The new target of ₦25 trillion was a result of the revelations by Zacch Adedeji, the chairman of FIRS that the Service surpassed its 2024 revenue collection target, exceeding the ₦19.4 trillion target set in the 2024 Appropriation Act.

During a presentation on Wednesday by the FIRS boss on the agency’s performance and future projections, the National Assembly’s joint Committee on Finance proposed a ₦ 25 trillion revenue target for FIRS in the 2025 fiscal year.

Saidu Musa Abdullahi, deputy chairman of the House of Representatives Committee on Finance, lauded the agency’s performance as “unprecedented, encouraging the agency to study South Africa’s tax collection model, which generates higher revenues despite a significantly smaller population.”

“We shall give you total support on your tax reform, but you need to bring more taxable citizens into the net from the informal sector.”

However, a lawmaker, Benedict Sapele expressed slight dissatisfaction, noting that the FIRS is capable of deepening its tax net and ramping its current figures to ₦60 trillion in 2025, noting that ‘if we do well, we will not borrow to fund our budget’.

In response, Adedeji stated that having multiple agencies collecting taxes often leads to leakages, which can be mitigated through the passage of the progressive tax bill.

“I am not in support of taxing the informal sector without first formalizing it. We need to transition the informal sector into the formal economy before implementing tax measures. Our focus should be on expanding the taxpayer base,” he said.

The Senate Leader, Senator Opeyemi Bamidele, who presented the bill to the Senate said out of the N49.7 trillion budget, the sum of N4,435,761,358,925 only is for statutory transfers, N16,327,142,689,549 only is for debt service, N14,123,544,196,406 only is for recurrent (non-debt) ex­penditure while the sum of N14,853,717,110,517 is for con­tribution to the development fund for capital expenditure for the year ending December 31, 2025.

Senator Barau Jibrin, the deputy President of the Senate, in his contribution to the debate on the second reading of the 2025 budget commended President Bola Tinubu for “his political will to bring prosperity to this country.”

He said the 2025 budget christened ‘Budget of Restoration: Securing Peace, Re­building Prosperity’ is sine qua non for a sound economy and up-and-doing society.

“What we need to do after the passage is to make sure that we do all that is human­ly possible to ensure that it’s fully implemented. I’m sure by the time we implement this budget, this country will turn into a land of El Dorado, a land of plenty and prosper­ity,” he said.

Akpabio, in his final re­marks thanked his colleagues for their contributions to the general principles of the 2025 budgetary estimates.

He wished them a Merry Christmas and a very Happy New Year in advance, par­ticularly for the Christian brethren.

“And I also want to say that God Almighty and Almighty Allah will definitely bless your New Year. No tragedy will touch your families. You will go and come back in good health. And Almighty Allah, may God be with you and with your families. May you come back to continue the service to your fatherland”.

He charged those who are in charge of ad-hoc commit­tees that they must do their work, adding “as soon as we come back, please get your reports ready.

“Then those who are in charge of conference com­mittees, to ensure that we marry the petitions of both chambers together, get your reports ready. So that once we come back in January, we can get cracking.

“If there is a need to call you back, in line with legis­lative practice, while you are on holiday, we will do so. So don’t forget that you are like what they call it in the army, I think reservists. You are on reserve. You can be called back any time if there is need, so that we can convene in the national interest.”

Therefore, he adjourned the Senate to the 14th day of January, 2025.

Reps Pass N47.9trn 2025 Budget for Second Reading

Similarly, the House of Representatives, on Thursday, passed the N47.9 trillion 2025 Appropriation Bill for the second reading after a comprehensive debate on the general principles.

At the plenary session, Speaker Tajudeen Abbas commended the focus of the 2025 budget, emphasising the importance of ensuring accountability and effective implementation.

“This budget reflects our collective determination to lay a foundation for econom­ic recovery and national de­velopment,” Abbas said.

The Chairman of the House Committee on Appro­priations, Abubakar Kabir Bichi, highlighted the fiscal discipline embedded in the proposal, noting that it includes measures to re­duce borrowing and increase revenue through reforms in taxation and public finance management.

However, some lawmakers expressed concerns over the increasing debt servicing costs, which account for a significant portion of the budget.

They urged the govern­ment to explore innovative ways to generate revenue and reduce the nation’s de­pendence on loans.

The House Leader, Julius Ihonvbere, assured Nigerians that the Appro­priations Committee would scrutinise the budget during subsequent stages to ensure every naira is judiciously al­located.

