The House of Representatives has retained Value Added Tax, VAT, at 7.5 per cent and rejected a staggered increase to 15 per cent by 2030 as proposed in the Tax Reform Bills being debated at the National Assembly.

The House also rejected the proposed reintroduction of inheritance tax under the guise of taxation of family income.

Meanwhile, the Nigerian Chamber of Commerce Industry Mines and Agriculture, NACCIMA, said it would await details of what was approved before making any comment.

On its part, the Movement for Socialist Alternative, MSA, a member of the Joint Action Front, JAF, the umbrella body of pro-people civil society organisations, CSO, urged Nigerians not to yet.

Submitting the report during plenary in Abuja, yesterday, the Chairman of the House Committee on Finance, Mr. James Faleke said that the report “represents an extensive review of the Bills carried out by the committee, with careful consideration of public input.”

The bills include four distinct pieces of legislation aimed at overhauling Nigeria’s tax framework — the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

Key changes
The key changes made to the three major bills include:

The Nigeria Revenue Service Bill, the Joint Revenue Board (Establishment) Bill, and the Nigeria Tax Administration Bill includes.

Nigeria Revenue Service Bill
Significant amendments were made to Section 4 of this bill, which defines the functions of the Nigeria Revenue Service, NRS. The committee limited the NRS’s scope to exclude individual taxpayers in states and the Federal Capital Territory, FCT, shifting their focus to federal-level revenue.

The composition of the governing board was also revised. Section 7 now requires the board to include six executive directors, appointed by the president from each geo-political zone on a rotational basis. Additionally, one representative from each state and the FCT will sit on the board to ensure proper federal character representation.

Section 13 introduced new qualifications for the Secretary to the Board, who must be a lawyer, chartered accountant, or chartered secretary at the level of Assistant Director or higher. Amendments to the funding of the NRS introduced a fixed cost-of-collection rate of four per cent of total revenue, minus royalties, to be appropriated by the National Assembly.

Moreover, the NRS’s borrowing powers (Section 28) were tightened, requiring approvals from both the Federal Executive Council and the National Assembly before any loans can be secured.

Joint Revenue Board (Establish-ment) Bill
The Joint Revenue Board Bill saw adjustments aimed at improving oversight and transparency. Section 25, which previously outlined qualifications for Tax Appeal Commissioners, removed the requirement for commissioners to have experience managing businesses, which the committee deemed irrelevant.

The committee also emphasized the independence of the Tax Ombud’s office in Section 43 by funding it directly through the Consolidated Revenue Fund, eliminating gifts or grants that could introduce biases. Similarly, provisions were made for additional office expenses under Section 44.

The committee further introduced new regulations to ensure that the Evidence Act is strictly adhered to during tax appeal proceedings.

A significant change was the establishment of independent funding for the Tax Appeal Tribunal, TAT, freeing it from dependence on the Federal Inland Revenue Service, FIRS, to avoid conflicts of interest.

Nigeria Tax Administration Bill
Several practical amendments were introduced in the Nigeria Tax Administration Bill to enhance efficiency. Section 7 extended the timeline for issuing taxpayer identification numbers (Tax IDs) from two working days to five, allowing room for administrative delays. Additionally, a reduction in the timeline for companies ceasing operations to file their income tax returns (Section 11) from six months to three was introduced to prevent revenue loss.

The VAT system was also revised (Section 22) to ensure that taxable supplies are attributed to their place of consumption, irrespective of where returns are filed, addressing concerns of regional imbalances.

The committee introduced a VAT fiscalisation system (Section 23), requiring the development of further regulations to ensure the system’s effectiveness.

Amendments were made to the reporting thresholds for banking transactions (Section 28), raising them from N25 million to N50 million for individuals and from N100 million to N250 million for corporate entities.

Section 60 mandated court orders before the tax authority could seize movable assets, reinforcing the need for judicial oversight.

One of the most notable additions is the mandatory provision of access to electronically stored taxpayer information (Section 61), in light of the increasing shift from manual to electronic storage.
The committee also amended Section 77, introducing a new formula for distributing VAT revenues to local governments, ensuring that 70 per cent is distributed equally and 30 percent based on population.

