NEWS AGENCY OF NIGERIA

2025 budget predicated on 2m barrels crude oil production – Komolafe

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By Emmanuella Anokam

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the 2025 budget is predicated on 2.062 million barrels crude oil production at 75 dollars per barrel.
Nigeria’s current production is averaging 1.7 million barrels leaving a deficit of about 350,000 barrels to be bridged.
Mr Gbenga Komolafe, Commission Chief Executive, NUPRC made this known on Thursday in Abuja at the inaugural Petroleum Industry Stakeholders’ Forum organised by the Ministry of Petroleum Resources.
Komolafe said in order to avert the budget deficit and revenue gap, the commission inaugurated the “Project One Million Barrel per Day Incremental Production Initiative” during its third year anniversary in 2024.
This initiative, he said, entailed that every player within the upstream value chain could operate in one-stop shop economic system as against operating in silos thereby failing to leverage optimum capability and economic of scale.
He said the Commission had developed a template to identify the “Needs“ of every player within the value chain with a view to meeting the gaps arising from the needs of each player which could be met by another player.
“This is expected to create synergy, networking and leveraging on the capabilities of every player within the value chain.
“The Commission in 2024 set an agenda for the industry through the rolling out of Regulatory Action Plan (RAP) focused on regulatory predictability, future licencing rounds policy and implementation, among others.
“The Commercial Bid Conference for the 2024 Bid Round was conducted December 2024, where winning and reserve bidders emerged for each block on offer.
“The conference was conducted real-time online via technology adoption in the presence of representatives from the Ministry of Petroleum Resources, Ministry of Finance, Nigeria Extractive Industries Transparency Initiative (NEITI), and the General Public,” he said.
The bid round, he said, was in accordance with the provisions of Section 74 of the Petroleum Industry Act (PIA 2021) to ensure an open, transparent, and competitive bid process as provisioned in Section 73(1)(a) of the PIA.
He said the adoption of a real-time online Commercial Bid Conference which was the first of its kind in the nation’s over 70 years in exploration and production history was to entrench transparency and attract investor’s confidence.
He said in line with boosting Nigeria’s aspiration of becoming the energy hub of the continent, the NUPRC, through the National Data Repository (NDR) had provided a building to host the Africa Energy Bank (AEB) Headquarters in Abuja.
The gesture, he said, would fast-track the operationalisation of the bank, which would dovetail into job creation and oil and gas business financial support.
He said the upstream sector experienced growth in the national oil and gas reserves by 1.45 per cent and 0.206 per cent respectively in 2024.
According to Komolafe, the active rig count increased from an average of eight in 2021 to 38 currently, representing 79 per cent growth.
He said with effective collaboration with the security agencies, the theft and deferment had reduced drastically by more than 40 per cent in 2024.
Komolafe, however, lauded the ministers of state petroleum resources oil and gas for their leadership in steering the industry growth at this period when the economy is focusing on the oil sector to bridge production gap to fund the 2025 budget.
The News Agency of Nigeria (NAN) reports that the forum offers the stakeholders an opportunity for broad assessment of the industry, identifying challenges and brainstorming, with a view to proffering solutions for sustainable  development in the sector. (NAN)(www.nannews.ng)
Edited by Maureen Atuonwu

Foreign Policy And The Path To Peace In A Dangerous Neighbourhood

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By Yusuf Maitama Tuggar

Nigeria’s foreign policy to promote peace and prosperity is a constitutional obligation as much as it is a considered and sensible manifesto pledge, writes Hon Yusuf Tuggar, Minister of Foreign Affairs.

I was born in a civil war and was not able to vote for my leader until I was in my 30’s. Nigeria is now a country guided by the rule of law and a constitution that clearly defines our system of government. This includes our foreign policy objectives, and rightly so, because in an interconnected world, we define our sovereignty in the context of certain, key principles: our right to self-determination; our right to defend our autonomy and secure our borders; and responsibility to respect our obligations under international law.

As foreign minister, I think these provisions are not just reasonable but vital – both for our own democracy, domestic peace and prosperity but also for a more just and stable international order. But the point is this: it is the Constitution of the Federal Republic of Nigeria, not the manifesto of a political party or predilections of a particular politician, that lays out these provisions. In a democracy, we have the privilege of healthy debate about our values, policies and performance. But if we are to live up to the responsibilities that come with democracy, that debate should be informed, fair and reasonable.

I respect the Constitution and its vision for Nigeria’s place in the international community, as do many of us. It has been an honour and a privilege to protect and promote those constitutional principles. They are the best guarantees for legitimacy, and the authority all governments need if they are to deliver. It is complex and time consuming.

To our cost, we have learnt that there are no short cuts. Some Nigerians find fault in our Constitution, while others seek to amend it. There is always room for serious debate in a healthy democracy. But the fact remains it is the very document that President Bola Ahmed Tinubu and every public official has sworn to uphold since 1999.

Nigeria’s Constitution declares that sovereignty belongs to the people of Nigeria, from whom government, through this Constitution, derives all its powers and authority. The same Chapter of the Constitution goes on to state Nigeria’s five foreign policy objectives: promotion and protection of the national interest, African integration and support for African unity, promotion of international cooperation for peace and mutual respect, respect of international law and treaty obligations and promotion of a just world economic order. Those who suggest Nigeria does not have a foreign policy or those who agitate for a shift away from an Afro-centric foreign policy are wrong; either they are ill-informed, or deliberately disingenuous.

The irony of it all is that Nigerians are able to speak in support of our military-ruled neighbours, governed without constitutions, precisely because Chapter Four of our own constitution guarantees them these rights and freedoms. This is not the same for the citizens ruled by the very regimes for which they seek to cheerlead of those countries governed without constitutions.

Nigerians who are older than 30 know this to be true because we have been there, done that. Somehow in the passage of time, some forget that the military regime here that despatched troops to restore democracy in Sierra Leone and Liberia in the 1990s had first – and by force – taken that same democracy and rule of law away from us – just as military regimes continue to do the world over.

