NEWS
FG Introduces 50% Tax Relief For Companies Increasing Low-Income Worker Salaries
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.
READ MORE: Alleged $6bn Fraud: EFCC Amends Charges, Advances More Evidence Against Agunloye
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
Ibadan Funfair Tragedy: Former Ooni’s Wife, Others Remanded Over Stampede
A Chief Magistrate’s Court in Iyaganku, Ibadan, has ordered the remand of Naomi Silekunola, the former wife of the Ooni of Ife, along with Oriyomi Hamzat, the CEO of Agidigbo FM, and Abdullahi Fasasi, the Principal of Islamic High School, at the Agodi Correctional Centre.
The trio was arraigned on Tuesday in connection with the recent tragic stampede that occurred during a Christmas funfair at Islamic High School, Bashorun, Ibadan.
The incident, which claimed the lives of 35 children and injured six others, has drawn widespread public and legal attention.
Presiding over the case, Chief Magistrate Olabisi Ogunkanmi issued the remand order following charges brought against the defendants. The police prosecutor stated that their alleged offences contravened Section 324 of the Criminal Code, Cap. 38, Vol. II, Laws of Oyo State, 2000.
READ MORE: States Tighten Measures To Prevent Stampedes At Events
The prosecution accused the defendants of being involved in the organization of the event, which turned disastrous, leading to the stampede. Pending legal advice from the Oyo State Director of Public Prosecutions, the court directed their detention at the correctional facility.
The court session, held amidst heavy security, attracted significant public interest. Law enforcement officers were seen providing tight security as the suspects were escorted to and from the courtroom.
Further updates on the legal proceedings are expected as investigations continue.
NEWS
Labour Kicks Against N935/Litre Petrol, Wants More
A cry has gone out for further reduction of the pump prices of premium motor spirit (PMS) in Nigeria to reflect local domestic production of refined products.
The Nigeria Labour Congress (NLC)has urged further reduction in the pump price of Premium Motor Spirit (PMS) otherwise known as petrol, insisting that the recent drop in price to N935/litre was begging the situation.
Recall that the Dangote Petroleum Refinery in partnership with MRS recently announced a reduction in petrol price to N935/litre.
Before the announcement, the commodity sold for over N1,030/litre in Lagos and environs, while it cost more than N1,060/litre in Abuja and Northern states.
ALSO READ: CSOs Urge Further Reduction Of Pump Prices Of Petrol
In a swift reaction, on Sunday, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said its members would be selling petrol at N935/litre from Monday based on the latest arrangement with the Dangote Petroleum Refinery.
IPMAN’s National President, Maigandi Garima,, according The Punch, said the reduction in Dangote refinery’s ex-depot price for petrol and the uniform arrangement being put in place, would enable marketers to sell at N935 in their outlets nationwide.
They had set aside N36/litre as cost of logistics.
However, the announcement did not excite the NLC, which insisted on Monday that the cost of petrol should drop further.
A senior official of the NLC, Chris Onyeka, unequivocally rejected any commendation for the Federal Government and the Nigerian National Petroleum Company Limited (NNPC Ltd) over the recent reduction in the pump price of petrol.
He argued that the current pricing mechanism does not reflect the true cost of the commodity, according to The Punch.
“Do you want us to clap for them? How can we be okay with a price of N935/litre of PMS? This is not the right price for PMS. You cannot base the price on imported products when we have refining capacity in Nigeria,” he said.
He argued that the costs embedded in the current pricing framework — including foreign labour, freight charges, insurance, logistics, and profits accrued abroad — unfairly burden Nigerians.
“Products are refined in Nigeria, yet the price you give Nigerians is based on imported products. Why should we applaud that? It is akin to someone stealing your money and returning only part of it, then expecting you to clap. We cannot applaud this,” he stated.
Onyeka stressed that the only way to ascertain the correct price of PMS is by determining the actual cost of refining it domestically.
“We need to know how much it costs the NNPC to refine a litre of PMS in our local refineries, such as the Port Harcourt refinery. That is the price Nigerians should be paying,” he emphasised.
He called on the government to prioritise the welfare of Nigerians by ensuring that fuel pricing aligns with local realities.
“This country belongs to all Nigerians. Let the government do the right thing that allows Nigerians to breathe. Let the poor breathe.
“The NLC’s position underscores growing discontent among Nigerians over the rising cost of living, with fuel prices being a major contributor to inflation and economic hardship,” he stated.
NEWS
No Regrets On Subsidy Removal, Tax Reforms To Continue – Tinubu
President Bola Tinubu, during his first Presidential Media Chat aired on the Nigerian Television Authority on Monday, reaffirmed his administration’s commitment to the ongoing tax reforms and subsidy removal, maintaining that the measures are essential to securing Nigeria’s economic future.
The tax reforms, designed to eliminate colonial-era practices and widen the tax net, have faced significant resistance from some quarters, particularly from northern lawmakers and governors. Despite this, Tinubu declared, “Tax reform is here to stay. We cannot just continue to do what we were doing yesteryears in today’s economy.”
The reforms, encapsulated in four bills transmitted to the National Assembly, aim to streamline taxation and revenue generation.
However, critics, including Borno State Governor, Babagana Zulum, have argued for caution. “The Petroleum Industry Bill took almost 20 years before it was finally passed. This tax reform bill is being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution,” Zulum said in an interview with BBC.
Despite calls for broader consultations and delays, Tinubu emphasized the pro-poor nature of the reforms, noting that the vulnerable would not be taxed. “The essence of the tax reform is to eliminate colonial-based assumptions in our tax environment,” he stated.
READ MORE: President Tinubu Set For First Nationwide Media Chat Tonight
No Regrets Over Subsidy Removal
Addressing the economic hardship resulting from the removal of the petrol subsidy, Tinubu defended his decision as necessary to prevent Nigeria from “spending its future.” He dismissed the notion of a phased removal, stating, “Phased removal is part of unnecessary fear. No matter how you cut it, you still have to meet the bills.”
The President highlighted the benefits of subsidy removal, pointing out that the policy had curtailed smuggling and freed up resources for more productive uses. “There is no way that you give out fuel and allow all the neighbouring countries as Father Christmas. I don’t have any regret whatsoever in removing the subsidy,” he said.
Tackling Inflation and Corruption
Tinubu also discussed his administration’s strategies to reduce inflation, emphasizing local production and import reduction. “If one produces more for consumption locally, stop imports, give a reasonable level of funding and assistance… we have what it takes,” he explained.
On corruption, the President cited increased earnings for workers and stricter oversight by anti-corruption agencies as key measures. He pointed to the recent seizure of hundreds of properties reportedly owned by a former Central Bank Governor as evidence of his administration’s efforts. “Part of the anti-corruption is removal of subsidy. It is very difficult to eliminate but you reduce it to the barest minimum,” Tinubu stated.
Food Stampedes and Governance
The President expressed condolences over recent tragic stampedes during food distribution events, attributing the incidents to poor organization by event planners. “If you don’t have enough to give, don’t attempt to give or publicize it,” he warned.
Tinubu concluded by reaffirming his commitment to efficient governance and economic reforms, stating, “The hallmark of a good leader is the ability to do what you have to do at the time it has to be done.”
The reforms continue to spark nationwide debates, with stakeholders divided over their potential long-term impacts.