News
How Proposed Tax Reforms Will Address Current Imbalance – FIRS Chair, Zacch Adedeji
The FIRS Chairman explained that the current VAT sharing arrangement primarily benefits Lagos, the FCT, and Rivers—states where most corporate head offices are located.
He further noted that the proposed reforms aim to address this imbalance by introducing a derivation principle model, ensuring a more equitable distribution of VAT revenues to all states, regardless of their economic status.
Today, I just reeled out of the data on this month of October sharing. I just signed it in on Friday. Today, Lagos will take 42% of the VAT. Rivers will take 16%. Oyo State will take 5.2%, FCT will take 9%. If you take those 3 States, they are taking more than 70% of the tax.
“Why? Because those are the places where the head offices of those places are. And we know that 70% of consumption is not happening in those three states.
So in whatever way you look at it, there is no way every other state apart from Lagos, Rivers, FCT, benefits from the proposed tax bill.
“If you look at it, MTN contributed highest, but because MTN headquarters is in Lagos, all the allocation from MTN is being accrued to Lagos. So, when this bill is passed, all states will benefit irrespective of the kind of economic situation that is happening in Nigeria,” Adedeji said.
Derivation Principle for Consumption Tax
In addition, the FIRS Chairman clarified that the derivation principle model applies specifically to consumption tax or Value Added Tax (VAT).
In his address, Adedeji emphasized that this model should not be mistaken for the derivation principle applied to oil-producing states, which is based on the location of production.
He explained that, in the case of consumption tax, derivation means the funds will be allocated to the states where the commodity is consumed, rather than the states where corporate head offices are situated.
“On derivation, I see there is a mix-up here. We have the oil and gas. If you look at the oil and gas, where they produce is where we sell and collect money from the oil. That’s why it is limited to their States.
“VAT by definition is a consumption tax. If you use derivation in VAT, what it means is that where is it consumed. Where do you make the call? Where is the bank transaction done? What the bill seeks to correct is that the existing structure we have does not represent the intent of Nigeria,” Adedeji added.
What you should know
The new tax bills under consideration in the National Assembly propose adopting a derivation principle in the allocation of VAT revenues between the federal government and sub-national entities.
These proposals have sparked controversy, with northern elites openly rejecting them, arguing that the changes may not favor their region.
Under the current Section 40 of the VAT Act, VAT revenue is allocated as follows: 15% to the Federal Government, 50% to the States and Federal Capital Territory (FCT), and 35% to Local Governments. The allocation to states and local governments incorporates a derivation principle of at least 20%.
Although not explicitly detailed in the VAT Act, other factors influencing the distribution include 50% based on equality and 30% based on population.
Additionally, 4% of collections are allocated to the Federal Inland Revenue Service (FIRS) as a collection fee, while 2% goes to the Nigeria Customs Service (NCS) for import VAT.
News
Delta NMA Declares Blessing CEO’s Cancer Report Fraudulent
The Nigerian Medical Association (NMA), Delta State branch, has officially debunked the cancer claims made by relationship influencer Blessing Okoro, popularly known as Blessing CEO.
In a statement on Tuesday, the association revealed that the document is an altered version of an original medical report belonging to a different patient diagnosed with breast cancer.
The statement, jointly signed by NMA Delta State Chairman, Dr. Israel Adaigho, and Secretary, Dr. Usamah Hannah, was sighted by The Nation on Tuesday.
According to the NMA, the viral report was purportedly issued by Xinus Medical Diagnostics and signed by consultant pathologist Dr. O.A. Odigwe.
However, Dr. Odigwe, who is the proprietor of the diagnostic centre, clarified that his facility never issued any report to Blessing Okoro.
The association explained that Xinus Medical Diagnostics is located in Asaba, Delta State not Enugu State as claimed in the circulating document.
The centre was contacted in May 2025 by a doctor from a private hospital in Asaba to conduct a confirmatory histology test for a patient identified as Mbara Deborah, who had a suspected case of breast cancer.
The test confirmed breast cancer, and the original result was issued to the referring doctor on May 9, 2025.
The NMA stated that the document currently being paraded online by the law firm Allen Juris Law is the original report bearing the name Mbara Deborah.
The version linked to Blessing CEO appears to be a doctored copy of this same report.