The Constitution also makes clear why any responsible Nigerian government should be concerned when neighbours are governed without a constitution or codified rules. It goes without saying that the sovereignty of our neighbours is their business. They can grant powers to whatever governing structures they deem fit and should expect their autonomy to remain safeguarded. But when our Interdependence Sovereignty overlaps, we equally have a right to exercise control over our borders in those cases where neighbours face insurgencies that significantly comprise territorial integrity and state authority.

International Legal Sovereignty also becomes an issue when we consider that respect for international law and treaty obligations is one of our irreducible foreign policy objectives. This is not the Tinubu administration’s foreign policy; it is a constitutional provision that every Nigerian President and government official swears to uphold.

Nigeria is a member of ECOWAS, which is founded on treaties and protocols to which our foreign policy objectives commit us. All 15 member countries are signatory to the treaties and protocols, which is why it was no surprise that President Tinubu, as one who swore to uphold the Constitution, abided by it when ECOWAS leaders collectively objected to Unconstitutional Changes of Government.

In reality, the contemporary nation-state system is highly competitive and Nigeria exists in a self-help world. Our Constitution and international laws are meant to serve as guard rails in navigating the system. And by virtue of our size, we have the additional responsibility of being the regional power. Regardless of how some may try to diminish our standing, it is the way other countries perceive us. Our Constitution further reifies this leadership role right from the preamble- dedicating ourselves to promoting inter-African solidarity, to the foreign policy objectives- promotion of African integration and support for African unity and elimination of discrimination in all its manifestations.

The Tinubu administration comes at a time when an interlocking suite of occurrences have made our neighbourhood less secure; implosion of Libya, failure of the EU Sahel Strategy, terrorism and criminal gangs, effects of climate change and population explosion. Nigeria did not create these challenges and was equally contending with its own domestic issue as these challenges escalated.

Nigeria was not part of Operation Barkhane or the G5 in the Sahel, which were intended as efforts to fight terrorism and irregular migration but instead strengthened some irredentist Azawad/Tuareg groups that controlled border areas. This created a cauldron of disharmony between them and their national militaries, trained for a lifetime to keep their countries intact.

Nor was Nigeria part of the Partnership Framework with Third countries that conditioned aid and trade deals for Sahelian migration transit states in exchange for reducing the flow of migrants, with penalties for those who do not comply. In the case of Niger, a moment of truth was the passing of Law 2015-36 in May 2015 when its government, in consultation with the United Nations Office on Drugs and Crime and technical and financial support from the European Union and its member states, criminalized ancillary activities of the migration economy, such as providing transportation and accommodation to foreign nationals anywhere north of Agadez, in direct contravention of ECOWAS Protocol on the free movement of people.

They were persuaded to use a blunt hammer to crack a delicate nut. There is a highly politicised migration crisis in parts of Europe, that together we can and should resolve. But it was reckless to seek to solve one problem by creating another.

There is a reason why we have free movement in West Africa; seasonal migration- referred to in Hausa as ‘Ci Rani’. Seasonal migration in the semi-arid Sahel can be a matter of life and death, which is why we have always had turbaned Tuaregs going as far as Lagos and Port Harcourt to work as Maigadis (security) during the dry months, only to return back north during the rainy season.

The weaponisation of sub-Saharan migration in Europe as a political tool led to the securitisation of the Sahel region, further exacerbating the security situation by forcing many of those affected to turn to criminal activities and terrorism. European migration figures show majority of migrants are from Syria, Afghanistan and Central Asia, not sub-Saharan Africa.

Yes, we need to work with our Sahelian neighbours to fight terrorism, by maintaining a right of pursuit into each others territories. But it would be myopic to think of this in absolutist terms, because we can accede to all conditionalities laid by them, it would still not be enough to tackle the challenges without a lasting solution to the bifurcated Libyan State as a source of weapons, training and fighters, as well as the shadowy involvement of a range of other state and non-state actors.

To achieve a lasting peace in Libya and the Sahel, Nigeria needs to deal with all the countries in the neighbourhood as well as all the major powers. For this reason, it does not make sense to simply deduce that Nigeria has to distance itself from France because that is the prevailing trend in its former colonies.

The fulcrum of the Tinubu administration’s foreign policy is Strategic Autonomy, providing us with the clarity to engage with any and all nations based on our national interests and not those of others. As a nation, Nigeria is adult enough and sophisticated enough to deal with countries without being unduly influenced, because that has been part of our historical and civic tradition. You cannot cure an illness by picking which symptoms to consider and which to ignore.

Nigeria and ECOWAS will continue diplomatic efforts towards Niger, Mali and Burkina Faso. At a minimum, we have shared interest in peaceful co-existence. President Tinubu has sent a number of high-level delegations that included a former Head of State, traditional rulers and religious scholars.

President Tinubu pushed for the unconditional removal of ECOWAS sanctions imposed on Niger, Mali and Burkina Faso. What he has consistently asked of the countries in question is for them to come up with a timetable for the restoration of constitutional rule and, in the case of Niger, the release of ousted President Bazoum.

Their response was to declare their intention to leave ECOWAS. With the one-year notice period coming to an end in January 2025, President Tinubu further pushed for ECOWAS to extend the grace period for another six months whilst intensifying diplomatic efforts. The response to this initiative last month was evidence-free allegations that Nigeria was harbouring foreign soldiers and as sponsoring state terrorism.

Whenever President Tinubu and other democratic leaders offer stoic statesmanship and an opportunity to work together towards our common interests, it is met by confected controversy designed to divert and distract from a failure to meet the basic responsibilities of public administration. I know why coup leaders might seek to do that: it’s harder to understand the motives of apologists closer to home.

On my part, since assuming the office of Minister of Foreign Affairs on 21st August 2023, I have engaged diplomatically without pause, proposing personal visits and inviting senior government officials and representatives. Response has been akin to a diplomatic cold shoulder.

