₦airaland Forum

helinues:
But some reasonable Igbo's have also been against this bill now.

The Igbos and North should tell us precisely the issue they have with the bills.

Tflex01:
All Igbo Obidients are also against the bill na... Looking for every opportunity to spite Tinubu and form alliance with the North. 😂

theophorus:
Okay, those who Love to play Bitter/Hate doings, Hope this one don make una Happy.

Once we no pass this Bill, make anybody no talk say PBAT no fulfill Restructuring Mandate ooo.

And Nobody should complain about the Natural Resources being used to develop another part of the United States of Nigeria ooo.

THE debate on the tax reform bills has sparked significant pushback, particularly from Northern politicians and elders. The debate is divisive and misses the key elements of federalism, and enhanced tax income for the government.

This underscores the need to address issues related to equity, fiscal federalism, and socioeconomic balance.

Taxation has been a contentious issue in Nigeria. The Federal Government’s introduction of these reforms seek to correct structural imbalances, particularly an overdependence on oil revenues, which has resulted in fiscal challenges, encouraged corruption, stirred regional tensions, and fostered an inefficient rentier economy amid soaring debts.

The four tax reform bills–the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Tax Administration Bill, 2024; and Nigeria Tax Bill, 2024–are comprehensive and landmark legislations.

Their goal is to collectively improve Nigeria’s revenue profile. They also aim to make the business environment more conducive and internationally competitive, transforming the tax system to support sustainable development.

The aim is to achieve a minimum of 18 per cent tax-to-GDP ratio within the next three years. Nigeria’s tax-to-GDP ratio, at between 6.7 and 10.8 per cent, is one of the lowest in the world.

It is below that of Ghana and South Africa, which boast ratios of 13 per cent and 27 per cent, respectively. The African average is 16.5 per cent. The OECD average was 33.9 per cent in 2023. The IMF recommends a minimum of 15 per cent tax-to-GDP for an economy.


Some of the significant provisions of the bills are the elimination of subnational consumption levies, except for VAT, review of the derivation model for VAT collection and distribution, and reduction or elimination of VAT on essential goods and services like food, education, health, transportation, and accommodation.

However, VAT rates will be increased for other goods and services from 7.5 per cent to 15 per cent by 2030 to balance the government’s revenue. This is good economics.

The bills propose the lowering of income taxes for low-income earners and complete elimination for those in the minimum wage bracket. It will reduce companies’ income tax from 30 per cent to 25 per cent.

There will be tax relief for loss-making companies, and transfer of tax collection functions from agencies such as the Nigeria Customs Service and the Nigeria Upstream Regulatory Commission to the new NRS.

The tax reform bills seek to eliminate the so-called nuisance taxes, streamline tax heads to make tax administration modern, simple, adaptive, and become a growth enabler. Progressive taxation will ensure that wealthy persons pay a fairer share of taxes.

The bills will widen the tax base and improve revenue collection efficiency by ensuring that higher-income earners pay a fairer share of taxes; capturing revenues generated from e-commerce and digital platforms; reducing tax evasion and avoidance while the revised revenue sharing formula for VAT should encourage states to mobile more resources to improve productivity and consumption.

Despite these clear benefits, the northern elite represented by some governors, elders, and legislators has rejected the bills and pressured their ranks in the National Assembly to dump them.


Politics is interfering with the passage of the bills. The House of Representatives announced an indefinite suspension of deliberations though they have scaled second reading at the Senate.

Opponents believe that the proposed reforms would disproportionately burden northern states, further deepening the divide between Nigeria’s wealthier South and its economically fragile North.

Governor Babagana Zulum of Borno claimed that the state wouldn’t be able to pay salaries and the northern economy would collapse if the reforms were implemented. He argued that Lagos will benefit more from the reforms. This is not true. Economic analysis has shown that Lagos will lose a significant share of VAT revenues given the revised sharing formula.

Aminu Tambuwal (a former governor and incumbent senator) is opposed to the VAT increase, citing current hardship, but overlooks the fact that the proposed increase is gradual, with a five-year timeline.

