Business
Omokri, Followers Bicker on Tinubu’s Tax-Driven Economy
With the first month of President Bola Ahmed Tinubu throwing up a tax-driven, citizen funded economy, activist, Reno Omokri and his followers appear to have been dissecting Tinubu’s economic strategies.
In a move that might be perceived as backing the president, Omokri, who boasts of over 2.3 million followers on Twitter, took to his verified Twitter handle, @renoomokiri to declare that Nigerians should wean themselves of lax lifestyles and face present globl economic realities.
He wondered how a country with one of the highest population growths globally could convince the world that the same citizens multiplying at an alarming rate were being confronted with stifling cost of living.
He tweeted, “We say fuel is expensive. We complain that food is too costly. We cry that ₦1000 Proof of Vehicle Ownership fee is too high. We lament that the cost of living in Nigeria is too high.
“Yet, Nigeria has one of the highest population growth rates on planet Earth. Only few countries, …”.
But one of his followers, Sir Dynamic, @mn_almustapha, countered that uncontrolled population growth had little to do with the populace.
Dynamic charge government with the responsibility of creating systems that will accommodate our population.
“This has nothing to do with the people but the government. The government are the ones responsible to make systems that will accommodate our population, … though Nigerians have share in this situation. Imagine increasing a salary of a man only for him to add wife,” @mn_almustapha, replied.
Omokri and Dynamic tend to agree that citizens’ lifestyles have a telling impact on how the economic policies reflect on the populace.
Consequently, Omokri charged the citizenry to wean itself of the long-held entitlement mentality because Nigeria’s economy had been oil-dependent for so long, while the human numbers had been on the rise.
He added, “Perhaps it is time for us to curb our entitlement mentality. It has gone on for too long. How much taxes do Nigerians pay? We have one of the lowest tax bases on Earth.
“We have an oil income of $30 billion to a population of almost 250 million.
“Stop blaming the government. We, as citizens have to take responsibility. Nigeria is like a cow that everyone is milking, and no one is feeding. It is only a matter of time for that cow to die!”
However, another of his followers, Hon Richard Benjamin, @Nwabrije1 disagreed with Omokri on the tax base. He pointed at the minimum wage, the cost of petrol per litre, and high rate of unemployment as critical areas the government need to look into to achieve balance in the taxes being imposed.
Benjamin tweeted, “Stop saying we have one of the lowest tax base in the world, how about $40 as minimum wage? And a litre of fuel is almost $1. People are suffering, no jobs.”
Recall that the high point of President Bola Ahmed Tinubu’s address on May 29 when he took over the baton from Muhammadu Buhari was the removal of subsidy on Premium Motor Spirit (PMS).
The Federal Government has gone ahead to discontinue funding for professiona bodies, impose consumption tax of 7.5% on other petroleum products, impose annual renewal charges on proof of ownership.
The FG has also tinkered with the monetary policy, which has merged the forex windows, allowing a free market determination of rates. The local currency, the naira, has been at the receiving end since.
Sources at the petroleum sector are already mooting that the pump prices of products would soon reflect the forex situation. This would mean that petrol might move from between N490 – N600 per litre where it is to between N750 – N1100 within the next 100 days.
The proposed 40% increase on electricity charges, which would have come into force on July 1, 2023 has been put on hold.
Biztellers reports that all these taxes are coming into force, without any form of palliative to the citizenry, hence, the public outcry.
Following the marginal reduction of the pump prices of premium motor spirit (PMS) by the Dangote Petroleum Refinery and the Nigerian National Petrol Company Limited (NNPC Ltd), civil society groups have reacted by calling for further downward review.
Recall that the Dangote Petroleum Refinery had announced a partnership with MRS Oil and Gas to offer petrol at N935 per litre at retail outlets, while it reviewed the ex-depot price from N970 to N899.50 per litre.
The move, saw state oil major, the Nigeria National Petroleum Company peg its retail prices at N965/litre.
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However, the civil society groups are of the opinion that the price reduction, fall short of expectations.
According to the Chairman, Centre for Accountability and Open Leadership, Debo Adeniran, the reduced price of N935/litre was still expensive and unsatisfactory.
He pointed out that petrol was just one of the products coming out of crude and that both government and private business could still give out free petrol to citizens while making huge profits from the other products.
In his words, “Well, we believe that if NNPC and the private sector actually give out PMS for free, they will still not run their business at a loss, because the other derivatives of petroleum products can still serve them, and can still make them to break even. So, even at that N900 and something, it’s still expensive.
“Dangote has kind of mooted the idea that it could drop to as low as N650. And if he has mulled this, then it means that it is the state, it is the NNPC that will have been the clog in the wheel of such progress. And you know also that we expected that fuel prices, especially PMS prices, will drop below N200 when Dangote was expected to come on stream.