The statement read in part: “Our attention has been drawn to an online histology report purportedly issued to one Blessing Okoro, aka Blessing CEO, by Xinus Medical Diagnostics allegedly located in Enugu State. The said histology report was also alleged to have been signed by Dr. O.A. Odigwe, a consultant pathologist.
“The proprietor of Xinus Medical Diagnostics, Dr. O.A. Odigwe, who is also a member of the Nigerian Medical Association, Delta State chapter, has reached us and offered the following clarification: that Xinus Medical Diagnostics is located in Asaba, Delta State and did not at any time issue any report to Blessing Okoro.
“The centre was contacted in May 2025 by a doctor from a private hospital in Asaba to do a confirmatory test on a possible case of breast cancer for a patient, Mbara Deborah. The test was done and the result issued to the referring doctor as a case of breast cancer on May 9, 2025.
“A copy of that result is the one currently being circulated online by the law firm, Allen Juris Law, with the name Mbara Deborah as the patient. That result from the law firm is the original version issued to the patient through her hospital.”
The NMA said the clarification became necessary because of the way the altered report was allegedly being used to solicit public sympathy and financial assistance.
It urged the public to be cautious and warned against actions that could tarnish the integrity of medical professionals.
The association also called on relevant security agencies to take appropriate steps to protect unsuspecting members of the public.
“The integrity of our association and its members is very paramount and should not therefore be taken for granted.
“We call on the authorities responsible for maintaining law and order to do the needful and save unsuspecting members of the public from being unduly taken advantage of,” it added.
Recall that Blessing CEO recently solicited financial help from the public for the treatment of what she claimed was stage four cancer.
Following widespread backlash and allegations that her medical report had been edited, she made a U-turn, stating in an interview: “I don’t have stage 4 cancer. That was a miscommunication.”
News
Abuja Court Jails Boko Haram Food Supplier, Hamatu Modu For 40 Years
Justice Binta Fatima Nyako of the Federal High Court in Abuja has sentenced Hamatu Modu, a major food supplier for Boko Haram terrorists, to 40 years imprisonment for his involvement in terrorism activities.
Modu, who confessed in the open court to supplying food items and information to terrorists, was put on trial by the federal government through the Attorney General of the Federation and Minister of Justice.
He was slammed with 4- count charges and instantly pleaded guilty to them.
The Director of the Public Prosecution of the Federation, DPPF, Rotimi Oyedepo, SAN, led the prosecution.
In his judgment, Justice Nyako sentenced him to 10 years on each of the count but due to the plea of the defense counsel, the judge ordered that the 40 years imprisonment should run concurrently, giving the convict opportunity to spend only 10 years.
In another development, Isah Ali, another food supplier also in Borno, was jailed 10 years by Justice Nyako.
His jail term will, however, start three years ago when he was arrested and clamped into detention.
The convict confessed to committing the offence as charged.
Justice Nyako ordered that the convicts be made to undergo rehabilitation and radicalization at the end of their service of the jail terms.
The Federal Ministry of Interior was ordered to determine where the two men will serve their jail terms.
News
Just In: Kebbi Assembly Speaker Muhammad Ankwai Passes Away
The Speaker of the Kebbi State House of Assembly, Muhammad Usman Ankwai has passed away in the late hours of Monday, 6 April 2026.
Ankwai, who represented Zuru Constituency under the All Progressives Congress (APC), was elected Speaker at the inauguration of the 10th Assembly on June 8, 2023.
Details surrounding the circumstances of his death were not immediately disclosed at the time of filing this report.
His death has, however, triggered an outpouring of condolences from fellow lawmakers, political associates, and residents across Kebbi State, many of whom have described him as a dedicated public servant who contributed to legislative development in the state.
Further announcements regarding burial arrangements are expected to be made by his family soon.
-
News23 hours agoAbuja Court Jails Boko Haram Food Supplier, Hamatu Modu For 40 Years
-
News20 hours agoDelta NMA Declares Blessing CEO’s Cancer Report Fraudulent
-
News1 day agoGbenga Daniel Slams Successor As ‘Enfant Terrible’ Who Showed Him Hell
-
News1 day agoJust In: Kebbi Assembly Speaker Muhammad Ankwai Passes Away