We constituted a ministerial advisory committee that visited Niger and Mali and facilitated the visit of the Nigerian CDS to meet with his counterpart in Niamey. I regret that a proposed return visit was suspended by Niger after a date had been set. But let there be no doubt: we will continue to pursue diplomatic efforts assiduously, with a Ministry of Foreign Affairs that has existed for 67 years.

Nigeria’s principle of strategic autonomy is one that abhors the presence of foreign forces and private military companies in our region, whether from east or west. Nigeria presently has troops on peace keeping operations in Guinea Bissau and Gambia, with Sierra Leone on the way, where it is also supporting the setting up of a logistics base in Lungi.

Nigeria is also leading the actualisation of the ECOWAS standby force, all in an effort to fight terrorism and instability within our region under the rule of law. We work closely with our partners on sharing of intelligence in order to guarantee the same rights and freedoms are enjoyed by all the people of the region.

As several of my colleagues in the region remind me, we are the hegemon, whether we admit it or not. And global politics works almost like physics, with polarity, ordering principles, distribution of power, balancing, etc. Nigeria has never had expansionist tendencies, never been threatening towards our neighbours and always chosen the path of peace and conciliation.

This in part may have to do with the makeup of our polity and social fabric. Being such a huge country, we are used to the virtues of principled compromise. It is not by accident that we are the only country on the continent with six former leaders living in peace and harmony within our borders. Diversity, not division, is our strength. This is as true for Nigeria as it is for the smallest of countries – and collectively for all of our region.

Tuggar is Minister of Foreign Affairs, Federal Republic of Nigeria.

Nigeria urges global financiers to invest in airports

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By Gabriel Agbeja

Mr Festus Keyamo, the Minister of Aviation and Aerospace Development, has urged global financiers to invest in the concession of Murtala Muhammed International Airport, Lagos, and Nnamdi Azikiwe International Airport, Abuja.

 

The minister was speaking at the Airline Economics Growth Frontiers Global in Dublin, Ireland, on Monday.

 

The News Agency of Nigeria (NAN) reports that the event is holding from Jan. 12 to Jan. 15.

 

The event, which is part of Airline Economics Week, focuses on the latest developments and trends in the global aviation industry, with a particular emphasis on the finance and leasing of aviation assets.

 

Keyamo emphasised that the Federal Government has streamlined policies to create an enabling environment for investors to concession the nation’s airports.

 

“Initiated measures to reduce operational bottlenecks, including reviewing airport concession agreements to improve efficiency, have been put in place.

 

“There is a need to expand Lagos and Abuja airports to enhance capacity and passenger experience,” he said.

 

The minister noted that the Nigerian aviation sector had experienced significant growth, aligned with the government’s commitment to modernise infrastructure, improve safety, and foster economic growth.

 

He said that Nigeria’s Cape Town Convention index, which increased from 49 to 75.5 as a result of recently implemented policies, would help improve lessor’s confidence in placing leased aircraft in Nigeria.

 

“We hope that our demonstration of supporting economic growth, with aviation being a key factor, will open arms from the industry,” Keyamo said.

 

He also explained that the government had created multiple platforms to unify aviation stakeholders and increase the participation of local financing institutions.

 

The minister added that the government had also partnered with airlines, the insurance industry, and regional banks to address key issues and implement reforms.

 

“We have developed and signed a working agreement, MoU, with Boeing to help with safety improvement, operational efficiency, talent development, infrastructure development, and capacity building concerning MRO (Maintenance, Repair, and Overhaul),” he added. (NAN)(www.nannews.ng)

Edited by Kamal Tayo Oropo

Boeing ready to assist airlines in Nigeria in accessing aircraft insurance cover

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By Gabriel Agbeja

Boeing International Corporation says it is ready to assist airlines in Nigeria in accessing adequate aircraft insurance coverage through partnership with buoyant lessors and global financiers.

Mr Moore Ibekwe, Boeing Sales Director, Africa Region Commercial Airlines, disclosed this in Dublin, Ireland during the startoff meeting of  the “Boeing Lessor Forum“  scheduled to hold from Jan. 12 to Jan.15.

The News Agency of Nigeria (NAN) reports that the forum presents a unique opportunity for Nigeria to showcase its reforms in the aviation sector toward forging strategic alliances.

According to Ibekwe, such effort will contribute significantly to enabling Nigerian airline operators to mitigate risks and guard against losses.

“One key aspect of aviation insurance in Nigeria is the requirement for aircraft operators to maintain adequate insurance cover.

“Boosting the capacity of aviation insurance in Nigeria is essential to ensuring stability and safety through financial soundness of insurance operators in the sector.

“This meeting is part of efforts Nigerian government is making to address issues related to aircraft insurance in the aviation sector,” he said.

He praised Nigeria for securing the first position in the Cape Town Convention compliance index rating in Africa.

The director added that tracking funds by lessors is no longer an issue in the Nigerian aviation sector.

Speaking, Ms Rose Lereece, the Organiser of the “Nigerian Aviation Forum“ startoff meeting urged the delegation from Nigeria to take advantage of the opportunities offered by the event to attract businesses that would advance the Nigerian aviation sector. (NAN) (www.nannews.ng)

(Edited by Emmanuel Yashim)

President Bola Tinubu

2025 budget and Tinubu’s Renewed Hope Agenda

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By Kadiri Abdulrahman, News Agency of Nigeria (NAN)

President Bola Tinubu presented the 2025 budget proposal titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity” to the joint session of the National Assembly on Dec. 18, 2024.

While presenting the N49.7 trillion budget proposal, Tinubu said that it aligned with his administration’s Renewed Hope Agenda and underscores its commitment to stabilising the economy, fostering peace, and laying a foundation for sustainable prosperity.

He said that the budget proposal reinforced his administration’s roadmap to secure peace, prosperity, and hope for a greater future for the nation.

“This budget strikes at the very core of our Renewed Hope Agenda and demonstrates our commitment to stabilising the economy, improving lives, and repositioning our country for greater performance,” Tinubu said.

Stakeholders are, however, divided about the practicability of the budget proposal.

