₦airaland Forum

Joyful365:
Your argument is valid and I also mentioned implementation of improved Oronsaye report which would have resulted in mass layoff of fg government workers, living only mostly essential workers who run essential ministries and provide mostly essential public service, eg police, army, navy, teachers, doctors, judges, etc with very strict performance benchmarks and standards... Perform or go home, like in the private sector.

Also remember that it is these low level government employees that are poorly paid that engage or facilitate corrupt deals that leads to billions in losses to everyone. Pay them well and make it clear that they'll lose their valuable job, lose their assets and go to jail for aiding corruption. Imagine paying paper pushers, clerks, security, policemen and other lower grade workers poorly and expecting good results. It cannot happen.


Again, people outside government will still benefit from the increased minimum wage because private sector will now have to pay workers well and find improved ways to get value for what they're paying.

The carelessness of the government is why you see price of most goods and services jumping 200% to 400% while those earning 200k in 2023 are still earning 200k today. The private sector is the slavery headquarters of Nigeria. They fully exploit the unemployment situation to underpay workers and treat treat them poorly...low wages contributes causes low purchasing power, low business patronage and low economic growth.

Paying people poorly is giving them incentive to commit crime - steal, demand bribe, etc. How do you want to judge them when the system is doing everything to keep them poor?

Balablu doesn't know what he's doing. His media team can praise prices of goods coming down but they don't know that it will result to deflation. Falling prices will result to deflation and no company will want to produce when prices are falling, so his best bet now is to increase people's disposable income by increasing minimum wage and lowering tax, especially for low income earners.

Anything less is coded printing of money which will result in more inflation. Add unemployment and Nigeria ends up in stagflationary economy.

If there's no real improvement in the real sector (electricity, agriculture, manufacturing and services), the financial sector (including stock market) will be dragged down into a bear market.

The first step now is improve people's purchasing power but bulaba is planning to reduce it further from January 2026 with more taxes.

The journey still long for Nigerians

More taxes? How?

Streetinvestor2:
Since we are taking about results. This should be the week for kpakus result or they break ngx rule unless they officially ask for extension of time for specific reason
How many percent gain should people be expecting from the result since una no agree say legend will deliver 100%.
I didn't bother to open legend result. I don't even know such stock exist on ngx.
I just use the company dey catch cruise

kpekus result has been priced in.

Dupeodus:
The primary objective of devaluation or correct pricing of your currency is not to accrue more revenue. It appears so because in Nigeria's case, government is the major exporter by a very wide margin which in itself is a consequence of decades of incorrect pricing of the naira that effectively killed all other productive sectors and made Nigeria an import dependent country like you said, relying on export earnings from oil to fund the imports. The primary objective of devaluation or correct pricing of the currency, like I prefer to phrase it, is to give your own local producers a chance to compete in the international market either for export or stand their grounds against imports in the local market. As we speak, it is steal cheaper to import basic food items into Nigeria compared to locally produced ones unless you take extra ordinary measures like high import duties or outright bans. We have done that for decades and we know they don't work. The common man still pays economic price but you end up with government created billionaires at the expense of your local production. This is an indication that the naira is still not correctly priced. One can argue that as long as we can fund the imports with dollar earnings from oil and related energy products which are indeed part of our production, then the naira should reflect that. That is true as long as we are willing to live with the vagaries that comes with being a mono product economy. I always say that we should learn from how Norway managed this situation.

Kindly put my comment in proper perspective.
I never said the primary objective of devaluation is to accrue more revenue. There was a conditional word ''if'' in my statement that you referenced, which implies there could be other reasons for devaluation.
However, some of our colleagues say it is not even possible for devaluation to lead to more export revenue for the govt. That has been the issue in debate, in my opinion. That is why I cited the example of allocations from the Excess Crude Account
Most macroeconomic decisions have cyclical or multidirectional effects/results, so a single policy may lead to various outcomes.

If the 0.85% gulp that much (Recurrent expenditure), what then is left for capital expenditure and other policy implementation for which the 99.15% should be impacted directly or indirectly.

I am just trying to be objective.

Joyful365:
So because 0.85% will gulp that amount, the entire 70 million workforce should accept 10k or poor salary? This is a very negative mindset of if I cannot enjoy it then nobody should enjoy it.

If the government sets a benchmark of 150k that is reflective of the cost of living then the private sector will take a cue which would help redistribute wealth and drive aggregate demand which is good for business and the economy.

Are you happy seeing people hungry and unable to meet up with monthly expenses despite working 6 days a week, 26 days a month?