Other Bills and general amendments
Other key amendments include maintaining the VAT rate at 7.5 per cent, despite initial proposals to increase it gradually to 15 per cent by 2030. The committee also made changes to income tax provisions for petroleum operations (Section 78), setting the tax rate for petroleum gains at 30 per cent instead of the previously higher rate of 85 percent.

Provisions related to excise duties were deleted across various bills due to concerns about their economic impact.

The committee also addressed definitions related to small companies, raising the turnover threshold for their classification to N100 million while maintaining the asset cap at N250 million.

New Penalties
New penalties were introduced for non-compliance by Virtual Assets Service Providers, VASPs, which include hefty fines and potential suspension of licenses.

While submitting the report, Faleke reaffirmed the importance of the Tax Reform Bills to Nigeria’s economic development. He said: “These Bills are critical to the implementation of a modern, transparent, and efficient tax system that will foster economic growth and improve revenue collection.

“During the retreat held from March 3 to 9, 2025, the committee reviewed submissions made by the public during the hearing. Representatives from key government agencies, including the Nigeria Export Processing Zones Authority, NEPZA, the National Agency for Science and Engineering Infrastructure, NASENI, the National Information Technology Development Agency, NITDA, and the Tertiary Education Trust Fund, TETFund, were also invited to provide further input.

“We carefully examined every submission to ensure that the public’s opinions were incorporated into the review process.” In addition, he said that the retreat involved a thorough review of existing laws proposed for repeal or amendment.

“The committee recommended amendments to various pieces of legislation, including the Companies Income Tax Act, CITA, Value Added Tax Act, VAT, Personal Income Tax Act, PITA, and the Federal Inland Revenue Service (Establishment) Act, among others. The Petroleum Industry Act, Nigeria Export Processing Zones Act, and Oil and Gas Free Trade Zone Act were also amended to reflect the proposed changes.”

The House of Representatives is expected to deliberate on the report in the coming weeks as part of its legislative process.

We await details of approval before comment — NACCIMA
President of NACCIMA, Dele Oye, which reacting to the development, said he would have to see the details of what was approved before making any comment.

His words: “I need to see what was approved. I cannot comment without details as we had alot of comments on the draft bill.”

Don’t celebrate yet, CSO advises Nigerians
Speaking through its General Secretary, Dagga Tolar, said: “We must not be in a hurry, to applaud this House of Representatives’ rejection of increase in VAT. It is not far reaching enough bearing in mind that this is only one feature of the Tax Reform Bill that aims to grasp more from the little never enough earnings of the working population, while granting a tax holiday to members of the billionaire club.

“Yes, the progressive VAT increases only adds more burden to the working population, members of the billionaire club who have their hands in the pie and bread buttered by the National cake have nothing to fear about VAT. Nearly all of their needs come via one direct or indirect link to the wealth of the country.

“It is the vast majority of the working population that are on their own, assailed by hunger, inflation, mass unemployment with poverty wages of N70,000 ($45) that is not even paid by all the states, and a majority of the private sector. Even at that, the current minimum wage has shrunk and is now lower than all previous minimum wages in its dollar value. The 2019 Buhari’s N30,000 with a dollar/N350 was $85. Go back to 1981 with minimum wage at N125 and a dollar/ N0.60k was $205.

“This is the pithole that the Tinubu regime continues to condemn us all into, refusing to make a break from Neoliberal capitalist dictations of the International Monetary Fund, IMF and World Bank that will not set us out to industrialise and compete with China, US and Europe. Not to forget, we run a rental economy. The ruling class has no interest in increasing the purchasing power of the working population. If this was the case, it would not be flying this Tax Reform Bill. The Babangida Book launch reveals to all of us that there is too much wealth in the hands of a few. What is their tax contribution to the coffers of the state?

