The Senate has suspended further proceedings on the controversial Tax Reform Bills following strong public opposition and objections from Northern Governors, who have criticized the bills as “anti-democratic.”

The decision to halt the bills was announced by Deputy Senate President Jibrin Barau during Wednesday’s plenary session.

Barau explained that the Senate Committee on Finance had been instructed to cease public hearings and deliberations on the bills until the concerns raised by various stakeholders are adequately addressed.

Additionally, the Senate has established a special committee tasked with engaging the executive branch to resolve the contentious issues surrounding the proposed reforms.

The bills under review include:

A Bill to establish the Joint Revenue Board, Tax Appeal Tribunal, and Office of the Tax Ombudsman to harmonize and coordinate revenue administration in Nigeria (2024).

A Bill to repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service, responsible for the assessment, collection, and accounting of revenue (2024).

A Bill to define the powers and functions of tax authorities at federal, state, and local levels and establish a framework for revenue collection (2024).

A Bill to repeal certain tax laws and consolidate the legal frameworks into the Nigeria Tax Act, covering taxation of income, transactions, and instruments (2024).

The proposed reforms aim to overhaul Nigeria’s tax system, but they have sparked opposition, particularly regarding the value-added tax (VAT) derivation formula, which critics argue could disadvantage northern states.

Northern governors, led by Borno State Governor Babagana Zulum, have voiced strong objections, warning that the bills could harm the northern economy.

In response to these concerns, the National Economic Council (NEC), chaired by Vice President Kashim Shettima, recommended the withdrawal of the bills for further consultations.

Oyo State Governor Seyi Makinde, speaking on behalf of the NEC, emphasized the need for wider consensus, highlighting that certain aspects of the bills are unacceptable to some regions of the country.

Following the backlash, the Senate invited President Tinubu’s Economic Team, including Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, and Zacchaeus Adedeji, Chairman of the Federal Inland Revenue Service, to provide clarifications.

Despite their explanations, doubts remained, prompting the Senate to call for further dialogue.

Deputy Senate President Barau reaffirmed the Senate’s role in fostering national unity, stating, “We have decided to set aside politics, ethnicity, and regionalism to resolve the issues surrounding the tax reform bills.

In collaboration with the Executive, we will establish a forum to identify and address contentious areas to ensure national unity.”

Barau also confirmed that the Attorney General of the Federation would be involved in discussions to resolve any legal issues related to the bills.

The special committee, consisting of Senate leadership and prominent members such as Adamu Aliero, Orji Kalu, Seriake Dickson, and Sani Musa, is set to meet with the Attorney General on Thursday to work through the issues.

The Senate reiterated its commitment to supporting President Bola Tinubu’s economic reforms while ensuring that no new policies add to the nation’s current economic challenges.

The Obidient Movement has warned of nationwide protests if human rights lawyer and activist, Barr. Dele Farotimi, remains in detention.

Farotimi was arrested on the orders of a magistrate court following allegations of defaming Chief Afe Babalola, SAN, in his book.

In a statement signed by Dr. Tanko Yunusa, the National Coordinator of the group, which is made up of supporters of Labour Party’s 2023 presidential candidate, Peter Obi, the Obidient Movement condemned the arrest, calling it an abuse of power aimed at stifling opposition voices.

The statement read: “We strongly denounce this abuse of power and demand the Nigerian Police uphold Dele Farotimi’s constitutional rights, particularly under Section 40 of Chapter 4 of the 1999 Constitution of Nigeria (as amended).”

The movement called for Farotimi’s immediate release, threatening to stage public protests if their demands were ignored.

They also appealed to the international community to take note of the development, which they described as a worrying trend against human rights and justice in Nigeria.

The Obidient Movement also highlighted Farotimi’s advocacy for good governance and human rights, noting that his arrest is part of a wider effort to suppress free speech and dissent.

They further criticized the government’s economic policies, which they claim have exacerbated the suffering of ordinary Nigerians.

In addition, the group raised concerns about a possible “targeted crackdown” on opposition figures, speculating that Peter Obi might also face arrest.

Concluding their statement, the Obidient Movement declared: “Dele Farotimi has been a consistent voice for justice, human rights, and good governance.

His arrest is a blatant attempt to silence him and intimidate others who challenge the status quo. We will not stand by and allow this abuse of power to continue.”

The movement pledged to continue its efforts to defend democracy, free speech, and human rights in Nigeria.

In the ongoing trial of Kwara State’s former governor, Mallam Abdulfatah Ahmed, the Economic and Financial Crimes Commission (EFCC) has presented testimony revealing how the ex-governor allegedly misappropriated the N5 billion grant meant for the state’s Universal Basic Education Commission (UBEC) projects.

The trial, which also involves Ahmed’s Finance Commissioner, Ademola Banu, centers on the alleged theft and mismanagement of public funds amounting to N5.78 billion.

The two men stand accused of conspiring to steal funds allocated for teachers’ salaries, as well as for security and infrastructure projects under the State Universal Basic Education Board (SUBEB).

On Wednesday, the case resumed before Justice Mahmud Abdulgafar of the Kwara State High Court in Ilorin.

While both Ahmed and Banu pleaded not guilty to the charges, they were granted bail, and the case was adjourned for further proceedings.

During the hearing, the EFCC presented its first Principal Witness (PW1), Abubakar Hassan, an Assistant Director of Finance at UBEC.

Hassan testified that the Kwara State Government, under Governor Abdulfatah Ahmed, diverted around N5 billion meant for various educational projects between 2013 and 2015.

Hassan, led in evidence by EFCC counsel Rotimi Jacobs, explained that the matching grant funds from UBEC were designated for the development of primary and junior secondary schools.

