News

Tinubu sends Bill to NASS to consider increase in VAT from 7.5% to 10% by 2025

Published

7 months ago

October 14, 2024

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

News

Spokesperson Of Foreign Affairs Ministry Joins NIPR Ranks

Published

2 hours ago

May 22, 2025

Gloria Ikibah

By Gloria Ikibah

Spokesperson for the Ministry of Foreign Affairs, Kimiebi Imomotimi Ebienfa, has been formally inducted into the Nigerian Institute of Public Relations (NIPR), marking a notable milestone in his professional journey.

Ebienfa was among 103 individuals welcomed into the prestigious institute during a ceremony held in Uyo as part of the 2025 NIPR Week on Thursday.

The event highlighted the evolving role of public relations in governance and international affairs, emphasizing its relevance to diplomacy and national image-building.

Ebienfa, known for his effective stewardship of the Ministry’s communications portfolio, has played a visible role in articulating Nigeria’s foreign policy objectives and fostering constructive engagement with both local and international audiences. His inclusion in the NIPR is seen as a fitting recognition of his contributions to public service and strategic communication.

In a statement, the Ministry of Foreign Affairs extended its congratulations, describing the induction as “well-deserved” and reaffirmed its ongoing commitment to professional communication practices in the discharge of its responsibilities.

News

Grassroots Engagement Key to 2027 Success – Speaker Abbas

Published

2 hours ago

May 22, 2025

Gloria Ikibah

By Gloria Ikibah

The Speaker House of Representatives, Rep. Tajudeen Abbas, has urged members and supporters of the All Progressives Congress (APC) to document and highlight key policy outcomes of the current administration as part of early outreach efforts ahead of the 2027 general elections.

Speaking during the APC National Summit held on Thursday at the Presidential Villa in Abuja, under the theme ‘Renewed Hope Agenda: The Journey So Far’, Speaker Abbas emphasised the importance of communicating governance efforts effectively to communities across the country.

Reflecting on President Bola Ahmed Tinubu’s inaugural commitments on May 29, 2023, which included a target of six percent annual economic growth, restructuring of the foreign exchange system, employment generation, and security enhancement, Abbas noted that visible progress has been made.

According to the Speaker, “remarkable strides” have been recorded since those pledges were made. He pointed out that these goals have anchored the current administration’s policy agenda, producing significant reforms aimed at stabilizing Nigeria’s economic framework and setting a course for long-term development.

He said: “Mr. President, fellow party members, as we turn our gaze toward 2027, we must acknowledge both the achievements we have made and the challenges that lie ahead. Now is the time for every APC stakeholder to intensify grassroots engagement. Now is the time for every APC stakeholder to articulate our records in clear and compelling terms. Now is the time for every APC stakeholder to take our message directly to our communities.

“An electoral victory in 2027 will not be won on paper alone. It can only be secured by the confidence we inspire among our people. We can only inspire confidence by demonstrating how our policies are improving people’s lives and how they will continue to enhance the lives of Nigerians.

“All of us MUST effectively market the successes of the Tinubu administration, specifically the recovery of fiscal health, the job creation drive, the expansion of infrastructure, and the security gains. Every APC governor, every APC Senator and Member, every Minister and Commissioner, every Special Adviser and Assistant, every Board Member, and indeed every political appointee of this government MUST also collaborate with the President to translate his initiatives into tangible benefits that resonate with citizens across every ward.”

Speaker Abbas stated that the journey has proven that decisive leadership, fiscal discipline, and cohesive action yield results. He said the 2025 budget’s dual emphasis on austerity and strategic investment, respect for the autonomy of the Central Bank of Nigeria (CBN) in managing ₦22.7 trillion in inherited financing, and alignment of legislative instruments with the executive vision exemplify the party’s capacity to govern with both rigour and empathy.

“We MUST now marshal these successes into an energetic campaign for 2027, ensuring that our party’s narrative of renewal and stability becomes the clarion call at every town hall and market square,” he stressed.

Speaker Abbas pointed out that the moment demands realism and ambition in equal measure. He stated that APC faithful must neither rest on laurels nor succumb to complacency. Instead, he said it is the time to deepen outreach, sharpen messaging, and forge an unbreakable bond between the APC and the people it serves.

“By selling our record relentlessly and listening attentively, we will carry the Renewed Hope Agenda forward into the next electoral cycle. I have no doubt in my mind whatsoever that come 2027, Mr. President and our Party will secure a resounding mandate that confirms our capacity to deliver on the promise of a prosperous Nigeria.

The Speaker said recently, high-profile figures have joined the APC along with numerous federal lawmakers from Kano, Osun, Kebbi, Delta, and Edo, raising the total number of defections in the House to 25. “With reports of further crossovers from PDP and Labour Party governors on the horizon, these moves underscore the momentum of the APC and position us as the party to beat in 2027,” he added.

He further noted that the 10th National Assembly is “undoubtedly the most fortunate since the return to democracy in 1999.” This, he said, is not only because a significant number of former legislators now serve in the Executive, including the President himself, but also due to President Tinubu’s unequivocal recognition of our vital role in grassroots development.

