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Tinubu’s tax reforms and imperative of fiscal federalism

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The seemingly unending contentions trailing the federal government’s tax reforms are to be appreciated as a manifestation of Nigerians’ diversity and the multiplicity of conflicting interests.

 

These may ultimately signpost a necessity of decentralising rather than generalising fiscal and monetary issues, including tax reform and tax collection. The resurging issues on tax incidence, revenue collection and corporate or individual responsibilities in this tax reform issue indicate the wide divisions in the country concerning who pays tax and who benefits among others.

 

The core issue is that the size of the cake or tax collection has not been large enough, and every stakeholder wants to be on the receiving side and not on the paying side. These have been the emerging issues in the public hearings on the four tax reform bills, namely the Nigeria Tax Bill, the Joint Revenue Tax Board Bill, the Tax Administration Bill and the Nigeria Revenue Service Bill.

 

Major contentions that have come from the Nigeria Customs Service (NCS), the Trade Union Congress (TUC), the Manufacturers’ Association of Nigeria (MAN) and the Supreme Council for Shariah in Nigeria (SCSN), among others indicate some of the differing perspectives on the country’s fiscal federalism and thus indicate that over-centralisation of fiscal and revenue matters need to be looked into as the current situation of unproductive contentions constitute a cog in the wheel of progress for the country’s economy cutting across the various tiers of government.

 

According to statistics from the multilateral organisations as well as from official sources within the country, tax collection in Nigeria is still at a very low level. The ratio of tax to the gross domestic product (GDP) which was approximately 9.4 per cent in 2023 according to the Chairman of the House of Representatives Committee on Finance, James Faleke but has fallen to as low as six per cent presently given the address of the Speaker of the House of Representatives, Tajudeen Abbas.

 

This is a far cry from the World Bank minimum benchmark of 15 per cent that it considers necessary for sustainable development. In comparison to that of other countries within Africa, the tax-to-GDP ratio is lower than South Africa’s 21.6 per cent, Senegal’s 19.1 per cent and Kenya’s 14.1 per cent. So, there is this obvious challenge of generating more revenue into the public coffers, and the key issue is that the various pressure groups are clamouring for how it can pay less tax while, in the same vein, maximising its benefits from the government.

 

Emanating from the hearings of the House of Representatives Committee on the Tax Reforms is the fact that only nine per cent of companies registered in Nigeria are captured in the tax net and that only about 35 million Nigerians actually pay tax. The frequent resort to borrowing is accentuated by this sorry state of a humongous shortfall between what is required to service the workings of government in the delivery of public services and the collections from the various types of taxes. That is the dilemma of the government tax reforms, and the Oyedele Presidential Committee indeed had its work clearly cut out for it. However, some of the contentions by some of the stakeholders appear self-serving.

 

Overall, the clear issue agreed to by everyone is that Nigeria’s tax laws have remained largely unchanged for so long and are thus no longer in tune with current economic realities. However, divergent issues based on religion, such as the imposition of tax on properties inherited by adherents of the religion, may not be accepted by all.

 

The adoption of technology in facilitating the revenue collection process, which was also questioned based on religious and regional viewpoints, clearly indicates that the quest to enhance national revenue through taxation will continue to suffer setbacks until the decentralization of the tax collection process is pursued vigorously.

 

The viewpoint by some that many Nigerians lack the necessary skills and technological know-how to comply with digital Value-Added Tax (VAT) returns appears unnecessary and thus suggestive that the provision in the Nigeria Tax Administration Bill that mandates the adoption of advanced technology for tax assessment and collection is not relevant.

 

This assertion should not be sustained as the deployment of technology currently cuts across the various aspects of human endeavours, and the country’s tax administration should not be left out in this. The position of the NLNG on the avoidance of double taxation in relation to contract agreements, already subjected to VAT and the use of stamp duties to collect revenue appears plausible while the fear by the NCS that the tax reforms could legislate it out of existence appears the adoption of posture by the NCS to resist change. On the other hand, the position of the TUC and the SCSN opposing the increase of VAT from 7.5 per cent to 15 per cent are all issues of concern.

