Legislature

State Assemblies Partner FIRS on Tax Reform

By Web News 172

By Mosope Kehinde 

In a strategic move to bolster Nigeria’s fiscal framework, Mr Adebo Ogundoyin, Speaker of the Oyo State House of Assembly and Chairman of the Conference of Speakers of State Legislatures of Nigeria, led a delegation on a working visit to the Executive Chairman of the Federal Inland Revenue Service, FIRS, Dr Zacch Adedeji, at the FIRS headquarters in Abuja.

The meeting focused on enhancing collaboration between the FIRS and state legislatures to improve Internally Generated Revenue (IGR) and align tax reforms with state-level fiscal policies. 

The discussions also emphasized the need for a unified approach to tax administration to drive economic growth, accountability, and efficient service delivery across Nigeria.

“Today in Abuja, I had the honor of leading a delegation of the Conference of Speakers of State Legislatures of Nigeria on a working visit to the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zaccheus Adelabu Adedeji. Our discussion centered on fostering a stronger synergy between the FIRS and State Houses of Assembly in enhancing Internally Generated Revenue (IGR) across the country.

“As Speakers of State Legislatures, we remain committed to advocating for effective financial frameworks that strengthen governance and uplift our States.”

Mr Ogundoyin commended Dr Adedeji for his leadership in implementing comprehensive tax reforms aimed at simplifying tax processes and expanding the taxpayer base without introducing new taxes or increasing existing rates. 

He highlighted the importance of these reforms in creating a more transparent and efficient tax system that benefits all tiers of government

“I personally, and on behalf of the Conference, commend Dr. Adedeji for his forward-thinking leadership and express our deep appreciation for his support towards the legislative reforms and initiatives we are advancing under my chairmanship.”

Responding, Dr Adedeji reiterated the FIRS’s commitment to partnering with state assemblies to achieve shared economic objectives. 

He emphasized that the ongoing tax reforms are designed to reduce the number of taxes paid by Nigerians, streamline tax collection, and enhance compliance through the adoption of technology-driven solutions.

Economy

Adopt humane strategies, understanding with the informal sector – Makinde

By Web News 115

By Iyabo Adebisi

Governor Seyi Makinde of Oyo State has urged members of the Joint Tax Board, JTB and other stakeholders in the revenue generation sector in the country to adopt a humane strategy and understanding before co-opting the informal sectors into its tax net.

Declaring open the 157th meeting of the JTB held in Ibadan, with the theme – Taxation of the Informal Sector: Potentials and Challenges, Governor Makinde explained that the informal sector is the backbone of the local economy and should be engaged technologically for meaningful impact. 

The governor called for an increase in production, knowledge, and skills to galvanise Nigerians toward transforming the nation’s natural resources and potential into economic prosperity. 

Governor Makinde enjoined the stakeholders to consider modalities to deepen partnership with the informal sector, such that dragging them into the tax net would be based on understanding rather than enforcement. 

Addressing the participants, the Chairman of the Joint Tax Board and Executive Chairman of the Federal Inland Revenue Service, FIRS, Dr Zach Adedeji, warned against any attempt to add a tax burden on the poor and charged the meeting to focus on conceiving strategies to formalise the informal sector before any taxation attempt.

Earlier, Chairman of the Oyo State Internal Revenue Service Femi Awakan disclosed how the Seyi Makinde-led administration has drastically boosted the state’s internally generated revenue (IGR), noting that with the Oyo experience, there is no challenge too tough to surmount in widening the tax net of any economy.

The meeting of the Joint Tax Board of Nigeria, JTB, is usually a convergence to address tax-related matters, evolve a workable, effective and efficient tax system across the state and the federal government. 

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Crime

Update: FG Files Tax Evasion Charges against Binance

By Web News 516

The Federal Government on Monday initiated proceedings against Binance, a prominent cryptocurrency exchange platform over tax evasion.

The charges were filed at the Federal High Court in Abuja by the Federal Inland Revenue Service.

In the suit with number: FHC/ABJ/CR/115/2024, FIRS implicated Binance with four tax evasion accusations adding that it was a decisive move aimed at upholding fiscal responsibility and safeguarding the economic integrity of the country.

Joined with the crypto company as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance currently under the custody of the Economic and Financial Crimes Commission.

The charges levied against Binance include non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

In the suit, the Federal Government also accused Binance of failure to register with FIRS for tax purposes and contravening existing tax regulations within the country.

One of the counts in the lawsuit pertains to Binance’s alleged failure to collect and remit various categories of taxes to the federation as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.

Section 40 of the Act explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.