Taxes have been eliminated for small businesses with less than N50 million annual turnover. The reforms place more burden on wealthy individuals who have routinely evaded and avoided taxes.

The problem with the northern elite is the fear that true fiscal federalism will be entrenched with the passage of these bills after years of depending on the federal purse for income derived from oil and VAT sourced from other parts of the country. With a predominantly agricultural economy and lower industrial activity, the North fears it may contribute less to the tax pool and receive smaller disbursements.

Yet the increase in VAT allocation to states from 50 per cent to 55 per cent and a review of the allocation formula based on derivation from 20 per cent to 40 per cent to states where goods and services are consumed rather than companies’ head offices should give the impetus to states to scale up opportunities and incentives for commercial activities.


The narrow views being espoused and false alarms about the North being short-changed expose the reluctance of the northern elite to embrace progress and implement sound economic policies that the current situation demands.

The North has been saddled with governors who spend more time in Abuja and overseas rather than running their states.

Insidious politics should not frustrate laws that will recalibrate the tax system and reduce dependence on oil revenues that are subject to increasing uncertainties.

Northern governors should devise strategies to boost investments, raise income levels, and improve tax collection efficiency with accurate data and monitoring.

Increased tax revenue can significantly boost funding for public services, particularly in education, healthcare, and infrastructure.

The tax-to-GDP ratio in Norway has stood at between 40 and 45 per cent since the 1970s despite substantial oil revenues saved in a sovereign wealth fund that holds $1.74 trillion in assets today.

Rather than reject the bill, northern leaders and lawmakers should make specific proposals to address areas of concern and reflect the unique challenges of their region.


However, the Federal Government must remain open to dialogue, demonstrating its commitment to equity and fairness.

The concentration of taxation power in the Federal Government needs to be reviewed to allow states to retain some taxes.

The reforms should encourage state governments to generate more revenue internally rather than relying solely on FAAC disbursements.

This shift would foster healthy competition among states, enhance governance, and ensure accountability in resource management. A situation where billions are lost to illegal mining that benefits a few elite individuals including foreigners must stop.

The agitation from the North could reignite the call for increased derivation by oil-producing states which means less funds from the federal purse.

The tax reform debate transcends regional politics; it speaks to the heart of Nigeria’s economic future. The reforms, if implemented wisely, could mark a turning point in Nigeria’s journey toward sustainable development and reduce the risk of the country stagnating under the weight of unsustainable fiscal policies.

The northern opposition should be constructive in their engagement. However, the government must address legitimate concerns to secure buy-in from all regions.

givedemwotowoto:
This is massive! The only corrupt money that tops this level of corruption is using bullion vans to bring state money to a private residence!

omowolewa:
They just waking up, the content of the Laws should be thoroughly considered and not just rubber stamped.

Generality of Nigerian that would use the laws have not seen it like other Bills. Too secret to be good

yarimo:
Which violence is this mumu FUBARA talking about? Just obey simple court orders isn't that simple mteeeew

Following the controversy trailing the Tax Reforms Bills, President Bola Tinubu has directed the Ministry of Justice to work closely with the National Assembly to address the concerns raised by Nigerians.

The President, who is in South Africa, handed down the review order on Tuesday as some northern youths stormed the National Assembly in support of the bills.

The bills – the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill – have generated hot debates and contention across the country with northern governors and lawmakers opposed to their passage.

Critics argue that the reforms could disrupt the balance of fiscal federalism, potentially centralising tax authority and diminishing state revenues.

However, in a move to assuage the high emotion over the reform bills, Tinubu directed the Federal Ministry of Justice and relevant officials who worked on the draft to collaborate with the National Assembly to address all genuine concerns before the bills were passed.

This was contained in a statement signed by the Minister of Information and National Orientation, Mohammed Idris, titled, ‘President Tinubu committed to accountability on tax bills, directs Ministry of Justice to work with NASS on concerns.’

Tinubu’s directive

The minister said, “In line with the established legislative procedure, the Federal General welcomes meaningful inputs that can address whatever grey areas there may be in the bill.

