The latest report of the International Monetary Fund (IMF) on the economic outlook of sub-Saharan Africa is far from reassuring for Nigeria and some other countries. The verdict is that the ambitious reforms (reckless and callous by many views) which the current Nigerian administration has been pursuing for one and half years are yet to show that they’re on the right track. Put bluntly, they are not working! That’s certainly not the sort of thing President Bola Tinubu and his team would love to hear.

That assessment is antithetical to the viewpoint expressed in Abuja only last month by the Chief Economist and Senior Vice President of World Bank (WB), Dr Indermit Gill, who praised the government for the courage to hit the ground running with its unprecedented decisions to remove petroleum subsidy and float the naira. Gill capped his eulogy with a strong appeal to the private sector and citizenry for their cooperation and patience. Of course, his physical audience let him know instantly that he had struck the wrong chord. He clearly underrated the trauma the nation was experiencing. Anyhow, that outing provided a window into the bank’s convictions about Nigeria’s tortuous quest for restored prosperity.

This unpalatable IMF dish has thrown a shadow over whatever is left of the country’s hope of exiting the woods soon. It was the turn of the fund’s Deputy Director, Catherine Patillo, to serve the menu last week at the Lagos Business School (LBS). She wasn’t sparing: ‘‘More than two-thirds of countries (in sub-Saharan Africa) have undertaken fiscal consolidation, with the median primary balance expected to narrow by 0.7 percentage points alone in 2024. And these have included notable improvements in Cote d’Ivoire, Ghana and Zambia, among others’.

“On the imbalances side, median inflation has declined in many countries. And it’s already within or below the target band in about half the countries…. Inflation is still in double digits in almost one-third of countries, including Angola, Ethiopia, and Nigeria, and above target in almost half of the region, particularly where monetary policy is not anchored by exchange rate pegs…. Looking further at exchange rates, we do see that foreign exchange pressures have largely abated since the end of 2023.” Two key elements of this declaration are truly painful. First, the astronomical increase in the cost of goods and services. The National Bureau of Statistics (NBS)’s Consumer Price Index (CPI) report for last month indicates a raise in headline inflation from 32.7 percent in September this year to 33.9 percent. Within the same period, prices of foodstuff rose to 39.16 percent from 37.8 percent. One depressing side of the story is that informed projections haven’t identified any grounds for optimism in the near future. Transportation and energy costs are compounding an increasingly impossible situation. Sadly, both rural and urban populations are united in this long-suffering

Second, Nigeria, an erstwhile undisputed regional and continental political and economic leader, is tumbling rapidly, displaying mediocrity where less endowed nations earn better ratings. In few months, the country has descended from the lofty height of being Africa’s largest economy to the fourth position. How much lower can it go even in, say, one year’s time? So, beyond the obvious threat of the spiralling degeneration in the quality of life of Nigerians, the worsening ranking of their country among the comity of nations is set to deal more blows to the national pride garnered in the past decades. The effects, though intangible, are damaging nonetheless.

In addition to concerns about the nation’s present predicaments, the attendant vulnerability of its future is also captured in the IMF paper. According to it, “debt service capacity remains low by historical standards. In almost one-quarter of countries, interest payments exceed 20 percent of revenues, a threshold statistically associated with a high probability of fiscal stress. And rising debt service burdens are already having a significant impact on the resources available for development spending. The median ratio of interest payments to revenues (excluding grants) currently stands at 12 percent. Some three-quarters have already witnessed an increase in interest payments (relative to revenue) since the early 2010s (comparing the 2010–14 average with the 2019–24 average). In Angola, Ghana, Nigeria, and Zambia, this increase in interest payments alone absorbed a massive 15 percent of total revenue’’.

The borrower, without doubt, constantly puts himself at the mercy of his lender. Again, Nigeria, once virtually debt-free at the dawn of the current republic, is now comfortably in the company of some of the continent’s worst debtor countries. President Tinubu has just sought the resolution of the National Assembly to borrow 2.2 billion dollars, equivalent of 1.7 trillion naira, to implement part of the 2024 Appropriation Act. And nothing yet to suggest the end of borrowing in sight.