The charges further detail specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers.

“Any company that transacts business in excess of N25 million annually is deemed by the Finance Act to be present in Nigeria.

“According to this rule, Binance falls into that category. So, it has to pay taxes like Company Income Tax (CIT) and also collect and pay Value Added Tax (VAT).

“But Binance did not do this properly. So, the company broke Nigerian laws and could be investigated and taken to court for this infraction,” Adekanmbi said.

FIRS, by the law setting it up and various others, is empowered to assess, collect and account for revenue accruing to the Federation and administer relevant tax laws.

Binance pleaded guilty to flouting anti-money laundering laws in the United States in late 2023, settling for a plea bargain that cost the company $ 4.3 billion.

Punch/Simeon Ugbodovon

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Economy

Tinubu Appoints Adedeji as FIRS Acting Chairman

By Web News 544

President Bola Tinubu has approved the appointment of Zaccheus Adedeji, as the new Acting Executive Chairman of the Federal Inland Revenue Service,FIRS.

This announcement coincides with the impending commencement of terminal leave for the former chairman, Muhammed Nami.

A statement signed by the President’s Special Adviser on Media and Publicity, Ajuri Ngelale, on Thursday, read, “Honourable Zaccheus Adedeji is hereby appointed in acting capacity for 90 days before his subsequent confirmation as the substantive Executive Chairman of the Federal Inland Revenue Service for a term of four years in the first instance.”

The President has instructed the former FIRS Chairman, Mr Muhammad Nami, who had been in office since December 2019, to promptly begin a three-month pre-retirement leave, as stipulated by Public Service Rule (PSR) 120243. This leave will ultimately result in his retirement from service on December 8, 2023.

Adedeji, previously serving as the Special Adviser to the President on Internal Revenue, has now assumed the role of acting chairman at FIRS.

He is a first-class graduate in accounting from the Obafemi Awolowo University and highly skilled accountant with deep expertise in corporate taxation and the advancement of public finance.

With over 15 years of professional background, he brings a wealth of experience in corporate accounting, public service administration, and advisory services to corporate multinationals, State governments, and the Federal Government of Nigeria.

Adedeji, who once served as Commissioner for Finance in Oyo State, established a Medium-Term Financial (MTF) strategy, involving a team of fewer than 50 personnel, to form the overarching framework for financial and budgetary management in the State.

Punch/ Oluwayemisi Owonikoko

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Judiciary

Oyo State Government Seeks To Join VAT Appeal Suit

By Web News 685

Oyo State Government wants the Court of Appeal sitting in Port Harcourt, Rivers State for joinder in the suit instituted by the Rivers State Government against the Attorney-General of the Federation in respect to the bid by the state to take over the collection of the Value Added Tax, VAT, from the federal government.

The suit, instituted by the Attorney-General of Oyo State, Professor Oyelowo Oyewo is seeking an order of the Appellate Court to enable Oyo State to join the suit as an interested party.

In the suit, the government of Oyo State is seeking two orders, viz: an order of the Honourable Court joining the Attorney-General of Oyo State as a respondent on the appeal with suit number FHC/PH/CS/149/2020 and appeal number CA/PH/282/2021, and any other order the Court may deem fit.

According to the Attorney-General of Oyo State, the government of Oyo State was unaware of the suit between the Attorney-General of Rivers State and the Federal Inland Revenue Service, FIRS, at the Federal High Court until the judgment was delivered.

Other grounds upon which the application was based include, that the decision of the Appellate Court will affect the collection of VAT by the government of Oyo State is one of the states which the judgment of the lower court recognised as entitled to collect VAT within its territorial jurisdiction.

The grounds claimed by the Oyo State government include that: “The Applicant is a necessary party to this suit being a party who will be bound by the judgment of this Honourable Court in this Appeal.

In a motion on notice also attached to the proceedings already filed before the court, Oyo State said it relied on eight grounds and declared that the state is a necessary party to be joined since it has sufficient interest in the outcome of the appeal.

The state further argued that after going through its processes, the Appellate Court will find that the application is necessary and that it has sufficient interest in the determination of the appeal as one of the states of the Federation.

It quoted several legal authorities and concluded thus: “We, therefore, urge the honourable court to resolve the sole issue raised in this application in favour of the Applicant and hold that the Applicant is a proper, desirable and necessary party to be joined in this appeal.

“In conclusion, we humbly urge your Lordships to grant this application in the interest of justice and effective determination of the issues before the Court”.