He said President Tinubu has worked tirelessly to ensure that the National Assembly’s ability to respond to the needs of our constituents is significantly strengthened by providing increased budgetary allocations for constituency projects.

“This deliberate partnership between the Presidency and Parliament has empowered Senators and Members to deliver tangible improvements in health, education, and infrastructure,” he noted.

News

Sugar Sector Eyes Reform as Industry Players Back Overhaul of Regulatory Framework8

Published

3 hours ago

May 22, 2025

Gloria Ikibah

By Gloria Ikibah

Major players in Nigeria’s sugar sector have voiced support for revamping the regulatory landscape industry under the National Sugar Masterplan (NSMP), a policy designed to shift Nigeria from heavy sugar imports to domestic production and export.

At a public hearing held at the National Assembly, representatives from the National Sugar Development Council (NSDC), Nigeria Customs Service, NAFDAC, BUA Group, Flour Mills of Nigeria, and consulting firm NINA-JOJER engaged lawmakers over proposed changes to the National Sugar Development Council Act.

The draft amendment titled: “A Bill for an Act to Amend the National Sugar Development Council Act and for Related Matters” (HB.2022 and HB.2030), seeks to redefine the Council’s powers and ensure all funds it collects are remitted to the Federation Account, aligning with constitutional provisions.

The Executive Secretary NSDC, Kamar Bakrin described the sugar plan as a blueprint for long-term economic impact, citing goals such as the creation of 100,000 skilled jobs, rural development, and a projected $1 billion annual cut in foreign exchange outflows.

Bakrin raised concerns over the recent directive mandating that 50% of the sugar levy be remitted to the Consolidated Revenue Fund (CRF), warning that such measures could undermine the sector’s transformation goals.

“To realize this vision, we require $4.5 billion in investments, which the Council is actively working to attract. Investor confidence is critical, and that confidence hinges on transparent, rule-based policies.

“The sugar levy was specifically introduced to fund the development of the sector, unlike import duties. Redirecting those funds could derail the country’s industrial ambitions,” he stated.

He added that the NSDC has established a technical committee to thoroughly review the proposed amendments and provide feedback.

Representiive of the Director General of NAFDAC, in person of Iba Edward expressed the agency’s support for the bill’s intent to enhance the Council’s regulatory capacity.

However, he cautioned that some of the proposed provisions overlap with the core regulatory functions of the Agency as outlined in Section 5 of the NAFDAC Act.

“We urge the National Assembly to clearly delineate the roles of NSDC to avoid conflict and duplication. NAFDAC remains the regulatory authority for all food imports, including sugar, to ensure consumer safety and quality standards,” he said.

Also speaking, Assistant Comptroller General of Customs, K.C. Egwuh, affirmed the Nigeria Customs Service’s commitment to its revenue collection mandate under Nigeria’s fiscal laws. He reiterated the agency’s support for efforts to enhance transparency and efficiency in the sugar industry.

Representing BUA Group, a former Minister Dr. Aliyu Idi Hong expressed the company’s firm commitment to the NSMP, noting BUA’s substantial investments in the sector.

Hong, however, urged policymakers to consider the economic impact of regulatory changes on both producers and consumers.

“We have developed a nearly 50,000-hectare sugar plantation, with 20,000 hectares already under cultivation, and we’re acquiring another 50,000 hectares. While we’re not where we want to be yet, we are making progress.

“Fiscal policies must be holistic and sensitive to the realities of Nigerians. As a socially responsible company, we support the backward integration policy and commend the ongoing reforms”, he asserted.

On behalf of Flour Mills Nigeria, Head of Government and Community Relations, Onome Okurah, acknowledged the challenges in the sector but stressed the company’s continued dedication.

“We operate on over 6,000 hectares and currently run sugar production for three to four months each year. We believe that with sustained collaboration, we’ll see meaningful progress in the next decade,” he said.

The consulting firm NINA-JOJER also made submissions at the hearing, raising concerns about the bill’s provisions on the utilization of the sugar levy, quota allocation, expanded regulatory roles, and enforcement mechanisms. The firm called for clarification of grey areas to ensure transparency and effectiveness.

Earlier in his opening address, the Committee, Rep. Enitan Dolapo Badru, explained that the hearing was part of efforts to develop inclusive legislation that will strengthen the capacity of NSDC to drive the NSMP.

“We urge all stakeholders to contribute constructively. Our goal is to build a sustainable and competitive sugar industry that creates jobs, improves livelihoods, and contributes significantly to national development,” he said.

In his remarks, Minister of Industry, Trade and Investment, Dr. John Owan Eno, emphasised sugar’s potential in achieving President Bola Tinubu’s $1 trillion economy vision.

The Minister noted that while the sugar industry has benefited from over $2 billion in incentives under the first and second phases of the Masterplan, its contribution to the economy remains underwhelming—estimated at just $30 billion.

“Sugar plays a critical role in rural development, job creation, and national value generation. The NSMP is a vital component of our industrialization drive. However, its success depends on the collective attitude and accountability of both public and private sector actors.

“This amendment is intended to strengthen the law, correct past lapses, and ensure we achieve real import substitution and sustainable local capacity,” he said.