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National Assembly Considering Bill Seeking To Increase VAT From 7.5% To 10% By 2025

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The national assembly is considering a bill proposing an increase in the value-added tax (VAT) from 7.5 percent to 10 percent.

VAT is the consumption tax on goods and services levied at each stage of the supply chain where value is added.

The national assembly, in the executive bill, is seeking to raise the tax rate to 10 percent by 2025.

The legislature also has plan of increasing the VAT to 12.5 percent by 2026 through 2029.

“VAT shall be charged on the value of all taxable supplies at the following rates (a) 2025 year of assessment 10%; (b) 2026, 2027 2028 and 2029 years of assessment 12.5% (c) 2030 year of assessment and thereafter 15%,”

On May 8, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, had said the VAT rate needs to be increased.

Reacting to the recommendation on September 8, Atiku Abubakar, former vice-president criticised the proposed VAT hike, describing it as a “regressive and punitive policy”.

However, Wale Edun, minister of finance, on September 9, said the VAT rate has not been unchanged.

In February 2021, the International Monetary Fund (IMF) had advised the federal government to raise the VAT rate to at least 10 percent by 2022.

CIT TO BE REDUCED TO 27.5% BY 2025

Meanwhile, the bill also proposes a reduction in the corporate income tax (CIT) to 27.5 percent by 2025 — down from 30 percent — and a further cut to 25 percent by 2026.

Companies with less than N20 million turnover are exempted from paying the CIT, according to the bill.

“Tax shall be levied, for each year of assessment in respect of total profits of every company, in the case of; (a) a small company, at zero percent; and (b) any other company, at the rate of-(i) 27.5% in 2025 year of assessment, and(ii) 25% from 2026 year of assessment,”

On June 4, Oyedele had said the presidential committee on fiscal policy and tax reforms proposed a reduction of the CIT by 5 percent.

He said the tax rate should drop from 30 percent to 25 percent to encourage businesses and investors.

Earlier this month, the federal government released the gazetted withholding tax regulations expected to take effect from January 1, 2025.

BIG STORY

JUST IN: President Tinubu Departs For 10-Day Working Vacation In France, UK

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President Bola Tinubu has left Abuja to begin a 10-working-day “working vacation” in Europe as part of his 2025 annual leave, the Presidency announced on Thursday.

In a statement by Bayo Onanuga, Special Adviser on Information and Strategy, the president’s itinerary includes trips to France and the United Kingdom, after which he is expected to return to Nigeria .

The statement did not clarify whether Tinubu will transmit a formal leave notice to the National Assembly under Section 145(1) of the 1999 Constitution (as amended), which allows the Vice President to act in his stead. Notably, both chambers are currently on recess .

This marks another foreign excursion shortly after a diplomatic mission to Japan and Brazil in late August, where Tinubu pursued trade, aviation, and security agreements during meetings in Japan and with President Luiz Inácio Lula da Silva in Brazil .

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BIG STORY

I’m The Most Experienced Oyo Governorship Aspirant In APC — Adebayo Shittu

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Adebayo Shittu, current Minister of Communications, has positioned himself as the most experienced candidate in the All Progressives Congress (APC) contest for the Oyo State governorship.

In a statement to journalists in Ibadan, Shittu cited his extensive political track record—spanning roles as a member of the Oyo State House of Assembly in 1979, a two-time State Commissioner, and two previous governorship bids—as qualifications that set him apart from other aspirants. “I was a member of the State House of Assembly in 1979 and two-time Commissioner in the State. I have also contested the governorship seat in the state twice before I became a minister. These are experiences you cannot buy,” he insisted .

Shittu emphasized the importance of experience in governance and governance readiness, underscoring the complexity of Oyo State’s political landscape. He added, “Oyo is advanced and sophisticated to be handled by inexperienced administrators” .

Drawing on his historical ties to Nigeria’s political heritage, Shittu noted that he gleaned invaluable insights from Chief Obafemi Awolowo, a foundational figure of Nigeria’s politics. He argued that this lineage of political mentorship enhances his capacity to govern effectively.

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Revenue Growth Yet To Translate Into Better Living Conditions — Peter Obi To Tinubu

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Former Labour Party presidential candidate Peter Obi has challenged President Bola Tinubu to ensure that the country’s recently achieved revenue growth delivers visible improvements in citizens’ lives.

Reacting to Tinubu’s announcement that Nigeria hit its 2025 revenue target by August, Obi congratulated the president but stressed: “If indeed the economy stabilises as you declared, then Nigerians must feel it in their daily lives.”

He added that economic stability must be reflected in tangible outcomes: “Borrowings must stop now. Huge contractors’ bills, which are still owed, should be paid, and critical underfunded projects must now be funded.”

Obi lamented the dire state of public services, noting: “True economic stability is not in figures announced at press conferences, but in classrooms where children learn, in well-equipped labs, and in hospitals where citizens can receive quality care.”

He called on the government to channel the surplus revenue transparently into priority sectors—particularly education, healthcare, and poverty reduction—within the remaining four months of the year.

Obi emphasised the need for measurable results, warning: “Anything less will mean that revenue growth has not translated into national growth. Nigerians deserve to see the impacts of this touted revenue growth.”

He concluded with a statement of hope: “A new Nigeria is possible.”

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