Neither is there much to elicit positive expectations, to give the largely frustrated Nigerian people enough cause to rejoice and be hopeful. The other day in Benin City at the inauguration of Senator Monday Okpebholo as governor of Edo State, Tinubu delivered his signature smooth words through his vice, Alhaji Kashim Shettima. In his own reckoning, “we have weathered the hardest days as a nation. We have pulled back from the brink of economic collapse, and now we step forward into a time of growth…. When we took office, we knew that securing the future of our economy would demand serious reform—reform to stave off looming fiscal and monetary threats to the stability of this great nation.

That may be soothing to textbook macroeconomists who dwell inside bloodless data and analyses. Or diehard admirers of the president’s policies and programmes. But definitely irritating to most citizens and residents who bear the brunt of the prevailing choking realities. While it won’t be fair to accuse this government of not trying, it also would be provocative to give itself any form of pass mark at this moment. The sharply rising stress level in Nigeria today, occasioned by semi-baked economic experiments, is real. What people feel can be more compelling than figures rolled out to serve bogus propensities

It’s not even that the people actually depend on submissions by either IMF or WB to tell them where it hurts. As in many other locations on earth, especially in the developing and underdeveloped world, these twin financial institutions are viewed with suspicion here, hopefully not hatred. It’s hard for those Bretton Woods organisations to shed the image of being oppressive agents of advanced nations and promoters of the status quo. As Prof. Ibrahim Gambari, a former Minister of External Affairs, explained it at a public function earlier in the week, “we are not rejecting partnership because we will not be in isolation but partnership in which we are real partners that will serve our interest. If the prescriptions of the World Bank and IMF are correct, we should not be struggling the way we are today…. We must be ready to harness our abundant human and natural resources to leapfrog our development to achieve the structural transformation that has eluded us for too long.

“We have the opportunity to insist on being joint rule makers so that the new global order being forged reflects our values and aspirations for a fairer, more inclusive, and equitable world. In this, we must ensure that our youth bulge is turned into an advantage that puts us at the forefront of the digital economy and the innovations underpinning it.” Well delivered. The perception out there that Tinubu is implementing recommendations from abroad isn’t helping. Only domestically-compliant remedies, sourced locally and externally, remain our best chances of surmounting these difficult times.

Ekpe, PhD, is a member of THISDAY Editorial Board.

The federal government has reinstated Joseph Ikechebelu as the acting vice-chancellor of Nnamdi Azikiwe University (UNIZIK) in Awka, Anambra state.

Nasir Sani-Gwarzo, permanent secretary at the federal ministry of education, announced Ikechebelu’s reinstatement in a letter issued on Thursday.

“Sequel to the approval of His Excellency, President Bola Ahmed Tinubu, GCFR, vide letter Ref: PRES/84/EDU/10 dated 18th November, 2024 nullifying the appointment of Prof. Benard Ifeanyi Odoh as the 7th substantive vice chancellor of the university who was illegally appointed by the dissolved 10th Council of Nnamdi Azikiwe University, Awka, I am pleased to convey the approval of the Honourable Minister to reinstate you as the acting vice chancellor of the university with immediate effect,” the letter reads.

“Consequently, you are directed to take charge of the administration of the university.”

The letter directed Ikechebelu to oversee the university’s administration and refer matters requiring council approval to the education minister until a new governing council is established.

The federal government also reinstated Victor Modebelu as the university’s acting registrar.

Modebelu had previously served in the role before being replaced by Rosemary Nwokike, whose appointment was terminated on Wednesday.

BACKGROUND

In June 2024, Ikechebelu was appointed acting vice-chancellor of the 33-year-old institution.

However, in July, the university’s 10th governing council controversially replaced him with Bernard Odoh.

The council, chaired by Greg Ozumba Mbadiwe, was accused of bypassing proper procedures to appoint Odoh.

TINUBU DISSOLVES GOVERNING COUNCIL

On Wednesday, President Bola Tinubu dissolved the university’s governing council over allegations of illegal appointments.

The council members removed include Hafiz Oladejo, Augustine Onyedebelu, Amioleran Osahon, and Funsho Oyeneyin.

Bayo Onanuga, presidential spokesperson, said the government intervened after reports of illegal practices by the council.