“We cannot rely on the House of Representatives or the National Assembly or even the northern governors to provide a consistent opposition to VAT increase or the Tax Reform Bill. They are beneficiaries, we in the Movement for Socialist Alternative call on the Nigeria Labour Congress, NLC and Trade Union Congress of Nigeria, TUC, leadership demand a new minimum wage to march the rate of inflation immediately. Mobilise workers for one day warning strike in opposition to imposing new tax burden on workers. For a progressive tax that makes billionaires to pay more. To end the tax holiday granted to corporations. And for an emergency relief package of nothing less than a N100,000 for all workers and the unemployed in the country.

Abdul-Azeez Olajide Adediran aka Jandor, governorship candidate of the Peoples Democratic Party (PDP) in the 2023 general election, met with President Bola Tinubu at the presidential villa on Monday, TheCable can report.

The meeting, which was not made public, took place between 2pm and 4pm.

Jandor recently resigned from the PDP citing “indiscipline and anti-party activities” — but he did not announce his next move.

He was a member of the All Progressives Congress (APC) before defecting to the PDP to run for governorship in the last general election.

The 47-year-old politician accused PDP national leadership of letting him down on the eve of the election, maintaining that he would have won but for a false claim of alliance that made PDP supporters in Lagos vote for another candidate.

Jide Sanwo-Olu, the incumbent and candidate of the APC, scored 762,134 votes, while Gbadebo Rhodes-Vivour of the Labour Party polled 312,329 and Jandor had 62,449.

In his resignation letter, Jandor said: “I am here before you today without a heavy heart and a clear conscience. We have dedicated ourselves to the ideals of democracy — both good governance and the pursuit of a better Lagos,” he said.

“However, it has become evident that the leadership of the PDP, both at the national and state levels, has failed to uphold its principles.

“We will consult widely with everybody and then take the decision to collapse our structure to another platform. The major thing now is that we have left the PDP.”

The details of Jandor’s meeting with Tinubu are not yet public, but Aso Rock sources it was a fence-mending move.

It may signal the beginning of re-alignment ahead of the 2027 general election.

Jandor had earlier visited Ibrahim Babangida and Abdulsalami Abubakar, former heads of state, in Minna, Niger state.

He also met with Atiku Abubakar, former vice-president and senior officials of the Social Democratic Party (SDP).

 GenCos fear tariff hike over imposition of new taxes

• Demand 100 per cent debt settlement

Despite promises made by President Bola Tinubu’s administration, Nigeria’s power sector is facing an escalating financial crisis, with generation companies (GenCos) warning of potential shutdowns.

This comes as GenCos, in a new letter to the Financial Reporting Council of Nigeria (FRCN), disclosed the possibility of tariff increase following the imposition of new taxes on power companies.

With promises made to address the financial crisis in the power sector, documents yesterday from the Nigerian Electricity Regulatory Commission (NERC) showed that the Federal Government only paid N371 billion or 19.5 per cent of N1.9 trillion subsidy coming from last year’s tariff shortfalls.

The development indicates a tough task ahead for state governments that are taking over regulatory oversights from NERC. The Guardian learnt that over 99 per cent of the N762.1 billion paid to the GenCos came from distribution companies (DisCos) who were also unable to collect N155 billion of their bills.
Between January and November 2024, GenCos issued invoices valued at N2.7 trillion. But only N762.1 billion was paid, leaving a huge shortfall of N1.94 trillion, according to official documents.

This translates to a mere 28.18 per cent payment rate, highlighting deep-seated revenue collection and enforcement challenges.

A breakdown of the monthly invoices shows that just 9.46 per cent of January’s N256 billion bill was paid, while February’s N208 billion received only 9.29 per cent payment. March recorded an N235 billion invoice with a 9.34 per cent payment rate, while April’s N213 billion saw a temporary spike to 40.91 per cent. Payments fluctuated between 31.01 per cent and 39.05 per cent in the following months, with November recording the highest rate at 39.05 per cent.

Despite this gradual improvement, the payment gap remains high as the development has led to stranded 26,160MW of generated power. As of yesterday, 24 power plants on the national grid were generating between 3,900MW and 4,900MW. This is far below the 6,000MW target on which the tariff increase for band A was executed.

