Editorial

No To Increase In VAT

Published

10 years ago

April 22, 2016

The Federal Government recently spoke
about a 100 percent rise in the Value-
Added Tax (VAT) in Nigeria, ostensibly to raise more money for the administration. But organised labour, civil society groups and indeed, the general public are wondering whether government considers the possible effect it would have on the nation’s already prostrate economy.
Coming at a time President Muhammadu Buhari was apologising to Nigerians over the hardship they were currently experiencing, the proposed increase may become the last straw that would break the resilience of many persons.
Even before the visit to Nigeria in January, by the Managing Director of the International Monetary Fund (IMF), Ms. Christine Lagarde, during which she urged the Federal Government to consider a gradual increase in VAT, there had been a few futile moves to raise the consumption tax. But it was Vice President Yemi Osinbajo’s speech at a recent forum in Lagos that gave the latest indication of government’s plan.
The VP had described the current five percent VAT rate in Nigeria as rather too low and hinted that the Buhari administration would increase the tax this year.
According to reports, VAT was introduced in Nigeria in September 1993 following the recommendation of a study group constituted two years earlier to review the country’s tax system. But its implementation did not commence until January 1994 after the promulgation of the VAT Decree No. 102 of 1993.
Going by this decree, VAT was to have an introductory rate of five percent which would last for two years before any consideration of an upward review both in its rate and coverage. But Nigerians have continued to resist attempts to double the five percent rate 22 years after VAT was introduced.
Analysts have also suggested that Nigeria has one of the lowest consumption tax rates in Africa. They particularly cited Ghana where the rate is 15 percent; Cameroun 19.25 percent; South Africa 14 percent; Zambia 17.5 percent. Kenya 14 percent; and Egypt which charges 25 percent on luxury goods.
Increasing the VAT rate and the items on which it applied may not be a bad idea, after all. In fact, if the VAT rate is doubled and its total accruals shared among the tiers of government, the projection is that it would serve to relieve many cash-strapped States and local governments. However, The Tide thinks that the plan is ill-timed and dismissive of the 300 percent hike in the price of fuel, 150 percent rise in price of bread and 300 percent increase in prices of sachet water and other household items.
It should worry the Federal Government that banks have become most economically enslaving in our time, especially, going by the kind of absurd service charges and VAT they exact from the customers; that electricity tariff has gone too high and inflation is heading toward the austerity level.
The people are groaning under a terribly deflated Naira, ridiculously low income regime and job losses. Indeed, the crime rate is at an all-time high.
While the government may be pointing to the law that makes for an upward review of VAT after two years, the same has not been considered for the National Minimum Wage, which raise has been long overdue too.
The Federal Government will need to drop the idea of a VAT increase now because its implementation will lead to the closure of businesses and more job losses and Nigeria will be the worse for it. Indeed, the people cannot help but resist the increase.
Much as government is right to raise taxes, the expectation of the people should also be considered. A situation where the average citizen provides water, electricity even security for himself, will make anyone ask what the taxes are used for.
Let the people be considered, especially the poor masses, whose income has continued to drop and prices of goods and services, up.

Editorial

Checkmating ‘One-Chance’ Menaces In PH

Published

2 days ago

August 17, 2026

The Tide

The dramatic apprehension of three suspected ‘one-chance’ robbers at Rumuosi Junction in Port Harcourt offers both relief and a sober nudge. According to the Rivers State Police Command’s spokesperson, ASP Blessing Agabe, the syndicate’s vehicle was intercepted by courageous residents after a trapped passenger raised an alarm. One victim had already been thrown from the moving minibus, while another cried for help, prompting a chase that ended at Rumuekini Junction where an enraged mob set the operational bus ablaze before operatives of the Nigeria Police, Choba Division intervened. The suspects, who reportedly confessed to the crime, were taken into custody.

But this single success cannot mask a deeply entrenched crisis. ‘One-chance’ operations have become alarmingly rampant in the Garden City, evolving from isolated incidents into a daily nightmare for commuters. Only lately, a nurse with the University of Port Harcourt Teaching Hospital was abducted right before the UPTH gate upon boarding a commercial vehicle after close of work. Her ordeal is no longer an exception but a pattern that has instilled palpable fear amongst many who depend on public transport for their livelihood.

The lamentations are loudest around the University of Port Harcourt axis and its environs. In recent months, several students and lecturers have reported being dispossessed of phones, laptops, and cash along the Choba, Alakahia, and Aluu routes. A postgraduate student had recounted losing her tuition fee inside a supposedly commercial bus at Rumuosi, while a trader at Choba market was pushed out of a moving vehicle and sustained severe injuries. These recurring episodes have turned routine commuting into a gamble with safety.

What makes this criminal enterprise particularly insidious is its elaborate deception. The syndicates have perfected a guise of legitimacy. Their operational vehicles often contain accomplices disguised as market women, nursing mothers, who act as decoys to lure unsuspecting passengers. They occupy strategic seats, feign normal conversations, and create a false sense of security. After an unsuspecting commuter boards, the victim is robbed and assaulted before being ejected from the moving bus. Others are abducted to unknown destinations where they are held for ransom, and in the most tragic cases, killed.