“The Matching Grant Funds from UBEC are meant to provide certain infrastructural facilities for students in primary and junior secondary schools. These facilities include the construction of schools, provision of laboratories, construction of toilets, water and sanitation, and cultural education,” Hassan said.

Hassan went on to outline the procedure for obtaining such grants, stating, “UBEC law provides that the Chairman of the State Universal Basic Education Board, its Executive Secretary, and the Director of Finance are signatories to Matching Grant Accounts. The account is opened with any commercial bank or the Central Bank of Nigeria.”

The witness further revealed that the state government received substantial grants for the years 2013 to 2015, totaling about N5 billion.

“The Commission made lodgments for 2013, 2014, and 2015, leading to the state receiving Matching Grants of about N2 billion for 2013, N876 million for 2014, and N982 million for 2015, totaling about N5 billion,” Hassan stated.

However, Hassan’s investigation uncovered significant discrepancies in how the funds were used. “Implementation of the 2013 Action Plan had commenced, and contractors were mobilized to sites.

However, during our project monitoring exercise, we discovered that funds for the 2013 projects had been diverted by SUBEB. About N2 billion was diverted,” Hassan testified.

Upon discovering the diversion, Hassan said that a project monitoring committee report was submitted to Kwara SUBEB with recommendations for corrective action.

However, no response was received. Consequently, UBEC sent formal requests to banks, asking them to return the funds meant for the 2014 and 2015 projects.

Hassan added that no projects were initiated in 2016, 2017, and 2018 because the state government failed to comply with the initial recommendations concerning the diverted funds.

He stressed that UBEC’s law placed the responsibility for the management of the funds solely on SUBEB, with no involvement from the state governor or any other external party.

The court adjourned the hearing until February 17, 2025, for further proceedings in the case.

Ogun State Governor, Prince Dapo Abiodun, on Wednesday presented the 2025 Appropriation Bill of N1,054,542,020,147.47 to the Ogun State House of Assembly.

The bill, which is set at over N1 trillion, is divided into N453.56 billion for recurrent expenditure and N600.98 billion for capital expenditure.

The Governor made the presentation during a plenary session presided over by Speaker, Rt. Hon. Oludaisi Elemide.

Prior to the presentation, Abiodun had inaugurated the newly refurbished State Assembly Complex, originally built more than 45 years ago.

The 2025 budget is aptly named the “Budget of Hope and Prosperity,” reflecting the governor’s vision for the state’s growth.

In his budget breakdown, Governor Abiodun revealed that N120.14 billion has been allocated for personnel costs, with N37.49 billion set aside for consolidated revenue costs.

Additionally, N76.07 billion will be used to service public debt, while N219.86 billion is earmarked for overhead costs.

The capital expenditure will see the lion’s share with N600.98 billion allocated for infrastructure development.

Abiodun provided a sectoral allocation of the budget, with the education sector receiving the highest allocation of N177.835 billion, which represents 17% of the total budget.

The health sector follows with N134.538 billion, or 13%, while housing and community development gets N66.382 billion (6%).

The agriculture and industry sectors each receive N65.38 billion, also 6%, and infrastructure development is allocated N284.4 billion, or 27% of the budget.

Other allocations include N25.27 billion for recreation, culture, and religion, N39.83 billion for social protection, N46.86 billion for the executive public service, and N42.28 billion for financial and fiscal affairs.

A total of N26.44 billion has been set aside for public order and safety, while economic affairs and the judiciary have been allocated N5.97 billion and N10.54 billion, respectively.

The legislature will receive N21.18 billion, and N104.6 billion has been designated for statewide expenditures.

Governor Abiodun emphasized that the 2025 budget aims to tackle the state’s challenges by aligning with the Ogun State Economic Development Plan and Strategy (2021-2025).

He stated that the budget will focus on fiscal sustainability, human development, food security, a business-friendly environment, energy sufficiency, transport infrastructure, and industrialization with a special focus on Small and Medium Enterprises (SMEs).

“This budget strives to balance fiscal responsibility with improved public service delivery, ensuring resources are used effectively to maximize prosperity for all, by addressing immediate issues like unemployment and poverty while investing in long-term growth. It aims to inspire hope, foster unity, and strengthen public trust in the government’s ability to manage resources responsibly and guide the state toward a more equitable and sustainable future,” Abiodun remarked.

Governor Abiodun also provided an update on the performance of the 2024 budget, noting that the state had achieved 79% of its prorated revenue target and 56% of its expenditure target.

This, he said, highlighted the state’s financial reliability and its growing fiscal base.

The Speaker, Rt. Hon. Oludaisi Elemide commended Governor Abiodun for his administration’s infrastructure projects, particularly the renovation of the State Assembly Complex, which has improved the working conditions of the lawmakers and staff.

He praised the governor for his ongoing legacy projects, including the Agro Cargo International Airport, the Remo Special Agro-industrial Processing Zone, and road infrastructure.

Elemide also highlighted the legislative efforts in the past 18 months, mentioning the passage of 14 bills and 32 motions, as well as conducting oversight functions across Ministries, Departments, and Agencies (MDAs).

He called for financial autonomy for the state legislature to enhance the efficiency of its functions and further acknowledged the improved welfare of the Assembly’s staff.

In closing, Elemide reiterated the importance of the 2025 Appropriation Bill as a roadmap for the state’s socio-economic development.

He assured that the Assembly would continue to work in cooperation with the executive to ensure the successful passage and implementation of the budget.

The budget presentation was attended by several dignitaries, including the Deputy Governor, Engr. Noimot Salako-Oyedele, Secretary to the State Government, Mr. Tokunbo Talabi, former deputy governors, members of the State Executive Council, party stalwarts, and traditional rulers from across the state.