As a country, what should be of major concern is to first accept that the reforms are necessary and second that the decentralization of the tax collection process should be prioritised in the final document. This should also reflect in the tax benefit derivation process such that states would be forced to look inwards in revenue generation, knowing that their economic fortunes would be tied to their revenue collection efforts. This tax reform process should be a necessary first step in revamping the country’s fiscal federalism structure such that competition and not contention for resources would be given the upper hand in the country’s fiscal administration.

 

Overall, the critical issue is for the government to conduct economic government by enhancing the business climate and not adopting a “tax and spend” economic strategy, which often is counterproductive. The promotion of a conducive business operating environment is more important than generating all the required revenue, which invariably could enhance corruption in the management of public resources as well as create a bogus structure of an enhanced and unproductive high cost of governance. Tax reforms alone cannot give the required boost to the economy. It needs to be complimented by other economic strategies to salvage the economy from its current unstable state.

 

 

 

-Guardian

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Polaris Bank Champions Girls’ Hygiene Awareness with Female Hygiene Essentials Distribution in Kuramo & Victoria Island Junior and Senior Secondary Schools

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Polaris Bank has continued its commitment to empowering the Nigerian girl-child through health education and essential support, with the successful distribution of female hygiene essentials to female students of Kuramo and Victoria Island Junior and Senior Secondary Schools, Lagos. 

 

This initiative stems from Polaris Bank’s 2025 International Women’s Day celebration and forms part of our ongoing Adolescent Health and Hygiene Support Programme.

 

Through the Bank’s Girl-Child Support and Hygiene Education Initiative, the outreach aims to improve menstrual hygiene education, build confidence and dignity among young girls, and reduce school absenteeism resulting from lack of access to sanitary products.

 

Speaking at the event, Group Head, Customer Experience & Value Management, Polaris Bank, Mrs. Bukola Oluyadi, delivered a practical health talk to the girls, emphasizing the importance of maintaining proper hygiene during their menstrual cycle and in their daily lives.

 

She advised the students on essential personal care practices including the appropriate use of sanitary pads, the importance of daily use of clean underwear, and maintaining good body hygiene with deodorants and regular washing, especially during puberty when their bodies are developing.

 

“Your body is precious, and how you take care of it determines your confidence and wellbeing,” Mrs. Oluyadi told the students. “Good hygiene is not just about looking clean; it is about staying healthy, feeling comfortable, and showing up confidently in school and everywhere you go.”

 

She also encouraged the girls to cultivate life-long healthy habits, be informed about their bodies, and speak confidently about their health needs.

 

Also present at the distribution was the Non-Executive Director of Polaris Bank, Mrs. Subulade Giwa-Amu, who delivered a powerful motivational session on self-care, confidence, and self-presentation.

 

In her address, she reminded the girls that taking care of their appearance and hygiene contributes significantly to building a successful future.

 

“A clean girl equals a successful woman,” Mrs. Giwa-Amu affirmed. “Success is not only about your academic performance; it is also about how you present yourself. People see you before they know you, and first impressions always last. Loving yourself and caring for yourself should be a daily habit.”

 

She further encouraged the students to build confidence from within, stay self-assured, and always be conscious of their personal hygiene as young girls stepping into womanhood.

“Confidence starts with knowing who you are and being proud of yourself,” she added.

 

“When you take care of your body, you build respect for yourself, and others see that confidence reflected in how you speak, walk, and show up in the world.”

 

Polaris Bank’s support for the girl-child aligns with the Bank’s broader Sustainability and CSR strategy, which includes empowering young girls through education, access to essential learning materials, and social support systems that improve their health and academic performance.

 

The Bank believes that sustained investment in girls’ wellbeing ensures equal opportunity, reduces school dropout rates, and helps drive long-term social and economic development.

 

The female hygiene essentials distribution initiative directly addresses barriers that affect school attendance among adolescent girls, especially those who lack access to basic hygiene products.

