“Several efforts were made in the past including a series of letters, protests, visits, notices of ultimatums and several Memorandum of Understanding (MoUs) freely entered between NAAT and Federal Government (i.e MOU of 2017, 2020, 2021 and 2022) as the result of efforts by Federal Ministry of Labour and Employment as conciliator of the Federal Government but all to no avail.

“Consequent upon the above, the union, having reviewed the situation critically, decided to give the Federal Government an additional two (2) weeks ultimatum, with effect from 30th of October 2024.

“Meanwhile, the National Executive Council has directed all her branches in universities, polytechnics and colleges of education to hold a nationwide protest to drive home our demands.

“Within the two-week ultimatum, branches have been directed to hold congresses and conduct a referendum to decide if the union will proceed on strike once the 14-day ultimatum expires on the 13th of November 2024.

“If at the end of the 14-day ultimatum no positive response from the government, the union will embark on a national protest which will culminate into a total and indefinite strike without recourse to government.

“It is hoped that the government will avail itself of this window to resolve the issues on the ground, with the view to averting any industrial action.

“This decision is in line with our concern for the tertiary education system so as not to disrupt the academic calendar which will eventually affect research and practical teaching; laboratory, workshop, farm and studio practices and the attendant monumental loss of resources.”