Do you know what is responsible for the low per capita income of the country? Poor wages of majority of the people.

A security guard in UK Canada and USA can earn minimum wage, work 8 hours a day for 30 days and be able to earn enough to pay all his bills, save and invest.

A security guard in Nigeria will 12 hours every day for 30 days and his salary can only cover food and transportation. He will owe landlord rent and borrow from friends to transport to work. Zero savings. Zero investment. Zero future. All from a bad government policy. Why do you think those kind of people will not be motivated to go into kidnapping and armed robbery?

Change your mindset. Give what belongs to Caesar to Ceaser.

If 0.85% of the population needs to earn well for 70% of the country's population to earn well then it's better cos in the end, they can invest their savings into NGX and make everyone more wealthy.

GeneralDae:
More taxes? How?

The Nigeria Tax Act 2024 has been signed into law and it's set to take effect from 2026.

The tax act effectively increases the minimum tax rate for everyone and also increases capital gains tax from 10% to 30%.

The packagers of bulaba will make it seem like balablu has done Nigerians a lot of favour by making certain provisions for low income earners but they'll not tell you that the inflation and increase in price of every good and service in Nigeria has rendered those provisions ineffective against protecting anyone.

The first thing they're already planning to do with the increase in revenue from increased taxes and widened tax net is to increase the salaries and allowances of elected politicians - not increase minimum wage, fix electricity, insecurity and food shortage crisis.

Joyful365:
The Nigeria Tax Act 2024 has been signed into law and it's set to take effect from 2026.

The tax act effectively increases the minimum tax rate for everyone and also increases capital gains tax from 10% to 30%.

The packagers of bulaba will make it seem like balablu has done Nigerians a lot of favour by making certain provisions for low income earners but they'll not tell you that the inflation and increase in price of every good and service in Nigeria has rendered those provisions ineffective against protecting anyone.

The first thing they're already planning to do with the increase in revenue from increased taxes and widened tax net is to increase the salaries and allowances of elected politicians - not increase minimum wage, fix electricity, insecurity and food shortage crisis.

The unskilled NLC should wait for the next review by 2027 according to law(cum election campaign promise). They are paying for their myopic view of events.

Joyful365:
The Nigeria Tax Act 2024 has been signed into law and it's set to take effect from 2026.

The tax act effectively increases the minimum tax rate for everyone and also increases capital gains tax from 10% to 30%.

The packagers of bulaba will make it seem like balablu has done Nigerians a lot of favour by making certain provisions for low income earners but they'll not tell you that the inflation and increase in price of every good and service in Nigeria has rendered those provisions ineffective against protecting anyone.

The first thing they're already planning to do with the increase in revenue from increased taxes and widened tax net is to increase the salaries and allowances of elected politicians - not increase minimum wage, fix electricity, insecurity and food shortage crisis.

The better truth is the man and his gang interest now is just to be looting by all means necessary for 2027..He is a mistake that must not happen again in 2027 even if it will affect ngx.We will accept it as collateral damage by Agba..lol

On stock who will win today btw the bull and bear.It looks it was head on for both yesterday as both came to market.
Then all this RI should be spread to next yr oh.The street is not smiling right now and we are entering ember months join.We the business men are hearing it as nigerias no get purchasing power. Na people way dey into building/construction materials dey feel this government pass now..lol.
Don't say government is carrying out a lot of infrastructure. The truth the big construction companies are either importing the materials needed or buying directly from nigeria producers

Joyful365:
The Nigeria Tax Act 2024 has been signed into law and it's set to take effect from 2026.

The tax act effectively increases the minimum tax rate for everyone and also increases capital gains tax from 10% to 30%.

The packagers of bulaba will make it seem like balablu has done Nigerians a lot of favour by making certain provisions for low income earners but they'll not tell you that the inflation and increase in price of every good and service in Nigeria has rendered those provisions ineffective against protecting anyone.

The first thing they're already planning to do with the increase in revenue from increased taxes and widened tax net is to increase the salaries and allowances of elected politicians - not increase minimum wage, fix electricity, insecurity and food shortage crisis.

I thought the tax act actually reduced taxes for most people and you are not taxed on your first 800,000 naira (for those earning up to 3 million naira annual salary) and 25 million for SME’s? So I don’t understand the bolded.