A financial expert, Prof. Uche Uwaleke, said that the budget reflected its title, with the lion shares going to defence and security (N4.91 trillion), infrastructure (N4.06 trillion), education (N3.52 trillion) and health (N2.48 trillion).

Uwaleke, of the Institute of Capital Market Studies at the Nasarawa State University, Keffi, said the budget projected that inflation would moderate to 15 per cent in 2025, while the Naira would appreciate to N1,400 per U. S. dollar.

According to him, the projection is on the back of expected reduction in importation of petroleum products.

“This is alongside increased export of finished petroleum products, bumper harvests enabled by enhanced security, as well as increased foreign exchange inflows,” he said.

He, however, expressed concern that the 2025 budget may witness a high level of off-budget funds, thereby masking the true picture of government fiscal position.

He said that recurrent (non-debt) spending made provision of N846 billion for the new minimum wage related adjustments.

He said that it was doubtful if that amount would be sufficient to accommodate the attendant bailouts to sub-nationals by the Federal Government in support of the implementation of the new minimum wage.

“These potential off-budget funds are capable of undermining government’s plan to progressively reduce deficits and borrowings over the medium term.

“For the 2025 budget not to run into a major hitch, it is important that as much as possible, all claims on public financial resources are identified and reconciled within the framework of the budget,” he said.

The expert also raised concern about financing of the N13.4 trillion deficit, in which asset sale and privatisation proceeds would contribute N312 billion, while N3.8 trillion represents multilateral/bilateral project-tied loans.

He said that the bulk of the borrowings (N9.3 trillion) would be largely discretionary and non-project tied.

“In order not to compound the already huge debt burden the country is facing, every effort should be made to ensure that all long-term funds sourced from the debt capital market are tied to self-liquidating projects.

“The budget breakdown contained in the executive proposal is meant to provide the nuts and bolts that will facilitate budget implementation and control.

“Besides the concern which the financing of the deficit raises, there are equally other weighty issues that deserve careful scrutiny by the National Assembly.

“For example, a thorough review of the line items that make up service wide votes and capital supplementation can free-up significant funds that can be channelled to other critical areas such as agriculture and solid minerals,” he said.

He urged the National Assembly to interrogate the composition and rationale for the margin for increase in costs and recurrent adjustment (N12 billion) as well as the line item tagged “contingency recurrent” (N36 billion).

” Curiously, the same figures appeared under service wide votes in 2024. Equally, under capital supplementation is a line item known as “contingency capital” (N200 billion), which also featured in 2024 budget for same amount,” he said.

The Nigerian Economic Society (NES) said that the N47.9 trillion 2025 budget was the lowest the country has had since 2018 in dollar terms.

According to Adeola Adenikinju, President of NES, though the budget is at a record high in Naira terms, the effect of Naira devaluation has shrunk its value when converted to the U.S. dollars.

“In nominal terms, the 2025 budget is the biggest Naira value budget in Nigeria’s history. However, in terms of real purchasing power, this budget is the lowest since 2018,”  he said.

Adenikinju said that the benchmark exchange rate of N1,400 though ambitious, is considered not fully grounded in the potential fiscal and monetary expectations in 2025 and deviates from major expert projections.

He said that using this benchmark may require alternative supply sources of high and more stable forex earnings for building high external reserve stocks.

An economist, Dr Chijioke Ekechukwu, said that the pegging of the budget on an exchange rate of N1,400 to dollar would dampen the optimism of Nigerians.

He said that the dollar exchange rate can get lower as the year progresses and the effect of some reforms begin to surface.

“Nigerians are still thinking that probably that rate can still come lower than N1,400, maybe N1,000.

“There is a problem with that projection because you are dampening our hope of a reduction in the exchange rate,” he said.

A policy analyst, Basil Abia, said that the projections of the 2025 budget proposal were unrealistic.

Abia said that it was only with a higher crude oil production above the current rate that the reduction of inflation to 15 per cent in 2025 could be possible.

“Now, if you say you want to do 15 per cent headline inflation rate on aggregate for 2025, you have to be able to show us that you are going to realistically drop down the core drivers, reduce their efficacy, and their frequency.

“Unfortunately, you cannot do 15 per cent headline inflation rate when you are producing less than two million barrels per day,” he said.

The Lagos Chamber of Commerce and Industry (LCCI) said that improved tax-to-Gross Domestic Product (GDP) ratio, would help to meet the ambitious N34.82 trillion revenue projection in the budget.

The LCCI Director-General, Dr Chinyere Almona, said that accelerating tax reforms, simplifying processes, and incorporating the informal sector were crucial.

She said that the country must leverage technology to expand the tax net, minimise leakages, and foster fiscal discipline.

“Fiscal discipline must complement these efforts to effectively manage the N15.81 trillion debt servicing allocation.

“Nigeria must prioritise high-impact, self-sustaining projects and explore alternative funding mechanisms, such as public-private partnerships, to keep debts within sustainable limits.

“Structural reforms are indispensable to reducing inflation to 15 per cent and stabilising the exchange rate at N1,400 to the dollar,” she said.

She said that addressing food and energy supply chain bottlenecks, fast-tracking local petroleum production projects, and fostering alignment between monetary and fiscal policies would restore confidence in the Naira and ease inflationary pressures.

“Achieving the ambitious oil production target of 2.06 million barrels daily requires decisive action to resolve pipeline vandalism, theft, and underinvestment.

“Across the three streams of operations in the oil and gas industry, a sound regulatory environment can boost activities and investments in the short term,”she said.

Almona lauded Tinubu’s attention to security, infrastructure, education, health, and agriculture to achieve macroeconomic stability and inclusive growth.

She said that the allocation of N4.91 trillion for defence was commendable compared to previous allocations.

She, however, said that the funding must be complemented with enhanced intelligence, surveillance technology, and simultaneous investment in poverty reduction and youth empowerment.

Almona said that the N4.06 trillion earmarked for infrastructure and significant allocations to education and health called for swift and transparent project execution.

According to her, while the budget outlines bold goals, these aspirations hinge on robust policy implementation, sustained execution, and coherence across government strategies.

