Economy

House of Reps Warns Tinubu Against Multiple Tax Burdens on Nigerians

Published

4 days ago

October 12, 2024

Company Income Tax (CIT) - Investors King

The House of Representatives has warned President Bola Tinubu against imposing multiple taxes, levies, and charges on Nigerians already struggling with subsidy removal and higher electricity bills.

During Thursday’s plenary session, the member representing Anambra East/Anambra West Federal Constituency, Mr. Peter Aniekwe, called for the adoption of a motion on urgent public importance.

Investors King reported that the motion was co-sponsored by the House Minority Leader, Rep. Kingsley Chinda, and four others.

In defense of the motion, Aniekwe noted that the government’s introduction of additional taxes, which he described as sometimes unnecessary, only adds an undue burden on Nigerians.

He emphasized the need for the government to strike a balance when imposing taxes that are essential for revenue generation.

Aniekwe said, “The imposition of multiple taxes, levies, and charges at various levels of government only serves to exacerbate the financial strain on citizens, particularly those in low-income brackets, many of whom are already struggling to meet basic needs such as food, healthcare, housing, and education.

“The introduction of additional and sometimes unnecessary taxes, including consumption taxes, service taxes, and levies on essential goods and services, places an undue burden on the masses, further widening the inequality gap.

“While taxation is necessary for government revenue, a balance must be struck between revenue generation and the economic well-being of citizens, particularly at a time when many families and businesses are still recovering from the economic impact of global and local challenges.

“The government’s primary responsibility is to alleviate the economic challenges faced by the masses, ensuring policies that promote economic development, social welfare, and prosperity for all citizens.”

After Aniekwe’s defense, the House of Representatives adopted the motion.

The House cautioned the Federal Government against multiple taxation and mandated the committees on Finance and FIRS to, within three weeks, conduct a thorough review of existing tax laws and policies to streamline tax collection processes and eliminate redundant or overlapping taxes.

The committee was also tasked with identifying areas of double taxation at all levels for necessary action.

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Economy

Sanwo-Olu Unveils Lagos Red Line Rail For Commercial Operations

Published

14 mins ago

October 16, 2024

Ugwoke Ogbodo

The Governor of Lagos State, Babajide Sanwo-Olu, has officially unveiled the LMRT Red Line for commercial operations.

The governor said the Red Line is the second rail system to become operational in less than two years in the state.

The 27-kilometre Red Line has eight stations at Oyingbo, Yaba, Mushin, Oshodi, Ikeja, Agege, Iju, and Agbado.

The train service is projected to transport about 500,000 Lagosians daily as the schedule is increased, providing a viable means of commuting.

In a post on his verified social media handles on Tuesday, Sanwo-Olu warned against vandalisation of the project, saying his government wouldn’t tolerate the destruction of public property.

Sanwo-Olu wrote, “Dear Lagosians, today marks the launch of commercial operations of the LMRT Red Line, commencing passenger services from Agbado to Oyingbo.

“We’re on a mission to keep Lagos moving, and the Red Line is a key part of our vision to create a seamlessly connected city. It is also our second rail system to become operational in less than two years.

“Spanning 27, the Red Line has eight stations at Oyingbo, Yaba, Mushin, Oshodi, Ikeja, Agege, Iju, and Agbado. The train service is projected to transport about 500,000 Lagosians daily as we ramp up the schedule and provide a viable means of commuting.”

He added that daily passenger services will depart from Agbado at 6:00 AM, with the second train leaving Iju Station at 7:30 AM.

“Ensure you have your Cowry Card ready to board,” he noted.

He urged residents to treat the project with the respect it deserves, stressing that “vandalism or disruptions will not be tolerated.”

He said, “Together, we can ensure that our trains remain a safe and enjoyable experience for everyone.”

Economy

Nationwide Blackout as National Grid Partially Collapses, Akwa Ibom Power Supply Remains Unaffected

Published

17 hours ago

October 15, 2024

Yetunde Olugbenga

A partial collapse of the national grid has been reported by electricity distribution companies, resulting in a blackout in most parts of the country.