“The government stepped in following reports that the council illegally appointed a vice-chancellor, bypassing established guidelines,” Onanuga said.

[TheCable]

Anthony Kila in this piece wants erstwhile member of the Bola Tinubu administration, Mr Fela Durotoye, who claimed to have served for six months without drawing salaries and allowances, to be specific about what informed his leaving government after short a brief spell.

Dear Mr. Fela Durotoye,

Today’s epistle is directed at you, courtesy of your widely reported statement in which you explained two essential aspects of your relationship with the present administration led by President Bola Tinubu.

Firstly, you are no longer a member of the government, and secondly, whilst you were part of the government for a very short period, you did not earn any salary. If anything, you spent your privately earned money on accommodation, transportation, and other things while serving the country and the government.

For those who missed it, here is the context: In the second week of November 2024, a message containing a list of special advisers to the President started circulating on social media, and by the third week of the month, it had gone viral. The list intended to, with names and numbers, demonstrate that rather than cut down the size of government and cost of governance, the administration of President Bola Tinubu was increasing the number of people working for it by employing a visibly large number of special advisers.

You, Mr Fela Durotoye, were listed alongside 13 other aides as a Senior Special Assistant to the President for National Values and Social Justice. Given that you were appointed in October 2023 and served for six months, it makes sense for you to point out that the circulated list needs to be updated.

Your statement in which you observed that like many other issues in the public discourse, social commentary often has the tendency to overgeneralise; and broad assumptions may sometimes lead to errors of misconceptions, misstatements and misinformation not only clarified but also informed. I, like many, for example, did not even know you were appointed for any position in this government, let alone know that you resigned.

Your decision to clarify and avoid misconceptions, misstatements, and misinformation is a worthy move, and many of us are grateful for your making it. This is a good place to remind you and the rest of us that broad assumptions, misconceptions, misstatements, and misinformation tend to permeate our public and all discourse due to a lack of information.

Human beings are naturally curious beings, and information is a crucial element of our social lives; therefore, even when too lazy or ill-equipped to find correct information, we still need information. Where humans cannot find accurate information, we resort to broad assumptions and dwell on misconceptions, misstatements, and misinformation.

Like the poor who cannot afford healthy food or the ignorant who do not know healthy food and live on unhealthy food, we all dwell on broad assumptions and misconceptions, misstatements, and misinformation where we do not know better.

We dwell on assumptions, imagination and superstitions when we do not have facts and reasons.

Noblesse Oblige. It is the duty of those who know, either through knowledge or experience, to provide information for the rest so that the possible information vacuum can be filled and we can all be saved from the risk of broad assumptions, misconceptions, misstatements, and misinformation. In your case, dear Mr Durotoye, you have the knowledge of good governance and the experience of working in government, which puts you in a very privileged position to tell us more.

You have done well in telling us when you left the government, and by so doing, you have left many wondering how you even got into government in the first place.

Questions abound. Were you invited to join the government based on shared values with the president or those close to him? Were you part of the campaign team that worked hard to help Nigerians understand that Candidate Bola Tinubu and his APC are the best options for Nigeria in 2023?

Were you minding your business in Lagos or elsewhere, and out of the blue, the president or some people realised that you were the one with the qualities for the role you were nominated for?

It would also help us to know what, even if in broad terms, the mandate and objectives you were given to achieve for the government.

In your statement, you talked about the conditions for accepting the role. Knowing what you were appointed to do and what you can expect or not expect once in government will not only assuage our human curiosity but also help our quest for transparency and add to our general civic education by helping us better understand our country and how our government thinks. It will also give us valuable insights for planning our future.

One more piece of information that will be very helpful is the list of things you achieved or at least tried to do but could not do in your six months in office. No one can better tell us this than your good self. You have the facts, and you have the style, so please tell us more. For some, six months might be a short time, but not for modern players and those who, with impact, have operated in the private sector where every single day means deployment of precious resources that must be productive. It is not just about accountability; such information, if you are kind enough to share it with us, will also help us know what should be done, what can be done and the hurdles to doing them in the country.

Lastly, it would help if you told us why and how you left office. Now that many more people know you were part of our government, many would like to know if you were pushed or jumped, to put it in water cooler terms. Were you asked to do things you did not believe in, or were you not allowed to do things you believed in?

