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Edun confirms plans to raise VAT to 15%, limits increase to luxury goods

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By Emma Ujah, Washington DC

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has confirmed that the federal government plans to raise Value Added Tax (VAT) to 15%, but clarified that the increase would primarily affect luxury goods.

Speaking at an investor meeting during the ongoing IMF/World Bank Annual Meetings in Washington DC, Mr. Edun explained that a bill currently before the National Assembly aims to gradually raise VAT on luxury goods, while essential items consumed by poorer and vulnerable Nigerians would remain exempt from VAT or attract a zero rate.

“In terms of VAT, President Bola Tinubu’s commitment is that while implementing difficult and wide-ranging but necessary reforms, the poorest and most vulnerable will be protected,” Edun said. “So, the Bills going through the National Assembly in terms of VAT will raise VAT for the wealthy on luxury goods, while at the same time exempting or applying a zero rate to essentials that the poor and average citizens purchase.”

He added that the list of essential goods exempted from VAT will be made available to the public in due course.

Optimism About the Oil Sector

Mr. Edun also expressed optimism regarding Nigeria’s oil sector, noting that improved security in oil-producing regions and new investments, particularly by Total and ExxonMobil, would result in increased oil production and boost foreign exchange inflows.

Full Subsidy Removal Took Effect in September

 

Addressing the issue of fuel subsidy removal, Edun disclosed that while subsidy reform was announced earlier, the full implementation only took effect last month. He emphasized that the savings from the removal would start to have a more significant impact on the economy going forward.

Issuance of Domestic Dollar Bonds Against IMF Advice

In response to a question about the possibility of Nigeria entering an IMF program, Mr. Edun revealed that the Tinubu administration went ahead with the issuance of Domestic Dollar Bonds despite advice from the IMF against such a move.

He reaffirmed that Nigeria continues to maintain a relationship with the IMF as a member, benefiting from the institution’s support, but stressed that the country exercises its autonomy in financial decisions.

Politics

Engineers Farouk Ahmed, Gbenga Komolafe resign, President Tinubu nominates successors to the Senate for approval

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President Bola Ahmed Tinubu has asked the Senate to approve the nominations of two new chief executives for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

 

The requests followed the resignation of Engineer Farouk Ahmed of the NMDPRA and Gbenga Komolafe of the NUPRC. Both officials were appointed in 2021 by former President Buhari to lead the two regulatory agencies created by the Petroleum Industry Act (PIA).

 

To fill these positions, President Tinubu has written to the Senate, requesting expedited confirmation of Oritsemeyiwa Amanorisewo Eyesan as CEO of NUPRC and Engineer Saidu Aliyu Mohammed as CEO of NMDPRA.

 

The two nominees are seasoned professionals in the oil and gas industry.

 

Eyesan, a graduate of Economics from the University of Benin, spent nearly 33 years with the NNPC and its subsidiaries. She retired as Executive Vice President, Upstream (2023–2024), and previously served as Group General Manager, Corporate Planning and Strategy at NNPC from 2019 to 2023.

 

Engineer Saidu Aliyu Mohammed, born in 1957 in Gombe, graduated from Ahmadu Bello University in 1981 with a Bachelor’s in Chemical Engineering. He was announced today as an independent non-executive director at Seplat Energy.

 

His prior roles include Managing Director of Kaduna Refining and Petrochemical Company and Nigerian Gas Company, as well as Chair of the boards of West African Gas Pipeline Company, Nigeria LNG subsidiaries, and NNPC Retail.

 

He also served as Group Executive Director/Chief Operating Officer, Gas & Power Directorate, where he provided strategic leadership for major gas projects and policy frameworks, including the Gas Masterplan, Gas Network Code, and contributions to the Petroleum Industry Act (PIA).

 

Engineer Mohammed played a pivotal role in delivering key projects such as the Escravos–Lagos Pipeline Expansion, the Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline, and Nigeria LNG Train.

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PRESIDENT TINUBU CONGRATULATES SENATOR IFEANYI ARARUME ON HIS BIRTHDAY

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President Bola Tinubu felicitates Senator Ifeanyi Godwin Ararume, astute politician and accomplished businessman, on his birthday, December 16.

Senator Ararume’s odyssey in politics began in the late 1980s, when he served as the State Treasurer of the Liberal Convention in old Imo State. He later joined the National Finance Committee of the defunct National Republican Convention.

He represented Imo North in the 9th National Assembly. He was first elected in May 1999 and re-elected in April 2003. He also served on several committees and held other official roles.

President Tinubu commends the former senator for his years of service to the nation and contributions to its peace, unity, and progress.

The President describes Senator Ararume as a resolute and shrewd politician, highlighting his courageous and remarkable political journey through the years.

President Tinubu wishes Senator Ararume a happy 67th birthday and prays that God Almighty will grant him more years of good health and strength.

 

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Politics

Ndigbo are no longer spectators in the Nigerian project- Minister Dave Umahi dismisses calls for Biafra under Tinubu’s administration

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The Minister of Works, David Umahi, says the all-inclusive style of governance being practiced by President Bola Tinubu has made the agitation for Biafra an unnecessary clamour.

While speaking at the inspection of the Enugu-Anambra road last Saturday, December 13, Umahi said the Tinubu administration had given Ndigbo what they had sought for decades, not through secession, but through what he described as unprecedented inclusion in national governance and development.

He explained that the agitation for Biafra was historically driven by neglect, exclusion and underrepresentation at the federal level, but insisted that the situation had changed under the current administration.

“When a people are fully integrated, respected and empowered within the structure of the nation, the dream they once chased through agitation has already been achieved through cooperation.

The push for Biafran secession over the years was borne out of neglect, exclusion and underrepresentation but today the narrative has changed dramatically under President Bola Tinubu.

The President has deliberately opened the doors of national development to the South-East. Appointments, policy inputs and infrastructure priorities now reflect true federal balance.

Every sector now bears visible Igbo footprints. The emergence of Igbo sons and daughters in strategic positions is a testament to this inclusion.

Biafra was never about breaking Nigeria; it was about being counted in Nigeria. Through inclusion, equity and concrete development, Ndigbo are no longer spectators in the Nigerian project; they are co-authors of its future. When justice finds a people, agitation loses its voice.”he said

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