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Bill to cut down FG’s power to grant tax waivers scales second reading at senate

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The Senate has passed for second reading a bill that will alter the Federal Inland Revenue Service (FIRS) Act to regulate the processes of granting corporate tax holidays, import duty waivers and investment incentives to investors and businesses in Nigeria.
The bill, sponsored by Yahaya Abubakar Abdullahi (PDP, Kebbi North), seeks to whittle down the powers of the federal government to unilaterally grant tax holidays and incentives to businesses. 
It seeks to create a new section (9) in the FIRS Act to mandate the Service to secure due legislative approval of the National Assembly in granting of new or renewal of corporate tax incentives and waivers.
It states that for purposes of transparency, efficiency, effective monitoring and fair play, all requests and applications for parliamentary approval shall be referred to the Senate and the House of Representatives for necessary scrutiny. 
“Such requests and applications for parliamentary approval shall stipulate clear conditions and justification for granting tax waivers and investment incentives.
“All, or any other enactments specific to cases of granting investment incentives and tax waivers to businesses, institutions and individuals that conflict with the provision of this Act, shall be deemed, not applicable,” he said. 
Senator Abdullahi, in his lead debate, said the bill has become imperative due to leakages and loopholes in tax collection and remittances to government amid revenue shortfalls and high debt profile. 
He expressed worry that in the last five years, the country has not been able to achieve its revenue targets. 
Figures from the Debt Management Office (DMO) showed that N3.9 trillion was realised out of the targeted revenue of N7.2 trillion in 2018.
In 2019, the target was N7 trillion while actual revenue collected was N4.12 trillion. 
The sum of N5.4 trillion revenue was targeted in 2020 but N3.9 trillion was received. 
In 2021, the target was N6.4 trillion while N4.64 trillion was received. 
In 2022, targeted revenue was put at N5.82 trillion while actual revenue received was N3.66 trillion.
The lawmaker expressed concern that debt service is consuming over 90% of the government’s revenues up from 32.7% in 2015.
He said, “If this trend of relentless reliance on increasing public debt to finance the budget continues without corresponding rise in revenues, the country shall slide into distress and insolvency. 
“With petroleum revenues dwindling into insignificance, we must rise to rationalize the system of tax administration by blocking loopholes, and tax evasion and ensure utmost efficiency in tax management.
“It is important to note that even while government explores other means of increasing its revenue streams and improve collecting capacity, the National Assembly must act with firmness and determination to ensure that we initiate and pass laws that regulate revenue streams collection and remittance. 
“In early 2020, the FIRS reported a loss of N 1.3 trillion to tax waivers, in five years. And this was in just three sectors of the economy. Similarly, in October 2021, losses were put at $2.9 billion yearly, in tax waivers to multinationals. 
“It is obvious that there are several other similar cases; and all this happening in the face of government increasing difficulties to fund its various development projects and welfare commitments across the country. 
“The overall intendment of this Amendment Bill, therefore, is to ensure that government is able to pool all its collectibles in one coffer, to be able to target its allocations to those areas of priority in the country. 
“An effective way to do this is to re-organize the processes of granting tax holidays, investment incentives and waivers to private individuals and corporate entities for effective coordination and transparency. 
“We must also ensure that such applications are placed before the National Assembly, in order to ensure that all arms of the government are on the same page on this delicate matter.”
The bill, after scaling second reading was referred to Senate Committee on Trade and Investment for further legislative works.

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Legislature

CNG Safety Under Scrutiny: NASS Questions Readiness as Explosions Raise Alarms

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National Assembly Complex

The National Assembly has called for a comprehensive reassessment of Nigeria’s Compressed Natural Gas (CNG) initiative following alarming reports of vehicle explosions attributed to uncertified conversions. Lawmakers are urging the Federal Government to prioritize rigorous adaptability tests to ensure the safety and suitability of the technology in Nigeria’s unique environment.

During the 2025 budget defense session of the Joint Committee on Petroleum (Downstream), Petroleum (Upstream), and Gas, Senator Natasha Akpoti (PDP, Kogi Central) questioned the adequacy of research conducted before rolling out the CNG program.

“Nigeria’s bumpy roads and hot climate differ significantly from the smooth and cooler environments where this technology originated. Were these factors considered before introducing CNG?” Akpoti asked.

Her concerns come amid incidents of explosions in CNG-converted vehicles. The Minister of State for Gas, Hon. Ekperikpe Ekpo, attributed these accidents to uncertified conversions carried out by roadside technicians, emphasizing that certified centers adhere to strict safety standards.

Ekpo also assured lawmakers that the technology had been evaluated by a Presidential Committee on CNG and affirmed its long-term viability. “CNG has come to stay,” he stated.

