Tax Bills: Tinubu Urges Justice Ministry, NASS to Address Key Concerns

President Bola Tinubu directs the Justice Ministry and National Assembly to review and resolve concerns surrounding the proposed tax bills, ensuring effective reforms for Nigeria’s economy.

President Bola Tinubu has instructed the Federal Ministry of Justice and the National Assembly to address issues raised regarding the tax bills.

Tinubu’s submission of the Tax Reform Bills to the National Assembly has sparked criticism. This action has put him at odds with several governors, particularly drawing strong objections from leaders in the northern region.

Some critics argue that the bills discriminate against the northern region, while others contend they could exacerbate poverty for Nigerians.

To address these concerns, President Tinubu has directed the Justice Ministry to examine the issues raised and collaborate with the National Assembly’s leadership to refine any problematic aspects of the bills.

“The government has no hidden agenda that would justify claims of the process being rushed,” stated Minister of Information and National Orientation Mohammed Idris in a Tuesday announcement. “The Federal Government is open to constructive feedback to clarify any uncertainties within the bill, adhering to established legislative procedures.”

Similarly, President Tinubu has instructed the Federal Ministry of Justice and relevant officials involved in drafting to collaborate with the National Assembly. Their goal is to address all genuine concerns before passing the bills.

Mohammed stated that President Tinubu is dedicated to maintaining accountability to the Nigerian citizens and characterized the discussions sparked by the bills as “welcome and commendable.”

“It’s incredibly inspiring to witness Nigerians from all backgrounds voicing their views and opinions on these crucial national issues,” he stated. “This truly embodies the essence of democracy.”

The minister stated, “To uphold democratic engagement, it’s essential to avoid name-calling and refrain from introducing unnecessary ethnic and regional slurs into this important national conversation.”

Some argue that the bills were designed to impoverish certain states, particularly in the north. However, the minister has dismissed these claims as “fake news” and “misinformation.”

“The fiscal reforms will neither impoverish any state or region of the country nor result in the dismantling or weakening of any federal agencies,” he added.

The minister stated that once these bills are approved, they should “provide relief to tens of millions of hardworking Nigerians” and also “enable our states and the 774 local governments to achieve sustainable growth and development.”

“Building upon this essential foundation, the resources conserved and generated from these reforms will be directed towards vital infrastructure—such as healthcare, education, transportation, digital technology—and social investments that aim to benefit all Nigerians and ensure inclusivity for everyone,” stated the information minister.

In response to the intense discussions sparked by the introduction of new tax bills, Channels Television organized a town hall event on Monday to evaluate their advantages and disadvantages.

The event showcased a constellation of experts from various sectors. Attendees included Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee; Yakubu Dogara, former Speaker of the House of Representatives; Baba Yusuf, Group CEO of Global Investment and Trade Company; Micheal Chibuzor, Public Affairs Analyst/Writer; and a past President of the Institute of Chartered Accountants in Nigeria.

Governor Sule Abdullahi of Nasarawa also phoned into the show.

During the town hall meeting, the panelists urged restraint and requested that the ambiguities identified in the bills be addressed.

Oyedele, who facilitated the bills, stated that they contain some “transformative provisions,” alleviating concerns among Nigerians.

“Oyedele stated that these Bills contain over 200 transformative provisions designed to repair our country and guide us toward prosperity.”

“We should not let one or two provisions, which we can easily discuss and agree upon, become the source of difficulty or create a bottleneck.”

Dogara also urged the northern region not to criticize Tinubu for the bills, asserting that they are not against the interests of the north.

“I would like to speak with my brothers in the North. I believe now is not the time for us to start condemning the president or labeling him as anti-north due to these bills,” said the former speaker.

Despite calls for their withdrawal, the Tax Reform Bills have already progressed past the second reading in the Senate.

The memo directed to pension fund administrators and custodians stated, “The commission has observed that President Bola Tinubu signed the National Minimum Wage Bill into law on Monday, July 29, 2024.”

As a result, the National Minimum Wage Act has raised the minimum wage from N30,000.00 to N70,000.00.

According to Section 4.1 (g) of the Revised Regulation on the Administration of Retirement and Terminal Benefits, if a retiree’s Retirement Savings Account balance is insufficient to provide a monthly or quarterly pension or annuity amounting to at least one-third of the current minimum wage, they are permitted to withdraw their entire RSA balance in full.

As a result of the above, Pension Fund Administrators are instructed to use N70,000.00—the current National Minimum Wage—when processing retirement benefits in accordance with Section 4.1 (g) of the Regulation.

Retirees receiving monthly or quarterly pensions below N23,333.33—which is one-third of the current minimum wage of N70,000.00—should have the option to either withdraw their entire RSA balance at once or continue with their existing pension payments until the Minimum Pension Guarantee begins.

The memo stated that requests for payments to retirees opting to receive the outstanding balance in their RSAs as a lump sum should be sent to the commission along with the documents listed below for consideration and approval.

The documents contain a consent form indicating that the Pension Fund Administrator (PFA) appropriately informed the retiree about the Minimum Pension Guarantee, and that he or she opted to receive the remaining balance in their Retirement Savings Account (RSA) as a lump sum.

A physical application letter, personally signed by the retiree (not an electronically) to withdraw the outstanding balance from the RSA.

The payment schedule is included as Appendix 1. Please ensure you take all necessary steps to fully comply with this circular, which goes into effect immediately.