Here is a summary of the bill:

“for many individuals and small businesses, the reforms notably reduce tax burdens.
• Low-income earners (≤ ₦800,000 annually) now pay zero personal income tax   .
• Small businesses within the thresholds are fully exempt from key taxes   .
• Essential goods are VAT-zero-rated, which reduces the cost of everyday items; plus, businesses can reclaim input VAT, improving cash flow   .
• Productive sectors and multinationals face stricter taxation, but reforms aim to distribute tax burdens more equitably    .

As a summary, a Reddit user put it succinctly:

“The entire point of the bill isn’t to increase taxes but to widen the tax net … individuals earning under 800,000k … are exempt … it also eliminates VAT on items Nigerians spend most … food and medicine.”

https://www.youtube.com/watch?v=oneIEkFf3J4

A couple of stocks I'd be watching in today's trading session.

Joyful365:
The Nigeria Tax Act 2024 has been signed into law and it's set to take effect from 2026.

The tax act effectively increases the minimum tax rate for everyone and also increases capital gains tax from 10% to 30%.

The packagers of bulaba will make it seem like balablu has done Nigerians a lot of favour by making certain provisions for low income earners but they'll not tell you that the inflation and increase in price of every good and service in Nigeria has rendered those provisions ineffective against protecting anyone.

The first thing they're already planning to do with the increase in revenue from increased taxes and widened tax net is to increase the salaries and allowances of elected politicians - not increase minimum wage, fix electricity, insecurity and food shortage crisis.

The new tax law doesn't increase effective rate for everyone. It even reduces the rate for low income earners.
I have calculated my new tax rate and is even lower than what I am currently paying.
It is those in the informal sector that have not been paying before that might eventually have issues.
And mind you some of those taxes are not going to the fg but the state for instance the personal income tax.

mails4funshi:
If the 0.85% gulp that much (Recurrent expenditure), what then is left for capital expenditure and other policy implementation for which the 99.15% should be impacted directly or indirectly.

I am just trying to be objective.

It is not much compared to what is being lost by 99.15% of the people due to poor renumeration of 70% of the workforce who keep the nation running.

Imagine the amount lost from inflated bills and contracts which a poorly paid administrative staff should have spotted and called out because they know the best method to find the true cost of things but won't do so cos his/her highly paid oga will sack him/her. Instead he/she keeps quiet and gets a share of the kickback when the contractor remits to the oga.

Imagine how much Nigerians loss daily to the illegal tax collected by poorly paid police and soldiers safeguarding our highways. What happens to paying them well and giving them camera mounted vests which they must put on when interacting with any member of the public on the job?

Imagine how much other workers in the private sector loss daily to their greedy companies and bosses because the FG has signalled to everyone that majority of Nigerians can be paid like slaves - just enough to eat two meals a day and get to work.

Two meals a day will cost 2k on average. 30 days is 60k. Good luck using the remaining 10k to transport, pay your rent, buy clothes, save and invest in your education or other ventures.

That is the reality faced by 70-80% of Nigerian workers, and it's all as a result of the posture of the FG on minimum wage.

Ding

DING!!!

pluto09:
The new tax law doesn't increase effective rate for everyone. It even reduces the rate for low income earners.
I have calculated my new tax rate and is even lower than what I am currently paying.
It is those in the informal sector that have not been paying before that might eventually have issues.
And mind you some of those taxes are not going to the fg but the state for instance the personal income tax.

I don't see any reduction in this tax law
The so called low income workers based on 70k per month still make above 800k annually. Many in organised private sector collects nothing less than 100k per month. That is 1.2 million annually. The PIT brackets has been moved up and capital gain tax moved from 10% to 24% the lowest in the bracket. It is Cooperate tax that was untouched. The new tax law is to finish Nigerians more for thr gain.
I won't be surprised to hear private jet for each senator next yr to make thr works easier as most roads are not motorable and for thr personal security

Joyful365:
It is not much compared to what is being lost by 99.15% of the people due to poor renumeration of 70% of the workforce who keep the nation running.

Imagine the amount lost from inflated bills and contracts which a poorly paid administrative staff should have spotted and called out because they know the best method to find the true cost of things but won't do so cos his/her highly paid oga will sack him/her. Instead he/she keeps quiet and gets a share of the kickback when the contractor remits to the oga.

Imagine how much Nigerians loss daily to the illegal tax collected by poorly paid police and soldiers safeguarding our highways. What happens to paying them well and giving them camera mounted vests which they must put on when interacting with any member of the public on the job?

Imagine how much other workers in the private sector loss daily to their greedy companies and bosses because the FG has signalled to everyone that majority of Nigerians can be paid like slaves - just enough to eat two meals a day and get to work.

