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UN Seeks Mitigation Efforts From FG, Stakeholders as 25 Million Nigerians Risk Hunger

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Child Poverty - Investors King

The Federal Government of Nigeria and other key stakeholders have been tasked with a fresh report indicating that about 25 million citizens of the country are highly at risk of hunger.

This appeal came following a food and nutrition analysis carried out by Cadre Harmonise, a group supported by the United Nations, revealing that almost 25 million Nigerians might face excruciating starvation if nothing is done to curb it.

The government-led group, in its analysis done twice a year, noted that these affected figures are at serious risk of battling hunger between June and August this year.

Before this latest analysis, a report had pegged the number of Nigerians currently at risk of starvation to 17 million.

Owing to worsening insecurity, climate change, and rising cost of food prices in the country, Cadre Hamonise’s data revealed an increase in the number of affected Nigerians courting hunger.

The reasons for the worsening situation were contained in a release sighted on the website of the United Nations Children’s Fund.

UNICEF also said that the National Emergency Management Agency (NEMA) had corroborated its findings on the key drivers of the alarming trend by saying that, “widespread flooding in the 2022 rainy season damaged more than 676,000 hectares of farmlands, which diminished harvests and increased the risk of food insecurity for families across the country.”

The release by UNICEF reads further, “food access has been affected by persistent violence in the north-east states of Borno, Adamawa, and Yobe and armed banditry and kidnapping in states such as Katsina, Sokoto, Kaduna, Benue, and Niger.

“The flooding is one of the effects of climate change and variability impacting Nigeria. More extreme weather patterns affecting food security are anticipated in the future.”

According to the global organisation, out of the 17 million people who are currently food insecure, three million are in the North East BAY states.

The UN noted that if nothing urgent and immediate is done to mitigate the effects, the figure may increase to 4.4 million between June and August, which are described as the lean season.

Among those at higher risk of hunger, according to UN, are highly vulnerable displaced populations and returnees who are already struggling to survive a devastating humanitarian crisis in which 8.3 million people are in urgent need of help.

Meanwhile, to prevent the latest projection from coming into reality, UN has appealed to the Federal Government, the donor community, and public and private organisations to, as a matter of necessity, render resources and implement mitigation measures to save lives and prevent a potentially deadly food security and nutrition situation.

Also expressing concern over the development, the Resident and Humanitarian Coordinator for Nigeria, Matthias Schmale, said the projection would increase mortality in the country if not checked.

Schmale, who said he had visited nutrition stabilization centres populated by children, lamenting that, these children “are fighting to stay alive. We must act now to ensure they and others get the lifesaving support they need.

“There is a serious risk of mortality among children attributed to acute malnutrition. In the BAY states alone, the number of children suffering from acute malnutrition is expected to increase from 1.74 million in 2022 to two million in 2023.

“UNICEF, working with the government and partners such as MSF and ALIMA, is investing in scaling up preventive nutrition interventions, while ensuring that vulnerable children have access to life-saving nutrition services. In 2022, UNICEF with its partners was able to reach approximately 650,000 children with life-saving nutrition services across the six states mentioned above.

“The northwest region, around Katsina, Zamfara, and Sokoto states, is an increasing food insecurity and malnutrition hotspot. An estimated 2.9 million people are currently critically food insecure (Cadre Harmonisé Phase 3 or worse.) This figure is projected to increase to 4.3 million in the lean season if urgent action is not taken,” he further noted.

 

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Economy

FIRS VAT Revenue Surges to N1.56 Trillion in Q2 2024 Amid Economic Struggles

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Value added tax - Investors King

The Federal Inland Revenue Service (FIRS) generated N1.56 trillion in Value Added Tax (VAT) in the second quarter (Q2) of 2024, according to the latest report from the National Bureau of Statistics (NBS).

This represents an increase of 9.11% compared to the N1.43 trillion reported in the first quarter of 2024.

A breakdown of the report showed that local VAT payments accounted for N792.58 billion of the total amount generated, while foreign VAT payments stood at N395.74 billion, and import VAT contributed N372.95 billion.

A quarterly analysis of the report revealed that human health and social work activities recorded the highest growth rate with 98.44%. This was followed by agriculture, forestry, and fishing with 70.26%, and water supply, sewerage, waste management, and remediation activities with 59.75%.

On the other hand, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –46.84%, followed by real estate activities with –42.59%.

Sectoral analysis showed that the manufacturing sector contributed the most at 11.78%. Information and communication and mining and quarrying contributed 9.02% and 8.79%, respectively.

Nevertheless, activities of households as employers and undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organizations and bodies with 0.01%, and water supply, sewerage, waste management, and remediation activities and real estate services with 0.04% each.

On a year-on-year basis, VAT collections grew by 99.82% from Q2 2023 despite ongoing economic challenges.

Nigeria’s inflation rate remains well above 30 percent, while new job creation is almost nonexistent.

Other key economic factors, such as investor sentiment, the purchasing managers’ index, and consumer spending, remain weak amid intermittent protests by citizens demanding improvements in quality of life.

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Economy

Nigeria Sees 9.11% Increase in VAT Revenue, Generating N1.56 Trillion in Q2 2024

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The federal government in the second quarter of 2024 generated a total of N1.56 trillion from Value Added Tax. This is a 9.11 percent increase from the N1.43 trillion in Q1 2024.

According to the National Bureau of Statistics report, local payments recorded were N792.58 billion, foreign VAT payments were N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024.

“On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate with 98.44%, followed by agriculture, forestry and fishing with 70.26%, and water supply, sewerage, waste management and remediation activities with 59.75%,” NBS reported.

“On the other hand, activities of households as employers, undifferentiated goods and services producing activities of households for own use had the lowest growth rate with 46.84%, followed by Real estate activities with 42.59%.

“In terms of sectoral contributions, the top three largest shares in Q2 2024 were
manufacturing with 11.78%; information and communication with 9.02%; and Mining and quarrying with 8.79%.

“Nevertheless, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by activities of extraterritorial organisations and bodies with 0.01%; and Water supply, sewerage, waste management and remediation activities with and real estate services 0.04% each.

“However, on a year-on-year basis, VAT collections in Q2 2024 increased by 99.82% from Q2 2023.”

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Finance Minister Denies VAT Hike, Confirms Rate Remains at 7.5%

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Value added tax - Investors King

Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on Monday, debunked reports doing the rounds that the rate for Value-Added Tax (VAT) has been upwardly adjusted to 10% from 7.5%.

The Minister, in a statement signed by him, affirmed that VAT rate as contained in relevant tax laws and chargeable on goods and services remains 7.5%.

“The current VAT rate is 7.5% and this is what government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.

“The tax system stands on a tripod, namely tax policy, tax laws and tax administration. All the three must combine well to give us a sound system that gives vitality to the fiscal position of government.

“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty as well as makes businesses to flourish.

“The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.

“In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs and taxes on rice, wheat, beans and other food items.

“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” Edun said

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