“In this vein, President Tinubu has already directed the Federal Ministry of Justice and relevant officials who worked on the drafts to work closely with the National Assembly to ensure that all genuine concerns have been addressed before the bills are passed.”

Notably, at a meeting on October 28, governors of the 19 Northern States, under the platform of the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the tax reform bills.

They argued that the changes might adversely affect their regions’ financial autonomy.

Three days later, the National Economic Council, comprising all 36 state governors, asked the President to withdraw the Tax Reforms Bill from the National Assembly for comprehensive consultations.

However, the President said there would be no need to withdraw the bill from the National Assembly.

Governor Babagana Zulum of Borno State warned that while the President could deploy his executive powers to pass the tax bills, there would be consequences for millions of Nigerians.

Zulum added that the proposed VAT-sharing model will only benefit Lagos and Rivers states.

But Governor of Nasarawa State, Abdullahi Sule, former Speaker of the House of Representatives, Yakubu Dogara, and many other northern leaders endorsed the bills.

Nonetheless, the Senate passed the bills for a second reading, a move that has been met with harsh criticisms.

In its statement on Monday, the Presidency said most reactions from political leaders and commentators “are not grounded in facts, reality, or sufficient knowledge of the bills.”

It said the tax bills will not enrich Lagos or Rivers at the expense of northern states.

Corroborating the Presidency’s stance, the information minister said, “The fiscal reforms will not impoverish any state or region of the country, neither will they lead to the scrapping or weakening of any federal agencies.”

The Federal Government welcomed the nationwide debate on the bills saying, “This is the very essence and meaning of democracy.”

Protest in NASS

Meanwhile, Some youths from the North, on Tuesday, staged a protest at the National Assembly in support of the tax reform bills.

Bearing placards mostly with the inscription, ‘Leave Senator Barau alone,’ the protesting youths described critics of the Deputy Senate President, Barau Jibrin, over his support for the reform bills as “enemies of the North, enemies of progress, enemies of the nation.”

Speaking on behalf of the protesters, Tijani Mohammed, said they were satisfied with the explanations offered by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, on the benefits of the bill to the nation at large.

Mohammed urged President Bola Tinubu, the Senate President, Godswill Akpabio; Senator Barau Jibrin and others not to relent until the passage into law of the tax bills.

He said, “The tax reform bills are in order and Nigerians should work towards her perfection and progress. For so long, we have lived on a decadence of tax reforms that have not produced anything good or meaningful to this nation.

“We are from the North; we are categorically in support of this tax reform bill. To those who have for the past few days castigated Senator Jibrin Barau, they are nothing but enemies of the North, enemies of Nigeria, enemies of our generation, enemies of progress, and supporters of retrogression.

“We call on Nigerians, as we have vowed that we shall continue to voice from one state to the other, one region to the other, we shall canvass, and this bill, by the grace of God, shall see the light of the day.

“The man who is in charge of the tax review came out to list the intents of the bill. What people were listing before are personal things like whether Alpha and Beta Consultants will be the consultants of the entire project.”

He added, “What we are looking at is, what comes to the states. And the man has said, if formerly you have five per cent, with this reform bill, you should be able to have between 15 and 20 per cent. That is progress. We cannot continue to stand stagnant for decades.

“We pray that the President will not relent, the President of the Senate supported by the Deputy Senate President, Senator Jibrin Barau must ensure that this bill is looked into properly and see that it is passed.

“It is a germane issue; it is overdue; it is something that Nigerians should look forward to to make progress. We cannot continue to stand stagnant. This is our generation. The generation of those who have led this country, in the past, have failed us. This present generation is in support of the reforms.” he said.

Prominent Islamic scholar, Sheikh Ahmad Gumi, also on Tuesday expressed his support for President Tinubu’s tax reform bills, describing it as a step towards improving Nigeria’s economic landscape.

Sheikh Gumi’s approval of the reforms marks a notable shift from the ongoing debate.

