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Tinubu sends Bill to NASS to consider increase in VAT from 7.5% to 10% by 2025
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The National Assembly is considering a bill proposing an increase in the value-added tax (VAT) from 7.5 percent to 10 percent.
VAT refers to a consumption tax on goods and services levied at each stage of the supply chain where value is added.
In the executive bill the national assembly is seeking to raise the tax rate 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.
VAT shall be charged on the value of all taxable supplies at the following rates (a) 2025 year of assessment 10%; (b) 2026, 2027 2028 and 2029 years of assessment 12.5% (c) 2030 year of assessment and thereafter 15%,” the document reads.
On May 8, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, had said the VAT rate needs to be increased.
Reacting to the recommendation on September 8, Atiku Abubakar, former vice-president criticised the proposed VAT hike, describing it as a “regressive and punitive policy”.
However, Wale Edun, minister of finance, on September 9, said the VAT rate has not been unchanged.
In February 2021, the International Monetary Fund (IMF) had advised the federal government to raise the VAT rate to at least 10 percent by 2022.
CIT TO BE REDUCED TO 27.5% BY 2025
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.
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% in 2025 year of assessment, and(ii) 25% from 2026 year of assessment,” the document added.
“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%, such company shall recompute and pay an additional tax that makes its effective tax rate equal to 15%.
“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 N20,000,000,000.00 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.”
On June 4, Oyedele had said the presidential committee on fiscal policy and tax reforms proposed a reduction of the CIT by 5 percent.
He said the tax rate should drop from 30 percent to 25 percent to encourage businesses and investors.
Credit source: Cable excluding headline
By Gloria Ikibah
The House of Representatives has approved a three-month extension of the implementation period for the capital component of the 2025 Appropriation Act, shifting the deadline from June 30 to September 30, 2026.
The decision was taken during an emergency sitting held on Monday, as lawmakers moved swiftly to ensure the continued execution of capital projects captured in the national budget.
The legislation, which seeks to amend the Appropriation (Repeal and Enactment) Act, 2025, was designed to provide additional time for Ministries, Departments and Agencies to complete ongoing projects and fully utilise funds earmarked for capital expenditure.
In an unusually rapid legislative process, the bill passed through its first, second and third readings during the same plenary session after members suspended the relevant provisions of the House Standing Orders to facilitate its consideration.
Leading debate on the general principle of the bill, House Leader, Rep. Julius Ihonvbere, said the extension was necessary as several capital projects captured in the 2025 budget had not been fully implemented.
He emphasised that the amendment was not intended to alter any provision of the budget but merely to extend its lifespan by three months to allow ongoing projects to be completed.
He said: “It is very straightforward. Because some aspects of the capital appropriation will not be fully implemented, if we do not extend the life of this particular law, it will have a very grave impact on the growth and development of the national economy.
“The purpose essentially is to extend the lifespan. We are not touching any part of the law. It is simply extending the lifespan from June 30, 2026 to September 30, 2026. I urge my colleagues to approve this so that we can continue with the work of developing and growing our economy and country”.
Presiding over the session, Speaker of the House, Rep. Abbas Tajudeen, acknowledged that the records provided by the Chairman House Committee on Appropriations and other relevant agencies revealed that implementation of the capital budget was yet to be completed.
“As you are aware, the 2025 budget was extended to June 30. From the records we received from the Chairman, Appropriations, and other relevant quarters, it is yet to be fully implemented. It is therefore in the best interest of this country and the National Assembly for us to extend the budget to September 30 to enable the Federal Government fulfil its obligations under the 2025 budget,” the Speaker said.
Following the adoption of the bill at second reading, the House dissolved into the Committee of Supply where it had the clause by clause consideration of the bill, and approved the three clauses, explanatory memorandum and long title of the bill.
The committee subsequently reported back to plenary, where lawmakers adopted its recommendations and suspended House rules to allow the bill to be read a third time and passed the same day.
The accelerated passage reflects growing concern over the pace of implementation of key infrastructure and development projects, many of which require additional time to reach completion.
With the approval, government agencies now have until the end of September to execute projects funded under the capital component of the 2025 budget, a move expected to prevent disruptions to ongoing works and improve budget performance.
The extension is also aimed at ensuring that resources already allocated for development projects are effectively utilised before the capital budget expires.
With the passage of the amendment, federal ministries, departments and agencies now have an additional three months to implement capital projects and utilize funds appropriated under the 2025 budget.
Meanwhile, the House also announced changes in the leadership of some standing committees.
The appointments are as follows:
• Rep. Ali Madaki – Chairman House Committee on Special Duties
• Rep. Ali Isa J.C. – Chairman House Committee on Shipping Services,
• Rep. Pascal Agbodike – Chairman House Committee on Small and Medium Enterprises Development Agency of Nigeria (SMEDAN),
• Rep. Kelechi Nwogu – Chairman House Committee on Hydrological Services
The Speaker urged the newly appointed committee chairmen to assume their responsibilities immediately and bring their legislative experience to bear in advancing the work of the House.
News
Day 4 of projects commissioning as President TInubu set to commission newly constructed Court of Appeal Building
President Tinubu will commission the newly constructed Court of Appeal (Abuja Division) Building today, 15/6/26 as FCT projects commissioning enters Day 4.
#FCTProjects2026
#RenewedHopeFCT
Plateau State commissioner for Health, Dr Nicholas Baamlong, has revealed that the state recorded 11 confirmed cases of cholera, five deaths and 53 suspected cases.
Baamlong, who disclosed this to journalists yesterday in Jos, said the confirmed and suspected cases were reported in Pushit, Mangu 1 and Mangu 2 communities in Mangu local government area (LGA).
According to him, the state Ministry of Health is intensifying public health interventions to contain the outbreak, prevent further spread and reduce its impact on affected communities.
He explained that the state had taken decisive actions to control the outbreak and protect its citizens via the deployment of additional Response Teams (RRTs) to the affected wards, scaling up of treatment centres and isolation capacity and the emergency procurement of Rapid Diagnostic Tests Kits, intravenous fluids and essential drugs.
The Commissioner further said that the ministry had activated an Incident Management System (IMS), for a comprehensive and multi sectorial response to the outbreak.
“The activation of the IMS ensures a coordinated, efficient, and accountable response structure in line with national and international emergency response frameworks,” he said.
Baamlong explained that cholera was an acute diarrhoeal disease caused by consuming food or water contaminated with the bacterium Vibrio cholerae.
He urged residents of Mangu LGA and neighbouring communities to remain vigilant and take preventive measures, including drinking safe water, maintaining proper hand hygiene, avoiding open defecation, and ensuring proper waste disposal.
He also advised residents to promply report suspected cases of cholera to the nearest healthcare facility for immediate attention.
While reaffirming the state government’s commitment to safeguarding the health and well-being of residents, Baamlong called on development partners and other stakeholders to support ongoing response efforts.(NAN)
2025 Capital Budget Gets New Lease of Life as Reps Push Deadline to September
Day 4 of projects commissioning as President TInubu set to commission newly constructed Court of Appeal Building
Cholera Outbreak: Plateau Records 5 Deaths, 11 Confirmed Cases
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