Forgeries, taxations and the reign of Rehoboam

By UGO ONUOHA “A profligate regime should not expect Nigerians to willingly submit to a new tax regime that looks like an exercise in extortion. The administration gets its priorities wrong. At a time that virtually all federal highways have collapsed and become deathtraps, this government prioritises the construction of a N15 trillion coastal highway from Lagos to Calabar.” A little over three months into the presidency of Alhaji Bola Ahmed Tinubu, on September 5, 2023, I wrote an opinion piece titled “100 days of Rehoboam” in this space and elsewhere. Rehoboam was a king of the divided kingdom of ancient Israel. He was the son of King Solomon and the grandson of King David, both of whom were also past rulers of a united Israel. Rehoboam caused Israel to be divided through policies that inflicted pains on his people. He was reckless. He was proud. He was unfeeling. He took counsel from his scatter head fellow young men. He told the Israelites that the privations they suffered under his father should be regarded as a child’s play. And that while his predecessors chastised them with a whip, he would chastise them with a scorpion. And he verily proceeded to do so. Rehoboam and Tinubu share similarities and dissimilarities. Rehoboam was a monarch. Tinubu is not a king in spite of his pretending to be one. Rehoboam was born into royalty. Tinubu was not. Indeed Tinubu’s birth and early years are still subjects of conjectures and controversies. Rehoboam was a young man when he ascended the throne of his fathers, and so could be excused on account of youthful exuberance. Tinubu was an old man when he was installed as president of Nigeria though his true age is only known to himself and himself alone. There’s no verifiable evidence of when he was born and where. Unlike Rehoboam, Tinubu takes no counsel from anyone. He said this much himself when, without consultations and without a Cabinet, he unilaterally removed the so-called petrol subsidy. Tinubu at 100 days in office] has been like that proverbial bird that perched on a tree branch—the branch has remained unsettled and the bird can’t stop dancing to unheard sounds. Since his inauguration on May 29, 2023, exacerbated hopelessness has been the lot of Nigerians. Tinubu himself can only pretend to have peace of mind…” On September 5, 2023, I wrote this about Tinubu and Rehoboam. “[Tinubu at 100 days in office] has been like that proverbial bird that perched on a tree branch – the tree branch has remained unsettled and the bird can’t stop dancing to unheard sounds. Since his inauguration [as president] on May 29 [2023], exacerbated hopelessness has been the lot of Nigerians and Tinubu himself can only pretend to have had peace of mind. If he has had the presence and prescience of mind, he would not have been enmeshed in serial fumbling from one policy somersault to another from the removal of the so-called petrol subsidy, [devaluation of the Naira], student loan and [the] proposed payment of N8,000 per month for six months to a specified number of poor Nigerian families, and planning to lead the Economic Community of West African States [ECOWAS] to war on Niger Republic [when the military in that country seized political power]”… In Igbo Tinubu is a classical case of ‘akwu rere ere n’ikwo puru epu’ which transliteration in English language will roughly read: rotten palm fruits being pounded inside a decayed mortar. The finished product is better left to the imagination…” When Rehoboam became the king, the older advisers in the palace pleaded with him “to heed the cry of the people and lighten the heavy load of labour and taxes that Solomon had laid on them, but the younger elements who had grown up with the new king counselled otherwise. He took the counsel of his mates. The consequences of the actions of the new and rash King Rehoboam are well documented in the chronicles of the kings of Israel in the Holy Bible book of 1Kings. In Tinubu’s rash and irrational decisions [on] the first day and [subsequent] weeks of his reign, he appears to have borrowed a leaf from the wicked and unthinking  King Rehoboam”. One of the undoings of Rehoboam was that he insensitively raised taxes on his people and so lost more than half of his kingdom. The northern part of Israel split away, taking its own path separate from the southern kingdom of Judah. But Nigeria is not a monarchy and bears no resemblance to the old kingdom of Israel. Does that mean that Nigeria splitting is unthinkable? With the new tax laws set to come into effect in a matter of days, Tinubu who rules like a monarch may yet be treading the path of King Rehoboam. Rehoboam raised taxes on his people at a time they were already complaining of privations and pains, Tinubu is poised to also raise taxes on Nigerians at a time the people are groaning under the weight of a multiplicity of harsh economic policies of the regime. And he appears not to be bothered. He is irritated by wise counsel that he steps on the brakes and allows Nigerians to breathe. Instead, he empowers the relevant agency of government to execute a secret contract with a so-called tax consultant in France which may lead to handing over Nigeria’s tax data to a foreign company. Tax data is a national security issue that should not be traded as a favour to a friend. Tinubu and the president of France, Emmanuel Macron, are known to be buddies. The frequent ‘working visits’ of our president since he assumed office a little over two years ago had been to Paris, France, unlike his predecessor, Muhammadu Buhari, who made London his tourism and medical destination, and the former archbishop of Canterbury his bosom friend. And a go-to man. A profligate regime should not expect Nigerians to willingly submit to a new tax regime that looks

