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 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.
The Dangote Petroleum Refinery has announced an increase in the price of Premium Motor Spirit (PMS), commonly referred to as petrol.
The revised price, which takes effect from Friday, January 17, 2025, sets the cost at N955 per litre for marketers purchasing between 2 million and 4.99 million litres. Those buying 5 million litres and above will pay N950 per litre.
This adjustment represents a 6.17% increase from the previous price of N899.50 per litre set in December 2024.
In an official statement, the refinery disclosed: “Kindly be advised that effective from 5:30 PM today, an upward adjustment has been implemented on the gantry price of Premium Motor Spirit.
Quantity and Price Adjustments:
2 million–4.99 million litres: N955 per litre
5 million litres and above: N950 per litre
“Please note that all stock balances yet to be lifted as at the above-stated time are to be repriced at the new reviewed prices.
“We shall communicate with customers on their revised volumes based on the reviewed prices, in due course.”
This price increase has sparked discussions among marketers and stakeholders as it reflects a continued trend of rising fuel costs in the country.
President Bola Ahmed Tinubu has mandated the completion of the Abuja-Kano Expressway within 14 months, underscoring his administration’s commitment to fast-tracking critical infrastructure projects.
The announcement was made on Thursday by the Minister of Information and National Orientation, Mohammed Idris, during an inspection of the project site in Tafa, Niger State.
Idris, accompanied by the Minister of Works, Senator Dave Umahi, and members of the National Assembly, highlighted the President’s determination to ensure the project’s timely delivery.
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In a statement issued Friday by his media aide, Rabiu Ibrahim, Idris disclosed that sections of the original contract handled by Julius Berger PLC were revoked and reassigned to a new contractor due to delays.
He emphasized that the revised timeline reflects the President’s resolve to deliver the project on schedule.
“Mr. President is determined to see the completion of this project within the revised timeline. We will not allow any contractor to hold us to ransom.
“The target of 14 months is achievable, and we believe it will be completed on time,” Idris stated, urging stakeholders to prioritize the project as a matter of national importance.
The President’s decision follows his rejection of a proposed three-year completion timeline by Julius Berger, which included an increased budget from ₦797 billion to ₦1.5 trillion.
“The Honourable Minister of Works has set a 14-month target, and with the enthusiasm and determination of everyone involved, we believe this goal is achievable.
This road is essential for linking the Federal Capital Territory to Kano and other states. President Tinubu is resolute that this project will be completed, and nothing will stop it,” Idris added.
Enhanced Features and New Developments
Minister Umahi revealed enhancements to the project, including a 10.6-kilometre extension to the Mallam Aminu Kano International Airport, a 5-kilometre extension towards Kogi State, and solar lighting along the entire stretch.
“I am happy to announce that we received a ‘No Objection’ from the Bureau of Public Procurement for a total contract sum of ₦252.89 billion. I am confident the Federal Executive Council will approve this in its next sitting,” Umahi said.
The expressway, segmented into three sections for efficiency, is a key corridor connecting Nigeria’s capital to Kano and surrounding regions.
Once completed, the project will facilitate economic growth, enhance connectivity, and prepare the road for an operation and maintenance concession.
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