“I believe the contentious VAT issue is the only part that needs to be reviewed; otherwise, it is a good package for all,” Gumi stated.

His remarks highlighted a key point of contention in the reforms, which some northern leaders argue might favour wealthier states like Lagos and Rivers at the expense of poorer regions.

Rowdy House session

In a demonstration of the sensitive nature of the bill, there was a rowdy session during the House of Representatives plenary on Tuesday following the declaration of support for the tax reform bills by the spokesman of the Green Chamber, Akin Rotimi.

Rotimi, a member of the All Progressives Congress incurred the wrath of his colleagues when he stood up to present two reports on behalf of the Committee on Nigerian Content Development and Monitoring.

After getting Speaker Tajudeen Abbas’ nod to present the reports, Rotimi announced the stand of Ekiti federal lawmakers on the controversial four tax bills transmitted to the parliament on September 3.

He began, “Thank you very much, Mr Speaker. My name is Akin Rotimi Jr. I represent the people of Ekiti North 1 comprising Ikole and Oye Local Governments. Mr Speaker, I am from Ekiti State, the first State whose National Assembly caucus has unanimously endorsed the tax bills. I rise on behalf of Hon Boma Goodhead (Committee chairman who was absent)…”

But the House members did not allow him to complete his sentence as they chanted “No, no.”

Repeated appeals by the speaker to restore order failed as the members vowed that the report would not be laid.

The Speaker waded in, saying, “He (Rotimi) is expressing his personal opinion,” just as the Ekiti lawmaker reminded his colleagues that he had the protection of the presiding officer.

Also, Abbas’ plea that Rotimi shouldn’t be taken seriously because “he was just talking on a lighter note,” failed to calm frayed nerves.

Rotimi then added, “My introduction does not affect the substantive matter,” just as the Speaker urged him to restrict himself “To the person you are representing here. We are not talking about tax bills.”

The lawmaker finally gave in, saying, “Honourable colleagues, I withdraw the introduction. Mr Speaker, I withdraw the introduction. I will introduce myself properly. Mr Speaker, can I have the opportunity to speak?”

Abbas thereafter took over, saying, “Mr Rotimi, you know this (tax bill) is a controversial issue. I don’t want you to be mentioning things that are not relevant to the subject matter. On your behalf, I withdraw that statement that you have made.”

With a semblance of order in place, Rotimi again stood up and said, “Honourable colleagues, I would like to withdraw that introduction and restrict myself to the Order Paper.”

The Speaker asked for a seconder but the members failed to listen as the protest continued.

“I beg you. This has nothing to do with the tax bills,” Abbas pleaded repeatedly, all to no avail.

Rotimi took to the floor once again.

“I seek the leave of the Speaker and honourable members to step down the report,” he said.

Like Rotimi, the deputy spokesman of the House, Philip Agbese, also had his dose of trouble when Kano lawmaker, Tijjani Ghali, standing on a matter of personal explanation (Order 6 rule 5), called on him to resign from his position.

“I woke up this morning to see an online publication from the deputy spokesman, saying that those opposed to tax reform bills are seeking speedy passage. I am one of the first persons that opposed these bills vehemently but the deputy spokesperson did not contact me as a stakeholder and did not seek my opinion on this.

“The headline is insinuating that for those who opposed these tax bills, there is an inducement somewhere. Therefore, I am calling for the withdrawal of this statement and an investigation and apology in print media because this is injurious to me, my people, my religion and the region where I come from.

“Mr Speaker, this is a breach of privilege and is unprofessional, unethical and immoral. Therefore, I am personally calling for this matter to be investigated to find out those people opposed to the bills that are now asking for their speedy passage,” he stated.

The member representing Jibia/Kaita Federal Constituency, Katsina State, Sada Soli, moved that the matter be referred to the Ethics and Privileges Committee for investigation.

Ruling on the matter, Deputy Speaker, Benjamin Kalu, promised action, stating “Once a point of privilege is moved, it is not debated. You have asked for this to be investigated. But you did not tell whether to move it to ethics and privileges and that is why Sada Soli came with his own. It is not in your prayer. There are many ways to investigate this.”