Even more disconcerting is the shifting demography of the perpetrators. Contrary to the archetypal image of male street urchins, there is now a disturbingly high rate of female involvement in these robberies, either as active robbers or as collaborators who provide the all-important veneer of innocence. The most vulnerable targets appear to be women themselves, particularly petty traders and workers who set out for business between 5 and 6 a.m. when the streets are still dim. They are routinely robbed, brutalised, and shoved out of moving vehicles, often before the day has truly begun.

It was this accumulated public fury that triggered the near-lynching at Rumuosi. As a stakeholder in the community, Joseph Owhortee, rightly noted, the mob’s rage was inflamed by the yet-unresolved killing of a community member, Nkiruka Jennifer Ihunda, in a previous ‘one-chance’ incident. While jungle justice can never be condoned, its recurrence signals a dangerous erosion of public confidence in formal law enforcement. When citizens feel compelled to become enforcers, it is a damning verdict on the protective capacity of the state.

That verdict is made starker by the visible presence of numerous police checkpoints across Port Harcourt. Commuters legitimately question how these criminals operate with such impunity despite security barricades at almost every major intersection. A major part of the answer, sadly, lies in compromised enforcement. Too often, stop-and-search operations appear to prioritise pecuniary gains over diligent scrutiny. It is disheartening that operatives routinely allow vehicles with heavily tinted glasses to pass without proper checks, swayed by monetary inducements or assumptions about the personality inside. In doing so, they unwittingly provide a safe passage for felons.

The scale of this threat is corroborated by credible data. According to the National Bureau of Statistics’ Crime Experience and Security Perception Survey 2024, 31.6 per cent of Nigerians who reported being victims of robbery experienced it inside or around public commercial transport. Similarly, a 2023 report by SBM Intelligence on urban crime in Port Harcourt indicated that transport-related robbery accounted for 27 per cent of all reported street crimes in the city, with 62 per cent of incidents occurring between 5:00 a.m. and 9:00 p.m. The Rivers State Police Command itself, in its end-of-year briefing in December 2024, acknowledged 89 reported cases of ‘one-chance’ robbery in the metropolis alone. These figures, likely under-reported, underscore that we are confronting a full-blown emergency.

The police must, therefore, sit up and adopt a more strategic posture. Beefing up security cannot be generic; it must be intelligence-led and focused on designated hotspots where these syndicates thrive. Areas such as Elelenwo, Airforce Junction, Peter Odili Road, Eleme Junction, Rumuokoro Roundabout, and the entire East-West Road stretch from Rumuosi to Choba have become notorious corridors for this menace. Constant, unpredictable patrols, plain-clothes surveillance at these flashpoints, and thorough, non-discriminatory vehicle searches are non-negotiable.

Intelligence gathering remains the weakest link. If the Command had responded proactively to the deluge of complaints from residents, especially those plying the UNIPORT and Eleme areas, the situation would not have deteriorated to this frightening level. The police have enough human sources to map the operational routes, identify the ringleaders, and infiltrate the networks. What is required is seriousness in apprehending and dismantling these gangs rather than merely reacting after an alarm is raised.

Beyond policing, there is an urgent need for regulatory action by the Rivers State Government. The profiling of all commercial vehicle owners and operators has become imperative for easy identification and tracing. The long-proposed policy compelling all commercial vehicles, including buses and taxis, to be painted in the official Rivers colours of blue-white-blue must finally be enforced. Several attempts by previous administrations faltered due to lack of political will. This administration must muster the courage to implement it. Uniform colouration, with bold registration numbers on the body, would enable commuters to distinguish genuine commercial motors from criminal contraptions at a glance.

Public enlightenment is vital. Law enforcement agencies should carry out sustained sensitisation on the kind of vehicles commuters should board and the warning signs to watch for while also providing functional emergency numbers for swift response during attacks. Simultaneously, communities should be encouraged and properly supervised to establish vigilante groups to complement police efforts in their localities. The rescue at Rumuosi Junction proves that vigilant citizens can make a difference, but they should not have to replace the police. A synergy of professional policing, responsible governance, and security-conscious citizenry may be the way to finally checkmate this scourge.

Editorial

That Oshiomhole’s Call On FG’s Road Projects

Published

1 week ago

August 10, 2026

The Tide

There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.

The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.

We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.

This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.

The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.

The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.

Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.

There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.

By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.

Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.

Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.

Editorial

Making Rivers’ 2026 Budget Count

Published

2 weeks ago

August 3, 2026

The Tide

The presentation of the proposed 2026 Rivers State budget marks a critical moment in the state’s development journey. Tagged the Budget of Resilience for Growth and Development, the N1.854 trillion appropriation seeks to consolidate progress in infrastructure, human capital development, and security. At a time when economic uncertainty still confronts many states, the proposal projects optimism about Rivers State’s fiscal future. However, beyond ambitious figures and lofty promises, the real measure of success will lie in disciplined implementation and measurable outcomes.