The bill will now move to the committee stage, where lawmakers will analyse the budget’s details, sectoral al­locations, and policy assump­tions before the final passage.

If passed into law, the 2025 budget will be the largest in Nigeria’s history, underscor­ing the government’s com­mitment to addressing the nation’s pressing socioeco­nomic challenges.

At Thursday’s plenary presided over by Speaker Tajudeen Abbas, members debated the budget, empha­sising its prospects and challenges.

The debate commenced following the adoption of a motion for ‘A Bill for an Act to authorise the issuance of N49.74 trillion from the Consolidated Revenue Fund of the Federation,” moved by House Leader, Prof. Julius Ihonvbere.

Leading the debate, Prof. Ihonvbere urged members to support the appropriation bill, emphasising that its successful implementation would significantly address the nation’s current chal­lenges.

“The budget proposal addresses key issues that directly impact the lives of Nigerians, and it is crucial that we all support its timely consideration and passage,” he stated.

The budget emphasises defence, infrastructure, and human capital development, with a projected deficit of N13.39 trillion, which will be financed through borrowing.

In his contribution to the ongoing budget debate, Abdussamad Dasuki, the member representing Keb­be/Tambuwal Constituency of Sokoto State, commended President Bola Tinubu for his leadership since assuming of­fice in 2023.

However, he called for an upward review of the pro­posed estimates to better ad­dress the country’s pressing challenges.

Dasuki, a member of the Peoples Democratic Party (PDP), remarked that while the budget appears substantial on paper, its actual value is insufficient when convert­ed to foreign exchange terms.

“The budget may seem robust on paper, but if you convert it to dollars, you’ll realise it falls short of what is needed. Considering the challenges we face, the nation is inadequately provided for,” he said.

He urged the relevant committees, particularly the Committee on Finance, to critically review the budget and propose adjustments to meet the country’s financial demands effectively.

He questioned the parame­ters adopted in arriving at the allocation to the North-West Development Commission.

“More allocation is need­ed for the North-West De­velopment Commission. We should ask ourselves the pa­rameters used in arriving at this allocation,” he said.

On his part, a PDP lawmaker from Bauchi State, Is­maila Dabo, urged the House to ensure that the agricultur­al sector receives a befitting allocation in the 2025 budget given the inflationary pres­sure on food items in the past few years.

“Inflation is on food items and Nigerians are finding it difficult to cope. I urge the House to do everything possible to ensure enough allocation is reserved for ag­riculture,” he said.

He, however, called on the Federal Government to prioritise revenue generation to fund the budget rather than resorting to loans as has been the practice in the past few months.

Similarly, Ahmad Jaha, representing Damboa/Gwo­za/Chibok Federal Constit­uency, Borno State, echoed the need to get the security budget right.

He noted that the N4.91 trillion allocated to securi­ty in the 2025 budget is not enough, saying, “All the bud­get elements are achievable if we are secured as a nation. The budget proposals are am­bitious and in order, particu­larly the focus on agriculture and infrastructure.”

Taking a slightly different position on the budget esti­mates is an All Progressives Congress lawmaker from Nasarawa State, Jeremiah Umaru, who questioned the rationale for making al­location to the South West Development Commission in the 2025 budget proposal even though the board of the commission is yet to be con­stituted.

In his contribution, the Deputy Chief Whip of the House, George Ozodinobi, called for adequate budget­ary provision for the SEDC.

“The money allocated to the SEDC is not enough. We need more money for the take-off of such a commis­sion but I want to say that if implemented, the budget has what it takes to make Nigeri­ans proud,” he said.

Meanwhile, the House has adjourned plenary sessions until Tuesday, January 14, 2024, when lawmakers are expected to resume legisla­tive duties. (Source: Independent.ng)

In the executive bill seen by TheCable on Sunday, the National Assembly intends raising the VAT to 10 percent by 2025.

The legislature also intends to increase the VAT to 12.5 percent by 2026 through 2029, according to the document.

Recall that on May 8, 2024, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, had said the VAT rate needs to be increased.

Meanwhile, the bill also proposes a reduction in the corporate income tax (CIT) to 27.5 percent by 2025 — down from 30 percent — and a further cut to 25 percent by 2026.

Companies with less than N20 million turnover are exempted from paying the CIT, according to the bill.

The document reads:

“VAT shall be charged on the value of all taxable supplies at the following rates (a) 2025 year of assessment 10 percent; (b) 2026, 2027 2028 and 2029 years of assessment 12.5 percent (c) 2030 year of assessment and thereafter 15 percent.