 

By equipping students with knowledge and materials, Polaris Bank is helping to normalize conversations around menstruation, reduce stigma, and support healthier outcomes for young girls.

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Sterling Bank Champions Collective Action……to Accelerate Nigeria’s Renewable Energy Transition

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Sterling Bank Limited has brought together stakeholders in the renewable energy industry to explore ways to accelerate action in the sector. 

 

The premier colloquium, held in Lagos on Monday, aimed to identify priority areas for action to increase energy access and drive economic growth in the quest to attain a one trillion-dollar economy.

 

Managing Director and CEO of Sterling Bank Limited, Mr. Abubakar Suleiman, gave the charge in his address at the colloquium organized with the theme: Beyond The Grid; Unlocking New Frontiers in Renewable Energy.

 

The CEO, who was represented by Dele Faseemo, Group Executive, Corporate & Investment Banking, explained that Sterling Bank will be paying closer attention to policy actions in two or three key priority areas, especially regulation and financing.

 

He noted that by focusing on these areas, the Bank can do more to drive progress and expand access to energy, which he described as essential for supporting economic growth and overall development.

 

In a keynote address titled Scaling Electrification in Nigeria, The REA Impact, Managing Director and CEO of The Rural Electrification Agency (REA), Dr. Abba Aliyu, spoke on the vision, mission and mandate of the agency.

 

He noted that Nigeria requires about $26 billion to address its energy deficit. He said the energy transition in Nigeria is a strategic shift towards achieving universal, reliable and sustainable energy access by integrating the grid, mini-grid and off grid technologies while aligning with national development and climate goals.

 

The CEO who was represented by Mr. Abba Hayatudden, Senior Advisor to the MD, said “REA is strategically expanding and optimizing channels to accelerate the adoption and sustainable growth of renewable energy acrossthe country in the areas of value chain development, regulation enhancement, funding windows, alternative resources and technical standardization.”

 

Minister of Power, Adebayo Adelabu, commended Sterling Bank for convening the conversation on renewable energy.

 

He stated that the Federal Government has placed renewable energy and rural electrification at the heart of the Renewed Hope Agenda.

 

The minister who was represented by Engineer Samuel Ayangeaor said, “The Federal Ministry of Power has continued to expand electricity access to underserved communities in a bid to drive economic growth, foster industrial activity and create jobs across the nation.”

 

In his goodwill message, Mr. Biodun Ogunleye, Lagos State Commissioner for Energy and Mineral Resources, noted that the current administration is implementing the most ambitious energy transformation ever undertaken.

 

He highlighted the state’s efforts in renewable energy and sustainability, including the two-gigawatt Lagos grid scale solar project.

 

The CEO of Sterling One Foundation, Mrs. Olapeju Ibekwe, emphasized the need for collective action. She urged participants not to allow the day’s deliberations to end as mere conversations or points documented in a communiqué.

 

Instead, she encouraged everyone to leverage the strength of their networks, act with intention, and remain focused on delivering meaningful impact.

 

The colloquium featured two panel sessions on financing and scaling green energy solutions in Africa, among others.

 

//Ends.

 

 

About Sterling BankSterling Bank Limited is a full-service national commercial bank in Nigeria and a member of Sterling Financial Holdings Group.

 

With a heritage of more than 60 years, the bank has evolved from Nigeria’s pre-eminent investment banking institution to a trusted provider of retail, commercial, and corporate banking services.

 

Sterling is a forward-thinking financial institution committed to transforming lives through innovative solutions, exceptional service, unwavering integrity, and a steadfast focus on its HEART strategy, which centers on Health, Education, Agriculture, Renewable Energy, and Transportation. As pioneers in digital banking and financial inclusion, Sterling continues to lead by example, showing how purpose-driven leadership can deliver transformative outcomes for individuals, businesses, and society at at large.

 

Guided by a culture of innovation and a passion for excellence, Sterling Bank remains dedicated to redefining the banking experience for millions of customers across Nigeria.

