- Nothing to show for over 60 taxes, levies collected across Nigeria – Oyedele
- House approves MTEF, pegs exchange rate at N1, 400/$, oil benchmark at $75
The Senate was thrown into a rowdy session on Wednesday following the decision of its leadership to admit the Federal Government team driving the tax reform bills into the red chamber.
Trouble started when the Leader of the Senate, Opeyemi Bamidele, announced that there were visitors who would be coming to the chamber to brief them on the proposed tax reform bills.
Bamidele at the session, presided over by Deputy Senate President, Jibrin Barau, invoked Order 12 (1) to suspend the Senate Rules, seeking permission for their guests to enter the chamber and address them.
The visitors included the Chairman of the Federal Inland Revenue Service, Zacch Adedeji; Director General of the Budget Office, Tanimu Yakubu, and the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele.
The senator representing Bauchi Central Senatorial District, Abdul Ningi, raised a point of order, drawing the attention of the presiding officer to an error in the decision to admit the guests into the chamber because they were not captured among the categories of people recognized in the rule book.
Ningi cited Order 12 of the Senate rule book to read out the categories of people who should be admitted into the chamber.
However, Bamidele clarified that he actually sought the suspension of the order 12 to admit the people.
Barau noted Ningi’s point of order but said the essence of inviting the visitors was to educate Nigerians through the Senate about the controversial tax reform bills to avoid confusion among the citizenry.
Bamidele’s motion to welcome the guests was seconded by the Minority Leader, Senator Abba Moro, and the Sergeant-at-arms led them into the chamber.
Just as the guests were taking their seats, former Senate Chief Whip, Senator Mohammed Ali Ndume, objected strongly to the decision.
He noted that the Tax Reform Bill was not on the Order Paper, adding that the Senate rules prohibit discussions on matters not listed on the order paper without proper procedural adjustments.
“This is a very important matter, and we must follow the rules,” Ndume stated, warning that circumventing protocol undermines legislative integrity.
He urged the Senate to ensure proper representation of Nigerians’ interests, stressing the bill’s significance in the face of public concerns.
Ndume insisted that the matter was too important to be manipulated and the Senate should not in any way play around the Tax Reform Bill as Nigerians have spoken.
He said, “This is a very important matter. We should not in any way try to use the position of the Senate because the Order Paper is clear.
“I have no problem having them come to explain whatsoever but we must follow known procedures.
“That is if today that has to be taken, then there must be a supplementary Order Paper that will reflect this.
“It is not a matter that you will just come and tell us after we are doing business for the day.
“Mr President, you can have your way, but I will have my say. You can use your gavel and I will use my voice.
“The Tax Reform Bill is very sensitive, our people have been dominated by this matter.
“When you say, it is a matter of urgent national importance, yes, but even those matters normally refer to another legislative day if they are so inconvenient.
“Please I beg you in the name of God, this matter is very important to not only us, but Nigerians that we represent and we swear by Bible and Holy Quran that we will represent the interest of the people. Nigerians have spoken, the governors, the National Economic Council.”
Despite Ndume’s objections, Barau defended the decision, insisting the Senate acted within the rules, and dismissed the argument as an unnecessary rhetoric.
His remarks ignited tensions, causing the session to become chaotic.
Barau eventually restored order by ruling Ndume out of order and allowing the Federal Government officials to proceed with their presentation.
He insisted that whatever the Senate was doing was within its rules, adding that the “Chamber has no time for rhetoric”.
According to him, “You have made your point. Now we are not here for rhetoric. We are here for facts.”
At this point, the chamber went rowdy while the Deputy Senate President tried to restore order.
Ndume was eventually ruled out of order and the visitors were allowed into the chamber to speak on the proposed Tax Reform Bill.
The team told the federal lawmakers that tax reform bills are four different legislations that seek to bring everything about taxation and administration of tax in Nigeria under four different pieces of legislation.
The bills, they said, are the Nigeria Tax Bill; the Nigeria Tax Administration Bill; the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill.
