Senate
Put an end to tax waivers now, Senate tells FG
***Edun says FG loses N3tr to waivers
The Senate panel on Appropriations on Eednesday urged the federation government to stop tax waivers and concessions already granted to corporate entities as they were depriving government of revenues
The panel said the country is losing huge revenue to tax waivers and incentives.
It, however, suggested that all companies should pay their taxes in full to the government coffers and then request for a rebate.
The chairman of the committee, Senator Adeola Olamilekan (APC, Ogun West), and other members stated this during an interactive session on the 2024 budget with the finance minister, Wale Edun, and his counterpart from the budget and economic planning ministry, Atiku Bagudu.
The finance minister had told the panel that Nigeria lost about N3 trillion to tax waivers this year.
Senator Mohammed Sani Musa (APC, Niger) said the federal government should adopt the system of withholding taxes for tax waivers.
He said, “If you look at tax credits and the waivers, why can’t we adopt a system like what we are doing with withholding taxes? Withholding taxes is going into a fund. After a while, if you can prove that you have paid all your taxes, they pay you your rebate back. So, why can’t we do the same?”
Senator Ali Ndume (APC, Borno) said the government should be bold enough to stop the tax credits and waivers just as it did with the fuel subsidy.
He said, “I think we should be bold enough just like the president is very bold. I still want to use this opportunity to commend him for his speech to say there is no more fuel subsidy.
“If he were to consult and talk to people, the subsidy would have still been there. So, if you come out from here and declare that no more waivers, it must be appropriated, and you as the Minister of Finance can do that. We have to make bold decisions.
“Some people are taking advantage unnecessarily of Nigerians and benefiting to the detriment of Nigerians. We talk about tax credits; it is an expenditure and it should go through the National Assembly and there are no two ways about that.
“Look at these illegalities, remove them, and then let us move ahead. If not, this country is being drained by some loopholes. It is our loopholes in revenue collection that is killing this country.
“Few people are taking advantage of it. Look at the tax credit they collected for roads, up till now they did not do the roads. So, what the Constitution says is very clear. The ball is in your court, the President has done his own, no more subsidy, five months after Nigerians said yes but let us see the benefit and they are seeing the benefits bit by bit and more is coming.”
Olamilekan said the committee had agreed that all taxes should be paid to the coffers of the government and then corporate entities should apply for rebates.
“Since this is a transition period, can we half it? The provision for these waivers should be reduced by 50 per cent,” he said.
The finance minister, in his response, said the lawmakers’ advice would be looked into by the federal government’s fiscal policy and tax reform committee.
Edun said, “In trying to implement such a laudable policy, it is important to look at the practicality and decide how it can be done, whether it can be done in one fell swoop, or whether there are some obvious exceptions.
“That has to be looked at, and the devil is in the details. But I think we are all agreeing that we should try as much as possible to move to a rebate system rather than up-front granting of waivers and other incentives even including interest incentives.
“So, if somebody is going to be given a concessional interest rate, they pay the normal interest, carry out the transaction, and then they get a rebate.
“The fiscal policy and tax reform committee is very careful about that and what you have advised today will be taken as important input into our work.”
In a historic move, the Nigerian Senate on Tuesday passed a bill for the first reading that is seeking to create Ijebu State from the existing Ogun State. The bill, titled “Constitution of the Federal Republic of Nigeria (Sixth Alteration) Bill, 2024 (Creation of Ijebu State),” was sponsored by Senator Gbenga Daniel, representing Ogun East Senatorial District.
During the plenary session, Senate Majority Leader, Michael Opeyemi Bamidele, introduced the bill as the “fourth order of the day,” with Senate President Godswill Akpabio presiding over the proceedings. The bill successfully passed its first reading, setting the stage for further legislative deliberations.
The push for Ijebu State creation is part of a broader national discussion on state creation aimed at fostering local governance, improving political representation, and boosting regional development. Proponents believe that Ijebu State would bring about greater administrative efficiency and promote economic growth in the region.
The legislative journey for state creation involves multiple stages, including further readings, committee reviews, and constitutional amendments. Approval requires a two-thirds majority in the National Assembly and endorsement by at least 24 state Houses of Assembly.
If successful, Ijebu State would become Nigeria’s 37th state, underscoring ongoing efforts to address regional demands for administrative autonomy and improved governance.
President Bola Ahmed Tinubu has forwarded the National Social Investment Programme Agency Establishment Amendment Bill 2024 to the Senate for legislative approval. The proposed amendment aims to strengthen the framework for implementing the government’s social welfare programmes, ensuring greater transparency and efficiency.
In a letter read by Senate President Godswill Akpabio during Tuesday’s plenary, President Tinubu explained that the amendment seeks to designate the National Investment Register as the primary tool for targeting beneficiaries of social investment initiatives. This measure, he said, would ensure that welfare programmes are data-driven and deliver effective social protection to Nigeria’s most vulnerable citizens.
“The amendment will make our social and welfare programmes more transparent, efficient, and impactful in addressing the needs of vulnerable Nigerians,” the President stated.
He further noted that the request was made in accordance with Section 58(2) of the 1999 Constitution (as amended) and urged the Senate to give the bill urgent consideration.
The proposed amendment, if passed, will improve the management and delivery of social investment programmes, enhancing their capacity to combat poverty and inequality across the country. The Senate has referred the bill to relevant committees for review and is expected to deliberate on the proposal in subsequent sessions.
This development indicates that the Tinubu’s administration is commited to leveraging technology and data to optimize the impact of its social welfare initiatives.
President Bola Ahmed Tinubu has forwarded a request to the Senate for the confirmation of nominees for the positions of Commissioners in the Independent National Electoral Commission (INEC).
In a letter addressed to the Senate President, Tinubu stated that the request complies with the provisions of Section 154(1) of the 1999 Constitution of the Federal Republic of Nigeria, as amended.
The nominees for confirmation included Mr. Tukur Abdurazak Yusuf – National Electoral Commissioner, representing the Northwest, Professor Sunday Ajah – National Electoral Commissioner, representing the Southeast and Saseyi Fayemi
Resident Electoral Commissioner for Ondo State
The President expressed hope that the Senate would consider and confirm the nominees in its usual expeditious manner.
The letter concluded with Tinubu extending his assurances of highest consideration to the Senate President and distinguished senators.
The Senate President referred the matter has been referred to the Senate Committee on INEC and Electoral Matters for further deliberation, with instructions to report back to the full assembly promptly.
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