The proposed revenue projection of N1.854 trillion represents a 24.49 per cent increase over the adjusted 2025 budget. The expectation of higher receipts from the Federation Account Allocation Committee (FAAC), derivation funds, and internally generated revenue reflects confidence in improving national economic conditions. Yet, caution remains imperative. Heavy reliance on federally distributed revenue continues to expose the state to fluctuations in oil prices and national fiscal policy. Strengthening internally generated revenue through improved tax administration, expanded economic activities, and prudent financial management should remain a long-term priority.

The recurrent expenditure of N413.11 billion appears reasonably contained when compared with the capital allocation of N1.405 trillion. This translates to a capital-to-recurrent ratio of roughly 77:23, a distribution that suggests a deliberate emphasis on development projects rather than routine government spending. Such fiscal discipline deserves commendation, provided that recurrent obligations, including salaries, pensions, and operational costs, are settled promptly without compromising service delivery.

One notable aspect of the recurrent budget is the provision for new recruitments, increased overheads, and the settlement of gratuities, pensions, and death benefits. The government’s commitment to clearing inherited liabilities offers renewed hope to retired civil servants who have endured years of uncertainty. This approach reflects both compassion and administrative responsibility. Nevertheless, increased personnel costs should be accompanied by improved productivity, accountability, and performance within the public service.

Infrastructure understandably dominates the capital budget, with over N533.32 billion allocated to works and infrastructure. Roads, bridges, and other public facilities remain essential to economic growth, investment attraction, and regional integration. In a state whose economy depends significantly on commerce and logistics, better transport networks can stimulate business activities and reduce the cost of moving goods and services. The true test will be whether projects are completed on schedule and according to specification.

Education emerges as another major beneficiary, receiving an allocation of N315 billion. This substantial investment recognises that human capital remains the strongest foundation for sustainable development. Better schools, improved learning facilities, teacher development, and educational technology can transform the future of Rivers State. However, funding alone is not enough. Effective monitoring, transparent procurement, and measurable learning outcomes must accompany this transformative investment if the education sector is to achieve lasting impact.

Healthcare receives N105.43 billion, making it one of the largest sectoral allocations. While the amount demonstrates government recognition of the importance of public health, citizens will expect tangible improvements in hospitals, primary healthcare centres, medical equipment, and personnel welfare. The lessons of recent global health emergencies have shown that resilient healthcare systems are indispensable to economic stability. Every community should experience the benefits of this important investment, particularly rural and underserved areas.

Agriculture receives just over N19.26 billion, while power is allocated N15 billion. These allocations deserve careful examination because agriculture and reliable electricity remain key drivers of diversification and employment. Rivers State possesses considerable agricultural potential, but productivity remains below expectations. Increased investment in mechanisation, extension services, storage facilities, and agro-processing could generate thousands of jobs. Likewise, improved electricity infrastructure would stimulate manufacturing and small businesses. It would be unfortunate to put all the eggs in one basket by relying overwhelmingly on oil revenues while these productive sectors remain relatively underfunded.

The social sector allocation of N435.41 billion encompasses education, healthcare, youth development, women affairs, sports, and community development. These sectors directly affect the quality of life of citizens and deserve sustained attention. Youth empowerment programmes, women-focused initiatives, and community development projects can reduce unemployment, promote inclusion, and strengthen social cohesion. Such investments are indispensable if the state intends to build lasting peace and prosperity.

The allocations to the judiciary and the Rivers State House of Assembly equally deserve attention. Strong democratic institutions are fundamental to accountability, the rule of law, and effective governance. Adequate funding should strengthen judicial efficiency and legislative oversight rather than merely expand administrative expenditure. Public confidence will increase only when institutional funding translates into better justice delivery, transparency, and responsible governance.

While the budget’s ambitions are commendable, enforcement remains the decisive challenge. Nigeria’s public finance history is replete with budgets that promised much but delivered far less. Timely releases, strict procurement processes, independent monitoring, and regular public reporting should, therefore, become the cornerstone of execution. Transparency is not merely a slogan but an indispensable requirement for sustaining public trust. In this regard, the government’s pledge that every kobo will be spent wisely must be matched by verifiable evidence.

In all, the proposed 2026 Rivers State budget presents a bold opportunity to accelerate development across critical sectors. Its emphasis on infrastructure, education, healthcare, and social investment aligns with the state’s long-term aspirations. Yet, as the popular saying goes, the proof of the pudding is in the eating. The Rivers State House of Assembly must subject the estimates to rigorous scrutiny before approval, while the executive must ensure faithful implementation. If transparency, fiscal discipline, and accountability guide execution, this budget could indeed become a genuine blueprint for resilience, inclusive growth, and sustainable development for Rivers people.