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 Minister of Information and National Orientation, Alhaji Mohammed Idris, says Nigeria is ready to host UNESCO Category two International Media Information and Literacy Institute to advance the frontiers of press freedom and democracy.

Idris stated this when a delegation of UNESCO Feasibility Team paid him a visit at the Ministry in Abuja, yesterday.

The Tide source reports that the team is in Nigeria to assess the National Open University of Nigeria’s (NOUN) facilities for the establishment of UNESCO Category 2 International Media and Information Literacy Institute.

Idris said the Federal Government had decided to make sure that every requirement that UNESCO had put in place for the final approval of the Category 2 International Media and Information Literacy Center was put in place in Nigeria.

“Since Nigeria was given the provisional hosting right, we have been working very hard.

“We, sometime last year, reached out to the NOUN, made them to understand the relevance of this, not just to Nigeria, but also to Africa and to the world.

“The International Media and Information Literacy Institute is not just designed

for the people of Nigeria but actually for the people of the world.

“And this is an opportunity for our country to show, not just our expertise and professionalism, but also our commitment to media and information literacy globally.

“President Bola Tinubu has graciously,

not just only approved what the ministry in collaboration with the NOUN is doing, but also ensured that whatever support is required would be provided.

“As it is today, we have the right funding for the take off of the International Media and Information Literacy Institute category 2 in Nigeria. We have the resources in collaboration with Federal Ministry of Education, NOUN and other stakeholders to ensure that this happens.

“Nigeria is ever ready to join the global community. We are ready to advance the frontiers of democracy through these collaborations and engagements, and we are also ready to play by the rules on the international scene to ensure Nigeria takes its rightful place and contributes to global progress and development,” Idris said.

The Minister appreciated NOUN for its commitment to ensuring that the centre becomes a reality, reiterating that Nigeria is

ready to go ahead and host the International Media and Information Literacy Institute.

According to him, the institute is the first of its kind , not just in the African continent, but the world, Andrew Nigeria is ready.

“We had support from seven Nations and about 20 countries have already indicated interest to support us. And we know that at the next sitting, we would be given the final hosting right of the institute in Abuja.”

On his part, the Project Manager, who is also the leader of the delegation, Mr Nelson Papi Kolliesuah, said his experience in the last 24 hours in the assessment process had been positive.

Kolliesuah, who was also accompanied by the Development and Partnership Officer, Mr Abubakar Sani Abdullahi, and other staff of NOUN, said his team was in Morocco last year for a similar initiative, to conduct a feasibility study.

“UNESCO did receive a proposal from the National Open University of Nigeria

to a destination to designate the International Media and Literacy Institute as a category two institute.

“That proposal was received and reviewed by UNESCO. We were designated to have an in-person feasibility study. So, the sole purpose of our visit is to ensure that what has been reflected in the proposal is actually the reality on ground.

“Our three-day mission here in Abuja is solely focused on visiting the university infrastructure, particularly the International Media and Literacy Institute, to see the available infrastructure if they meet the requirement needed to be designated as category two.

“We are also to interact with the staff there to know if they do have the capacity. We will also look at the aspect of governance as well.

“This is because, we want to ensure that any institution that is licensed as a category two institute has a well-structured governance that is fully effective to lead them towards the delivery of those objectives that were mentioned within the proposal,” Kolliesuah said.

He further explained that the delegation’s coming to the ministry was to interact with one or two staff members to know if their position on the institute aligned with national priority.