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TUC Rejects VAT Hike, Urges Pro-people Tax Reforms
The Trade Union Congress of Nigeria has opposed the proposed increase in the Value Added Tax rate, as outlined in the Federal Government’s Tax Reform Bills, warning that the move could worsen the economic hardship faced by Nigerians.
The Federal Government had proposed a phased VAT hike from the current 7.5% to 10%, 12.5%, and ultimately 15%, a move the TUC described as ill-timed and detrimental to the welfare of citizens already grappling with inflation, unemployment, and a soaring cost of living.
Speaking during a press briefing in Abuja, yesterday, following the union’s National Executive Council meeting held on November 26, 2024, TUC President Festus Osifo said maintaining the VAT rate at 7.5 per cent was crucial to safeguarding Nigerians from additional financial pressure.
“Allowing the Value Added Tax rate to remain at 7.5 per cent is in the best interest of the nation. Increasing it now would impose an additional burden on households and businesses already struggling with economic challenges,” Osifo said.
He added, “With inflation, unemployment, and the cost of living on the rise, higher taxes could stifle economic growth and erode consumer purchasing power.”
The TUC called for a review of the tax exemption threshold, urging the government to raise it from N800,000 to N2.5 million per annum to ease the financial strain on low-income earners.
“This measure would increase disposable income, stimulate economic activity, and provide relief to struggling Nigerians,” Osifo explained.
He said, “The threshold for tax exemptions should be increased to N2,500,000 per annum. This adjustment would offer much-needed relief to low-income earners, enabling them to cope with the current economic challenges.”
The TUC also expressed reservations about the proposed transfer of royalty collection from the Nigerian Upstream Petroleum Regulatory Commission to the Nigeria Revenue Service (NRS), citing risks of revenue losses and inefficiencies.
“Royalty determination and reconciliation require specialised technical expertise in oil and gas operations, which the NUPRC possesses but the NRS lacks. This shift could result in inaccurate assessments, enforcement challenges, and reduced investor confidence,” Osifo warned.
The union commended the government’s decision to retain the Tertiary Education Trust Fund and the National Agency for Science and Engineering Infrastructure, describing their roles as pivotal to the country’s education and technological advancement.
“These institutions have significantly contributed to improving tertiary education and fostering homegrown technologies. Their continued existence is vital for sustained progress in education, technology, and national development,” Osifo said.
Osifo called on the Federal Government to adopt tax policies that prioritise the welfare of citizens and promote equitable economic growth.
“As discussions on the Tax Reform Bill continue, it is our hope that the focus will remain on fostering economic growth and improving living conditions for all Nigerians,” he said.
The TUC reaffirmed its commitment to advocating for policies that enhance the well-being of Nigerians, emphasising that proactive and citizen-centred reforms reflect true leadership.
News
APC Presidential Primary: Fubara Commends Process, As Tinubu Sweeps Poll In Rivers
Rivers State Governor, Sir Siminalayi Fubara, has commended the leadership of the All Progressives Congress (APC) in Rivers State over the outcome of last Saturday’s presidential primary election that saw President Bola Ahmed Tinubu sweeping the poll with a total of 280,082 votes.
Fubara, who served as the State Collation Officer for the primary election, said that while the APC had a total of 297,068 registered members, the number of those accredited for the election was 280,082.
According to him, all those accredited for the election, cast their ballot for Tinubu, leaving Stanley Osifo, his only opponent, with no votes.
Fubara expressed delight at the peaceful and seamless process which he said was as a result of good planning by the party.
“I feel that this process has recorded one of the most organised outings of our great party in recent times. The only reason it came out this way has to do with good planning. In all, I want to say that I’m really impressed with the process.
“So, I can say here that having taken time to go through the figures diligently, I, Siminalayi Fubara, who is standing as the State Collation Officer, hereby certify that the information contained in my own spreadsheet represents the true, correct and accurate record of the summary of results from the 23 LGAs of Rivers State,” he said.
The governor said that while it was evident that President Tinubu defeated his opponent in the primary election in the State, the report would be sent to the APC headquarters in Abuja where the results will be formally declared.
News
Ogoni cleanup: Minister Calls For more support from private sector
The Federal Government has called for increased private sector participation and donor funding to sustain ongoing gains in the Ogoni environmental restoration project under the Hydrocarbon Pollution Remediation Project.
