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NUPENG And The Rest Of Us

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The National Union of Petroleum and Natural Gas Workers
(NUPENG), last Monday in Lagos, issued a four-day notice to embark on a
nationwide strike should the Federal Government fail to effect payments of
outstanding fuel subsidy claims to importers of Premium Motor Spirit (PMS)/depot
owners across the country.

While issuing the threat, President of NUPENG, Achese Igwe,
said that the action became imperative following government’s failure to pay
the subsidy claims, which the union argues, was a breach of an agreement it
reached with the government on July 27, 2012, and therefore, threatens the job
security of Nigerians working for the oil marketers as they (marketers) are now
unable to pay staff salaries.

NUPENG also insisted that the government needed to clear the
outstanding subsidy claims because it has refused to repair the refineries and
depots to enable them refine and store products for local consumption. The
union argued that fuel importation was a burden the Federal Government brought
upon itself by sheer neglect of the refineries, stating that it therefore,
behoves on the government to fulfil its obligations to Nigerians by paying
those licensed to import products.

The union said that government’s failure to pay the
outstanding subsidy claims to fuel importers, meant that its members working
for the private depot owners and others, who have been owed salaries for
months, would continue to suffer as long as government remained adamant,
stressing that this was in breach of the Memorandum of Understanding (MoU)
signed with all stakeholders by government.

But in a swift reaction, Minister of Finance, Dr Ngozi
Okonjo-Iweala, said that the government would not pay subsidy to individuals
and companies indicted in the 2011 oil subsidy probe to which several billions
of naira had been siphoned from government’s coffers.

Okonjo-Iweala, who is also the Coordinating Minister of the
economy, stated that as long as the Economic and financial Crimes Commission
(EFCC) had not concluded its prosecution of those accused of fraudulently
receiving monies from government in connection with fuel importation,
government will not release any payments to them until they refund the monies
they illegally collected.

While The Tide understands the union’s position over the
delay in fixing the refineries and depots, and the fact that its members
working for some of the companies indicted in the subsidy probe reports may be
suffering as a result of the inability of their employers to pay them salaries
as and when due, we seriously disagree with the union’s stand that industrial
action is the best option available.

The Tide reckons that NUPENG has an inalienable right to
protest and ensure improved welfare for its members, but the union should also
realise the fact that where its rights end, the rights of other Nigerians
begin. Without a doubt, the union has to respect the rights of others to
peaceful socio-economic lives and demand its members’ rights in such a way that
they do not infringe on the rights of others.

We indeed believe that there are other means of resolving
such conflicts, especially through dialogue and negotiations with all parties
as well as enlisting the services of the courts of competent jurisdiction to
adjudicate on the matter to ensure that justice was served instead of
attempting to be the accuser, the judge and the executioner in its own matter.

For us, the NUPENG’s threat is a deliberate ploy to
blackmail the government into paying undeserving petroleum marketers for
services they did not render.  This, in
itself aims at perpetuating official corruption which every well meaning
Nigerian stands against.

We rather expect NUPENG to mount pressure on the petroleum
marketers to comply with the due process and get their pay instead of trying to
blame the ordinary Nigerians. NUPENG should be civil enough to dialogue with
the Federal Government on the subsidy payment issues with a view to finding a
sustainable solution to the impasse and nothing more.

Plunging the nation into any strike at this time would
subject millions of Nigerians into another period of suffering and drain the
struggling economy. Besides, the security challenges facing the nation would
further be given fillip by creating window for hoodlums to take advantage of
the atmosphere to cause instability and threaten the peace of the nation.

Nigerians are not ready now for any strike that would cripple
the system just to satisfy the selfish interest of a few. We think that it is
time to call the NUPENG bluff. NUPENG should realise that it is not the only
industrial union in Nigeria, and that its excesses should not be allowed to
hurt any Nigerian anymore. Nigerians deserve to lead their normal lives without
any distractions from another round of fuel strike.

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FIRS Clarifies New Tax Laws, Debunks Levy Misconceptions

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The Federal Inland Revenue Service has said that Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments, and improve long-term fiscal stability.
The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.
According a statement released Wednesday, one of the most misunderstood elements of the new tax framework is the four per cent development levy with the agency explaining that the levy replaces a range of fragmented charges — such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy — that businesses previously paid separately.
This consolidation, it said, reduces compliance costs, eliminates unpredictability and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.
Another major clarification relates to Free Trade Zones. Earlier commentary had suggested that the government was rolling back the incentives that have attracted export-oriented investors for decades. However, the reforms maintain the tax-exempt status of FTZ enterprises and introduce clearer guidelines to preserve the purpose of the zones.
“Under the new rules, FTZ companies can sell up to 25 per cent of their output into the domestic market without losing tax exemptions. A three-year transition period has also been provided to allow firms to adjust smoothly.
“Government officials say the reforms aim to curb abuses where companies used FTZ licences to evade domestic taxes while competing within the Nigerian market”, it said.
With the new measures, Nigeria aligns with global FTZ models in places like the UAE and Malaysia, where the zones function primarily as export hubs for logistics, manufacturing and technology.
The introduction of a 15 per cent minimum Effective Tax Rate for large multinational and domestic companies has also been met with public concern. But the FIRS notes that this policy aligns with a global tax agreement endorsed by over 140 countries under the OECD/G20 framework.
Without this adoption, Nigeria risked losing revenue to other countries through the “Top-Up Tax” mechanism, where the home country of a multinational collects the difference when a host country charges below 15 per cent. By localising the rule, Nigeria ensures that tax revenue from multinational operations remains within its borders.
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CBN Revises Cash Withdrawal Rules January 2026, Ends Special Authorisation

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The Central Bank of Nigeria (CBN) has revised its cash withdrawal rules, discontinuing the special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly, with effect from January 2026.