Iyabo Adebisi

Yoruba

Ajo FIRS Pe Fun Sisan Owo Ori Loore Koore

By Web News 691

Oludari eka ilana owo ori sisan nileese ijoba apapo to n ri si liana ipawowole labenu, FIRS, Ogbeni Temitayo Orebajo ti soo di mimo pe o ye ki awon elegbejegbe maa ri daju pe won foruko sile pely ijoba nitori owo ori sisan, ki won si gba number idanimo pe won san owo ori sapo ijoba.

Ogbeni Orebajo sipaya oro yi nilu Abuja lasiko eto kan to waye.

O soo di mimo pe igbese naa ni yoo mu ki igboraeniye wa ati idi pataki ti won fi n san owo ori.

Ogbeni Orebajo tenumo pe liana owo ori sisan fawon elegbejegbe se pataki nidi ati le ni akosile iye ti awon osise je pelu liana ati mo bi eto owo ori sisan se n lo.

O salaye wi pe ileese tabi elegbejegbe to ba kuna lati tele liana owo ori sisan yoo fara gbegba ofin.

Babatunde Salaudeen/Aminat Ajibike

News Analysis

Opinion: A Generation Swallowing the Other; Eclipsing Generational Assets

By Web News 663

I have a privilege of relating with appreciable number of ethnic groups in Nigeria by virtue of living in Federal Capital Territory,  FCT for close to 20 years and 15 years experience  as a union leader in the same Capital of the Federal Republic of Nigeria.

I have observed people of other climes , tribes and ethnic origins send their  relatively young men to pick their opportunities *while the elders stay behind to give inspiration especially the Northerners*.

Looking at the National Assembly, the Northerners send people between *40 and 55* of age as  Senators and members of House of Representatives  while we in particular from the Southwest have people of the same  age bracket as Personal Assistants,, PAs and legislative aides. 

A co-Senator of 40 to 55 years will relate with our Babas as colleagues and we will be stopped and cowed down from even contributing in a town hall meeting organised by our own Senators of 60 to 70+ age bracket.

The reason the North representatives stand tall oozing with speed, vibrancy and energy advancing the cause of their people is because they have active set of people in place and the reason our people at this side of the country get tired after one hour marathon meeting is due to the aged ones representing us.

It will be recalled that Sir Ahmadu Bello, Sardauna of Sokoto sent younger Tafawa Balewa to Lagos as Prime Minister and stood behind as Premier to strategize.

Coming to strategic placement, in all juicy appointments capable of making many young people  powerful and rich individuals, the North push the young elements of 30+ and 40+ while the elders therefore stay behind as the big man behind the contracts.

Their products spread over NNPC, FIRS, TETFUND, PTF, PPR, OAGF, NCR, MARITIME among others while our people are busy with customised regalia looking for a small space for their children alone.

The North *facilitate juicy contracts for their young elements and shoot them into stupendous wealth within shortest possible time*.

This is the way it works. He is on allowance or salary as a student from at least Area council, after graduation, he gets a juicy placement or mouth watering contracts , thereafter he suspends his job( not necessarily resigning) to pick up political appointment  after which he may contest election and may never go back to salary job.

I have met a good number of them in the cause of my service at FCT and the story continues.

A close  colleague of mine  who respects me so much was made  Secretary of Suleja Area Council from classroom  for 4 years and today a strong chieftain of APC in that emirate.

He has come back to his job and still very active in politics of the noble emirate.

In our clime, young people suffered through school and especially the brilliants are frustrated with no job and eventually become a useful tool in the hand of our own gerontocractic political leadership who use them for as low as *protocol officers arranging campus girls* for political gladiators😢

I have known *graduates of 15 or more years in Oyo state still scrambling for miserable crumbs looking at close to 50 years*.

This is a deliberate eclipse of a generation but *sadly my generation seems to be comfortable defending the reason for their miserable and unfortunate situation as PA media and SA mobilisation* 😢

In Kaduna State for instance , under 40 are presently Director Generals and Heads of boards and parastatals.

We all saw the current EFCC boss with rich CV at the age of 40. We also saw one AHMED , age 40 recently posted as jostling for National Chairmanship of APC.

 If  that succeeds, our elders who felt agitated and deploy bully dogs when we asked questions will go and bend to make a request from a 40 years old chairman of a national party.

*They do that a lot in Abuja only to keep people of same age bracket here bullied, abused, bruised and caged.*

This is what the  North  with a clear succession plan did for people of our age bracket. I rest the case here for a moment to make us REFLECT.

Idris Ismail

Idris Ismail is a Political Scientist and Public Affairs Analyst based in Abuja and from Ibadan, Oyo State Capital.