Speaking at a conference on donor facilitation and diplomatic support for HYPREP in Abuja, yesterday, the Minister of Environment, Balarabe Lawal, stressed that the Ogoni cleanup programme was designed as a long-term intervention requiring sustained funding, technical support, and international cooperation.
“The project is supposed to be a lifespan project. We must move towards achieving its main aim, which is environmental restoration and sustainable development,” he added.
Lawal acknowledged the contributions of the United Nations Environment Programme, describing its assessment as the scientific foundation of the ongoing remediation efforts in Ogoni land.
“We are all here because of that UNEP report. It provided the scientific foundation for what has become one of the world’s most ambitious environmental remediation programmes,” he said.
According to him, hundreds of hectares of hydrocarbon-polluted land have been remediated, while additional sites are currently undergoing cleanup operations.
“We have remediated hundreds of hectares of polluted land, and more sites are still being worked on. Water schemes have also been delivered to affected communities,” he stated.
He added that ecosystem restoration, livelihood support programmes, and healthcare projects were ongoing across affected communities.
“Body health facilities are being constructed, livelihood programmes are empowering thousands, and we are also restoring access to safe drinking water because the first victim of pollution is water,” he said.
The minister also disclosed that the Centre of Excellence for Environmental Restoration was nearing completion, describing it as a major milestone in the project.
“If you go there, you will see one of the biggest edifices being constructed under HYPREP. It will serve as a postgraduate and research institute for environmental remediation,” Lawal said.
Despite the progress, he warned that funding challenges remain a major threat to sustaining the project.
“While substantial progress has been made, the journey is not yet complete. The implementation of UNEP recommendations requires long-term commitment and sustained financial and technical support,” he said.
Lawal therefore, appealed to development partners, donor agencies, international financial institutions, foundations, and private sector players to scale up their support.
“We need your support—financial, technical, scientific, and strategic. No organisation or government can do it alone,” he said.
He further described the Ogoni cleanup as a global model for environmental recovery, climate resilience, and international cooperation.
“The restoration of Ogoni land is not merely a Nigerian undertaking; it is a global model. Its success will show what is possible when governments, communities, and partners work together,” he added.
Also speaking, the Chairman of the Board of Trustees of the Ogoni Trust Fund, Emmanuel Deeyah, said the conference was organised to attract financial, technical, and institutional support for the cleanup exercise.
“We are looking for resources, financial support, expertise, partnership, and collaboration. Government cannot do everything alone,” he said.
Deeyah said the agitation for environmental justice in Ogoni dated back to 1991 when residents drew global attention to the environmental degradation caused by oil exploration activities.
“We farm in Ogoni land and we also fish, but our waters were polluted and the land could no longer support farming activities,” he said.
He explained that the UNEP report recommended that oil companies should contribute $1bn every five years for 30 years to support the remediation programme.
“We have done 10 years now and we have not even received the full $1bn that was supposed to be contributed. The refineries and local operators have not contributed a dime,” he stated.
Last week, the Hydrocarbon Pollution Remediation Project announced the closure of 30 contaminated sites in Ogoniland, Rivers State, while investigations have commenced on 18 high-risk polluted locations in residential communities.
News
IGP pledges police protection for major projects
The Inspector-General of Police, Olatunji Disu, yesterday paid a courtesy visit to the Federal Ministry of Works in Abuja as part of efforts to strengthen collaboration on critical infrastructure projects nationwide.
The visit, disclosed in a statement posted on X by the Nigeria Police Force, was attended by the Minister of Works, David Umahi; the Minister of State for Works, Bello Goronyo; and directors of the ministry.
According to the statement, discussions during the meeting centred on ongoing infrastructural projects nationwide, particularly the Lagos-Calabar Coastal Highway and other major road construction initiatives aimed at improving national development and connectivity.
The police chief reportedly reaffirmed the NPF’s commitment to providing security support for the execution of critical national infrastructure projects across the country.
“The Nigeria Police Force will continue to provide adequate security support and deploy necessary operational resources to ensure the smooth execution and protection of critical national infrastructure projects nationwide,” the statement read.
The meeting was also said to have highlighted the need for stronger inter-agency collaboration in protecting public infrastructure from vandalism and other security threats capable of disrupting construction activities.
PUNCH reports that the Federal Government had raised concerns over acts of vandalism along the Lagos-Calabar Coastal Highway corridor, with Umahi warning that the destruction of drainage systems and road infrastructure could threaten the durability of the project.
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