However, the Akwa Ibom Generating Station was “islanded,” allowing it to continue supplying electricity to neighboring cities.

The spokesperson for the Transmission Company of Nigeria (TCN), Ndidi Mbah, disclosed this during a chat on Monday evening.

Mbah explained that the Akwa Ibom Generating Station was “islanded” to enable continuous power supply through the Eket, Ekim, Uyo, and Itu 132-kilovolt substations.

“The entire system did not collapse, as the IBOM Generating Station was islanded (i.e., separated to stand alone and continue supplying some areas to avoid a total system failure), allowing it to supply electricity through the Eket, Ekim, Uyo, and Itu 132kV substations,” she said.

Mbah further disclosed that the collapsed national grid was partial as TCN has begun system recovery to restore normalcy in the affected area.

“Recovery is currently ongoing and has advanced significantly.” She said.

Mbah’s disclosure about the Akwa Ibom generating station being “islanded” came shortly after Emeka Ezeh, Head of Corporate Communications at the Enugu Electricity Distribution Company (EEDC), confirmed the national grid’s collapse around 6:48 p.m. on Monday.

“…of a general system collapse that occurred at 18:48 hours today, 14th October 2024.” He stated.

Speaking about how to restore power, a statement signed by Ezeh revealed that the EEDC is on standby to restore supply from Osogbo.

“We are on standby awaiting detailed information of the collapse and restoration of supply from the National Control Centre (NCC), Osogbo,” the statement read.

“Rest assured, we are working with the relevant stakeholders to restore power as soon as the grid is stabilised. Thank you for your understanding”, the statement indicated.

The Abuja Disco also reported the grid collapse at 6:58 p.m.

“Dear Valued Customer, Please be informed that the power outage being experienced is due to a system failure from the national grid at 6:58 pm today, affecting the power supply to our franchise areas”, the Abuja Disco declared.

It was reported that the collapsed electricity grid has vehemently thrown the nation into a blackout. Moreover, at the time of this report, power supply is yet to be restored across parts of the country.

Economy

Inflation Rises First Time in Three Months to 32.7% in September 2024

Published

20 hours ago

October 15, 2024

Iyanuoluwa Martins

Nigeria's Inflation Rate - Investors King

Nigeria’s inflation rate rose in September 2024 for the first time in three months, advancing to 32.70 percent in annual terms from 32.15 percent in August.

Looking at the movement, the September 2024 inflation rate showed an increase of 0.55 percent compared to the August 2024 inflation rate.

Inflation had eased in July and August, but a return could potentially mean Nigerians will have to tighten their belts, analysts told Investors King.

On a year-on-year basis, the Headline inflation rate was 5.98 percent points higher compared to the rate recorded in September 2023 (26.72 percent).

This shows that the Headline inflation rate (year-on year basis) increased in September 2024 when compared to the same month in the preceding year (i.e., September 2023).

Furthermore, on a month-on-month basis, the Headline inflation rate in September 2024 was 2.52 percent, which was 0.30 percent higher than the rate recorded in August 2024 (2.22 percent).

This means that in September 2024, the rate of increase in the average price level is higher than the rate of increase in the average price level in August 2024.

The food inflation rate in September 2024 was 37.77 percent on a year-on-year basis, 7.13 percent points higher than the rate recorded in September 2023 (30.64 percent).

The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items such as guinea corn, rice, maize grains, beans, etc (bread and cereals class), yam, water yam, and cassava tuber, etc (potatoes, yam & other tubers class).

Others include beer (local and foreign) (tobacco class), lipton, Milo, Bournvita, etc (coffee, tea & cocoa class) and vegetable oil, palm oil, etc (oil & fats class).

On a month-on-month basis, the Food inflation rate in September 2024 was 2.64 percent which shows a 0.27 percent increase compared to the rate recorded in August 2024 (2.37 percent).

The average annual rate of Food inflation for the twelve months ending September 2024 over the previous twelve-month average was 37.53 percent which was 11.88 percent points increase from the average annual rate of change recorded in September 2023 (25.65 percent).