Your words, for very easily understandable reasons, will fill any vacuum that may otherwise allow for speculations and assumptions, so please tell us more.

Join me on Twitter @anthonykila to share your thoughts, ask questions, and continue these engaging conversations.

-Kila, Professor of Strategy and Development is a Director at the Commonwealth Institute of Advanced and Professional Studies.

• ‘Work begins on Green Rail Line next year’ — Sanwo-Olu says, as Governor presents budget proposal

  • 30 newly completed road projects, bridges scheduled for commissioning December

Tourism and creative sector is about to take a huge leap forward in Lagos. The sector, with other key economic areas, will gulp a chunk in the State’s expenditures in 2025 fiscal year.

Governor Babajide Sanwo-Olu laid bare what would be priorities of Lagos Government in the coming year, as he presented the State’s 2025 budget to the House of Assembly, on Thursday.

The Governor proposed a total of N3.005 trillion budget estimates, earmarking a huge capital investment of N908.7 billion to Economic Affairs sector — a cluster of key MDAs, comprising Tourism and Creative Arts, Agriculture, Transportation, Works and Infrastructure, Industry and Investments, Wealth Creation and Employment, Energy and Mineral Resources, Waterfront Infrastructure, and Commerce.

The 2025 Appropriation Bill, christened “Budget of Sustainability”, represents a 32.5 per cent increase over the current year budget, totaling N2.3 trillion.

The increment, Sanwo-Olu said, reflected the growing citizens’ demands for sustainable interventions in programmes and projects that would further raise productivity and energise economic growth in the State.

In response to citizens’ demands, he said the proposed budget was structured to ensure stability, stewardship and social equity around five key pillars, including infrastructure sustainability, economic diversification, social inclusion and human capital development, environmental sustainability, governance and institutional reforms.

The Governor noted that sustaining investment in infrastructure in key areas of priority would enable the State build up momentum for more growth, stressing that his administration’s infrastructural drive would further get a boost in the coming fiscal year.

Sanwo-Olu disclosed that the Government had completed 30 roads projects, including bridges, across the State, which had all been scheduled for commissioning from beginning of next month.

The Governor also announced that Lagos had sealed a Memorandum of Understanding with the Federal Government’s Ministry of Finance Incorporated (MOFI) to kickstart exploratory work on the development of the 68-km Green Line, which will connect Marina to the Lekki Free Trade Zone — a fast-growing industrial corridor in Lagos.

He said: “This 2025 budget is not just a fiscal document but a blueprint for continuity, resilience and shared prosperity for every Lagosian. As a key economic hub, Lagos stands at a crossroads: a nexus of challenges that test our resolve and opportunities that call for bold action. In crafting this budget, we have listened to our citizens’ voices, studied the global and local economic realities, and reaffirmed our commitment to ensuring that Lagos continues to thrive sustainably for generations to come.

“Next year, we are making significant progress in revitalising cultural, religious and recreational infrastructure across the state. These

initiatives are aimed not only towards preserving the rich cultural heritage of Lagos, but also to unlock tourism economy by creating spaces for recreation and artistic expression.

“I am also pleased to note that we have recently signed MoU with the Ministry of Finance Incorporated (MOFI) to kickstart exploratory work on the development of the 68-km Green Line, which will connect Marina to the Lekki Free Trade Zone. In road construction and repairs, we have completed 36 road projects, including bridges, link bridges and pedestrian

infrastructure, all of which are scheduled for commissioning from December.”

The 2025 budget proposal is made up of recurrent expenditure of N1.239 trillion, representing 41 per cent of the total budget, and a capital expenditure of N1.766 trillion, which represents 59 per cent of the budget.

Sanwo-Olu disclosed that the State would be financing the budget through a combination of projected revenue inflow of N2.597 trillion, and a deficit financing of N408.9 billion. The revenue sources, he said, include Internally Generated Revenue (IGR) projected to be N1.971 trillion, and federal transfers of N626.1 billion.

The Governor said the budget’s deficit would be financed through external and internal loans, and issuance of bonds, which, he said, would be within the State’s fiscal sustainability parameters.

