NEWS
Governors Oppose VAT Hike, Approve Revised Sharing Formula
The Nigerian Governors Forum (NGF) has unanimously opposed any increase in the Value Added Tax (VAT) rate, emphasizing the need to maintain economic stability and safeguard citizens’ welfare amid ongoing fiscal reforms.
This resolution was contained in a communiqué issued after the governors’ high-level meeting with the Presidential Tax Reform Committee on Thursday in Abuja.
As part of efforts to promote fairness in resource allocation, the governors approved a revised VAT sharing formula.
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The new formula allocates: 50% based on equality, 30% on derivation, and 20% on population.
The NGF explained that this formula is designed to address disparities among states, ensuring smaller states are supported while encouraging subnational revenue generation.
The forum strongly objected to raising VAT rates, citing the negative impact on businesses and consumers.
They also opposed any reduction in Corporate Income Tax (CIT), maintaining that stability in taxation is crucial for economic growth.
To protect vulnerable citizens and enhance food security, the governors reiterated their call for the continued exemption of essential goods and agricultural produce from VAT.
NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, stated: “The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.
“Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability.
“The Forum advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.”
The governors also recommended that development levies allocated to key national agencies—including the Tertiary Education Trust Fund (TETFund), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA)—should be retained without terminal clauses.
“The meeting recommended that there should be no terminal clause for TETFund, NASENI, and NITDA in the sharing of development levies in the bills,” the communiqué noted.
The forum endorsed the ongoing legislative process at the National Assembly aimed at enacting comprehensive Tax Reform Bills.
“The meeting supports the continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the Tax Reform Bills,” the NGF stated.
The governors added by reaffirming their commitment to reforms that prioritize equity, fairness, and the welfare of Nigerians while modernizing the tax system to meet global standards.
The United States Supreme Court has upheld a contentious law that could see TikTok banned from U.S. app stores as early as this Sunday.
The decision hinges on TikTok’s ownership by its Chinese parent company, ByteDance, and has sparked significant debate regarding national security, data privacy, and the broader implications for social media platforms within the country.
The announcement was confirmed by DiscussingFilm, which reported, “The Supreme Court will uphold the TikTok ban. The app will likely be banned in the U.S. on Sunday.”
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This development follows ongoing concerns from U.S. lawmakers over the potential risks posed by TikTok’s ties to China, including fears about data harvesting and its alleged influence on American users. For months, the Biden administration and members of Congress have pressured ByteDance to divest TikTok’s U.S. operations to alleviate these concerns. However, no deal has been reached thus far.
The Supreme Court’s ruling has led to widespread discussions about the future of TikTok and other foreign-owned platforms in the United States. Some critics argue that the ban could set a dangerous precedent for limiting free expression, while others see it as a necessary step to protect national security.
As the deadline approaches, TikTok users and influencers in the U.S. are left scrambling to understand the implications of the ban and explore alternative platforms. Unless ByteDance complies with the government’s demand to sell the app, TikTok may disappear from U.S. app stores in the coming days.
Power supply has been disrupted in several areas of Abuja, including parts of the Presidential Villa, Maitama, Wuse, Jabi, Life Camp, Asokoro, Utako, and Mabushi, following an incident of cable vandalism.
The Transmission Company of Nigeria (TCN) disclosed that vandals targeted a 132kV transmission line, stealing underground cables and a 40-meter stretch of 1x500mm XLPE conductor.
The affected cables supply bulk electricity to the Central Area transmission substation in Katampe.
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“Consequently, areas experiencing power outage include Maitama, Wuse, Jabi, Life Camp, Asokoro, Utako, Mabushi, and parts of Presidential Villa,” TCN General Manager of Public Affairs, Ndidi Mbah, said in a statement on Friday.
Mbah confirmed that the incident has impacted eight distribution feeders, disrupting over 60 percent of the power supply to Abuja.
She further noted, “The vandalism of this critical infrastructure is suspected to have occurred near the Menillum Park axis of Abuja.”
In response to the disruption, the TCN has deployed engineers to repair the damaged cables. “We appeal to residents in the affected areas to remain patient while efforts to repair the damaged cables are underway,” Mbah added.
She also expressed concern about the recurring issue of cable vandalism, which continues to hinder power delivery nationwide.
Mbah called on Nigerians to remain vigilant and to help protect power infrastructure from further acts of vandalism.
The Abuja Electricity Distribution Company (AEDC) also issued a notice confirming the outage and its impact on customers.
“Dear Valued Customers, this is to inform residents around Federal Secretariat, Wuse Zone 1-7, Central Mosque, Energy Commission, Transcorp Hotel, Eagle Square, Yar’adua Centre, the entire Central Area, TCN HQ, CAC HQ, NYSC HQ, INEC, the entire Maitama, Kado Estate, parts of Jabi District, Area 7, 8 & 10 Garki, and its environs that the power outage being experienced is due to a fault on the 132kV lines 1&2 from Katampe to AT5 Central Area Transmission Station,” the notice read.
Efforts to repair the damaged cables are ongoing, with authorities working to restore power to the affected areas as quickly as possible.
The Appeal Court has affirmed Julius Abure as the National Chairman of the Labour Party (LP).
The confirmation was announced through a post on the Labour Party’s official X (formerly Twitter) handle.
It read: “Barr Julius Abure remains the LP National Chairman, Appeal Court Rules.”
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Further verification was provided by the Publicity Secretary of the party, Obiora Ifoh, who confirmed the development in a phone call.
This ruling follows a previous judgement by a Federal High Court, which had also recognised Abure as the rightful leader of the Labour Party.
The latest decision by the Appeal Court solidifies Abure’s leadership and is expected to bring clarity to the party’s internal structure.
More details on the ruling are expected to be released soon.
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