In a circular released Tuesday, December 2, 2025, and signed by the Director, Financial Policy & Regulation Department, FIRS, Dr. Rita I. Sike, the apex bank explained that previous cash policies had been introduced over the years in response to evolving circumstances.

However, with time, the need has arisen to streamline these provisions to reflect present-day realities.

The statement said the new set of cash-related policies is designed to reduce the cost of cash management, strengthen security, and curb money laundering risks associated with the economy’s heavy reliance on physical currency.

“These policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

“With the effluxion of time, the need has arisen to streamline the provisions of these policies to reflect present-day realities,”

“Effective January 1, 2026, individuals will be allowed to withdraw up to N500,000 weekly across all channels, while corporate entities will be limited to N5 million”, it said.

According to the statement, withdrawals above these thresholds would attract excess withdrawal fees of three percent for individuals and five percent for corporates, with the charges shared between the CBN and the financial institutions.

Daily withdrawals from Automated Teller Machines (ATMs) would be capped at N100,000 per customer, subject to a maximum of N500,000 weekly stating that these transactions would count toward the cumulative weekly withdrawal limit.
The special authorisation previously permitting individuals to withdraw N5 million and corporates N10 million once monthly has been discontinued.

The CBN also confirmed that all currency denominations may now be loaded in ATMs, while the over-the-counter encashment limit for third-party cheques remains at N100,000. Such withdrawals will also form part of the weekly withdrawal limit.

Deposit Money Banks are required to submit monthly reports on cash withdrawals above the specified limits, as well as on cash deposits, to the relevant supervisory departments.

They must also create separate accounts to warehouse processing charges collected on excess withdrawals.

Exemptions and superseding provisions
Revenue-generating accounts of federal, state, and local governments, along with accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks, are exempted from the new withdrawal limits and excess withdrawal fees.

However, exemptions previously granted to embassies, diplomatic missions, and aid-donor agencies have been withdrawn.

The CBN clarified that the circular is without prejudice to the provisions of certain earlier directives but supersedes others, as detailed in its appendices.

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Shippers Council Vows Commitment To Security At Nigerian Ports

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The Nigerian Shippers Council (NSC)has restated its commitment towards ensuring security at Nigerian seaports.
Executive Secretary/Chief Executive Officer of the Council, Dr Pius Akuta, said this in Port Harcourt, while declaring open a one day workshop organized by the Nigerian Shippers Council in collaboration with the Nigerian police( Marin Division).
Theme for the workshop was ‘Facilitating Port Efficiency; The strategic Role of Maritime police “
Akuta who was represented by the Director, Regulatory Services, Nigerian Shippers Council, Mrs Margeret Ogbonnah, said the workshop was to seek areas of collaboration with security agencies at the Ports with a view to facilitating trade
Akuta said the theme of the workshop reflects the desire of the council and the Nigerian police to build capacity of police officers for better understanding and administration of their statutory roles in the Maritime environment.
He said Nigerian seaports has constantly been reputed as one of the Port with the longest cargo dwell in the world, adding,”This is so, because while it takes only six hours to clear a containerized cargo in Singapore Port, seven days in Lome Port, it takes an average of 21 days or more in Nigerian Ports” stressing that this situation which has affected the global perception index on Ease of Doing Business in Nigerian seaports must be addressed.
Akuta said NSC which is the economic regulator of the Ports has the responsibility of ensuring that efficiency is established in the Ports inorder to attract patronages.
“Pursuant to its regulatory mandate, the NSC has been collaborating with several agencies to ensure the facilitation of trade and ease of movement of cargo outside the Ports to avoid congestion”he said.
Also speaking the commissioner of police, Eastern Port Command, Port Harcourt, CP Tijani Fakai, said Maritime police has played some roles in facilitating Ports efficiency.
He listed some of the roles to include ensuring security and crime prevention at the Ports, checking of illegal fishing activities at the Ports, checking of human trafficking and drug smuggling and prevention of fire incident at the Ports.
Represented by ACP, Rufina Ukadike, the CP said police at the Ports have also helped in the decongestion and prevention of unauthorized Anchorage.
He commended the Nigerian Shippers Council for the workshop and assured of continuous collaboration.
Speaking on the dynamics of cargo handling, Deputy Controller of customs, Muhydeen Ayinla Ayoola, said the launching of electronic tracking system and dissolution of controller General Taskforce has helped to ensure efficiency at the Ports.
Ayoola who represented the custom Area Controller Port Harcourt 1 Area command, however raised concerned over rising national security threat , which according to him has affected efficiency at the Ports.
John Bibor
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