Highlighting the sectoral allocation in the 2025 budget, Lagos Government will be spending N233.176 billion in Environment, N204.005 billion in Health, N208.376 billion in Education, N124.073 billion in Security, Safety and Public Order, while Social Protection will gulp N47.077 billion.

Sanwo-Olu described the performance of the current year’s budget as “excellent”, noting that the 2024 budget had been implemented to the tune of N1.423 trillion, representing 84 per cent performance as at the end of third quarter.

While presenting the 2025 budget, the Governor urged the lawmakers to play their part in ensuring thorough scrutiny of the proposal, just as he called for its speedy passage.

Sanwo-Olu said: “Let me assure the House that this budget is not just a statement of intentions but a practical, actionable framework designed to impact lives. From students and entrepreneurs in Yaba to the farmers and fishermen in Epe and Badagry, from the business executives and market women on Lagos Island to the factory workers in Ikorodu, this budget is all about the people of Lagos alone.

“I also assure our residents of my commitment towards ensuring that this proposed budget is able to effectively recalibrate the State’s economy, stimulate economic growth and strengthen the positive trajectory. The development of any megacity like ours is the responsibility of both the public and private sectors. To this end, we will continue to explore public-private-partnership strategies in the provision of infrastructure, social services, and the conversion of challenges to opportunities within the context of scarce resources.”

Bitcoin, the flagship cryptocurrency has hit a new all-time high of $97,836 taking a step closer to fulfilling the prediction of analysts that the crypto asset will hit $100,000 before the end of the year.

Bitcoin in the early hours of Thursday morning surged to a new all-time high of $97,836 before cooling off to $97, 073 at the time of this report.

Bitcoin has surged by 4.1% in the last 24 hours with its market capitalization pumping to $1.9 trillion. The primary crypto asset maintains a 57.9% dominance over other crypto assets with its daily trading volume breaking the $85 billion threshold.

Bitcoin’s bullish rally has led to an opening on the popular prediction site Polymarket on whether the crypto asset will reach $100,000 before December.

The bullish rally also led to the Global market capitalization of all crypto assets hitting $3.3 trillion.

Reason Behind the Surge in Bitcoin Price  

Bitcoin’s surge in price is a result of many collaborating factors with the most significant being the victory of Donald Trump in the Polls. The self-acclaimed Crypto president made a big case for his love for cryptocurrencies during the election campaign mulling plans to set up a strategic Bitcoin reserve if elected as president.

• Bitcoin smashed its several months All time high after his election victory kickstarting a bull run with a ripple effect across the market.
• Aside from Donald Trump winning the election, Pro-crypto politicians also dominated the U.S. House of Representatives and the Senate, leading to the expectations of crypto-friendly regulations with Trump’s second term.
• Another key factor behind the surge in Bitcoin is the launch of the spot BTC exchange-traded fund options in the US.
• Blackrock’s IBIT was the first investment product to get the green light from the US Securities and Exchange Commission.

The new spot BTC options are expected to increase the demand for digital gold as investors could manage their investment risks.

Finally, a third factor for the Bitcoin surge was revealed by Ki Young Ju the CEO of the market analysis platform Crypto Quant. He revealed that the surge is also driven by strong whale accumulation and over-the-counter deals mostly by institutions, not individuals.

The bitcoin halving which also took place played a key role by demanding a price rally for miners to remain profitable.

What to Know  

• Donald Trump pledged to make America the world leader in cryptocurrencies if elected. His election victory is already shaking up things in the US Securities and Exchange Commission with Gary Gensler expected to step down soon.
• Memecoins remain the biggest performers of the bull cycle with Dogecoin, PNUT, and Chill Guy grabbing the deadlines for incredible surges over the past weeks.

[Nairametrics]

Deputy Speaker of the House of Representatives, Benjamin Kalu, has disclosed that the National Assembly is considering amendments to 161 areas in the 1999 constitution in the ongoing review.

Briefing newsmen after a closed-door session with governors of the 36 states of the federation during their meeting which started on Wednesday night and ran into the early hours of Thursday in Abuja, Kalu said governors are critical stakeholders in the process, hence, the need for their inputs.

Daily Trust reports that the 10th National Assembly has embarked on another constitution amendment process which is billed to be completed in December 2025.

