Senate
Senate not happy with whooping N17trillion loss to Tax Waivers
***As FIRS kicks agaisnt N2.7trillion fresh tax credit
The Senate Committee on Finance has kicked against the loss incured by the country on tax waivers within the last five years to the tune of N17trillion
It urged the Federal Inland Revenue Service (FIRS) to suspend the tax waivers being dished out indicriminately and substitute it with rebating system.
Senate’s objection came during 2024 budget presentation of FIRS to its committee on Finance .
This is even as the Chairman of FIRS, Zacch Adedeji who made projection of N19 .4trillion as targeted total tax collection for 2024, insisted that the fresh N2 .7trillion Tax Credit planned for road construction in the country by NNPCL should be discontinued.
In his remarks, the Chairman of the Committee, Senator Sani Musa ( APC Niger East), told the FIRS Chairman that tax waivers abuse which has cost the country about N17trillion loss within the last five years should be suspended and substituted with rebating system
” Your projection of N19trillion as total tax collection for 2024 is good when compared to N11.16trillion achieved in 2023 but the senate believes that you can can do more even to the tune of N30trillion if required measures are put in place.
“As impressive and encouraging the performance and projections of FIRS are, under your leadership, this committee and by extension the Senate, on a serious note, urge you to look at the direction of tax waivers largely being abused with attendant and avoidable losses being incurred on yearly basis .
“Available records have shown that within the last five years, about N17trillion have been lost by the country to tax waivers.
“It should be suspended and possibly substituted with rebating system “, he said .
The FIRS Chairman in his presentation, informed the committee that, ‘to save Nigerians from multiple taxation, FIRS in collaboration with committee set up by the President Bola Tinubu, would reduce the 62 multiple taxes to 8.
“President Bola Tinubu has seen the issue of multiple taxation as a pool of problems that is why he set up the presidential committee on tax reforms and fiscal policy
“As of today in Nigeria, we have 62 types of taxes being collected.
The sad news about that is that less than eight out of the entire 62, accounted for 97 per cent of the collection.
“We are already consulting and engaging the state governments on it.
“At the end of the day, we won’t have more than eight or nine taxes that the state and federal government would be collecting”, he said .
On controversy trailing the implementation of Tax Credit Scheme for road construction by CBN, the FIRS boss insisted that the N2.5trillion earlier committed to it, must be fully implemented before thinking of any fresh one.
He said, ” Regarding tax credit, what I said was that the programme is laudable but that the N2.5trillion being spent on it by NNPCL should be exhausted before bringing fresh request.
“N2.7trillion fresh request being made , should not be entertained because all NNPC revenue should not be spent on roads when the Ministry of Works is there “.
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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