Retain SSB Tax In 2024 Fiscal Policy, CSOs Tell FG

The national SSB Tax coalition, Gatefield Nigeria, National Action on Sugar Reduction, One Campaign amongst other Civil Society Organisations, have tasked the Federal Government to retain the SSB tax in the 2024 fiscal policy. According to the coalition, it will ensure the purpose of the policy is achieved as well as ensure that the government benefits from its implementation.  The CSOs, who made the call at a meeting which also had in attendance representatives from the Ministry of Finance, Budget, and National Planning, Ministry of Education, National Orientation Agency and others also called for the establishment of an inter-agency Adhoc committee on SSB Tax that would harmonise the views of all stakeholders. The recommendation was made in a communique at the just concluded National conference on Sugar Sweetened Beverages (SSB) Tax orgainsed by Corporate Accountability and Public Participation Africa (CAPPA) in collaboration with the Federal Ministry of Health and Social Welfare Wednesday in Abuja, further called on relevant stakeholders, including traditional and religious institutions, educational institutions, civil society organizations, the media, and healthcare professionals to actively engage in other to curb the SSB menace.  According to them, “the proceeds from the SSB tax should be earmarked to the health sector to support and strengthen public health systems in Nigeria.  “Stakeholders must commit to engaging central budget agencies to improve public healthcare and influence increased allocation to the healthcare sector.  “Need for the establishment of a monitoring, evaluation, and accountability framework to track the implementation and impact of the current SSB tax policy. This must be reviewed periodically.  “Need for complementary regulatory instruments like Front-of-Pack Labeling, restricting availability and marketing of SSBs in school environments among others to offer consumers more information about products.  “State authorities must strive to bring Nigerians into its social health insurance scheme to achieve universal healthcare coverage and the Federal Government and regulatory authorities must design and enforce penalties for companies that default on SSB tax obligations.”

Multiple Taxes Crippling Nigeria’s Airline Operations, IATA Laments

The International Air Transport Organisation (IATA) has said that the federal government of Nigeria was hampering airline operations with multiple taxes. Vice president, IATA Africa and Middle East, Kamil Al Alwadi, who said this at the 7th Aviation Africa summit and exhibition Wednesday in Abuja, said the situation stunted the nation’s aviation industry’s growth. Alwadi said research has shown that Nigeria ranks highest in airport charges in Africa, saying Abuja airport is the most expensive airport in Africa followed by the Lagos airport. He noted that expensive fuel, excessive charges, leasing and insurance going through the roof, it would be difficult for the airlines to be financially viable.  He said the airlines contribute to the country’s GDP but Nigeria needs to decide what to do for them to survive. According to him, carriers based in Africa are expected to generate a moderate combined loss of around $484 million in 2023 because the continent remains a difficult market in which to operate an airline, with economic, infrastructure and connectivity challenges impacting the industry performance. “However, despite the challenges, the industry continues to move towards profitability following the COVID disruption and could be in the black as soon as next year. “Underpinning this is the robust demand for air travel. As we saw in the second quarter of 2023 – and for two consecutive quarters – African carriers had one of the world’s highest annual passenger traffic growth rates, second only to Asia Pacific. “With total traffic up 38.9% compared to the same quarter in 2022, African carriers growth outperformed the industry-wide average for total and international traffic, even though the region has not fully recovered to pre-pandemic levels. Q2 2023 RPKs were 9.2% below the same quarter in 2019.  “Despite this continued positive performance, the region still confronts economic challenges that severely limit the affordability of air travel, in addition to a range of infrastructure issues that curb capacity and hinder the development of consistent air service,” he said. He therefore urged the government to create an enabling environment for airlines to thrive.

Tinubu Sacks FIRS Boss, Nami, Appoints Zacch Adedeji 

President Bola Tinubu has approved the appointment of Hon. Zacch Adedeji as the new Acting Executive Chairman of the Federal Inland Revenue Service (FIRS). Chief Ajuri Ngelale, Special Adviser to the President, (Media & Publicity), disclosed in a statement on Thursday. Tinubu also directed the erstwhile FIRS Chairman, Mr. Muhammad Nami, to proceed on three months pre-retirement leave, as provisioned by Public Service Rule (PSR) 120243, with immediate effect, leading to his eventual retirement from service on December 8, 2023. Hon. Zacch Adedeji is hereby appointed in acting capacity for a 90-day period before his subsequent confirmation as the substantive Executive Chairman of the Federal Inland Revenue Service for a term of four years in the first instance. He most recently served the nation as the Special Adviser to the President on Revenue, following meritorious service terms as the Oyo State Commissioner of Finance and as the Executive Secretary / CEO of the National Sugar Development Council (NSDC). Adedeji is a First Class graduate in accounting from the Obafemi Awolowo University (OAU), Ile-Ife, Osun State. He also holds an MSc degree in accounting from the same OAU. The new FIRS chairman also holds a PhD public sector finance, OAU. He is a fellow, ICAN, CITN, alumnus, Harvard Kennedy School of Government, ex-manager, Procter & Gamble Company (P&G) and ex-commissioner for finance, Oyo State. He is also former Executive Secretary of the National Sugar Development Council (NSDC). By these directives of the President, the new appointment takes immediate effect.