Kukah backs bill

Meanwhile, the Catholic Bishop of Sokoto Diocese, Bishop Hassan Kukah, has said that the proposed tax reform bills would end the recklessness of the elite in the country.

The clergyman commented on Channels Television Morning Brief on Tuesday.

Kukah expressed hope that the bills would mark the beginning of better fiscal management and end financial recklessness, noting that any form of reform must get the country working.

“Nigeria is a very energetic country with people that are so eminently gifted and are roaring to soar at any time. However, our problem is the inability of states to create enough gatherings to contain the energy, vision, and competing narratives of their citizens. This lack of competitive gatherings often spills over into violence.

“So, I am excited because hopefully, we can take the time to listen to the conversation about how to avoid and end this financial recklessness, and the irony of Nigerians living by the seaside and washing their faces with saliva.

“The reforms should end the narrative of Nigerians living in a country that is so richly endowed but are spectators to the rascality and irresponsibility of the elites who continue to mismanage our resources.

“So, I’m hopeful that this is the beginning of a very long journey of fiscal management and efficiency that can lead to the growth and development of the kind of country that we envision,” he said.

In support of the bills, the Ekiti State Caucus in the National Assembly called on stakeholders, including state governments, private sector leaders, civil society and citizens to also endorse the tax reform bills.

The caucus said the tax reforms “are a testament to the bold and transformative agenda of President Bola Tinubu, which has prioritised economic growth, inclusivity, and national prosperity.”

The nine All Progressives Congress lawmakers from Ekiti State in the National Assembly – Senators Opeyemi Bamidele, Yemi Adaramodu and Cyril Fasuyi; and House of Representatives members Olufemi Bamisile, Olusola Fatoba, Bioduun Omoleye, Rufus Ojuawo, Akinlayo Kolawole and Akin Rotimi, spoke in a jointly signed statement made available in Ado Ekiti on Tuesday.

The caucus stated, “These bills aim to strengthen Nigeria’s revenue generation system, ensuring sustainable funding for critical sectors such as education, healthcare, infrastructure, and social welfare.

“Additionally, these reforms will simplify the tax system, foster local entrepreneurship, attract investment and create employment opportunities, driving economic growth across the state and the nation.

“The establishment of the Tax Appeal Tribunal and the Office of the Tax Ombudsman will further entrench transparency, accountability and fairness in tax administration, protecting taxpayers’ rights and fostering trust in the system.

“As representatives of Ekiti State, we remain resolute in our support for initiatives that prioritise economic growth and enhance the welfare of our people. These reforms underscore our collective commitment to a better future and we urge all Nigerians to embrace this bold step toward national development.”

The Labour Party Senator representing Edo South in the Senate, Neda Imasuen, described the tax reform bills as timely and long overdue.

Imasuen, who serves as the Chairman, Senate Committee on Ethics, Privileges, and Public Petitions, called for patience and a better understanding of the proposed reforms.

He criticised state governors, describing them as complacent and urged them to explore alternative means of generating revenue.

In its contribution to the debate, the Arewa Dignity Advancement Initiative, called on the National Assembly to reject the bills, citing the widespread criticisms and opposition to them.

The group stated this in a document jointly signed by its members comprising individuals from academia, professionals, civil society organisations, students, traditional and religious leaders, and other stakeholders.

The group, chaired by Baheejah Mahmood Abdullahi from Bauchi State, stated, “Introducing additional taxation, particularly on personal income and value-added tax, is ill-timed and could exacerbate economic hardship.

“The bill was drafted without adequate input from professionals and the general public. As a key democratic institution, the National Assembly must ensure that inclusive decision-making processes are upheld.”