The federal lawmaking body is considering the issues of state police, electoral reform, local government autonomy, diaspora voting, autonomy of the Independent National Electoral Commission (INEC), pre- and post-election concerns, and court rulings on electoral matters among others in the review.

Kalu, who is chairing the committee on constitution review at the House of Representatives said the governors were in support of the initiative and ready to welcome the lawmakers when they start visiting various states for public hearing.

“We informed them that we have received over 161 areas to amend in the constitution and we are going to give them the breakdown in the coming engagements. This won’t be the first and last engagement. We are going to have a couple of engagements. This is how we want to do it, differently from how it has been done,” he said.

On tax reforms, Kalu said, “To be fair to the governors, they did not dwell on tax reforms. It was generally about the constitution. they spoke on the local government reforms, what we are looking at. We are also not emphatic about state police.”

In a communique signed by the Kwara State governor and Chairman of the Nigeria Governors Forum (NGF), AbdulRahman Abdulrazaq, at the end of their meeting, the governors resolved to actively engaged in the ongoing constitution amendment process with a view to strengthening the country’s legal framework.

The communique reads in part, “The Deputy Speaker emphasised the importance of collaboration between the Forum and the Committee, proposing the establishment of a “one-stop shop” framework to align state-level priorities with the constitutional review process.

“Governors pledged their support for the initiative and reaffirmed their commitment to actively engage in shaping amendments that strengthen Nigeria’s constitution.”

The governors also resolved to strengthen collaboration between federal and state governments, improve the quality of girl- child education and integrate vocational training among others in the country.

On the issue of the new terror group known as Lakurawa, which has killed many innocent Nigerians in Kebbi, Sokoto and other states in the North West, Kaduna State governor, Uba Sani, who read the communique said, “We all face various security challenges, but we are working closely with the relevant security agencies. We are very confident that it is a matter of time. All these issues will be over.”

[DailyTrust]

Nigerian rapper, Folarin Falana, popularly known as Falz, has expressed his admiration for miniskirts and short dresses.

Speaking in a recent podcast interview with Madame Joyce, Falz revealed that he loves women in short dresses.

According to him, short dresses bring out the sexiness in women.

“I have a thing for short skirts and short dresses. They bring out the sexiness in a woman. I so much like miniskirts,” he said.

[DailyPost]

Nigeria has issued an urgent call to action regarding the growing impacts of climate change on its regions, as highlighted during a side event hosted by the Federal Ministry of Regional Development at COP29. 

The event, themed “Fostering Regional Synergies for Climate Resilience and Inclusive Development in Nigeria,” brought to the fore the country’s vulnerabilities and efforts to address them.

The Minister of Regional Development, Engr. Abubakar Momoh, stressed the severity of climate challenges facing the nation, noting that agriculture, infrastructure, public health, and livelihoods are all at risk. 

In a statement issued on Thursday by his Special Assistant on Media, Osigwe Omo-Ikirodah, the Minister said: “the effects of climate change are evident across Nigeria. Together, we must act decisively to protect our people, our environment, and our future”.

Engr. Momoh outlined the specific challenges afflicting Nigeria’s six geopolitical zones and the Niger Delta region. 

Rising temperatures and drought in the North Central region are threatening agricultural productivity, while pollution and erratic rainfall are endangering water resources such as the Niger and Benue rivers. 

In the North East, desertification and reduced rainfall are accelerating the expansion of the Sahara Desert, displacing communities and fueling conflicts.

He said the North West has seen unpredictable rainfall result in severe flooding, damaging infrastructure and displacing residents. 

In the South East, heavy rains cause gully erosion and landslides, destroying property and forcing people to abandon their homes. 

Coastal erosion, sea-level rise, and oil pollution are severely degrading the ecosystems of the South South region, while the South West grapples with urban flooding caused by inadequate drainage and rising sea levels, posing threats to public health and economic activity.

The centerpiece of the Ministry’s presentation was the launch of the Niger Delta Climate Change Programme and Action Plan (NDRCCP-AP), a detailed strategy designed to address the specific vulnerabilities of the Niger Delta. 

