More Woes For Nigerians As Presidency Moves To Increase VAT Rate

The current financial woes of the Nigerian is set to get worse as the Presidential Committee on Fiscal Policy and Tax Reforms has put forth a proposal to increase the current Value Added Tax (VAT) rate.  Mr. Taiwo Oyedele the chairman of the committee, has highlighted the need for this change during a policy exposure session.  Currently set at 7.5 per cent, the proposed adjustment aims to restructure the revenue-sharing formula, with states and local governments set to receive a larger portion.  Oyedele stressed the importance of ensuring transparency and neutrality in VAT collection, emphasizing that the burden should fall on the ultimate consumer.  To mitigate the impact on small businesses and the underprivileged, certain essential goods and services would remain exempt from VAT.  He said, “We are proposing that the federal government’s portion should be reduced from 15 per cent to 10 per cent. States’ portion will be increased, but they would share 90 per cent with local governments. “In 1986, we had sales tax collected by states. The military came up with VAT in 1993 and stopped sales tax, so they said it would collect VAT and return 15 per cent as cost of collection, and that is the 15 per cent charged today came about. But we think it is too much. So we must make it transparent and neutral, and this is what over 100 countries where they have VAT are doing. “Nigeria’s economy is more than 50 percent in services and if I just stop at this, many states will be broke because VAT collection will go down by more than 50 percent and it won’t even fly. “So we, therefore, need to adjust the VAT rate upward. We would ensure that it doesn’t affect businesses. The only thing is to look at basic consumption from food, education, medical services, and accommodation will carry zero per cent VAT. So, for the poor and small businesses, no VAT.”

TUC Threaten Nationwide Strike Over Cybersecurity Levy 

The Trade Union Congress (TUC) has threatened a massive protest that will shut down the Nigerian economy should the Federal Government fail to cancel the controversial cybersecurity levy recently introduced by the Central Bank of Nigeria. The TUC in a statement signed by its President, Festus Osifo, on Wednesday, slammed the directive by the CBN to banks imposing a 0.5 per cent cybersecurity levy on almost all electronic transactions. This is after the Nigeria Labour Congress (NLC) had heavily criticised the levy which it described as another burden on Nigerians. Adding to the deluge of condemnations that have greeted the introduction of the levy which the CBN said will take effect in two weeks from May 6, the TUC said it is illogical that this is coming at a time that Nigerians are grappling with the high cost of living that is imposed by the devaluation of Naira, hyper hike in the cost of Petrol, supersonic increment in the cost of electricity tariff, etc. The union said it is disturbed that since the inception of the President Bola Tinubu-led administration, government policies have brought pain, anguish and sorrow to Nigerians. It lamented that account holders in Nigeria are already dealing with multiple taxation from both the Federal Government and the banks. The TUC berated the National Assembly for “colluding” with “elements in the executive” to “exploit” the citizens they ought to be protecting. Saying that all Nigerians are interested in right now is the urgent conclusion of discussions around the minimum wage and not a “vexatious policy”, the TUC urged the Federal Government to immediately direct the CBN to withdraw the circular to banks and cancel the levy forthwith. It said that it will be left with no option but to mobilize all its members, stakeholders and indeed the entire masses “to embark on the immediate protest that would culminate into the total shutdown of the Nigerian economy as this is one exploitation too many.”

