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Wike Signs Into Law Bills On VAT Collection, Open Grazing Prohibition, Others

Published

4 years ago

August 20, 2021

The Rivers State Governor, Chief Nyesom Wike, has signed into law bills on Value Added Tax (VAT) collection, Open Grazing Prohibition in Rivers State.
He maintained that the judgement of the Federal High Court sitting in Port Harcourt had sufficiently addressed the illegality perpetrated by the Federal Inland Revenue Services (FIRS) on behalf of the Federal Government in the collection of VAT in states.
The governor stated this at the Government House, Port Harcourt, shortly after signing into law yesterday, the Valued Added Tax Law No. 4 of 2021; the Open Rearing and Grazing Prohibition Law No 5 of 2021; the Child’s Rights Amendment Law No 2 of 2021; the Residents’ Registration Agency Law No 6 of 2021; and the Naming and Renaming of Infrastructure Law No 3 of 2021.
The signed bills were recently passed by the Rivers State House of Assembly.
Wike pointed out that when agencies of the Federal Government were allowed to illegally demand and collect taxes meant for states to collect, they strangulated the states financially and turn them to beggars.
“But we (Rivers State) are standing on the part of history as representatives of the states to have taken the bull by the horn to challenge the illegality of the Federal Government through the Federal Inland Revenue Services (FIRS).
“Of course, we are all aware that the states have already been strangulated. Most states depend on allocation from Federation Account. States have been turned to beggars. Hardly will any day pass that you won’t see one state or the other going to Abuja to beg for one fund or the other.”
The governor said no campaign of calumny or blackmail on the part of FIRS will make what was illegal to become legal, and dismissed FIRS’ propaganda that 30 states would suffer, if some states were allowed to collect VAT.
Wike pointed out that the concerns should be on establishing whose duty it was to collect VAT, and the constitutionality of such position before talking about who was going to suffer or not.
“In this (Rivers) state, we awarded contract to companies, and within the last month, we paid over N30billion to the contractors, and 7.5% will now be deducted from that, and to be given to FIRS.
“Now, look at 7.5% of N30billion of contracts we awarded to companies in Rivers State, you will be talking about almost N3billion only from that source. Now, at the end of the month, Rivers State Government has never received more than N2billion from VAT. So, I have contributed more through the award of contracts, and you are giving me less. What’s the justification for it?”
Speaking further, Wike said there were plans already for FIRS to introduce Road Tax, adding that this was likely to take away more duties from the states, and further emasculating them financially.
“Which are the roads? Are they the roads the state government is paying for or the roads Federal Government has constructed? So, at the end of the day, they have taken over the functions of the state government, and the state is left with nothing.”
The governor remarked that the states have been so emasculated that they could barely survive without monthly revenue received from Federation Accounts Allocation Committee (FAAC).
Wike stressed that the over-bearing attitude of the Federal Government, impinges on attaining financial autonomy for the Legislature and the Judiciary, since the states were not allowed to collect due revenues as specified by the country’s Constitution.
According to Wike, with the Petroleum Industry Act (PIA) passed and signed into law, there shall be unbundling of NNPC, which means that NNPC remittance to the Federation Account will be less, requiring every state to look inwards on how to survive.
Wike, while thanking the state lawmakers for their courage to have given the bill speedy passage, assured that every area that the law allows the state to collect revenue would be maximised for the survival of the state.
Speaking on the Open Rearing and Grazing Prohibition Law No. 5 of 2021, Wike said it was inimical to development and peace, for any state to condone opening grazing of cattle.
Wike said that cattle rearing was agricultural business and the law, which has specified ranching, was so intended in order to stem clashes between herdsmen who go to destroy farmlands, crops, and having problems with farmers that lead to fighting and killing of themselves.
“It is no longer a story. All of us know what our people have suffered in terms of this open grazing. Today, all Nigerians have come to accept the reality that open grazing is no longer fashionable. Even our brothers in the North have agreed that it is no longer fashionable.”
On the Child’s Rights Amendment Law No 2 of 2021, Wike noted that with such law in place now, family courts can become operational in the state.
Wike said the Naming and Renaming of Infrastructure Law No 3 of 2021 would promote the naming of public facilities after prominent Rivers people.
The governor also said that with the Residents’ Registration Agency Law No 6 of 2021, every resident in the state would be registered so that the state government can know their status, what they do, and where they reside for purposes of security planning.
On his part, the Speaker of the Rivers State House of Assembly, Rt. Hon. Ikuinyi-Owaji Ibani, described the collection of VAT by FIRS as the worst form of retrogressive tax in any regime.
He commended the governor and the state government for challenging the constitutionality of FIRS’s collection of VAT in states.
According to him, the signing of the VAT law would ensure that Rivers’ people were not plunged into extreme poverty.
“I am tempered to believe that Nigeria, the world over, is the only country professing federalism but with a unitary constitution, which is the very opposite of what federalism stands for.”
Speaking further, he said the law banning open grazing in Rivers State would serve as both cure to the symptom and the disease of herders’ and farmer bloody conflict.
He said lawmakers would continue to partner the Executive in providing requisite laws that would advance the state for the good of posterity.
The Leader of the Rivers State House of Assembly, Hon Martins Amaewhule, said lawmakers delineated and gave speedy passage to the bills because of their relevance to the socio-economic progress of the state.