The Minister explained that nearly all the region’s primary forests have been lost due to human activity, oil exploration, and acid rain, further compounding the effects of climate change.

“This action plan prioritizes sustainable development, low-carbon growth, and poverty alleviation,” Engr. Momoh said. 

The plan includes sustainable livelihood projects aimed at empowering small-scale farmers, mangrove reforestation for carbon sequestration and soil stabilization, and flood and erosion control projects supported by early warning systems. 

Capacity-building initiatives are also a key component, focusing on equipping stakeholders with the tools needed to enhance climate governance and response efforts.

Aligned with Nigeria’s commitments under the Paris Agreement, the NDRCCP-AP emphasizes the integration of adaptation and mitigation projects to build resilience and foster sustainable growth. 

The Minister called for strengthened partnerships with both local and international stakeholders to secure funding and support for the plan. 

“We cannot tackle this challenge alone. Climate action requires robust collaboration across governments, businesses, and communities,” he noted.

The Ministry also reiterated the need for transitioning to cleaner energy sources, addressing deforestation, and leveraging technology to strengthen Nigeria’s climate resilience.

As COP29 continues, Nigeria’s contributions underscore its dedication to addressing the global climate crisis while ensuring sustainable development. 

Engr. Momoh concluded with a resounding appeal for collective action: “Together, we must act now to secure a safer and more sustainable future for Nigeria and the world.”

[TheNation]

Since President Bola Tinubu transmitted four executive bills tagged #TaxReformBills to the national assembly last month, many needless controversies have engulfed the debate around the bill. 

Most of these controversies are simply borne out of inability of those flaming the controversies to carefully go through the contents of the bills currently before the parliament. 

As a result of, a lot of ordinary Nigerians are confused about the true position of these bills especially as it affects their pockets.

I want to briefly breakdown the tax reform bills in a very concise and easily understood manner.

The tax reform bills are four different bills that seeks to bring everything about taxation and administration of tax in Nigeria under four different pieces of legislation. The bills are as follows:

1. The Nigeria Tax Bill

2. The Nigeria Tax Administration Bill

3. The Nigeria Revenue Service Establishment Bill

4. The Joint Revenue Board Establishment Bill

The Nigeria Tax Bill is where all major taxes imposed on individuals and companies are clearly stated as well as the rates. This bill is just like a compendium of taxes charged in Nigeria. 

The Nigeria Tax Bill basically amalgamated all the existing laws in which provisions for taxation was made. If passed, this bill will lead to the repeal of 11 laws that contain provisions on imposition and collection of taxes.

Some of major provisions contained in the Nigeria Tax Bill that has far reaching bearing on both individuals and businesses include:

1. Exemption of individuals earning N800,000 or less from paying income tax. Currently, if you earn a total of N800,000 annually, you are required to pay N84,000 out of this amount as income tax. With this bill, you will not pay anything.

2. Only those earning above N50 million get to pay 25% personal income rate. Under the current law, once you earn above N3.2 million you will be charged 24% income tax.

3. Exemption of small businesses from paying income tax. In this bill small companies are defined as those with annual turnover of N50 million or less. In the current law, small businesses are defined as those with turnover of N25 million or less. What this means is that up to 90% of businesses in Nigeria will be exempt from paying income tax. 

4. Reduction of company income tax rate from 30% to 25% in 2026 for medium and large companies.

5. Elimination of minimum income tax of 1% charged on the gross earnings of medium and large companies that did not declare profit. Only profit is taxed under the new tax bill.

6. Harmonisation of 2.5% education tax, 1% NITDA tax and 0.25% NASENI tax that many firms pay in addition to their company income tax annually into a single development levy of 2% that will be used exclusively to fund student loans from 2030. 

This further reduces the total tax burden of some companies from around 33.75% of their earnings (when you add these three deductions to their income tax rate of 30%) to just 27% of their earnings.

7. Review of the VAT revenue sharing formula where states now take 55% of the revenue instead of 50% while the federal government’s share of VAT revenue shrinks from the current 15% to 10%. The share of LGAs remain the same.

8. Progressive increase in VAT rate from the current 7.5% to 10% in 2025; 12.5% between 2026-2029 and 15% from 2030.

9. Exemption of many basic items consumed by the poor from VAT such as food items, medical services and pharmaceuticals, educational fees, electricity etc.

