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 National Assembly has lauded the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji, for exceeding the 2024 revenue collection target of N19.4 trillion.

FIRS generated N21.6 trillion, surpassing the target by N2.2 trillion.

The commendation came during a meeting on Wednesday in Abuja, where the FIRS chairman appeared before the joint committee on Finance to defend the service’s revenue projections for 2025.

The committee proposed a N25 trillion revenue generation target for FIRS in the coming fiscal year.

Deputy Chairman of the House of Representatives Committee on Finance, Saidu Abdullahi, was the first to commend Adedeji’s performance, calling it “unprecedented” and “worthy of commendation.”

“The feat achieved by FIRS in revenue collection for 2024 was unprecedented and truly commendable.

“Surpassing the target set for the agency in the 2024 Appropriation Act, from N19.4 trillion to N21.6 trillion, is both encouraging and impressive,” he said.

He encouraged the FIRS to study the tax collection methods of South Africa, which generated higher tax revenue, and to focus on expanding the taxable base to include more informal sector workers.

Sen. Joel Onowakpo emphasised that tax collection was a global norm, and advised the committee to raise FIRS’s projected 2025 revenue target to N30 trillion.

Similarly, Sen. Binos Yeroe lauded Adedeji’s innovative approach in surpassing the 2024 target.

“Your performance in 2024 was highly commendable, and I hope you continue to maintain this level of success,” he said.

Rep. Etanabene Benedict suggested aiming for N60 trillion in 2025 to avoid borrowing.

Committee chairmen also supported the proposed N25 trillion revenue goal for 2025; with Sen. Sani Musa stating that it was both “achievable and surpassable.”