The session also highlighted budgetary concerns, particularly the Ministry of Petroleum’s 2025 capital allocation of N903 million. Lawmakers criticized the sum as inadequate to address Nigeria’s pressing energy challenges.

“For a ministry driving Nigeria’s energy transition, this allocation raises concerns about commitment to infrastructure and innovation,” remarked Hon. Kafilat Ogbara.

As Nigeria seeks to diversify its energy mix, the National Assembly has stressed the need for enhanced safety measures, proper implementation, and increased funding to fully realize the potential of CNG while ensuring public safety and trust.

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Legislature

Umahi expresses Frustration over Fixing Nigerian Roads

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Dave Umahi

***Seeks Support for Loans as Budgetary Provisions Fall Short

The Minister of Works, Senator David Umahi, has voiced his deep frustration over the state of Nigeria’s road infrastructure, highlighting inadequate yearly budgetary allocations as a major barrier to progress.
Speaking during the 2025 budget defense session before the Senate Committee on Works in Abuja on Friday, Umahi described the financial constraints as overwhelming. “I’ve succeeded in most of my life’s engagements, but I feel frustrated fixing Nigerian roads with these meagre allocations,” he lamented.
Umahi disclosed that President Bola Tinubu inherited 2,064 road projects valued at N13 trillion, but rising costs have pushed the estimated expenditure to N18 trillion. He noted that the N827 billion allocated for road infrastructure in the 2025 budget is grossly insufficient to address the challenges.
“Roads are critical to economic growth and poverty reduction. They create jobs and drive economic activities. However, fixing these roads cannot be achieved with yearly budget provisions alone,” he explained.
The minister urged Nigerians to support the government’s borrowing initiatives, assuring that the funds would directly impact citizens’ lives by boosting economic activities and reducing hunger.
Senators on the committee, led by Senator Mpigi Barinaga, praised Umahi for his efficient management of scarce resources and supported his call for alternative funding mechanisms. They acknowledged the scale of the work required and admitted that the proposed budget falls far short of what is needed to resolve Nigeria’s road infrastructure crisis.
The session concluded with a shared resolve to explore additional funding options to tackle the nation’s road challenges effectively.

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Legislature

In another rowdy session, Lawmakers Demand Accountability Amidst Budget Defense Chaos

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Heineken Lokpobiri

***Minister Lokpobiri Assures of Reforms, Apologizes for Lapses

The 2025 budget defense session for the petroleum sector took a contentious turn on Friday as the Senate and House of Representatives Joint Committee on Petroleum (Upstream, Midstream, Downstream, and Gas) erupted into disorder. Tensions flared over delays in budget documentation, with lawmakers decrying the Ministry of Petroleum Resources’ perceived lack of preparedness and respect for legislative protocols.

The meeting, chaired by Senator Jarigbe Agom Jarigbe, was already fraught with logistical challenges. The cramped committee room, bursting with lawmakers and ministry officials, became the backdrop for a fiery exchange that highlighted the strained relationship between the legislative and executive branches. Calls to relocate the session to a more accommodating venue went unheeded, adding to the frustration.

Before the session could proceed, Hon. Kelechi Nwogu raised a procedural objection, pointing out the absence of vital budget documents. “We cannot engage in a meaningful discussion without the necessary materials. This undermines the integrity of the process,” Nwogu asserted.

The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, faced sharp criticism for the disorganization. Hon. Ado Doguwa, Co-Chairman of the Joint Committee, accused the Ministry of fostering an adversarial relationship with the legislature. “Minister, we see you only once a year, and even then, the lack of collaboration is glaring. This is unacceptable,” Doguwa said, his frustration evident.

Lokpobiri, in an attempt to salvage the situation, apologized for the lapses. “Distinguished Senators and Honourable Members, I deeply regret this oversight. It was not intentional. The budget documents are being distributed as we speak,” he said. He assured lawmakers that the Ministry remained committed to supporting legislative oversight and improving future engagements.

However, Lokpobiri’s lighthearted remark that the documents were being delivered in “Ghana Must Go” bags—containing no money—elicited mixed reactions. While some lawmakers chuckled, others viewed it as a diversion from the seriousness of the issue.

Doguwa, accepting the apology, stressed the need for strict adherence to legislative guidelines. “While we appreciate the apology, the late submission of documents is a breach of procedure. This cannot continue. We demand accountability and timely cooperation moving forward,” he said.

The session ultimately ended in stalemate, with lawmakers insisting on postponing the meeting until all necessary documents had been reviewed. The debacle underscores the persistent challenges of executive-legislative coordination in Nigeria’s budgetary process, particularly in critical sectors like petroleum.

As the Joint Committee prepares to reconvene, stakeholders will be watching closely to see if the Ministry of Petroleum Resources can rebuild trust and ensure a smoother process in the future.

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