Economy

Senator Ndume Slams Tinubu’s Tax Reform Bill as “Dead on Arrival” Amid Economic Hardship

Published

19 hours ago

November 6, 2024

Company Income Tax (CIT) - Investors King

The lawmaker representing Borno South in the National Assembly, Senator Ali Ndume, has criticized the recent tax reform bills submitted by President Bola Tinubu to the National Assembly.

Ndume shared his views during an interview on Tuesday, November 5, 2024.

The senator stated that the bill would be “dead on arrival,” urging Tinubu to retract the tax bills as suggested by the National Economic Council (NEC) and the Northern Governors’ Forum.

He argued that Nigerians are not open to discussing or paying additional taxes, especially given the current economic hardship.

Ndume said, “If it goes on like that, I can tell you that it will be dead on arrival. We don’t need to study the bill.”

“The general sentiment is that Nigerians are not willing to talk about or pay any tax now, considering the (economic) situation we are in.”

He added, “Nigerians are willing to pay taxes, but only when they can afford it. Right now, people are struggling to survive. Let people live first before you start asking them for taxes.”

Ndume advised Tinubu to withdraw the bill and allow Nigerians adequate time to study and understand it.

According to him, the bill will not stand without public support.

The lawmaker added, “It would be fair to shut the bill down; it’s the fairest thing to do.”

“What he (Tinubu) needs to do is withdraw the bill, educate Nigerians, and help them understand it. We represent the people, and they have already spoken.”

He emphasized that “The governors and traditional rulers have said that the bill is not favorable. So, the best thing to do is to immediately withdraw it.”

“Right now, what our people are saying is that they don’t want the VAT bill; they don’t even want to hear about it. That is why we are going to make it dead on arrival.”

Investors King reported that the Governors of 19 Northern States, under the Northern Governors’ Forum, recently met with traditional rulers from the region to discuss the Federal Government’s new value-added tax model.

In a communiqué issued after the meeting, the chairman of the forum, Governor Muhammed Yahaya of Gombe State, expressed strong opposition on behalf of the governors to the derivation-based model for Value-Added Tax (VAT) distribution proposed in President Tinubu’s new tax reform bills.

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Economy

Tax Expert Warns Tinubu: VAT, PAYE Hikes Will Deepen Hardship for Nigerians

Published

11 hours ago

November 6, 2024

Yetunde Olugbenga

Due to Nigeria’s economic situation, tax expert Adebisi Oderinde has urged President Bola Ahmed Tinubu to halt plans to increase the VAT and Pay-As-You-Earn (PAYE) tax rates.

Oderinde, who is also the CEO of AOC-Adebisi Oderinde & Co, made the statement during the inauguration of the company’s Head Office in the Kara area of Ogun State.

He said the country’s economic conditions are challenging and particularly unfavorable for SMEs and warned that implementing tax reform could destabilize many small businesses as inflation has already eroded purchasing power in Nigeria.

With over 28 years of experience as a tax consultant, Oderinde noted that new tax reforms would likely worsen hardship across the country.

“My advice is to make hay while the sun shines, as the journey of a thousand miles begins with a single step, and slow and steady wins the race. The country is hard! As a tax practitioner, I continue to pray for our President, but he must heed the advice of elders, especially when it concerns tax reform,” he said.

“This is not the right time to reform any tax, nor to adjust rates. Nigerians’ purchasing power is very low. While some may think of VAT reform as beneficial, it would have a negative impact, especially on Lagos State. One part of the reform aims to cancel the consumption tax, which would hit Lagos hard, as the state earns more from consumption tax than any other state in the federation,” he added.

Oderinde further advised northern Nigeria not to support the proposed policy, warning it could disproportionately affect the region.

“They also want to increase PAYE, and recent data from the NBS in 2023 shows that the total IGR from the 36 states plus the FCT is about N2.4tn, with PAYE accounting for about 63%. If PAYE is raised, it will impact many states significantly. Instead of focusing on VAT, the northern states should consider that an increase in PAYE would affect them even more than VAT,” he explained.

Economy

Power Restored Hours After Lastest Grid Collapse

Published

11 hours ago

November 6, 2024

Ugwoke Ogbodo

Electricity has been restored in some parts of the states that were hitherto affected by the nation’s power grid collapse.

Investors King gathered that some states including Lagos, Osun, Federal Capital Territory among others now have light.

Recall that the Transmission Company of Nigeria (TCN) had on Tuesday announced the latest National Grid collapse.

Checks by Investors King, however, revealed that the last disruption was the tenth time Nigeria would be experiencing total blackout due to grid collapse in about nine months in 2024 alone.

The situation has been raising concerns from Nigerians and other stakeholders even as others alleged that the collapse has led to inferno in people’s homes among other property destruction.

The General Manager of TCN Public Affairs, Ndidi Mbah, had assured members of the public that the grid collapse which occurred at 1:52 pm on November 5 would be speedily fixed.

The GM revealed that the grid collapse was caused by line and generator trippings, adding that efforts were on to rectify it.

Mbah had disclosed how the national grid experienced a partial disturbance due to a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Each time the disruption through citizens into darkness, businesses are affected as many Nigerians task the Federal Government to tackle the menace.

Economy

World Bank Donates $50m To Help Nigeria Overcome Food Nutrition Challenges

Published

11 hours ago

November 6, 2024

Ugwoke Ogbodo

The World Bank has announced the donation of $ 50 million in support of Nigeria’s food nutrition challenges.

For the global financial institution, there is a need for the Federal Government to initiate nutrition education for teenagers and adolescents in the country.

This suggestion, the World Bank believes would further assist Nigeria in overcoming its nutrition challenges.

Country Director of the World Bank, Ndiame Diop, revealed made this known during a meeting with Vice President, Kashim Shettima at the Presidential Villa Abuja.

Diop explained that the fund was earmarked under the Accelerating Nutrition Results in Nigeria (ANRiN) project 2.0 programme which is a crisis response window.

The Practice Manager for Health, Nutrition and Population at the World Bank, Trina Haque, maintained that there was a need for nutrition education for children and adolescents as it is important for early child development.

Shettima, in his submission, reaffirmed Nigeria’s commitment to addressing its growing nutrition challenges through a community-driven strategy aimed at transforming nutrition outcomes across Nigeria’s 774 local government areas.

Presenting the comprehensive N-774 Initiative during the meeting, Shettima said the document would build on successful outcomes from the ANRiN project.

The Vice President noted that the N-774 initiative comes at a crucial time considering the ANRiN project closeout.

He noted that the administration of President Bola Tinubu is pioneering a paradigm shift in nutrition programmes through locally owned solutions, adding that the N-774 Initiative represents the nation’s commitment to community-driven development and sustainable nutrition outcomes.

Explaining that the N-774 Initiative is a localised, community-driven solution tailored towards the unique needs of each LGA and aims to bring nutrition interventions directly to communities, Shettima said it would also encourage local ownership and ensure sustainability.

Admitting that malnutrition is a Nigerian problem that needs a Nigerian solution, he disclosed that Tinubu is very much willing to support such an initiative.

According to the Vice President, the project integrates nutrition goals across education, agriculture, health and social protection sectors.

On the project implementation strategy, Shettima said it was important to leverage current political will to reverse the country’s negative nutrition indicators.