Senate Moves Forward with Bill to Protect Domestic Workers and Employers

In response to the escalating cases of abuse and exploitation faced by domestic workers in Nigeria, the Nigerian Senate has taken a significant step forward by advancing a bill aimed at protecting the rights of domestic workers and their employers. Sponsored by Senator Hussaini Babangida of the People’s Democratic Party (PDP) representing Jigawa State, the bill passed its second reading on Wednesday following a comprehensive presentation of its core principles during plenary sessions. Senator Babangida emphasized the urgent need for legislative intervention, stating, “Over the years, there has been an increase in the incidents of assaults and abuse of domestic workers by their employers or hosts. These abuses ranged from slave labor, physical abuse, and sexual abuse among others.” He further highlighted the vulnerability of domestic workers in the informal sector, noting, “They are unionists and they do not have a collective platform to speak for themselves and therefore remain ostensibly vulnerable and helpless.” Addressing concerns about crimes involving domestic workers, Babangida pointed out, “On the other side of the coin, is the rise in the state of complicity of crimes committed by domestic workers mostly in connivance with other criminal elements of society against their employers or host. These bother on burglary, kidnapping, stealing of children, and sometimes outright murder.” The bill aims to document and safeguard the rights of domestic workers while also considering the security concerns of their employers, particularly in rapidly urbanizing cities such as Port Harcourt, Lagos, Abuja, and Kano. President of the Senate, Godswill Akpabio, referred the bill to the Committee on Labour and Productivity for further legislative inputs after it successfully passed its second reading. It is expected to return to plenary for deliberation in four weeks. Also in a related development, a bill seeking to amend the Chartered Institute of Accountants of Nigeria (ICAN) Act also progressed with its second reading at the Senate. Presented by Senator Solomon Adeola (APC-Ogun), the bill proposes amendments to strengthen ICAN’s collaboration with other professional bodies and regulatory authorities, both domestically and internationally. Adeola highlighted the necessity of updating the ICAN Act to align with the evolving needs of chartered accountants and the changing economic landscape. “The act empowered the Institute to set standards and regulate the practice of Accountancy in Nigeria,” he stated. Following the second reading, the bill was referred to the Committee on Establishment and Public Service for further legislative inputs and is expected to return to plenary for consideration in three weeks’ time.

Commercial Bus Conveying Women, Children Abducted in Otukpo, Benue State

The growing incidence of violent attacks and kidnap of villagers in a manner akin to guerilla warfare continues unabated in Apa, Agatu and parts of Otukpo and Ohimini Local Government Areas of Benue state as armed men suspected to be cattle herders have waged a relentless war, killing them in their numbers and abducting women, children and unsuspecting victims on a daily basis. The armed criminals also lay siege on the highway to kidnap wayfarers for ransom in order to sustain their crime economy. A source disclosed to Nigerian Anchor this Wednesday, May 8th, that in furtherance of their criminal enterprise, armed men suspected to be Kidnappers, yesterday, at a lonely section between two villages named Omutele and Ankpechi in Ohimini Local Government Area of the state, intercepted a commercial transport mini-bus belonging to Benue Links Transport Service and conveying passengers from Abuja to Otukpo. As at press time, the exact number of passengers affected cannot be verified, but first responders claim that victims were mostly women, while the minor were abandoned. Sources say that the abandoned children had been handed over to men of the Nigerian Police Force. It was also disclosed that one of the young men from the two villages who were mobilized and currently on a hot chase for the adaptors was short while another retreated for his dear life. Meanwhile, a few others are reported to continue with the quest, combing bushes and forests in frantic search for the victims and their abductors. A concerned villager who commented on the incident expressed the opinion that, “There are police posts in the area. The locales must be part of this, and that’s the great challenge.”

Since when did the office of the NSA become a revenue collecting centre?” – Peter Obi knocks Tinubu over Cybersecurity Levy” 

Former Anambra State governor Mr. Peter Obi has challenged the Tinubu-led government over the introduction of cyber security levy. He wrote: “The introduction of yet another tax, in the form of Cybersecurity Levy, on Nigerians who are already suffering severe economic distress is further proof that the government is more interested in milking a dying economy instead of nurturing it to recovery and growth. “This does not only amount to multiple taxation on banking transactions, which are already subject to various other taxes including stamp duties but negates the Government’s avowed commitment to reduce the number of taxes and streamline the tax system. “The imposition of a Cybersecurity Levy on bank transactions is particularly sad, given that the tax is on the trading capital of businesses and not on their profit, hence it will further erode whatever is left of their remaining capital, after the impact of the Naira devaluation and high inflation rate. “It is inconceivable to expect the suffering citizens of Nigeria to separately fund all activities of the government. Policies such as this not only impoverish the citizens but also make the country’s economic environment less competitive. “At a time when the government should be reducing taxes to curb inflation, the government is instead introducing new taxes. And when did the office of the NSA become a revenue collecting centre? “And why should that purely national security office receive returns on a specific tax as stated in the new cybersecurity law? -PO”

Tinubu Returns To Nigeria 

After a two-week absence from the country, President Bola Tinubu returned to Abuja early today, where he was greeted by top government officials.  Tinubu’s diplomatic journey commenced with an official visit to the Kingdom of the Netherlands on April 23, at the invitation of Prime Minister Mark Rutte. During his time in the Netherlands, Tinubu held discussions with prominent Dutch officials, including separate meetings with King Willem-Alexander and Queen Maxima. Additionally, he participated in the Nigerian-Dutch Business and Investment Forum. Following his engagements in the Netherlands, the President attended a special World Economic Forum meeting in Riyadh, Saudi Arabia, from April 28 to 29. The forum, themed “Global Collaboration, Growth, and Energy for Development,” convened leaders from various sectors to discuss global development strategies. However, after the conclusion of the summit on April 29th, the President’s whereabouts remained undisclosed, with the presidency providing no information while speculation arose regarding a potential private visit to Europe following his time in Saudi Arabia.

