Can I know my offense?
Can I know my offense?
Prices of items might be increasing soon as FG considers implementing higher VAT
Good morning, Big Brains. For some weird reason, I’ve been thinking about how Tunde Onakoya says “you can do big things from a small place”. This isn’t another failed attempt at “aspire to perspire”, it is a genuine attempt at inspiring you to do something big today or at least try. Don’t allow Nigeria to clip your wings.
- Margaret
Word count: ~1,000
Reading time ~3 mins
Let’s get into today’s edition:
FG considers increasing VAT in 2025
Canada gives Nigeria $23M for oxygen plants
Nigeria makes plans to introduce electric tricycles
The Big Deal
FG considers increasing VAT in 2025
“How to stay sane in the middle of literally insanity” is about to become the best-selling book in Nigeria because things are about to get batshit crazy. The Presidential Committee on Fiscal Policy and Tax Reforms has recently proposed the bright idea of increasing the Value Added Tax (VAT) Nigerians currently pay from 7.5% to a higher rate.
This “bright idea” could potentially become a real law because the chairman of the committee, Taiwo Oyedele, intends to send a proposal to the National Assembly where it will be taken into consideration. If the proposal is passed into law, Nigerians will be required to pay 10% VAT starting next year.
To soften the blow, Oyedele also added that there’ll be some tax reductions too. The committee will reduce personal income tax for people who earn ₦1.5 million a month or less. Income tax for companies will also be reduced from 30% to 25% over the next two years.
Why is this a big deal?
Again, the current administration is never beating the tone-deaf allegations. Nigerians are spending more and saving less. The average Nigerian no longer has an emergency fund because surviving the economy is “the emergency”.
The VAT increase will boost government revenue but it will take more money out of the pocket of citizens who are already facing high living costs and economic hardship. For low-income earning families and individuals, this increase will make it even more difficult to afford basic necessities like food and electricity.
On the other hand, cutting personal income taxes for people who earn ₦1.5 million a month or less, and lowering corporate taxes, could help lower and middle-income earners and businesses. This might balance out some of the effects of the VAT increase.
What we expect the Tinubu-led administration to focus on is strategies to make life easy for Nigerians, not reforms that feel like punishment for being Nigerian.
Canada gives Nigeria $23M for oxygen plants
Canada just secured a big W Nigeria couldn’t secure for its health sector and it’s going to save a lot of lives.
The country’s High Commissioner to Nigeria, James Christoff, announced that it has donated $23 million to help build oxygen plants in nine Nigerian states.
During his visit to one of these new oxygen plants at General Hospital Nchia in Rivers State, Christoff explained that Canada’s funding is part of a larger global effort to address oxygen shortages. The Rivers State Governor recently opened this plant, which can produce 720,000 liters of oxygen daily, enough to treat many patients with severe conditions.
Mekele Igwe from the Rivers State Ministry of Health added that the oxygen plant will improve patient care by making sure that no one is deprived of essential oxygen. Dr. Anslem Audu from UNICEF also noted that the plant will supply oxygen to both public and private facilities to make sure that there’s less shortage in Nigeria.
Nigeria makes plans to introduce electric tricycles
Nigerians have been complaining about the price of fuel for months now, FG heard the complaints and said “you’ll like electric keke”.
The government just struck a deal with the Chinese company Mutual Commitment Company (MCC) Limited to supply electric tricycles in Nigeria. This $23 million project is going to electrify Nigeria’s transportation scene— literally!
The agreements were signed in Beijing, just before the Africa-China Cooperation Summit. Chief Adebayo Adelabu, Nigeria’s Minister of Power, swears that this is going to be an “innovative” project. He believes that both Nigeria and China share the “joy” of having large populations and the “challenges” that come with them.
According to him, the project will not only address transportation needs, it is also going to provide jobs for Nigerians. “What exactly do they want to achieve with this thing?” The project is part of President Tinubu’s “Renewed Hope Agenda”. One of the big goals in this agenda is to fix power issues with new and practical ideas. Instead of relying on one central power system, the plan is to use a more flexible approach, so even the most remote villages can enjoy regular electricity supply.
With a focus on cleaner energy, Nigeria can achieve zero carbon emissions by 2060 and get 30% of its energy to come from renewables by 2030. If you’re wondering why you should care, we’ll be breathing cleaner (and hella expensive) air and our lungs will thank us for it.
This Week’s Big Question
“What have you spent the bulk of your money on in the last 6 months? Survival or impulses?”
Chinonso’s response - “Survival? Impulses? Honestly, I’ve spent most of my cash on trying to keep my sanity intact. My biggest purchase has been an endless supply of coffee and comfort food. If surviving the daily grind is an art, I’m definitely a masterpiece in the making!”
You can also share your response here and if it’s as interesting as Chinonso’s response, we’ll feature it in the next edition.
The Big Picks
States Get N3bn For Palliatives Over Flood Disaster: States hit by the recent floods have received ₦3 billion from the Federal Government to help ease the suffering of their residents.
Osimhen To Receive €6m Net Seasonal Salary At Galatasaray: Victor Osimhen will earn a net salary of €6 million for the season at Galatasaray after being loaned to the Turkish Super League club from Napoli.
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