Economy
Ndume Faults VAT Increase, Advocates Property, Communications Tax

By Mathew Dadiya, Abuja
Senator Ali Ndume has called for enactment of a property and communications tax to shovel revenue for government rather than increasing the Value Added Tax (VAT).
The former senate leader appealed to the Federal Government not to add to the suffering of the poor citizens with the proposed increase on VAT from five percent to 7.
5 percent.Senator Ndume spoke on Thursday with State House correspondents after meeting behind closed door with Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
The visit to the Villa was the first after he contested for the position of Senate President in June against the Senate President, Ahmad Lawan, who was the adopted candidate of the ruling -All Progressives Congress, APC.
Ndume, who represents Borno South Senatorial District in the National Assembly, argued that the proposed VAT increase would affect the poor.
He also kicked against the proposed return of toll gates on the federal highways without putting the roads in good shape.
On the proposed return of toll gates, he said, “You see, the state of our infrastructure is of concern; there is virtually collapse in our infrastructure; if the purpose for which the toll gates will be placed will serve the objective of keeping the roads not only motorable but effective and safe, it is a welcome development.
“Like the Abuja-Kaduna road for example, where there is toll gate, you will be able to place security there and if you place these people there, you have to pay them and the resources is not readily available
“I am sure every Nigerian travelling for example, say from Lagos to Ibadan, if you say he is going to pay N100 at each point in four places, you should ensure that number one, the road is good; number two, he will be safe; he can drive without expecting anybody to come and close the road and kidnap or rob anybody.
“Then, it will make sense to me but for the toll gate to be placed just for the purpose of it, I don’t think that is what the government wants to do; Besides, I heard the minister say that they are bringing private partnership into it; and that is also good.”
Also commenting on the proposed VAT increment, Senator Ndume said,”I think that increase in VAT is going to have a spiral effect; and it is going to affect the poor more.
“It is true the government is not expanding the revenue base or the tax net that is why I am thinking that anybody that is using telephone here would want to just talk and pay for it of course, but right now, no one will say this is what he is paying for telephone.
“If the network provider says it is one minute remaining, you start looking for any recharge card but if you are taxed on that, you won’t say you won’t talk again because you are taxed.
“But if you add tax now, the effect will be on everybody and every commodity. Even transportation from one point to another will increase and who is going to pay or who is going to feel it more; it is the poor.
“So that is why I am saying that we should introduce Communications Service Tax and people will pay for it sometimes even not knowing and government will be able to generate more from that angle; you know the money the service providers are making out of communications.
“So, that is why I sponsored that Bill last time but it didn’t see the light of the day because of time and of course service providers opposed that.
“Let me add one thing. Yes, we have a government; the tax should be paid by those who can; who should or who can afford that tax. Like in Abuja, you see so much property; if you value them, property tax is not being paid and I am not paying too simply because nobody is paying; nobody asked me to pay.
“In Nigeria, for example, the resources is in the hands of few people; why not tax these few people instead of going to tax the poor man that is trying to survive.
“So, this is my position and I think this Communications Service Tax is part of it; ask those that can afford telephone, 60 million of them; why do you tax 200 million people? Tax the 60 million people that can afford it and you get what you want.”
Senator Ndume said that he was working on a bill to be presented to the senate known as,” Property Tax Bill”.
According to him, “I am going to do that; I am working on it; I am working on property tax bill. Not only that, I am working on another bill…maybe it will not see the light of the day; people are having what they can’t explain if they should be asked. The burden of proof should be on that person.
“If I have a mansion and my income as a senator is not commensurate with that, if you want to fight corruption, you put the burden on me to prove where I got that money.
“In Britain nowadays, it is called Unexplained Wealth Order(UWO), I am working that too; that if you own a car, you explain how you got it; because of that if you don’t know where to go with what you steal that doesn’t belong to you, you don’t even start.”
On why he was at the State House, he said, ” I am here to see the Vice President. I come from time to time; I have a relationship, very personal with the Vice President; just like the President too.
“More especially, I come to brief him from time to time on the humanitarian crisis that we are facing because the Vice President is personally passionate about it. You know what he did for us; he has an orphanage that is running very effectively in my area; accommodating over 2000 orphans.
“So, I normally come to discuss with him; he is always very curious about what is going on; so I came to adequately brief him; and of course, you know, in the course of that kind of discussion, you discuss other things which are private and personal.”
Economy
We’ll Continue Borrowing Within Sustainable Limits- FG

The Federal Government says it will continue to borrow within manageable and sustainable limits in accordance with the Debt Management Office (DMO) debt sustainability framework.
This is contained in a statement by the Director, Information and Public Relations in the Ministry of Finance, Mr Mohammed Manga, in Abuja on Wednesday.
President Bola Tinubu recently requested the approval of the 2024 – 2026 external borrowing rolling plan from the National Assembly.
Tinubu has requested the National Assembly’s approval to secure external loans of 21.5 million dollars and 15 billion Yuan, along with a grant of 65 million Euro, as part of the federal government’s proposed 2025–2026 external borrowing plan.