10. Tax exemptions to encourage investment in both associated natural gas and non-associated gas.

The Nigeria Tax Administration Bill on the other hand is the bill that sets out how the tax authorities will administer the taxes, which include assessment, collection of, and accounting for the various tax revenues they collect. 

The bill also outlines the powers and functions of the tax authorities, which taxes are reserved exclusively for the NRS to collect and which ones are reserved for the states among other miscellaneous provisions relevant to the effective administration of tax in Nigeria.

Some of the major provisions of the Nigeria Tax Administration Bill include:

1. Drawing the rich into the tax net. The bill puts in place mechanism to ensure that individual customers of financial institutions whose cumulative transactions in a month amount to N25 million or more and corporate customers whose cumulative transactions in a month amount to N100 million or more do not evade taxes by mandating financial institutions to give the tax authority a list of such individual or corporate customers with their addresses.

2. Payment of taxes and royalties in Naira. Under this new provisions, taxes including royalty assessed in a currency other than the Nigerian Naira may be paid in that currency or in Naira at the prevailing exchange rate in the official exchange market. This will boost efforts to stabilise the Naira.

3. NRS to collect revenues hitherto collected by some regulatory agencies such as Nigeria Customs Service, Nigeria Upstream Petroleum Regulatory Commission (NUPRC), NPA, NIMASA, etc. This provision is meant to allow these regulatory agencies to focus on their regulatory functions while NRS whose duty is revenue collect carry out the collection of taxes and royalties.

4. The deployment of technology to automate tax assessment, collection, and accounting. This will enhance tax collection, especially on companies that operate digitally, such as social media companies, music streaming platforms, etc.

5. Deduction of unremitted tax revenues by MDAs that serve as agents of tax authorities from their budgetary allocations.

6. A new VAT derivation model where 60% of VAT revenue standing to the credit of the states are shared on the basis of derivation while 20% is shared based on population sizes and the other 20% is shared equally among the states. Most importantly, VAT revenue for the purpose of the new derivation model will no longer be attributed to the place of remittance (which is usually the headquarters of companies) but attributed to the actual locations across the states where the consumption of goods and services took place. The current method favours states like Lagos, Rivers and Oyo states which have a lot of company headquarters located in them.

7. Instalmental payment of tax.

8. Funding of tax refund accounts by deducting a percentage of money collected by the tax authority before distribution. This is to ensure that every tax refund claim that is verified is paid. Before now the tax refund account was funded by budgetary provisions, which are grossly inadequate.

9. Establishment of Local Government Revenue Committee to handle collection of taxes, fines and rates under the jurisdiction of each local government area.

10. Harmonisation of all tax offences and penalties to ensure compliance.

The Nigeria Revenue Service Establishment Bill seeks to change the name of Federal Inland Revenue Service (FIRS) into the Nigeria Revenue Service to reflect the fact that it collects revenue for the federation and not just the federal government since most of the revenue it collects are shared by the three tiers of government. The bill also specifically empowered the NRS to administer all taxes including the other taxes hitherto collected by some federal agencies like Nigeria Customs Service, NUPRC, NPA, NIMASA etc.

Finally, the Joint Revenue Board Establishment Bill provided for the establishment of three separate bodies namely:

1. Joint Revenue Board of Nigeria to help harmonise all taxes in the country and scrap nuisance taxes while also creating a national database of taxpayers.

2. Tax Appeal Tribunal to settle tax disputes between tax authorities on issues such as residency for the purpose of personal income tax collection etc.

3. Office of the Tax Ombudsman to help taxpayers get justice if they feel aggrieved against the tax authorities.

The above summary shows at a glance that these four bills, contrary to what some mischievous persons are pushing out there, are meant to radically transform tax administration in Nigeria for greater efficiency. 

These bills will update our archaic tax laws and simplify our complicated tax ecosystem. Apart from these, the tax reforms clearly favours the low income earners and small businesses, which will be exempted from paying income taxes. These bills are simply pro-poor, pro-growth and pro-efficiency. Every patriotic Nigeria needs to back these tax reforms.

-Dada is Special Assistant to President Tinubu on Digital Media