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INEC To Unveil New Party Registration Portal As Applications Hit 129

Published

3 days ago

July 11, 2025

The Tide

The Independent National Electoral Commission (INEC) has announced that it has now received a total of 129 applications from associations seeking registration as political parties.

The update was provided during the commission’s regular weekly meeting held in Abuja, yesterday.

According to a statement signed by the National Commissioner and Chairman of the Information and Voter Education Committee, Sam Olumekun, seven new applications were submitted within the past week, adding to the previous number.

“At its regular weekly meeting held today, Thursday 10th July 2025, the commission received a further update on additional requests from associations seeking registration as political parties.

“Since last week, seven more applications have been received, bringing the total number so far to 129. All the requests are being processed,” the commission stated.

The commission revealed the introduction of a new digital platform for political party registration. The platform is part of the Party Financial Reporting and Auditing System and aims to streamline the registration process.

Olumekun disclosed that final testing of the portal would be completed within the next week.

“INEC also plans to release comprehensive guidelines to help associations file their applications using the new system.

“Unlike the manual method used in previous registration, the Commission is introducing a political party registration portal, which is a module in our Party Financial Reporting and Auditing System.

“This will make the process faster and seamless. In the next week, the commission will conclude the final testing of the portal before deployment.

“Thereafter, the next step for associations that meet the requirements to proceed to the application stage will be announced. The commission will also issue guidelines to facilitate the filing of applications using the PFRAS,” the statement added.

In the meantime, the list of new associations that have submitted applications has been made available to the public on INEC’s website and other official platforms.

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Tinubu Signs Four Tax Reform Bills Into Law …Says Nigeria Open For Business

Published

2 weeks ago

June 27, 2025

The Tide

President Bola Tinubu yesterday signed into law four tax reform bills aimed at transforming Nigeria’s fiscal and revenue framework.

The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

They were passed by the National Assembly after months of consultations with various interest groups and stakeholders.

The ceremony took place at the Presidential Villa, yesterday.

The ceremony was witnessed by the leadership of the National Assembly and some legislators, governors, ministers, and aides of the President.

The presidency had earlier stated that the laws would transform tax administration in the country, increase revenue generation, improve the business environment, and give a boost to domestic and foreign investments.

“When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments,” Special Adviser to the President on Media, Bayo Onanuga said on Wednesday.

Before the signing of the four bills, President Tinubu had earlier yesterday, said the tax reform bills will reset Nigeria’s economic trajectory and simplify its complex fiscal landscape.

Announcing the development via his official X handle, yesterday, the President declared, “In a few hours, I will sign four landmark tax reform bills into law, ushering in a bold new era of economic governance in our country.”

Tinubu made a call to investors and citizens alike, saying, “Let the world know that Nigeria is open for business, and this time, everyone has a fair shot.”

He described the bills as not just technical adjustments but a direct intervention to ease burdens on struggling Nigerians.

“These reforms go beyond streamlining tax codes. They deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet,” Tinubu wrote.

According to the President, “They will unify our fragmented tax system, eliminate wasteful duplications, cut red tape, restore investor confidence, and entrench transparency and coordination at every level.”

He added that the long-standing burden of Nigeria’s tax structure had unfairly weighed down the vulnerable while enabling inefficiency.