“Tax shall be levied, for each year of assessment in respect of total profits of every company, in the case of; (a) a small company, at zero percent; and (b) any other company, at the rate of-(i) 27.5 percent in 2025 year of assessment, and(ii) 25 percent from 2026 year of assessment.

“Notwithstanding any provision of this Act or any other enactment, where, in any year of assessment, the effective tax rate of a company is less than 15 per cent, such company shall recompute and pay an additional tax that makes its effective tax rate equal to 15 percent.

“The provisions of this section shall apply to (a) a company that is a constituent entity of an MNE group; and (b) any other company with an aggregate turnover of N20 billion and above in the relevant year of assessment.

“The companies covered under this section and the determination of the additional tax payable shall be in accordance with regulations issued by the Service.”

The NIMC Bill, Engr Abisoye Coker-Odusote, the DG/CEO of the Commission, believes, represents a significant legislative endeavour to enhance the efficacy and inclusivity of the Identity Management System.

In a statement available to Techeconomy, Kayode Adegoke, head, Corporate Communications Unit at NIMC, this updated and comprehensive bill embodies several proposed amendments designed to improve the effectiveness and inclusivity of the Nigeria ID System.

The amendments seek to fortify the foundational framework of the NIMC and its operations by; expanding the Scope of Registrable Persons.

“The benefit to the country is a more comprehensive and inclusive identification system, which enhances national security, facilitates efficient service delivery, and promotes financial inclusion.

“The bill also aims to streamline the sharing of personal data, incorporating robust data protection measures to safeguard the privacy and confidentiality of individuals’ personal data and foster trust among citizens in the handling of their information.

“It also enhances NIMC’s administrative enforcement Power to ensure timely and accurate compliance with ID registration requirements.

“The NIMC repeal and enactment bill, when passed into law, will lead to a more streamlined registration process, reducing bureaucratic hurdles and enhancing the reliability of the Nigeria ID System”, the statement by NIMC reads concerning the move to repeal NIMC Act.

TechEconomy’s investigations show that the industry has been thrown into confusion as an invitation for a public hearing, jointly signed by the Clerks of the Senate Committee on ICT and Cyber Security; and House Committee on ICT, Mr. Ayo Ogon and Abosi Lolo, respectively, and published in a Daily Trust Newspaper (today) Thursday, December 22, 2022, fixed the hearing on Friday, December 23, 2022.

This is coming a-day after both Chambers of the National Assembly had proceeded on recess, indicating desperation by the Committee to pass the controversial bill which could cause a disruption of the entire ICT sector in Nigeria.

While it was suspected that the Committee wanted to pass the bill without substantial public participation it was also alleged that the submissions of the industry stakeholders made during its first public hearing, were jettisoned, and that the current invitation may be the ultimate smokescreen to pass the controversial bill.

There were also allegations that the Committee did not formally invite key stakeholders for fears that the process to force down the bill in the industry may be scuttled, hence the Joint Committee capitalized on a hasty public notice, issued within hours to the public hearing.

When contacted on phone, Mr. Gbolahan Awonuga, the Head of Operations at the Association of Licensed Telecommunications Companies (ALTON), said although the Association was invited to attend the public hearing, but the invitation was too short as most of the officers have either traveled or concluded plans to travel for the holiday.

“Meanwhile, we have stated our position on this Bill; NITDA is a ‘Development Agency’ while NCC is our (telecom industry) ‘Regulator’. An attempt to create another agency will destroy this industry. Looking at this NITDA Bill, it seems the NASS has an intention to make NITDA the NCC’s regulator! This is an absurd and should be discontinued. And the process, especially the timing of the public hearing is very unconvincing”, he lamented.

There was another allegation that the joint committee in the undue haste to pass the flawed bill, had had thrown away all the submissions made by the members of the public and stakeholders during the first hearing where the bill was vehemently opposed.

Among the stance of the stakeholders, was that rather than preserve and promote the mandate of NITDA as a statutory ICT development agency, they have made up their mind to create an agency with similar responsibilities like those of some of existing regulatory agencies in Nigeria.

“All well-meaning Nigerians and all stakeholders in the ICT industry should know that if the enemies of Nigeria, who are determined to force the new bill down our throat succeed, the gains recorded in the ICT and telecommunications sector in the last 22 years will be reversed”, another industry stakeholder who pleaded for anonymity, said.

Just in the second quarter of 2022, the ICT sector, besides digital services, contributed 18.44 per cent to GDP.

This is unprecedented but painfully it is one of the gains the passage of the infamous bill will reverse.