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Polaris Bank, Evolve Charity Trust empower 1,000 students with school essentials

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Polaris Bank, in partnership with Evolve Charity Trust, has successfully concluded its 2025 nationwide distribution of school essentials to 1,000 students across ten public secondary schools in five states, including the Federal Capital Territory (FCT). The initiative is part of the Bank’s sustained Corporate Social Responsibility (CSR) efforts to keep more children, especially the girl child, in school.

 

This year’s exercise adds to a growing intervention that has supported more than 24,000 students in public schools across 49 locations since 2021.

 

This year’s beneficiaries received a complete learning kit consisting of a school uniform, school bag, a pair of sandals, six exercise books and pens. According to school authorities, these materials continue to improve attendance, boost confidence and support academic performance.

 

In delivering the programme, Polaris Bank also stimulated the local economy by sourcing uniforms from local tailors, procuring books from bookshops and purchasing sandals and bags from community traders, thereby supporting small businesses across the beneficiary states.

 

Polaris Bank’s Managing Director/CEO, Mr. Kayode Lawal, reaffirmed the Bank’s five-year promise to champion the education of Nigeria’s girl child, noting that the materials are symbols of belief in the students’ potential to become scholars, innovators and future leaders.

 

School administrators across the country expressed gratitude for the timely support, noting that the essentials meet real and urgent needs, ease the burden on families and positively impact academic performance. Many students come from homes where parents cannot afford these items and the gesture has restored pride among beneficiaries.

 

Representatives of the Bank reiterated their commitment to improving access to education, championing access to quality learning, and encouraging students to make the best use of the materials and stay committed to success.

 

The 2025 distribution covered the following schools: Government Girls Secondary School, Kundila, Kano; Model Junior Secondary School, Maitama, Abuja; Government Junior Secondary School, Area 10, Garki, Abuja; Fortune Secondary School, Lokoja, Kogi State; National High School, Arondizuogu, Imo State; Iheme Memorial Secondary School, Iheme, Imo State; Akokwa High School, Akokwa, Imo State; Opebi Junior Grammar School, Opebi, Lagos; Gbaja Girls Junior Secondary School, Surulere, Lagos; and Gbaja Girls Senior Secondary School, Surulere, Lagos.

 

Expressing gratitude for the timely support, Hajiya Aisha Shehu Yakasai, Principal of Government Girls Secondary School in Kundila, Kano, said the essentials “meet real and urgent needs” and have eased the burden on families. Aso, Madam Maji-Abu Omanyo Esther, Principal of Fortune Secondary School, Lokoja, described the gesture as one that “brought joy and will positively impact academic performance.”

 

Commending the Bank for restoring pride among beneficiaries, Mrs. Erdoo Lortyom, Vice Principal at Model Junior Secondary School, Maitama, Abuja, noted that many students come from homes where parents cannot afford these items while Mrs. Dabiri Nwabuoku Adetoun Iyabo, Principal of Gbaja Girls Junior and Senior Secondary Schools, Surulere, thanked Polaris Bank for its “consistent yearly gesture,” assuring that the materials will be put to excellent use.

 

Representatives of the Bank reiterated their commitment to improving access to education.

 

In Kano, Branch Head, Mr. Madiebo Godwin, reaffirmed the Bank’s dedication to “championing access to quality learning,” while in Lokoja, Business Development Manager, David Ojonugwa, encouraged students to “make the best use of the materials and stay committed to success.”

 

Speaking in Imo State, the Bank’s Business Development Manager for Urualla Branch, Mr. Peter Nnamani, urged students to aim high, noting that every career dream “begins with dedication in school.”

 

 

 

Project Manager of Evolve Charity Trust, Mr. Godwin Ejeh, noted that investing in a child’s education “lights a candle that brightens entire communities,” noting the ripple effect witnessed across states visited during the distribution.

 

 

 

The initiative aligns with the United Nations Sustainable Development Goals, particularly SDG 4: Quality Education and SDG 5: Gender Equality, by promoting inclusive access to education and reducing gender-based barriers that keep girls out of school.

 

 

 

Polaris Bank affirmed its continued commitment to partnering with credible development organisations to deliver sustainable educational impact across Nigeria.

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