Manga said that the proposed borrowing plan was an essential component of the Medium-Term Expenditure Framework (MTEF) in accordance with both the Fiscal Responsibility Act 2007 and the DMO Act 2003.
“The plan outlines the external borrowing framework for both the federal and sub-national governments over a three-year period, accompanied by five detailed appendices on the projects, terms and conditions, implementation period, etc.
“By adopting a structured, forward-looking approach, the plan facilitates comprehensive financial planning and avoids the inefficiencies of ad-hoc or reactive borrowing practices.
“This strategic method enhances the country’s ability to implement effective fiscal policies and mobilise development resources,” he said.
According to the statement, the borrowing plan does not equate to actual borrowing for the period.
“The actual borrowing for each year is contained in the annual budget. In 2025, the external borrowing component is 1.23 billion dollars, and it has not yet been drawn.
“This is planned for H2 2025, the plan is for both federal and several state governments across numerous geopolitical zones including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe States.
“Importantly, it should be noted that the borrowing rolling plan does not equate to an automatic increase in the nation’s debt burden.
“The nature of the rolling plan means that borrowings are split over the period of the projects, for example, a large proportion of projects in the 2024–2026 rolling plan have multi-year drawdowns of between five to seven years which are project-tied loans,” Manga said.
He said that these projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fibre optics network across the country, fighter jets for security, rail and road infrastructure.
According to him, the majority of the proposed borrowing will be sourced from the country’s development partners, like the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank.
Manga said that these institutions offer concessional financing with favourable terms and long repayment periods, thereby supporting Nigeria’s development objectives sustainably.
He said that the government seeks to reiterate that the debt service to revenue ratio has started decreasing from its peak of over 90 per cent in 2023.
Manga said that the government has ended the distortionary and inflationary ways and means.
According to him, there is significant revenue expectations from the Nigerian National Petroleum Corporation Limited (NNPC Ltd), technology-enabled monitoring and collection of surpluses from government owned enterprises and revenue-generating ministries, departments, and agencies and legacy outstanding dues.
“Having achieved a fair degree of macroeconomic stabilisation, the overarching goal of the federal government is to pivot the economy onto a path of rapid, sustained, and inclusive economic growth.
“Achieving this vision requires substantial investment in critical sectors such as transportation, energy, infrastructure, and agriculture.
“These investments will lay the groundwork for long-term economic diversification and encourage private sector participation.
“Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing,” he said.(NAN)
The Federal Government says it will continue to borrow within manageable and sustainable limits in accordance with the Debt Management Office (DMO) debt sustainability framework.
This is contained in a statement by the Director, Information and Public Relations in the Ministry of Finance, Mr Mohammed Manga, in Abuja on Wednesday.
President Bola Tinubu recently requested the approval of the 2024 – 2026 external borrowing rolling plan from the National Assembly.
Tinubu has requested the National Assembly’s approval to secure external loans of 21.5 million dollars and 15 billion Yuan, along with a grant of 65 million Euro, as part of the federal government’s proposed 2025–2026 external borrowing plan.
Manga said that the proposed borrowing plan was an essential component of the Medium-Term Expenditure Framework (MTEF) in accordance with both the Fiscal Responsibility Act 2007 and the DMO Act 2003.
“The plan outlines the external borrowing framework for both the federal and sub-national governments over a three-year period, accompanied by five detailed appendices on the projects, terms and conditions, implementation period, etc.
“By adopting a structured, forward-looking approach, the plan facilitates comprehensive financial planning and avoids the inefficiencies of ad-hoc or reactive borrowing practices.
“This strategic method enhances the country’s ability to implement effective fiscal policies and mobilise development resources,” he said.
According to the statement, the borrowing plan does not equate to actual borrowing for the period.
“The actual borrowing for each year is contained in the annual budget. In 2025, the external borrowing component is 1.23 billion dollars, and it has not yet been drawn.
“This is planned for H2 2025, the plan is for both federal and several state governments across numerous geopolitical zones including Abia, Bauchi, Borno, Gombe, Kaduna, Lagos, Niger, Oyo, Sokoto, and Yobe States.
“Importantly, it should be noted that the borrowing rolling plan does not equate to an automatic increase in the nation’s debt burden.
“The nature of the rolling plan means that borrowings are split over the period of the projects, for example, a large proportion of projects in the 2024–2026 rolling plan have multi-year drawdowns of between five to seven years which are project-tied loans,” Manga said.
He said that these projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fibre optics network across the country, fighter jets for security, rail and road infrastructure.
According to him, the majority of the proposed borrowing will be sourced from the country’s development partners, like the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank.
Manga said that these institutions offer concessional financing with favourable terms and long repayment periods, thereby supporting Nigeria’s development objectives sustainably.
He said that the government seeks to reiterate that the debt service to revenue ratio has started decreasing from its peak of over 90 per cent in 2023.
Manga said that the government has ended the distortionary and inflationary ways and means.