The tax reforms, first introduced in October 2024, were part of Tinubu’s post-subsidy-removal recovery plan, aimed at expanding revenue without stifling productivity.

However, the bills faced turbulence at the National Assembly and amongst some state governors who rejected its passing in 2024.

At the NASS, the bills sparked heated debate, particularly around the revenue-sharing structure, which governors from the North opposed.

They warned that a shift toward derivation-based allocations, especially with VAT, could tilt fiscal balance in favour of southern states with stronger consumption bases.

After prolonged dialogue, the VAT rate remained at 7.5 per cent, and a new exemption was introduced to shield minimum wage earners from personal income tax.

By May 2025, the National Assembly passed the harmonised versions with broad support, driven in part by pressure from economic stakeholders and international observers who welcomed the clarity and efficiency the reforms promised.

In his tweet, Tinubu stressed that this is just the beginning of Nigeria’s tax evolution.

“We are laying the foundation for a tax regime that is fair, transparent, and fit for a modern, ambitious Nigeria.

“A tax regime that rewards enterprise, protects the vulnerable, and mobilises revenue without punishing productivity,” he stated.

He further acknowledged the contributions of the Presidential Fiscal Policy and Tax Reform Committee, the National Assembly, and Nigeria’s subnational governments.

The President added, “We are not just signing tax bills but rewriting the social contract.

“We are not there yet, but we are firmly on the road.”

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Senate Issues 10-Day Ultimatum As NNPCL Dodges ?210trn Audit Hearing

Published

2 weeks ago

June 27, 2025

The Tide

The Senate has issued a 10-day ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) over its failure to appear before the Senate Committee on Public Accounts probing alleged financial discrepancies amounting to over ?210 trillion in its audited reports from 2017 to 2023.

Despite being summoned, no officials or external auditors from NNPCL showed up yesterday.

However, representatives from the representatives of the Economic and Financial Crimes Commission, Independent Corrupt Practices and Other Related Offences Commission and Department of State Services were present.

Angered by the NNPCL’s absence, the committee, yesterday, issued a 10-day ultimatum, demanding the company’s top executives to appear before the panel by July 10 or face constitutional sanctions.

A letter from NNPCL’s Chief Financial Officer, Dapo Segun, dated June 25, was read at the session.

It cited an ongoing management retreat and requested a two-month extension to prepare necessary documents and responses.

The letter partly read, “Having carefully reviewed your request, we hereby request your kind consideration to reschedule the engagement for a period of two months from now to enable us to collate the requested information and documentation.

“Furthermore, members of the Board and the senior management team of NNPC Limited are currently out of the office for a retreat, which makes it difficult to attend the rescheduled session on Thursday, 26th June, 2025.

“While appreciating the opportunity provided and the importance of this engagement, we reassure you of our commitment to the success of this exercise. Please accept the assurances of our highest regards.”

But lawmakers rejected the request.

The Committee Chairman, Senator Aliyu Wadada, said NNPCL was not expected to submit documents, but rather provide verbal responses to 11 key questions previously sent.

“For an institution like NNPCL to ask for two months to respond to questions from its own audited records is unacceptable,” Wadada stated.

“If they fail to show up by July 10, we will invoke our constitutional powers. The Nigerian people deserve answers,” he warned.

Other lawmakers echoed similar frustrations.

Senator Abdul Ningi (Bauchi Central) insisted that NNPCL’s Group CEO, Bayo Ojulari, must personally lead the delegation at the next hearing.

The Tide reports that Ojulari took over from Mele Kyari on April 2, 2025.

Senator Onyekachi Nwebonyi (Ebonyi North) said the two-month request suggested the company had no answers, but the committee would still grant a fair hearing by reconvening on July 10.

Senator Victor Umeh (Anambra Central) warned the NNPCL against undermining the Senate, saying, “If they fail to appear again, Nigerians will know the Senate is not a toothless bulldog.”

Last week, the Senate panel grilled Segun and other top executives over what they described as “mind-boggling” irregularities in NNPCL’s financial statements.

The Senate flagged ?103 trillion in accrued expenses, including ?600 billion in retention fees, legal, and auditing costs—without supporting documentation.

Also questioned was another ?103 trillion listed under receivables. Just before the hearing, NNPCL submitted a revised report contradicting the previously published figures, raising more concerns.

The committee has demanded detailed answers to 11 specific queries and warned that failure to comply could trigger legislative consequences.