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Payment of New Minimum Wage will be difficult if tax reforms bills are passed
Payment of New Minimum Wage will be difficult if tax reforms bills are passed
Zamfara State Governor Dauda Lawal has expressed concerns that some states may struggle to survive financially if the proposed tax reform bills are passed into law.
Speaking on Channels Television’s Politics Today program on Tuesday, Lawal emphasized the potential challenges that could arise for many states under the new tax structure.
Introduced by President Bola Tinubu in early October, the four tax reform bills have sparked widespread debate across the country, with particularly strong opposition from stakeholders in the northern regions.
Critics argue that the proposed changes to the value-added tax (VAT) distribution system could severely impact their states, especially with the shift toward a derivation-based model.
This model would allocate VAT revenue based on where it is generated, a change that northern states fear may undermine their financial stability.
One of the central points of contention is the proposed shift to a VAT distribution system that factors in derivation, a move that opponents argue could disadvantage northern states with less revenue-generating capacity compared to their southern counterparts.
Some critics also argue that such a change might be unconstitutional, as the current VAT distribution model is based on principles of equity and population distribution.
Governor Lawal raised alarm over the broader economic implications of these reforms, suggesting that many states could face significant difficulties in meeting basic financial obligations, such as paying the minimum wage, if the new tax laws are enacted.
“Well, the tax issue has a lot of components – there is the good aspect and there is the bad aspect. So, we are studying the situation so as also to advise our people on the way forward. It’s an ongoing process and we will continue with the engagement.
“Reform in a system is inevitable and we should always expect reforms. However, in trying to do that, we also need to be careful not to be in a hurry to do something that will later hurt us.
“So, I believe we should carefully study the situation, and have a clear understanding and take a common stand.
“There is a component of it that talks about derivation and definitely, if we are to go by it, it is going to affect some of the states in terms of what kind of inflows they have and invariably it may make it difficult for some states to be able to pay their salaries.
“Honestly, if we were to go by it, it would be difficult for some states to pay salaries especially with the issue of minimum wage.
“Some states may not be able to survive so it is something that must be carefully studied so that we don’t hurt ourselves in the long run.”
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Lagos Assembly condemns suspended Clerk’s actions amid leadership crisis between Meranda, Obasa
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Lagos Assembly condemns suspended Clerk’s actions amid leadership crisis between Meranda, Obasa
The Lagos State House of Assembly has condemned the unauthorised entry of suspended Clerk, Mr Olalekan Onafeko, into the Assembly premises following his suspension announcement on Jan. 13
The Assembly’s Chief Security Officer, Mr Kabir Kushoro, confirmed the incident in a statement issued in Lagos on Wednesday.
The News Agency of Nigeria (NAN) reports that Onafeko was suspended on the House floor by a two-thirds majority of members over alleged financial misappropriation.
NAN further reports that the National Industrial Court sitting in Lagos on Thursday sacked the acting Clerk, Babatunde Ottun, who was appointed by Speaker Mojisola Meranda.
The court subsequently ordered the reinstatement of Onafeko as the Clerk of the House.
The claimant in suit number NICN/LA/23/2025 sought an interim injunction restraining six defendants from appointing anyone, including Babatunde, as Clerk.
This order remains in effect pending the hearing of the motion on notice for an interlocutory injunction already filed in the case.
Granting the application, Justice M. N. Esowe issued an ex parte order preventing Babatunde from parading himself as Clerk.
“The parties shall maintain peace and status quo ante bellum until the motion on notice is heard and determined,” Esowe ordered in a ruling.
In his statement, Kushoro said Onafeko arrived with unknown men and blocked the Assembly staff gate with his car at approximately 9:00 a.m. on Wednesday.
He further alleged that Onafeko later attempted to break into the Clerk’s office.
“This act of defiance constitutes a clear disregard for legislative protocols and security regulations.
“The House leadership views this action as an affront to the institution’s integrity and will take all necessary steps to uphold discipline and order.
“Onafeko has a pending suit against the Assembly, the Acting Clerk, and the State Government. He should focus on the legal process instead of disrupting Assembly activities,” Kushoro said.
Kushoro confirmed that relevant authorities had been informed, and necessary measures were being taken to prevent further security breaches. (NAN)
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Two Policemen shot dead in gun duel with suspected kidnappers
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Two Policemen shot dead in gun duel with suspected kidnappers
Gunmen suspected to be kidnappers have killed two police officers during a foiled kidnapping operation around Little Rayfield community in Jos South Local Government Area of Plateau State.
The spokesperson of the state police command, DSP Alabo Alfred, confirmed the incident to newsmen in Jos, stating that four suspects had been arrested in connection with the attempted abduction.
Residents of Little Rayfield told our correspondent that at about 9 pm on Tuesday, gunshots were heard in the area.
They added that the kidnappers had attempted to kidnap some individuals, but the act was foiled by the men of the state police command.
According to DSP Alfred, the slain police officers were on special duty in the state from Abuja.
Alfred said, “The Plateau State Police Command wishes to inform the general public of the arrest of four (4) suspected kidnappers in the recent foiled kidnapping incident that took place along Little Rayfield Road, Jos.
“However, two (2) of our officers namely; Fatoyo Femi and Inspr Dafur Dashit attached to Force Investigation Department, Abuja (IRT) who are on special duty in Jos lost their lives during the exchange of gunfire with the suspected kidnappers.
“Meanwhile, the case is under investigation. Further development will be communicated in due course. The Commissioner of Police, Plateau State Command, CP Emmanuel Olugbemiga Adesina, psc appeals for calm in the State as the situation is under control.”
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Pandemonium erupts as Youth was shot during encounter with Army personnel
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Pandemonium erupts as Youth was shot during encounter with Army personnel
The Police Command in Akwa Ibom, on Wednesday, confirmed the death of a youth in a crisis that erupted in Ette, Ikot Abasi Local Government Area of the state.
DSP Timfon John, the State Police Public Relations Officer (PPRO), made the confirmation in an interview with the News Agency of Nigeria (NAN) in Ikot Abasi.
She said that the crisis started on Tuesday night in Ette when an army man was pursuing a boy in the community and was descended on by a mob.
‘’In an attempt to escape the mob action, the army man fired and shot one of the villagers; both the army and the villager are receiving treatment in a hospital.
‘’The situation is under control and investigation has commenced to unravel the perpetrators of the crime,’’ John said.
A source, who refused to mention his name, told NAN that the crisis was as a result of the alleged killing of a local boy by an army man attached to an oil company in Ikot Abasi.
He said that there had been a protest by the youths in the area demanding that the military should focus on their duty to the company and not target the innocent citizens.
He said that the Tuesday crisis led to the burning of five trucks, a bus and a Hilux belonging to the company.
The source said that the crisis led to the blocking of East-West Road leading to Port Harcourt, forcing motorists to divert to other routes for safety. (NAN)
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