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FG Introduces 50% Tax Relief For Companies Increasing Low-Income Worker Salaries

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In a bid to strengthen support for low-income workers and stimulate job growth, the Federal Government has introduced a bill proposing a 50 percent tax relief for companies that raise salaries or provide transportation allowances for employees earning below N100,000 per month.

This move is part of broader tax reforms under the proposed “Nigeria Tax Act,” aiming to overhaul Nigeria’s tax system.

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The bill, titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters,” was presented to the National Assembly for review.

If enacted, the law will enable companies to qualify for a tax deduction in their 2023 and 2024 assessment years, covering wage increases and transportation subsidies for eligible workers.

The tax relief is limited to companies that support low-income employees and does not extend to additional wages for staff with monthly salaries above N100,000.

Additionally, the proposal incentivizes companies to increase their workforce.

Firms that achieve a net increase in hires from 2023 to 2024 and retain these employees for at least three years will qualify for the deduction, provided employees are not involuntarily terminated within this period.

“A company shall be entitled to an additional deduction of 50 per cent…for costs incurred in 2023 and 2024 calendar years on wage awards, salary increases, transportation allowance or transport subsidy,” the bill specifies, outlining provisions that focus on protecting workers’ earnings and employment stability.

Beyond wage relief, the government has also proposed an Economic Development Incentive Certificate as a tax incentive for companies undertaking capital investments.

To obtain the certificate, companies must apply through the Nigerian Investment Promotion Commission (NIPC) and pay a 0.1 per cent fee on their capital expenditure, capped at N5 million.

After the NIPC’s review, applications will be forwarded to the Minister and may be escalated to the President for approval.

This proposed tax bill marks a major shift in Nigeria’s tax policy, designed to boost employment, support low-income workers, and encourage corporate investment in capital projects.

 

NEWS

JUST IN: Senate Approves Tinubu’s ₦1.77trn Loan Request

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To address Nigeria’s ₦9.7 trillion budget deficit for the 2024 fiscal year, the Senate has approved President Bola Ahmed Tinubu’s request to secure a ₦1.77 trillion ($2.2 billion) loan.

The decision was made during Thursday’s plenary session, where a voice vote confirmed the approval following the presentation of a report by the Senate Committee on Local and Foreign Debts.

RELATED NEWS: Tinubu Seeks ₦1.767tn Loan to Tackle 2024 Budget Deficit

Chaired by Senator Wammako Magatarkada (APC, Sokoto North), the committee endorsed the loan request as a vital step in managing the country’s fiscal challenges.

Recall that President Tinubu had submitted the proposal earlier in the week, outlining the loan as a crucial component of his administration’s external borrowing strategy.

 

 

 

 

 

 

Details shortly………….. 

 

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NEWS

Finnish Police Arrest Simon Ekpa Over Terror-Related Allegations

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Simon Ekpa, a Finnish citizen of Nigerian descent, has been arrested by Finnish authorities on allegations of inciting terrorist activities.

The Päijät-Häme District Court ordered his detention following an incident that reportedly occurred in Lahti on August 23, 2021.

READ ALSO: Policeman Feared Dead As Gunmen Attack Checkpoint In Abia

The Finnish National Bureau of Investigation (NBI) is also seeking the arrest of four other individuals in connection with the case. Officials say the charges involve public incitement to commit crimes with terrorist intent.

“The detention demands are related to a preliminary investigation in which a Finnish citizen of Nigerian descent, born in the 1980s, is suspected of public incitement to commit a crime with terrorist intent,” the police said in a statement.

Details regarding the additional suspects or the specifics of the alleged crimes remain unclear as the investigation continues. Authorities have emphasized the sensitive nature of the case, stating that further information will be disclosed as the inquiry progresses.

This development marks a significant step in Finland’s efforts to combat terrorism and ensure public safety.

 

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International News

COP29: Climate Summit Faces Deadlock Over Vague Funding Proposals For Vulnerable Nations

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As the 29th United Nations Climate Change Summit (COP29) nears its conclusion, tensions are rising over a newly published funding proposal aimed at assisting developing nations in addressing climate-induced crises.

The proposal, released by the United Nations Framework Convention on Climate Change (UNFCCC) on Thursday, has sparked widespread debate among delegations, activists, and observers at the summit.

The document, spanning ten pages, outlines funding options to support developing countries in implementing their Nationally Determined Contributions (NDCs) under the 2015 Paris Agreement.

READ ALSO: Osun Explains N75,000 New Minimum Wage

However, it fails to specify how much wealthier nations are required to contribute annually—a key sticking point that has drawn criticism from the Global South and climate advocates.

Ambiguity in Funding Commitments

Critics argue that the absence of concrete figures undermines the credibility of the proposed framework.

Mohamed Adow, Founder and Director of Power Shift Africa, described the proposal as “a blank piece of paper,” highlighting the lack of clarity on financial commitments.

“This is the ‘finance COP.’ We came here to talk about money. The way you measure money is with numbers. We need a cheque, but all we have right now is a blank piece of paper,” Adow remarked during an interview.

The Global South, led by African delegations, is demanding at least $1.3 trillion annually by the end of the decade to adapt to climate change impacts and transition to sustainable energy systems.

Yet, developed nations have yet to commit to a specific annual figure, raising concerns over the summit’s ability to deliver tangible outcomes.

Key Provisions and Concerns

The new text acknowledges the disproportionate impact of climate change on developing nations and the financial barriers they face, including high costs of capital and limited fiscal space.

READ ALSO: NNPCL Launches Utapate Crude Oil Blend, Eyes Production Expansion In 2025

It proposes the establishment of a New Collective Quantified Goal (NCQG) for climate finance, suggesting a framework of “at least USD [X] trillion annually” from 2025 to 2035.

However, the absence of defined numbers has led to frustration among negotiators.

David Tong, Global Industry Campaign Manager at Oil Change International, emphasized the critical role of finance in achieving meaningful progress.

“Without finance, there is no phase-out [of fossil fuels], no energy transition, no adaptation. The ambitious options are simply missing,” Tong stated during a press briefing.

Rising Frustration from the Global South

Delegates from the Global South have expressed dissatisfaction with what they perceive as weak commitments from developed nations.

Many fear that without concrete financial pledges, the summit’s outcomes may fall short of expectations.

“This summit is about delivering justice to those who suffer most from climate impacts. Wealthy nations must step up and provide the necessary funding,” said an African negotiator, speaking on condition of anonymity.

A Critical Juncture

With less than 48 hours remaining in the summit, the stakes are high. The COP29 negotiations in Baku, dubbed the “finance COP,” are expected to set a precedent for addressing the financial needs of vulnerable nations.

Delegates are calling on world leaders to finalize an ambitious NCQG target and bridge the growing divide between developed and developing nations.

 

 

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