Bolt sacks 22 Nigerian workers

Bolt Nigeria, a technology-driven ride-hailing platform, on Tuesday said its restructuring efforts affected 22 employees that were laid off. The firm’s Communications Manager, Femi Adeyemo, confirmed this to our correspondent on the telephone on Tuesday. Adeyemo emphasised that Bolt Nigeria is not facing financial difficulties but is instead undergoing a restructuring process. “22 people out of 45 from a department were relieved of their jobs, not nearly half as claimed by some reports. “The department where it happened has 45 workers, not the whole Bolt. That number is not half of the workforce of Bolt,” he said. “The affected employees will receive comprehensive severance packages to support their transition to new career opportunities,” Adeyemo added. Subsequently, the e-hailing firm shared a statement that read, “Bolt has never done and is not doing any layoffs, which implies massively downsizing the team because the company is struggling financially. We have made the difficult decision to discontinue collaboration with 22 employees in Nigeria. “This decision comes as we have been going through the process of restructuring a considerable number of customer support and operational processes in the country. We have offered the people who will be leaving us severance packages that will support their transition to new career opportunities. “This decision does not affect the quality of our products for riders and drivers. We see great potential in Nigeria, and we will stand by our investment commitments in all our African markets.”

CBN Suspends Charges On Cash Deposits 

The Central Bank of Nigeria has decided to stop charging fees on cash deposits until September 30, 2024. The central bank shared this information in a memo dated May 6, 2024, signed by Adetona Adedeji, who is the director of banking supervision at CBN. CBN said,“Please refer to our letter dated December 11, 2023, referenced BSD/DIR/PUB/LAB/016/023 on the above subject, suspending processing charges imposed on cash deposits above N500,000 for Individuals and N3,000,000 for Corporates as contained in the “Guide to Charges by Banks, Other Financial Institutions and Non-Bank Financial Institutions” issued on December 20, 2019,” “The Central Bank of Nigeria (CBN) hereby extends the suspension of the processing fees of 2% and 3% previously charged on all cash deposits above these thresholds until September 30, 2024.”

Tinubu Is Getting His Health Care In Nigeria – Minister Says

Minister of State for Health and Social Welfare, Tunji Alausa, has disclosed that President Bola Tinubu is getting some health care in Nigeria. Alausa made this known in an interview on Channels Television on Tuesday. Recall that President Tinubu is yet to return to Nigeria days after the World Economic Forum (WEF) in Saudi Arabia. The president’s absence has ignited concerns about his whereabouts among many Nigerians. However, the Health Minister said President Tinubu’s absence from the country is not due to medical reasons. According to him, Tinubu is well, healthy and leading Nigeria in the right direction, as against speculations that the president is sick. Alausa noted that the current administration is concerned about developing the healthcare system for Nigerians. He said, “Let me tell you, we are developing a healthcare system for Nigerians not for the President. We have 220 million Nigerians and that’s what Mr President wants. “We have a president that is well, that is healthy and leading the country in the right direction. The president is getting some of his care in Nigeria.”

Foreigners earning more from mining than Nigerians, says Akpabio

Senate President Godswill Akpabio on Tuesday, May 7, lamented that foreigners are earning more from mining the nation’s solid minerals than Nigerians. Akpabio made this assertion in his speech before declaring open a three day investigative hearing on: “The need to comprehensively review the input and output values of the Nigeria mining industry in the light of its general role to economic diversification, foreign exchange earnings and social inclusion” in Abuja. The public hearing was organised by the Senate Committee on Solid Minerals Development chaired by Senator Sampson Ekong (PDP – Akwa Ibom South. Akpabio further said that the foreigners after exploitating the solid minerals and benefiting from them maximally, often leave behind a tale of woes including insecurity. He said time has come for the country to benefit from the mining sector while challenging stakeholders at the event to discuss the challenges that have hindered the growth of the mining sector and come up with a way forward.