The Nigerian Electricity Regulatory Commission (NERC) report for 2024 reveals that GenCos billed a total of N2.972 trillion for electricity supplied, but only N155 billion or seven per cent of the outstanding debt was attributed to market inefficiencies by DisCos.

The remaining N1.94 trillion resulted from unfunded government subsidies, which stem from the gap between the cost of production and the tariffs charged to consumers.

Despite allocating N450 billion in 2024 to cover subsidies, the government used the funds to clear tariff shortfalls from 2023, leaving the 2024 shortfall largely unresolved.

The Nigerian Bulk Electricity Trading (NBET) company contributed a paltry N371 million toward the 2024 tariff deficit, covering just 0.019 per cent of the outstanding debt.

While DisCos managed an 84 per cent remittance rate on their Debt Repayment Obligation (DRO) of N1.031 trillion, paying N867.08 billion, the overall invoice settlement rate for GenCos stood at 29.48 per cent.

A letter seen by The Guardian, addressed to Minister of Power, Adebayo Adelabu and signed by the Chairman of the Board of Trustees of the Association of Power Generation Companies (APGC), Sani Bello, has called for urgent intervention.

The letter, dated 17th of February copied key officials, including the Chief of Staff to the President, the Governor of the Central Bank of Nigeria (CBN) and the Acting Managing Director of NBET and outlined the severe impact of the persistent shortfall in payments.

It noted that NBET’s remittance to GenCos for electricity sold to DisCos was below 30 percent, making it nearly impossible for GenCos to sustain operations.

The development forced the operators to demand immediate approval of a mechanism to ensure 100 per cent payment of GenCos’ invoices by NBET.
They also demanded the settlement of GenCos’ outstanding historic market debts.

The Federal Government had earmarked N450 billion for 2024 and N900 billion for 2025 to partially clear the debts, but stakeholders argue that without a sustainable funding structure, the crisis will persist.

In the letter to FRCN, GenCos expressed deep concern regarding the financial implications of Section 33 subsection one of the FRC Act (Amended) 2023, which mandates annual levies based on turnover.

GenCos said being subjected to multiple taxes at both federal and state levels would further squeeze their already strained finances.

The operators noted that despite not being able to operate optimally due to debt, they are being forced to pay corporate tax at 30 per cent, education tax at 3 percent, Police tax (introduced at the federal level), land use charge at the state level and various other state and local government levies.

Already most power plants in Nigeria are operating on the verge of collapse according to the February report of NERC that measures the performance of the plants.

In February 2025, Olorunsogo 2 reported a plant availability factor of 5 percent. This means that the plant is in dire situation with capacity down by 95 percent. Afam had plant availability factor of 10 percent, Sapele Steam had a factor of 4 percent, Alaoji recorded a stark 0 per cent availability, indicating it was completely offline. Omotosho-2 had a 14 percent availability factor, and Ihovbor-1 was at 9 percent. Geregu-1 showed a 20 percent availability factor, while Geregu-5 performed better at 53 percent. Omotosho-1 had a 52 percent availability factor, and Ibom power-1 reported 11 percent availability factor, while Rivers-1 stood at 39 percent.

Omoku-1 had a 17 percent availability factor, and Ikeja-1 performed strongly at 98 percent. Trans Amadi had a 7 percent availability factor, while Igbafo_1 was at 46 percent. Overall, the grid total plant availability factor for these plants was 40 percent.

https://www.youtube.com/watch?v=lG7nB5yrDKc

The complaint laid by Senator Natsha Akpoti-Uduaghan at the United Nations Inter parliamentary conference in New York on Tuesday has continued to attract reactions.

The Kogi Lawmaker had taken her case before the global institution for them to prevail over what she says is an injustice meted on her.

After listening to her complaint, the IPU told Senator Natasha that it will take necessary steps to address the complaints she brought to the union after listening to the other side.

The Nigerian Senate has however replied to Senator Natasha’s complaint to the IPU through a letter by the Senate Leader, Senator Opeyemi Bamidele.

The letter was read by the Chairperson of the House of Representatives committee on Women Affairs and Social Development, Honorable Kafilat Ogbara, who is attending the event in an official capacity representing Nigeria.