They explained that the bills contain all major taxes imposed on individuals and companies and that it is just like a compendium of taxes charged in Nigeria.
They said contrary to what some mischievous persons are pushing out there, they are meant to radically transform tax administration in Nigeria for greater efficiency.
They said the bills will update archaic tax laws and simplify our complicated tax ecosystem.
Apart from these, they said the tax reforms clearly favour the low income earners and small businesses, which will be exempted from paying income taxes.
The bills, they said, are simply pro-poor, pro-growth and pro-efficiency.
They therefore urged the senators to support its passage in order to move the country forward.
In his presentation, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele alleged that the Federal Government has nothing to show for more than 60 taxes and levies collected across the country.
“The fiscal system we have today inhibits growth as more than 60 taxes and levies are collected from across the country but nothing to show for it,” he said.
He further noted that the Federal Government intends to halt the situation where Nigerian businesses are forced to pay tax even in the face of losses, compelling the need to scrutinise the system through key reforms.
“We do not want to tax capital or poverty but investment. We are beginning to lose our tax base to other countries. This is why it is urgent to reform the tax system,” he added.
House approves MTEF, pegs exchange rate at N1, 400/$, oil benchmark at $75
Meanwhile, the House of Representatives has approved the 2025–2027 Medium Term Expenditure Framework and Fiscal Strategy Paper submitted by President Bola Tinubu.
To this end, the green chamber pegged the exchange rate at N1, 400/$ for 2025, 2026 and 2027 respectively.
It also projected oil benchmark prices at $75, $76.2 and $75.3 per barrel for 2025, 2026 and 2027 respectively.
The resolution of the House followed the adoption of the report submitted by its Committees on Finance and National Planning, chaired by James Faleke at plenary Wednesday.
The House added that the three-year projections for domestic crude oil production had a significant increase from 1.78m bpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027.
The House further projected Gross Domestic Product (GDP) growth rates of 4.6 per cent, 4.4 per cent, and 5.5 per cent for 2025, 2026 and 2027.
It projected the inflation rates at 15.75 per cent, 14.21 per cent, and 10.04 per cent for 2025, 2026 and 2027 respectively.
It, however, lamented that the critical agencies such as NNPCL, NLNG, Immigration Services and others that are relevant to the attainment of set revenue targets engage in Public Private Partnership and Joint Venture Arrangements that are inimical to the revenue growth of the country.
The House decried non-remittance of operating surpluses into the Federation Account by the NNPCL due to what it called under recovery with the claim that the federating units owed it the sum of N10 trillion.
It pointed out that most revenue generating agencies violate the Fiscal Responsibility Act due to the lack of punitive provisions in the Act.
The House noted, “That the GDP growth rate which is projected at 4.6 per cent, 4.4 per cent and 5.5 per cent for years 2025, 2026 and 2027 respectively, be approved.
“That the projected exchange rate, which stands at N1, 400/$ for years 2025, 2026 and 2027 be approved subject to review in early 2025 according to monetary and fiscal policies.
“That the Inflation rates projections, which are 15.75 per cent, 14.21 per cent and 10.04 per cent for 2025, 2026 and 2027, be approved.
“That the projected oil benchmark prices are USD75, USD76.2 and USD75.3 per barrel be approved for 2025, 2026 and 2027 respectively.
“That the three-year projections for domestic crude oil production had a significant increase from 1.78 mbpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027 be approved.”
The House, however, directed its Committees on Finance, National Planning and other relevant committees to carry out in-depth investigation of such agreements by the NNPC, NLNG and Immigration Services with a view to reconcile remittances to the Federation Account.
It also mandated its Committees on Finance, Petroleum Upstream, and Petroleum Downstream to investigate reports from the Revenue Mobilisation, Allocation and Fiscal Responsibility Commission alleging that the NNPC withheld N8.48 trillion as claimed subsidies for petrol.
It noted that the investigation would address the NEITI report, stating that NNPCL failed to remit $2 billion (₦3.6 trillion) in taxes to the Federal Government.
The House further directed its committees to verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit also known as petrol by the NNPCL between 2020 and 2023.
