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Remove VAT From Diesel, Tax Committee’s Boss Urges …MDAs may be stopped from tax collection

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The Chairman, Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has said stated the need to remove Value Added Tax (VAT) on Automotive Gas Oil (AGO), popularly known as diesel to offset the impact of removal of petrol subsidy.
He said in order to ease the economic strains warranted by the removal of fuel subsidy, the committee need consider  suspending VAT on diesel.
Oyedele, formerly a Fiscal Policy Partner and Africa Tax Leader at Price Waterhouse Coopers (PwC), emphasised the urgency to address pressing economic concerns within the initial 30 days of the committee’s tenure.
“Personally, for example, this is not promising that it would be done. I think that we should suspend VAT on diesel because we removed fuel subsidy on petrol and prices are going up. We are going to table it before the committee. These are the things we want to do in the first 30 days”, he said.
Oyedele’s committee was inaugurated by President Bola Tinubu in Abuja on Tuesday and is charged with accomplishing crucial tax reforms, streamlining and harmonisation of tax laws, executive order issuance, regulatory implementation, and more over the following six months.
Although the committee has a one-year timeline for policy implementation, Oyedele clarified that the 30-day, six-month, and one-year milestones run concurrently.
The committee also intends to address excessive bank charges and reduce the exorbitant number of levies and taxes paid by businesses.
Oyedele revealed that businesses are burdened by as many as 65 to 70 different taxes and levies, while the committee’s objective is to curtail this number to around 10.
He said the Nigeria Customs Service (NCS) and 62 other Ministries, Departments and Agencies (MDAs) of the Federal Government should not collect revenue directly.
He, however, said the revenue collecting agencies of the federation can continue to collect revenue until a definite decision is taken to stop the practice.
He said the details of stopping revenue collecting agencies other than the Federal Inland Revenue Service (FIRS) from collecting such revenues “will be discussed by the committee with extensive engagements with key stakeholders including the affected MDAs”.
According to him, “it’s still a long way as many of the MDAs revenue collection functions are enshrined in their establishment laws”.
Oyedele had on Channels TV had hinted that the Federal Inland Revenue Service (FIRS) will now be responsible for collecting revenue for the MDAs.
He explained that this change will bring several benefits, including improved efficiency and reduced collection costs.
Oyedele stated that the current cost of collection is high due to the numerous agencies involved, noting that the MDAs are being distracted from their primary functions and are not equipped to efficiently collect revenue.
By transferring the revenue collection duties to the FIRS, Oyedele believed two advantages can be achieved, saying there will be a reduction in collection costs and an improvement in efficiency, and that the MDAs can focus on their core responsibilities, ultimately benefiting the economy.
Oyedele emphasized that agencies like Customs should concentrate on trade facilitation and border protection, while the NCC should solely regulate telecommunications.
Revenue collection, he said, can be outsourced to specialized entities like the FIRS, leading to increased transparency and accountability in how funds are utilized.
Additionally, Oyedele noted the existence of a significant tax gap, estimated to be around N20 trillion or more, stressing the importance of focusing on major taxes such as Value Added Tax, Corporate Income Tax, and Personal Income Tax.
“Many individuals, particularly the middle class and elite, are not fully compliant with their tax obligations, with some only paying a fraction of what they should be contributing”, he said.
According to him, the Federal Inland Revenue Service (FIRS) is best-suited to collect revenue for the MDAs.
“Ironically, our cost of collection is one of the highest. And the reason for that is that we’ve got all manners of agencies. The Federal Government alone, we have 63 MDAs that were given revenue targets last year, no; actually in the 2023 budget”, he said.
“And two things that would come up from that: on one hand, these agencies are being distracted from doing their primary function which is to facilitate the economy. Number two, they were not set up to collect revenue, so, they won’t be able to collect revenue efficiently.
“So, move those revenue collection function to the FIRS. It has two advantages: the cost of collection and efficiency will improve, these guys will focus on their work, and the economy will benefit as a result.
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TTP Trains Customs Agents, Freight Forwarders On Eto App 

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In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.

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NECA Holds MSME Fair To Drive Growth 

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Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.

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Over 2m Passengers Board Blue Rail Train – Commissioner 

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The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.

Nkpemenyie Mcdominic, Lagos

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