“Beyond the figures and assumptions, budget implementation is the key performance driver.

“The 2024 budget implementation cycle extension to June 2025 should be closely watched to avoid such in the future as it can signal weak budget execution.

“We call on the National Assembly to expedite action on the appropriation debates,” she said.

As most Nigerians await the passage and operationalisation of the 2025 budget, they remain hopeful that it will effectively address rising inflation and moderate the prices of basic goods and services in the interest of the masses.

Stakeholders, however, said that a major snag to a thorough interrogation of the appropriation bill is its late presentation to the National Assembly.

They urged the lawmakers to properly scrutinise the contents of the appropriation bill before it is passed to ensure that it effectively address the yearnings of Nigerians. (NANFeatures)

**If used, credit the writer and the News Agency of Nigeria (NAN)

Are the tax reform bills elixir for Nigeria’s economy?

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By Kadiri Abdulrahman, News Agency of Nigeria (NAN)

 

President Bola Tinubu transmitted four tax reform bills to the National Assembly.

The bills are the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

They are expected to overhaul tax administration and revenue generation in Nigeria.

The tax reform bills are products of the Taiwo Oyedele-led Presidential Committee on Fiscal Policy and Tax Reforms inaugurated in August 2023, two months after Tinubu’s assumption of office.

From the onset, Tinubu had made it clear that tax reforms were a major focus of his administration, in order to lay a strong fiscal and revenue foundation for sustainable economic growth.

The bills seek to outline all taxes in the country hitherto administered by different laws and compress them into a single law.

They gave the Nigeria Revenue Service, which is expected to succeed Federal Inland Revenue Service (FIRS), powers to collect all national taxes.

However, shortly after the bills were presented to the National Assembly, diverse reactions and controversies started to trail them.

Some argue that the reforms are necessary to modernise the tax system, improve revenue collection, and support economic growth.

They point to the potential benefits of a simplified tax code, reduced tax rates, and increased investment incentives.

However, critics express concerns about potential negative impacts on businesses and individuals.

They argue that the reforms could increase the tax burden on certain sectors, discourage investment, and exacerbate income inequality.

The proposed changes to Value Added Tax (VAT) distribution have also sparked debate, with some regions expressing concerns about potential revenue losses.

The Northern Governors Forum is one group that kicked against the bills.

In a communique read by the forum’s chairman and Governor of Gombe state, Mohammed Yahaya, the governors specifically opposed the proposed amendment to the distribution of VAT to a derivation-based model.

They said that the proposed tax bills were not in the interest of the North and other sub-nationals.

“The contents of the bills are against the interests of the North and other sub-nationals, especially the proposed amendment to the distribution of VAT,” he said.

Yahaya said that the forum unanimously rejected the proposed tax amendments and called on members of the National Assembly to oppose the bill.

He called for equity and fairness in the implementation of all national policies and programmes to ensure that no geopolitical zone is marginalised.

The Borno State Governor, Prof. Babagana Zulum, said that if the reforms passed through the National Assembly, states would be disadvantaged, with Lagos State being the principal beneficiary.

Northern senators also called for the suspension of further legislative action on the bills, which have passed second reading in the Senate.

The lawmakers made the demand, citing potential adverse effects on Northern states.

Sen. Ali Ndume (APC-Borno), said that the Northern senators met with their governors and other leaders and agreed to advise for the withdrawal of the tax reform bills for further consultations.

Ndume said that it was in line with the suggestions of traditional rulers and the National Economic Council (NEC), adding that state assemblies in the region would also voice out their objections.

He said that some provisions in the bills clashed with the Nigerian constitution and would not stand.

The controversies around the bills have resulted to delay in them getting legislative attention.

The House of Representatives had earlier suspended debate on the bills due to public outcry and resistance from some Northern lawmakers.

The lawmakers who rejected the bills included 48 members from the North-East, 24 from Kano, and a former Governor of Sokoto State, Sen. Aminu Tambuwal, who represents Sokoto South Senatorial District.

The presidency, however, said that the four tax reform bills were not against the interest of the North or other regions.

Presidential Spokesman, Mr Bayo Onanuga, said that the reforms were designed to streamline tax administration and promote equitable economic development across the country.

Onanuga refuted claims that the bills recommended the dissolution of key federal agencies, like the National Agency for Science and Engineering Infrastructure (NASENI), Tertiary Education Trust Fund (TETFUND), and National Information Technology Development Agency (NITDA).

“Since the public debate around the transformative tax bills began, various political actors and commentators have tried to obfuscate the facts, deliberately misinforming and misleading the public.

“Unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills.

“While some commentators have attempted to incite the people against lawmakers, others have polarised one section of the country against another.

“The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country poorer, as recklessly canvassed,” he said.

According to him, the bills will not destroy the economy of any section of the country.

“Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living,” Onanuga said.

Also, the Director-General, National Orientation Agency (NOA), Lanre Issa-Onilu, said that the bills were not to oppress any region in the country.

Issa-Onilu said that they would ensure fiscal discipline and tax harmony, adding that they will harmonise taxation and prevent multiple taxation.

He urged members of the public to access the documents to critically peruse them before making comments in order not to misconstrue the whole essence of the reforms.

According to Uche Uwaleke, a Professor of Capital Market and the President of Capital Market Academics of Nigeria,
the proposed tax reforms represent a welcome development that will boost the capital market.

Uwaleke said that section 56 of the bills proposed a gradual reduction in the income tax on total profits of a company from the current 30 per cent to 27.5 per cent in 2025 and to 25 per cent from 2026.

“This reduction will go a long way in improving shareholders’ wealth and valuation of companies listed on the exchanges.

“In addition, what is considered as the threshold for small companies exempted from income tax has been increased from N20 million per annum, to a maximum gross turnover of N50 million per annum.

“It bears repeating that the reduced income tax rates and other generous incentives to small businesses will most likely spur business activities, and create more job opportunities essential for the growth of the capital market,” he said.