“So, it’s unfortunate that we are still talking about over N900 and they want us to jump up and rejoice for that. That is not satisfactory. They should just let us see the breakdown of their production cost and why it’s still there. I mean, there are countries like Libya under Gaddafi that gave out PMS for free and they didn’t run anything at any loss. So, I believe that it can still go further down.”
On his part, the Executive Director of the Civil Society Legislative Advocacy Centre, Ibrahim Rafsanjani, commended the reduction of fuel prices by the NNPC and Dangote, but said the government could still reduce the price.
“Dangote’s own is about N899 or something like that. Well first and foremost, we are happy that there is a little reduction in the prices. But also based on analysis and based on facts and evidences, we believe that it is possible for the Nigerian government to further reduce the prices.
“Because if a private company can reduce the price and it still makes profit, we wonder why government-owned enterprises cannot really pity its citizens,” he said.
The Central Bank of Nigeria (CBN) has announced a significant growth in the country’s economy, with a 3.46% increase in gross domestic product (GDP) in the third quarter of 2024.
This marks the third consecutive quarter of expansion, up from 3.19% in Q2 2024 and 2.54% in Q3 2023.
According to the newly published Q3 economic report, Nigeria’s GDP output rose to ₦20.115 trillion, reflecting a notable improvement from ₦18.285 trillion in the previous quarter.
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The CBN attributed this growth primarily to the performance of the non-oil sector, which grew by 3.37% compared to 2.80% in Q2 2024.
The report highlighted transportation, crop production, and other sub-sectors such as financial & insurance services, information & communication, trade, and real estate as major contributors to the expansion.
The non-oil sector accounted for 3.18 percentage points of the total growth rate.
“The expansion of the non-oil sector was driven by the performance of the financial & insurance, information & communication, crop production, trade, transportation & storage, and real estate sub-sectors,” the report stated.
Despite the economic growth, challenges persist. Inflation, particularly in food prices, remains a significant concern, standing at 39.93% as of November 2024.
Rising food and energy costs have also impacted transportation expenses, with intercity bus fares increasing by 20.23% year-on-year to ₦7,117.17 in July 2024, according to the National Bureau of Statistics.
Furthermore, the cost of petroleum, now exceeding ₦1,000 per litre, has driven up logistics and transportation expenses, adding pressure to households and businesses alike.
The CBN acknowledged these challenges, noting that the growth was achieved despite headwinds such as high inflation and rising operational costs.
Enhanced security measures in the Niger Delta have boosted domestic crude oil production, while restrictive monetary policies have helped moderate inflation in some areas.
“The growth recorded in the country is a result of continued efforts to improve the business environment, streamline cumbersome business processes, and deepen the quality of business infrastructure,” the CBN noted.
However, the report comes amid concerns over businesses exiting Nigeria due to persistent economic challenges.
Asharami Synergy, a leading downstream energy solutions provider, has demonstrated its commitment to community development and education by donating essential furniture to Gaskiya Junior School in Ijora, Lagos, Nigeria.
Biztellers reports that the social responsibility initiative was executed in collaboration with Sahara Group Foundation – the social impact vehicle of global energy conglomerate, Sahara Group.
It was gathered that the initiative is part of Asharami Synergy’s ongoing efforts to support education in communities.
The donation includes classroom desks and chairs for the JSS1 classes.
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CEO of Asharami Synergy, Nomnso Dike, said the project will create a more comfortable and functional learning environment and enhance student performance.
“We are delighted at the opportunity to support the attainment of Sustainable Development Goal (SDG) 4, which focuses on ensuring inclusive and equitable quality education. It has been a privilege to collaborate with the management and students of Gaskiya Junior School to deliver this project, and we look forward to future opportunities to enhance academic performance in this historic institution,” Dike said.
According to him, Asharami Synergy’s education-focused social impact initiatives have benefitted over 10,000 individuals. They focus on building capacity and providing the resources necessary to help students learn and grow sustainably.
“Education is the foundation of a brighter future, and at Asharami Synergy, we believe that every child deserves a learning environment that inspires and empowers them” he noted, adding, “This donation is not just about providing furniture; it’s a reminder to the students that their dreams are valid, and we are committed to helping them achieve their goals.”
Vice Principal Academic of Gaskiya Junior School, Sola Oladokun, commended Asharami Synergy for the donation, noting that it would inspire students to perform better with “increased concentration and fewer distractions”.
“These desks and chairs are a game-changer for our students. It’s heartwarming to see their excitement, and as teachers, we are equally thrilled because this will make teaching and learning more effective. We are incredibly grateful to Asharami Synergy and Sahara Group Foundation for this thoughtful intervention,” she added.
Two representatives of the students, Akin Moses and Chukwudi Gift, at the event said the donation would increase their “desire to dream bigger and concentrate better during lessons”.
Also speaking at the commissioning, COO at Asharami Synergy, Adekanmi Adesola, said, “What started as an opportunity to support the communities that host our operations has now come full circle. This donation directly impacts the lives of these students, and we are proud to bring smiles to the faces of the students and teachers.”
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