The Senate letter read in part, “Senator Natasha-Akpoti-Uduaghan was suspended for gross misconduct and unruly behaviour and not as a result of allegation of sexual harassment or assault. The authority of the Senate of the Federal Republic of Nigeria firmly refutes the deliberate misinformation and false narrative being circulated by certain media organisations regarding the sixth months suspension of Senator Natsaha-Akpoti-Uduaghan.

“Let it be unequivocally stated that Uduaghan was suspended solely for her persistent act of misconduct and disregard for the Senate Standing Orders.”

Honourable Ogbara, however, called for a thorough investigation into the allegation by Senator Natasha against the Senator President, Godswill Akpabio.

She maintained that procedures and necessary actions under the Senate rules were observed before Senator Natasha’s suspension.

Last week, the Senate suspended the lawmaker in a move that has continued to generate debates across the country.

She had initially submitted a petition to the Senate accusing Akpabio of sexual harassment. But the lawmakers threw it out before suspending her even after submitting another petition.

Senator Natasha vowed to continue the fight against “injustice”. But in the wake of the suspension, Akpabio denied the accusations and maintained he has never assaulted women.

Her altercation with the Senate president started on February 20, 2025, after her seat was changed during plenary.

That is not the first time both individuals had issues. In July 2024, Akpabio had while trying to correct her for misconduct told her to follow the rules and that the Senate is not a nightclub where anybody can talk anyhow. The Akwa Ibom lawmaker, however, later apologised to her for the remark.

The President of Ogbia Brotherhood Youth Council, Comr. Mipuruaziba Akaragha has expressed his profound joy over the rescue of Mr. Akari, Special Adviser to the MD/CEO of NDDC on Domestic Affairs and Emmanuel Nathan Ogbuku, younger brother to Dr. Sammy Ogbuku.

The President heartily expressed his appreciation to the youths of Anyama clan for their gallantry and bravery throughout the trying period.

In a statement, signed by the president, he equally commended the role played by the Nigerian Security Services, great Joshua Maciver the state coordinator and high chief Ebiango Egai for mobilizing men and officers of the Tantita workforce in the rescue mission.for their professional input, which led to the rescue of the victims.

Equally worthy of commendation is Otuoke vigilantees led by Fred Ademe and Mr.Preye amongst others for their collaborative effort in the operation that led to the rescue of Mr.Akari and Emmanuel from the kidnappers Den. Akaragha noted that this is a practical example of how teamwork and collaborative efforts by all stakeholders can go a long way in combating criminality and violence in our kingdom.

He enjoined all to sustain this spirit going forward so that Ogbia kingdom would be free from criminality and violence.

The youths deserve commendation for ignoring their comfort to sleep in the thick forest for two nights in an effort to free their brother from our common enemies.

He sincerely acknowledged the effort of the youths of the following communities that played a supportive role in the rescue mission; namely Otuoke, Onuebum, Ewoi, Otuabula, Otuobhi, Ologeghe, Anyama, Ologi, and Ayakoro.

Comr. Mipuruaziba also appreciated Hon.Chief Ebiango Okoba Egain-Emafi (IV), who swiftly mobilized funds and materials, and Hon. Faith Ogidi, Hon Omosuo Nimi-wilson Irigha for playing a supportive role in the search team.

“Let me also acknowledge the tremendous effort of the paramount ruler of the Ewoi community who also joined the rescue team. I will not forget the role played by the Executives of Ogbia Brotherhood Youth Council Worldwide throughout the period of the search for kidnapped victims. You have shown me an uncommon love, and i want to thank you, especially my vice president, Comr Alex Amasueba Gurenayam, who was part of the team that went into the forest” he said.

Finally, prayers were offered for the safe return of the kidnapped, and our amieable paramount ruler of Ayakoro enclave HRH Righteous G Inegbegha led the prayer Indeed, God answers the prayers of our leaders.

He added that ” God, in his infinite mercies, has done something great to Ayakoro. community. I want to sincerely thank the Almighty God once again, for this victory to Ogbia Kingdom and Bayelsa state at large.
Indeed, together, we can stop illegality and criminality, he added”