He said that one of the objectives of the bills was to simplify tax administration and reduce the number of taxes from over 60 to a single digit.

He said that this would go a long way in improving the ease of doing business in Nigeria, and also rub-off positively on the bottom line of listed companies.

“It is pertinent to note that the bills contain a number of tax incentives capable of uplifting the capital market.

“All said, the capital market in Nigeria needs fiscal incentives to gain traction.

” The implementation of the proposed tax reforms, as contained in the tax bills currently before the National Assembly, will help provide the needed elixir for the Nigerian capital market,” he said.

As the controversies rage, experts agree that the success of these tax reforms will depend on careful implementation and addressing the concerns of various stakeholders.

They suggest that finding a balance between revenue generation and economic growth will be crucial for their long-term effectiveness.(NANFeatures)

**If used, credit the writer and the News Agency of Nigeria (NAN)

2025: Nigeria at verge of great development, says TEXEM boss

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By Taiye Agbaje

Abuja, Jan. 1, 2025(NAN) Nigeria is at the verge of greater development in 2025 with the visionary leadership of the current administration, says an economic expert.

 

Dr Alim Abubakre, Founder of TEXEM, UK and senior lecturer at Sheffield Business School, disclosed this to the News Agency of Nigeria (NAN) in Abuja on Wednesday.

 

Abubakre said that the measures taken by President Bola Tinubu have showed prospects of improving the economy and moving the nation towards a new economic renaissance.

He added that the potentials of the country needed visionary leadership at all levels to achieve the Renewed Hope Agenda of the administration.

 

He suggested a number of steps that must be taken to sustain the tempo of the agenda for the benefit of citizens.

 

‘’Nigeria has the critical ingredients of a remarkable success story: vast natural resources, an energetic and youthful population, a dynamic entrepreneurial scene, and strategic influence in Africa.

 

‘’Translating these advantages into real-world prosperity, however, hinges on systematic efforts to quell insecurity, modernise infrastructure, and eradicate corruption.

 

‘’When trust in institutions grows, communities become safer, and talents are harnessed in service of progress, the nation stands on the cusp of a profound transformation,’’ he said.

 

Abubakre said that the localisation of global best practices would assist in no small measure to attract foreign direct investment, improved infrastructure and security.

 

He said that practices abound in other countries that had faced similar economic trends Nigeria is currently facing.

 

‘’By adopting the lessons of Rwanda, Colombia, India, Indonesia, and other nations—while calibrating them to Nigerian realities—leaders can build genuine momentum for change.

 

‘’Diversifying beyond oil secures economic stability. Fostering youth entrepreneurship creates pathways out of poverty and channels youthful zeal into productive endeavours.

 

‘’Modernising infrastructure enables businesses to operate seamlessly, while robust transparency measures rebuild faith in governance. Strengthening human capital fuels, a leap into a globally competitive knowledge economy.

 

‘’At the same time, addressing deep-seated grievances through community-led development and inclusive policies strikes at the heart of insecurity, replacing despair with opportunity.’’

 

Abubakre added that under visionary leadership that is firmly rooted in empathy, accountability and effective as well as efficient implementation of policies, Nigeria can break free of its historical constraints.

 

‘’As Nigeria continues along this journey, it has the potential to radiate positive influence throughout Africa and beyond, providing a blueprint for how strategic leadership can convert manifold struggles into a legacy of shared prosperity.’’(NAN)

Edited by Ismail Abdulaziz

Tchiani: Traditional rulers, border communities refute military camp claim

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By Habibu Harisu
Traditional rulers and residents of border communities in Sokoto and Kebbi states have refuted claims by Nigerien leader, Abdourahamane Tchiani, that Nigeria is host to French military base and training camps.

Correspondents of the News Agency of Nigeria (NAN) who visited border communities in the states on Friday report that there was no evidence of the claim.

Tchiani in a Christmas Day interview had claimed that Nigeria had provided a base for French soldiers near Lake Chad.

He also claimed training camps had been established for terrorists in Sokoto, Kebbi and Zamfara, all aimed at destabilising Niger.

Findings by NAN, however, indicated that there was no training camp in any of the states bordering Niger as claimed by Tchiani.

Alhaji Aminu Aliyu, the District Head of Balle, a border community with Niger, in Gudu Local Government Area of Sokoto State, dismissed Tchiani’s claims.

He described the Nigerien leader’s claims as baseless, saying none of his subjects had reported the presence of foreign soldiers or camps in the area.

According to another community leader, Malam Abdurahman Usman, Marake, Kurdula and Bikini communities are located between eight and 35 kilometres from Niger and residents have not sighted any military camp.

Usman stressed that residents of Balle and other communities were relating well with their counterparts in Nigerien border communities and had at no time reported military presence.

Malam Kabiru Muhammad, a resident of Ruwa-wuri community in Tangaza Local Government Area, acknowledged the presence of Lakurawa bandits some times, but not foreign military camps in the area.

” Lakurawa terrorists are being chased away by personnel of the Nigerian Army stationed in our area, but there is no foreign military camp in the area, ” Muhammad said.

Adamu Bagobiri, Yusuf Abubakar and Ibrahim Kadadi, all residents of Tangaza, also denied seeing any military training camp in the area.

They, however, urged the Nigerien leader to cement the long existing relationship between Nigeria and Niger as many engage in intermarriage and business relationships.

On his part, the Sarkin Arewan Araba, Alhaji Abubakar Yusufu, dismissed claims of a village or forest called Gaba in his domain.

NAN reports that Araba is a border community in Illela Local Government Area less than two kilometres away from Konni in Niger.

He also debunked the allegation of foreign military camp in the area.

“There is no such forest in Araba district or Illela Local Government and we are yet to see any foreigner in our villages.

” These are tea joint discussions. Instead, it is the Nigerien military operatives that have been coming into our area every night,” he said.

The district head cautioned the Nigerien leader against making baseless allegation capable of severing historic ties.

Another resident of Araba, Malam Muhammadu Danladi, said the allegation of training camps was meant to smear the image of Nigeria.