It pointed out that the proposed redistribution formula, “which allocates 60 per cent VAT ownership to states based on consumption location, contradicts existing laws that emphasised revenue distribution based on equality and population rather than consumption location.”

yarimo:
Hope the bleaching bianca know and understand what she is appending her signature to

helinues:
This thread is about states for christ sake. You people should stop this fixated mindset about FG and let us hear words jare

helinues:
Toh

If there are tangible things to show with the debt, it will still fair but we have been struggling to see what they have been doing with both allocations and the debt they have been incurring

IN Nigeria’s bent federalism, the executive arm at the federal and state levels ensures that it gets what it wants by controlling the lawmakers.

So rather than checking the excesses of the executive, the legislative arm at every level of government has mostly been a willing tool for the executive. This makes nonsense of the checks and balances deliberately inserted into the constitution to ensure transparency and accountability.

So, when bills for loans are sent to the state and federal parliaments, there are hardly robust debates about them before passage. Special sessions are convened to approve the loans without proper scrutiny.

This is dangerous. The main task of a parliament is to watch over the people’s money.


States have more money from the Federal Account Allocation Committee following the withdrawal of petrol subsidies in May 2023.

FAAC shared N905.53 billion and N736.78 billion among the three tiers of government in September and October 2022. The disbursements in September and October 2023 were N1.48 trillion and N1.59 trillion respectively. FAAC distributed N1.29 trillion and N1.41 trillion respectively in September and October.

While most Nigerians are fixated on the federal debt portfolio of Nigeria’s N136 trillion total, the states have been steadily amassing debts. At the last count, the total debt of the states has hit N11.47 trillion.

This is according to an analysis of data from the public debt reports released by the Debt Management Office as of June 30.

The figure for the second quarter of 2024 represents a 14.57 per cent increase from the N10.01 trillion recorded in December 2023.

External debt for the states and the Federal Capital Territory climbed from $4.61 billion to $4.89 billion, reflecting a 6.14 per cent increase.

However, in naira terms, this figure surged by a staggering 73.46 per cent, from N4.15 trillion to N7.2 trillion, following the devaluation of the naira from N899.39/$1 in December 2023 to N1,470.19/$1 by June 2.

In the comity of the debtor states are those with the highest internally generated revenue. Some have extremely low IGRs and depend mostly on FAAC handouts to pay their bills.

Many state governors borrow to build airports that are not viable and may not bring revenue or investments to the states for decades. So, rather than spending money on health, education, and agriculture, they build white elephants with borrowed funds.

Some build overhead bridges to nowhere even when there are so many unmotorable roads to be reconstructed. Many states are grappling with inadequate funding for education and healthcare. Nigeria has 18.3 million out-of-school children, the second highest globally per UNICEF.


In some instances, loans are taken to fund recurring expenditures and some governors enter into agreements with foreign companies without due diligence. This often results in litigation as happened recently when Chinese companies seized public assets in European capitals.

To check the governors, the assemblies need to be the eyes and ears of their constituencies by scrutinising every loan bill before approval. This will ensure that states are not pushed into the debt trap.

Civil society organisations should pressure the governors to stop borrowings that could compound states’ finances.

Citizens should utilise the constitution to complain about perceived maladministration in their states. They should take that route if they think their governors have made bad financial decisions.

Indeed, some former governors have left behind huge debts for their predecessors to pay. Governor Alex Otti of Abia State said recently that his administration had, in 15 months, paid N90 billion out of the N191.2 billion debt inherited from the previous administrations, without taking fresh loans.


Former governors who have plunged their states into huge debts through questionable borrowings should account for their tenure.

NIGERIA’S latest unemployment data released by the National Bureau of Statistics flies in the face of lived realities with the potential to mislead economic planners. The NBS estimates that the unemployment rate declined to 4.3 per cent in the second quarter of 2024, down from 5.3 per cent in the previous quarter and 5.0 per cent in Q3 2023. This reflects improved labour conditions.

Self-employment remained dominant, accounting for 85.6 per cent of total employment, an increase from 84 per cent in the preceding quarter. Informal employment rose slightly to 93.0 per cent, highlighting the economy’s reliance on informal jobs.