Two meals a day will cost 2k on average. 30 days is 60k. Good luck using the remaining 10k to transport, pay your rent, buy clothes, save and invest in your education or other ventures.

That is the reality faced by 70-80% of Nigerian workers, and it's all as a result of the posture of the FG on minimum wage.

Oga nigeria is not about that 1 %.We are not the slave to that 1%.The uniform and professionals don't fall into that 1 %.They have thr own salary structure. That could be reviewed up because they are few and render necessary services.And those u mentioned at the low cadre can not stop any corruption from happening. Infact many are just being paid because government is expected to create employment. We are actually doing them a favour from the 99%

Streetinvestor2:
I don't see any reduction in this tax law
The so called low income workers based on 70k per month still make above 800k annually. Many in organised private sector collects nothing less than 100k per month. That is 1.2 million annually. The PIT brackets has been moved up and capital gain tax moved from 10% to 24% the lowest in the bracket. It is Cooperate tax that was untouched. The new tax law is to finish Nigerians more for thr gain.
I won't be surprised to hear private jet for each senator next yr to make thr works easier as most roads are not motorable and for thr personal security

If you are a salary earners and have been paying PIT before, you will still pay less if your salary is less than 500k in a month,so I don't see any issues with that.
The only area where people will likely pay more is the capital gain tax and I don't think that should worry anyone who says he/she is poor.

pluto09:
The new tax law doesn't increase effective rate for everyone. It even reduces the rate for low income earners.
I have calculated my new tax rate and is even lower than what I am currently paying.
It is those in the informal sector that have not been paying before that might eventually have issues.
And mind you some of those taxes are not going to the fg but the state for instance the personal income tax.

See gaslighting

GeneralDae:
I thought the tax act actually reduced taxes for most people and you are not taxed on your first 800,000 naira (for those earning up to 3 million naira annual salary) and 25 million for SME’s? So I don’t understand the bolded.

Here is a summary of the bill:

“for many individuals and small businesses, the reforms notably reduce tax burdens.
• Low-income earners (≤ ₦800,000 annually) now pay zero personal income tax   .
• Small businesses within the thresholds are fully exempt from key taxes   .
• Essential goods are VAT-zero-rated, which reduces the cost of everyday items; plus, businesses can reclaim input VAT, improving cash flow   .
• Productive sectors and multinationals face stricter taxation, but reforms aim to distribute tax burdens more equitably    .

As a summary, a Reddit user put it succinctly:

“The entire point of the bill isn’t to increase taxes but to widen the tax net … individuals earning under 800,000k … are exempt … it also eliminates VAT on items Nigerians spend most … food and medicine.”

One thing we are not all seeing is that except for the some people employed in private / small businesses earning between 20-60k, by the design of 70k minimum wage nobody is supposed to earn less than 800k. So nobody is exempted. Minimum wage earners earn 840k per annum and by this design are to be taxed so there is no exemption for anyone except for those in the military.

freeman67:
One thing we are not all seeing is that except for the some people employed in private / small businesses earning between 20-60k, by the design of 70k minimum wage nobody is supposed to earn less than 800k. So nobody is exempted. Minimum wage earners earn 840k per annum and by this design are to be taxed so there is no exemption for anyone except for those in the military.

No, you are getting it wrong. If you earn minimum wage (70k monthly), you earn 840k yearly. You would only pay tax on 40k. Your first 800k is tax exempt and the remaining 40k is taxed 15%.

pluto09:
If you are a salary earners and have been paying PIT before, you will still pay less if your salary is less than 500k in a month,so I don't see any issues with that.
The only area where people will likely pay more is the capital gain tax and I don't think that should worry anyone who says he/she is poor.

What percentage was used to calculate it before and what percentage in the bracket will person of 500k in a month fall into now.
U see my problem with salary earners.U think the government is only about u guys while u make up less of the population. Have u checked what it means to business men who are not salary earners and others. As salary earners u have access to many government benefits which business men don't see from transportation, health and housing.

GeneralDae:
No, you are getting it wrong. If you earn minimum wage (70k monthly), you earn 840k yearly. You would only pay tax on 40k. Your first 800k is tax exempt and the remaining 40k is taxed 15%.