“It is a lie, there is no presence of foreigners in our community. It is just a mere allegation which is unfounded,” he said

He also said there had been a deliberate attempt by Nigerien soldiers to harrass Nigerians in border communities in the last six months.

“Their security operatives at the border areas have been harassing our people, seizing their goods for no just cause.

” Their people are, however, having free access into our country.

” They have been coming to buy goods and leave, and nobody is harassing them.

” We want our government to do something about this,” he said.

In Kebbi State, Alhaji Murtala Muhammad-Kaka, the District Head of Bayawa in Augie Local Government Area, also dismissed allegations of foreign military camps in the area.

Muhammad-Kaka described the Nigerien leader’s allegations as an attempt to jeopardise the peace and stability enjoyed by border communities in Niger and Nigeria.

Condemning the Nigerien leader’s claims as divisive, Muhammada-Kaka called for more initiatives to promote cooperation between both countries.

Muhammada-Kaka, who acknowledged the presence of Lakurawa terrorists in the area, however, commended the Nigerian Army for tackling the menace.

According to him, Bayawa community shares borders with Silane, Gidan Sami, Rundi, Karami and Binji communities in Sokoto State as well as Kwaidu and other communities in Kebbi State.

Meanwhile, Alhaji Muhammad Salah, the District Head of Kasaki, a border town in Bagudo Local Government Area in Kebbi State, has commended the Federal Government over its efforts to secure the vast borders.

Salah said no fewer than eight communities share border with Benin and Niger, with residents speaking the same Dandi dialect.

The traditional ruler said residents engage in farming activities as well as attend the weekly markets and social gatherings in the area.

According to him, communities in the border areas have interwoven relationships.

He said his mother hailed from a town in Benin Republic, adding that many of his subjects have such marital relationships.

He denied knowledge of any foreign military camp and enjoined residents across borders to live in peace with one another.

Another resident, Malam Sidi Mustapha, stressed the need for increased preparedness to address trans-border security challenges such as terrorism, banditry, smugglingas well as proliferation of small arms and light weapons.

NAN reports that Nigeria had rejected allegations made in the viral video by Tchiani, claiming collusion between Nigeria and France to destabilise his country.

The Minister of Information and National Orientation, Mohammed Idris, said in a statement in Abuja on Thursday that the claims existed solely in the realm of imagination.

He said Nigeria had never engaged in any overt or covert alliance with France or any other country to sponsor terrorist attacks or destabilise Niger.

The minister said President Bola Ahmed Tinubu, as Chairman of ECOWAS, had demonstrated exemplary leadership.

He said the president had kept the doors of the sub-regional body open to re-engaging Niger inspite of the political situation in that country.

” Nigeria remains committed to fostering peace, harmony, and historic diplomatic ties with Niger.

” Nigeria’s armed forces, in collaboration with partners in the Multinational Joint Task Force, are succeeding in curbing terrorism within the region,”he said. (NAN) (www.nannews.ng)
(Edited by Mufutau Ojo)

Niger’s allegations against Nigeria baseless – FG

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By Mufutau Ojo
Nigeria has rejected allegations made in a viral video by the military leader of Niger Republic, Gen. Abdourahamane Tchiani, claiming collusion between Nigeria and France to destabilise his country.

The Minister of Information and National Orientation, Mohammed Idris, said in a statement in Abuja on Thursday that the claims exist solely in the realm of imagination.

He said Nigeria had never engaged in any overt or covert alliance with France or any other country to sponsor terrorist attacks or destabilise Niger following undemocratic change in leadership of that country.

The minister said President Bola Tinubu, as Chairman of ECOWAS, had demonstrated exemplary leadership.

He said the president had kept the doors of the sub-regional body open to re-engaging Niger Republic in spite of the political situation in that country.

” Nigeria remains committed to fostering peace, harmony, and historic diplomatic ties with Niger.

” Nigeria’s armed forces, in collaboration with partners in the Multinational Joint Task Force, are succeeding in curbing terrorism within the region.

” It is, therefore, absurd to suggest that Nigeria would conspire with any foreign power to undermine the peace and security of a neighbouring country.

” Neither the Nigerian government nor any of its officials has ever been involved in arming or supporting any terror group to attack Niger Republic.

” Furthermore, no part of Nigeria has been ceded to any foreign power for subversive operations in Niger Republic,” he said

The minister reiterated government’s full support for senior government officials for their untiring commitment to fostering peace and security between Nigeria and Niger.

” Indeed, Nigeria has a long-standing tradition of safeguarding its sovereignty and territorial integrity.

” Unlike some nations, Nigeria has never permitted foreign powers to establish military bases on its soil.

” This demonstrates our commitment to national independence and regional leadership.

” The accusation that Nigeria seeks to sabotage Niger’s pipelines and agriculture is both unfounded and counterproductive.

” Nigeria has consistently supported Niger’s economic development through joint energy and infrastructure projects, such as the Trans-Saharan Gas Pipeline and the Kano-Maradi Railway Project.

” It is illogical to suggest that Nigeria would undermine initiatives it has actively promoted.

” The claims about the alleged establishment of a so-called Lakurawa terrorist headquarters in Sokoto State, purportedly orchestrated by Nigeria in collaboration with France, are baseless,” he said.

He said Nigeria had been a regional leader in combating terrorism, dedicating significant resources and lives to ensure stability in the Lake Chad Basin and beyond.

The minister added: ” Recently, the Nigerian military launched Operation Forest Sanity III, specifically addressing the Lakurawa threat, code named Operation Chase Lakurawa Out.

” How can a government actively fighting the Lakurawa menace now be accused of harbouring the same group within its borders? ”

Idris said that the accusations lacked credible evidence and seemed to be part of a broader attempt to deflect attention from Niger’s internal challenges.

” The public is urged to disregard these false allegations.

” Those making such claims, particularly the military leader in Niger Republic, must provide credible evidence to substantiate them.

” Any attempt to blackmail Nigeria over ECOWAS’s principled stance against the unconstitutional seizure of power in the Niger Republic is both disingenuous and doomed to fail,” he said.