According to him, there is significant revenue expectations from the Nigerian National Petroleum Corporation Limited (NNPC Ltd), technology-enabled monitoring and collection of surpluses from government owned enterprises and revenue-generating ministries, departments, and agencies and legacy outstanding dues.
“Having achieved a fair degree of macroeconomic stabilisation, the overarching goal of the federal government is to pivot the economy onto a path of rapid, sustained, and inclusive economic growth.
“Achieving this vision requires substantial investment in critical sectors such as transportation, energy, infrastructure, and agriculture.
“These investments will lay the groundwork for long-term economic diversification and encourage private sector participation.
“Our debt strategy is therefore guided not solely by the size of our obligations, but by the utility, sustainability, and economic returns of the borrowing,” he said.(NAN)
Economy
Organise Informal Sector, Tax Prosperity Not Poverty, Adedeji Tasks Officials

The Chairman, Joint Tax Board (JTB), Dr Zacch Adedeji, has urged officials of the board to organise traders and artisans into a formal body before capturing them in the tax net.
Adedeji said that this was in line with the agenda of President Bola Tinubu not to tax poverty but prosperity.
The chairman stated this at the 157th Joint Tax Board meeting held in Ibadan, on Monday.
The theme of the meeting “Taxation of the Informal Sector: Potentials and Challenges”.
Speaking on the theme of the event, Adedeji stressed the need to evolve a system that would make the informal sector formal before it could be taxed.
Adedeji, who also doubles as the Chairman, Federal Inland Revenue Service, (FIRS), said “What I would not expect from the JTB meeting is to define a system that would tax the informal sector.
“The only thing is to formalize the informal sector, not to design a system on how to collect tax from market men and women.
“As revenue administrator, our goal is to organise the informal sector so that it can fit into existing tax law.”
Citing a report of the National Bureau of Statistics (NBS) in the first quarter of 2023, the chairman said that the nation’s unemployment index was attributable to recognised informal work.
Adedeji stated that workers in that sector accounted for 92.6 per cent of the employed population in the country as at Q1 2023.
“JTB IS transiting to the Joint Revenue Board with expanded scope and functions.
“We are hopeful that by the time we hold the next meeting of the Board, the Joint Revenue Board (Establishment) Bill would have been signed into Law by the President.
“The meetings of the board provide the platform for members to engage and brainstorm on contemporary and emerging issues on tax, and taxation,” he said.
In his address, Gov. Seyi Makinde of Oyo State, said the theme of the meeting was apt and timely, stressing that it coincides with the agenda of the state to improve on its internally generated revenue.
According to him, the meeting should find the best way forward in addressing the issue of the informal sector and balance the identified challenges.
“Nigeria is rich in natural resources, but it is a poor country because economic prosperity does not base on natural resources,”
Makinde also said that knowledge, skill and intensive production were required for economic prosperity, not just the availability of natural resources.
He stressed the need to move from expecting Federal Allocations to generating income internally.
“We are actively ensuring that people are productive and moving the revenue base forward,” Makinde said.
The governor said that tax drive should be done by simplifying tax processes, incentives for compliance like access to empowerment schemes and loans.
He urged JTB to deepen partnership and innovation in using data on tax to track and administer it.
Earlier, the Executive Chairman, Oyo State Board of Internal Revenue, Mr Olufemi Awakan, said the meeting was to address tax-related matters, evolve a workable, effective and
efficient tax system across the states and at the Federal level.
He urged participants to find amicable solutions to challenges of tax jurisdiction, among others.
Tax administrators from all the 36 states of the federation, who are members of JTB, were in attendance. (NAN)
Economy
Customs Zone D Seizes Contraband Worth N110m

The Nigeria Customs Service (NCS), Federal Operation Unit (FOU), Zone D, has seized smuggled goods worth over N110 million between April 20 till date.
The Comptroller of Customs, Abubakar Umar, said this at a news conference on Tuesday in Bauchi.
He listed the seized items to include 11,200 litres of petrol; 192 bales of second hand clothing, 140 cartons of pasta, 125 pairs of jungle boots, 47 bags of foreign parboiled rice and 9.
40 kilogramme of pangolin scales.Umar said the items were seized through increased patrols, intelligence-led operations, and strengthened inter-agency collaboration.
The comptroller said the pangolin scales would be handed over to the National Environmental Standards and Regulations Enforcement Agency (NESREA) for appropriate action, while the seized petrol would be auctioned, and the proceeds remitted to the federation account.
He attributed the decrease in smuggling activities of wildlife, narcotics, and fuel to the dedication and professionalism displayed by the personnel in line with Sections 226 and 245 of the NCS Act 2023.
The comptroller enjoined traders to remain law abiding, adding the service would scale up sensitisation activities to combat smuggling.
“We remain resolute in securing the borders and contributing to Nigeria’s economic development,” he said.
The FOU Zone D comprises Adamawa; Taraba, Bauchi, Gombe, Borno, Yobe, Plateau, Benue and Nasarawa. (NAN)