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.

Rivers State Governor, Sir Siminalayi Fubara, has noted with delight the initiative, love and courage shown by High Chief Sobomabo Jackrich in contributing to improved road infrastructure in his community.

Governor Fubara made the commendation when he visited the country home of Amb Sobomabo Jackrich to celebrate with him on his birthday, and used the occasion to inaugurate a road project executed by the celebrant in Usokun Town in Degema Local Government Area.

Amb Sobomabo Jackrich, also known as Egberepapa, is a prominent Niger Delta leader and National Chairman of Simplicity Movement.

Governor Fubara said the road project, solely funded and completed by the celebrant, shows how committed he is to making life better for residents in his community.

The Governor said: “Let me on behalf of the guests that are here to celebrate with our brother, not really an official engagement, but on a personal note, also share a wonderful moment with our people.

“Our celebrant is not just celebrating his birthday, but he is also giving back to the society. So, I join him and all well-meaning people that believe in his course to commission this project that he has embarked on in his own accord for the betterment of his people.

“I want to say that with what I am seeing here, there may be a few things that we can also do to make this project more meaningful to the people in terms of streetlights. On our own, we are going to support him to complete it.”

Governor Fubara, who also joined the celebrant to cut the birthday cake, prayed for strength and longevity for the celebrant.

The African Union Development Agency-New Partnership for Africa’s Development (AUDA-NEPAD) says it plans to light up one million houses in rural communities nationwide using clean energy.

AUDA-NEPAD Nigeria’s National Coordinator, Mr Jabiru Abdullahi disclosed this at an inaugural media parley in Abuja, yesterday.

He said although the project would be tasking and require a huge amount of money, partners who also have an interest in clean energy would be engaged to ensure success.

While emphasising collaboration for transparency and sustainable development, Abdullahi highlighted the agency’s role in implementing the African Union’s Agenda 2063.

He commended the media for its role in shaping narratives, holding institutions accountable, and connecting citizens with good governance.

Abdullahi also called on the media to amplify transformative stories and foster accountability.

He outlined priorities such as good governance, capacity building, and empowerment of farmers, youth, and women to ensure success.

According to him, aligning with Nigeria’s Renewed Hope Agenda of the President Bola Tinubu administration, the partnership aims to inspire collective action for a prosperous Africa while addressing national challenges.

“I have an agenda which I hope to achieve. Starting from this year, I intend to light up one million houses using clean energy. It is by no means an easy task.

“But it is doable. With the right partners that are there to mitigate climate changes, we will achieve this. We are targeting the rural communities they lack rural electrification access.

“Some may wonder how we intend to power one million houses, it is not going to be in one stare, it will be spread across the nation.

“I know the cost is huge, but I am optimistic that we will achieve it,” he said.

The National Coordinator noted that AUDA-NEPAD Nigeria has made significant strides over the years, such as leading Nigeria’s second peer review process.

“Empowering over 55 professionals through the NEPAD Academy with skills in governance, technology, and leadership.

“Driving smallholder farmer programmes that provide tools, resources, and knowledge to enhance productivity and secure food systems across Nigeria.

“Also through oganising nationwide sensitisation workshops and training on violence-free elections and governance, aligning with the principles of democracy and political stability,” he added.