The minister insisted that Tchiani’s allegations were not only unfounded but also a dangerous attempt to divert attention from his administration’s shortcomings.

” Nigeria remains committed to fostering regional stability and will continue to lead efforts to address terrorism and other transnational challenges.

” We urge Niger to focus on constructive dialogue and collaboration rather than peddling baseless accusations,” Idris said. (NAN)(www.nannews.ng)

Nigeria’s poor, weak internet connectivity frustrates digital transformation goals

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By Ibukun Emiola, News Agency of Nigeria

 

A mother of three, Mrs Asake Ayinde, who lives at Oridagogo, Odo-Ona Kekere, a suburb area in Ibadan, the capital of Oyo State can’t use WhatsApp, a social media platform effectively when she is at home as a content creator.

 

According to her, the poor network cuts across all mobile networks and also makes normal calls and messaging difficult.

 

“I was frustrated when I attempted to do an online course to improve myself on my job as it became almost impossible to join Zoom meetings and log in to the e-learning platform required for this training.

 

“What frustrates me the most is the inability to call or send messages to my husband or children whenever I am away from home.

 

“What if there is an emergency? Poor network would have deprived me of averting it,” Ayinde said.

 

Ayinde said she completed her online course with the help of her daughter who found a section of their home with a good internet connection at a particular time of the day.

 

Another respondent, Mr Gboyega Ayodeji, who lives at Iyana Bodija in Ibadan, says digital banking has become very difficult these days for him.

 

Weak internet connectivity means he is unable to rely on his banking app to make digital financial transactions from the comfort of his home.

 

“Oftentimes, you have to get into the banking hall to do the digital transfer which could have been done on your mobile app if the internet is stable and this increases stress and makes time management difficult.

 

“The service providers should ensure to provide more mast systems to areas where they have a large number of customers,” Ayodeji said.

 

It is the same story for Mrs Tolulope Laniya-Awolola from Abuja, the Federal Capital Territory, who has faced challenges with her digital payment activities for some time now.

 

“Such experiences on weak internet connection can be very frustrating; difficulty in completing online banking transactions like transfers or bill payments. Delays in receiving important updates or alerts from banks are some of the frustrations I have been dealing with.

 

“Inability to access banking apps or websites for balance checks or account management are some of the downsides resulting from poor internet connectivity,” Laniya-Awolola said.

 

According to her, she has trouble learning through digital platforms. “I have trouble attending live online classes or having difficulty downloading study materials or submitting assignments on time.

 

“Lagging video calls or messages are other issues too. Issues with streaming music, videos, or playing online games and delays in completing work tasks or joining virtual meetings are too much weight to bear due to the situation of the internet in the country.

 

“So, one has to keep switching from one internet service provider to another.”

 

Mr Olubunmi Adeite in Arulogun, a suburb of Ibadan and Mr Bamidele Olatunde from Abule Egba, in Lagos both run education consultancy outfits preparing students for A level, Cambridge, TOEFL and IELTS examinations, to them good and reliable internet connectivity is crucial.

 

According to them, running their various platforms to support teaching and learning activities for their clients have been challenging including processing foreign academic applications for overseas study.

 

They all blame it on poor internet access.

 

“Yes. It has hindered urgent transactions and has affected the smooth running of business,” Adeite said.

 

Internet connectivity is key to realising digital transformation for many, expanding access to improved services across all sectors of the economy.

 

The Nigerian National Broadband Plan 2020-2025 agenda on broadband internet includes increasing access to high-speed internet for the population, covering an increase in speed with a minimum of 25 Mbps in urban areas and 10 Mbps in rural areas.

 

 

 

The plan also aims at least 90 per cent of the population having access to internet coverage by 2025 and data not costing more than N390 per 1 GB, which is 2 per cent of the median income or 1 per cent of the minimum wage.

 

 

 

But as the 2025 deadline for the country’s goals in broadband internet fast approaches, Nigeria seems far from realizing this goal.

 

 

 

Speaking on the status of internet connectivity in Nigeria, the president of the Association Telecom Companies of Nigeria (ATCON), Mr Tony Emoekpere, said as of December 2023, Nigeria recorded 163.8 million internet subscriptions, representing a 9.07 per cent year-on-year growth, with internet penetration exceeding 40%.

 

According to him, Lagos State leads the nation with 18.9 million internet users, followed by Ogun with 9.5 million and Kano with 9 million.

 

“This growth underscores the increasing role of Internet access in education, business, and social interactions despite challenges like economic volatility and infrastructure limitations,” Emoekpere said.

 

The ATCON president, however, stated that broadband penetration remains a concern, currently at 48.1 per cent, short of the government’s target of 70 per cent by 2025.

 

“Network quality also varies significantly across urban and rural areas, with urban regions like Lagos enjoying faster and more reliable connectivity compared to underserved rural areas, where infrastructure gaps persist,” he said.

 

Emoekpere said the barriers to broadband internet expansion in Nigeria reflect a combination of infrastructure deficits, economic constraints, and systemic challenges.

 

He noted that addressing these was critical for achieving equitable digital inclusion and supporting the country’s economic growth.

 

The ATCON president, however, called for tariff adjustments and economic incentives so operators can sustain their infrastructure investments.

 

“Increased investment in broadband infrastructure is essential. The government should foster PPPs to expedite the deployment of backbone and last-mile networks, especially in underserved areas.

 

“(It should) provide targeted subsidies for low-income households to access broadband services and affordable digital devices. These initiatives can promote inclusion while increasing the user base for operators.

 

“(Government should) expand digital literacy programmes at the community level to empower more Nigerians to leverage the internet for education, commerce, and social inclusion,” he said.

 

Emoekpere underscored the importance of Partnering with energy providers to ensure telecom sites have reliable power supply, thereby reducing reliance on expensive alternatives like diesel generators. (NAN) (www.nannews.ng)

 

***This report is produced under the DPI Africa Journalism Fellowship Programme of the Media Foundation for West Africa and Co-Develop.”

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