The agency reported that the Labour Force Participation Rate rose to 79.5 per cent, up from 77.3 per cent in the previous quarter, highlighting increased workforce engagement while the Employment-to-Population Ratio showed significant improvement, climbing to 76.1 per cent in Q2 2024 up from 73.2 per cent in Q1 2024.

The dismissal of these figures in strong terms by the Nigeria Labour Congress and members of the Organised Private Sector is justified by worsening poverty and distress facing businesses.



The new methodology adopted in arriving at these numbers, albeit in line with International Labour Organisation recommendations, is questionable. It does not paint an accurate picture of the grim realities on the ground. That the NBS regards working one hour a week following its recent recalibration of labour statistics is a joke.

The NBS had defined unemployed persons as those not employed for up to 40 hours per week, those working for only 20-29 hours per week, actively searching for paid work or available to start paid work within the next two weeks. The change in calculation methodology, effective April 2023, considers anyone who worked at least one hour in the last seven days for pay or profit as employed.

Working age has been redefined as 15 years and above rather than 15 to 64 years. This means that an individual earning N1,000 for a once-off task within a week is considered employed. This is unrealistic. Employment is a means of livelihood meant for sustenance. This should be the minimum consideration when computing the figures.

It is incongruous that unemployment rates are seen as improving at a period when companies are downsizing and closing shop. The Manufacturers Association of Nigeria reported that 767 manufacturers shut down in 2023 and 335 manufacturing companies became distressed.

The NLC insists that the data is inconsistent with the deteriorating economic landscape characterised by factory closures, dwindling manufacturing activity, and rising inventories. This can hardly be faulted.

The recalibration of the threshold for what constitutes employment to working one hour a week amounts to feel-good statistics. It has dramatically lowered unemployment numbers without reflecting significant improvements in job quality or income levels.

The dominance of informal employment points to the possibility that most of the jobs available do not even meet the minimum wage threshold. Some graduates in cities have turned to commercial motorcyclists after searching for jobs for years. This is a waste of potential.

GDP data indicate that some of the employment-generating sectors are slowing down with agriculture and manufacturing recording just 1.14 per cent and 0.92 per cent in the last quarter. Trade largely populated by informal sector players recorded 0.65 per cent GDP growth while real estate managed 0.68 per cent growth.

The question being asked is where are the new jobs being created?

There are arguments for a change in the parameters or the adoption of parallel methodologies for calculating unemployment to reflect the realities of meaningful earnings and general price levels. Employment that cannot deliver basic needs of food and shelter cannot be classified as such.


The government should focus on the quality of jobs available. This requires massive investments in critical infrastructure. The overall business environment needs to improve to create meaningful jobs.

Ritchiee:
Watching channels now.
Lagos takes more than 80% vat now but the proposed new Lagos vat will be 15% while Kano receiving 0.86% will now be 6.something% and all states except Lagos and Rivers will be collecting more vat in the proposed tax bill.
I think the people who generated these tax bills are geniuses.
Within a year or two,Nigeria will be a real success.

Factcheck0001:
which tribe is he from?

Basic123:
Igbo and delusion of bravery 😆

Stupidity at its peak!

Factcheck0001:
who's your president chinedu?

Factcheck0001:
coward ruling d brave

I am proud to b a coward if I will forever make d brave man cry

Factcheck0001:
we Yoruba cowards are ruling over igbo brave men n we even snatched presidency from them which makes them cry till today

Factcheck0001:
but u are telling me to face d north n I am saying it to your face that they must collect now

Factcheck0001:
nobody cares about d north

Tinubu will cut them some slacks, na u igbos dey fear them n see them as big deal

U can see Tinubu no even send them, if they do anyhow maximum we scatter which they will not want

Yorubas get bargaining chip unlike u guys, u can see that what u have been doing for more than 4 years of Yorubas try in within 6 months Nigeria will break

North have no option than to obey, I will quote u again when the bill becomes a reality

Factcheck0001:
u igbos shout that u don't want your resources to b used to develop other regions but here u are presented with tax reform n u are blabbing

U claim d north are parasites n this is d best time to use their sense n work for themselves

The era of monkey dey work baboon dey chop should pass