This is not what I understood in the new tax law.
I was not told that all are given grace of the first 800k.I was only told u don't pay if u don't earn upto 800k per annum.
The professionals in that field will help out if I am wrong .
U know English is not igbo language which was my first language..lol

freeman67:
One thing we are not all seeing is that except for the some people employed in private / small businesses earning between 20-60k, by the design of 70k minimum wage nobody is supposed to earn less than 800k. So nobody is exempted. Minimum wage earners earn 840k per annum and by this design are to be taxed so there is no exemption for anyone except for those in the military.

There are quite a large number of people in the private sector who earn less than 60k in a month and have been paying tax before, those people will altogether be exempted.
As for those who earn more than that, the way the tax is structured is that 800k will be Tax exempt, it is what they earn above the 800k that will be taxed which makes the effective tax to be low compared to what we had before.

Streetinvestor2:
This is not what I understood in the new tax law.
I was not told that all are given grace of the first 800k.I was only told u don't pay if u don't earn upto 800k per annum.
The professionals in that field will help out if I am wrong .
U know English is not igbo language which was my first language..lol

If you go to the president’s twitter page, you would see where he posted the formula for calculating tax under the new law a few days ago.

I inputed 840k as gross salary and it calculated the resulting tax as 6000 naira yearly which is 15% of 40k. This is about 33000 naira reduction from the 39,920 naira you currently pay if you earn 840k yearly.

It also gave me comparison of what obtains now and the new law, that is old vs new law for someone receiving 840k gross yearly.

Streetinvestor2:
What percentage was used to calculate it before and what percentage in the bracket will person of 500k in a month fall into now.
U see my problem with salary earners.U think the government is only about u guys while u make up less of the population. Have u checked what it means to business men who are not salary earners and others. As salary earners u have access to many government benefits which business men don't see from transportation, health and housing.

https://fiscalreforms.ng/index.php/pit-calculator/
Here is the link to calculate your effective tax rate and compare with the old rate.
The new tax law doesn't increase effective rate for the low income earners.

GeneralDae:
If you go to the president’s twitter page, you would see where he posted the formula for calculating tax under the new law a few days ago.

I inputed 840k as gross salary and it calculated the resulting tax as 6000 naira yearly which is 15% of 40k. This is about 33000 naira reduction from the 39,920 naira you currently pay if you earn 840k yearly.

It also gave me comparison of what obtains now and the new law, that is old vs new law for someone receiving 840k gross yearly.

I wonder how this new capital gains tax will affect JIJO?

Panadee:
I wonder how this new capital gains tax will affect JIJO?

It would cause a lot of commotion in the capital market.
Let's wait and see

Thanks for this link. Please is the NHIS Contribution (Annual) (₦): the same as HMO subscription? Any ideas?

Modified
Wait, I never knew rent was exempted from tax. When I added rent to place for rent, the tax value actually reduced compared to when I did the calculation without rent.

pluto09:
https://fiscalreforms.ng/index.php/pit-calculator/
Here is the link to calculate your effective tax rate and compare with the old rate.
The new tax law doesn't increase effective rate for the low income earners.

megawealth01:
LORD have mercy

That's just it. Anytime you hear that so so person sabi work. just know the person knows how to make money for himself and oga.

ojesymsym:
Thanks for this link. Please is the NHIS Contribution (Annual) (₦): the same as HMO subscription? Any ideas?

Modified
Wait, I never knew rent was exempted from tax. When I added rent to place for rent, the tax value actually reduced compared to when I did the calculation without rent.

Yes, the HMO subscription is the same as NHIS contribution.
For most government workers in the country, the rent has been consolidated into their salary, so they might not really benefit from this.

Panadee:
I wonder how this new capital gains tax will affect JIJO?

Jijo go reduce seriously unless u won't be pulling out the loot from the market

Streetinvestor2:
This are not the class of workers I was talking. This ones fall under special salary structures. They still fall under minority in the wage thing. The ones I am talking about are the ones all over the ministries ,parastatals etc who are the majority. They collect salaries for doing nothing. They are the majority making it difficult to pay the ones that really add value well .They are the ones responsible in bloating wage bills and ghost workers

I agree with you absolutely.
This scenario has always constituted my personal worries.
I left the federal public service at the highest level of it's hierarchy, so I know what I'm talking about.
I have observed that generally, only a quarter of the members of staff do the work of a government department. This are the productive ones.
Most of the others are the ones going around gossipping, licking the boots of directors and very senior officers. And they are even better preferred by directors who love flattery and boot licking.
Before promotion exams, you see them going all over the place. They are the first to pass promotion exams.
It's so painful that the same crop of unproductive elements rise to become directors.
You will see ladies get to the office, open their laptops or handsets, and launch to the social media... Facebook, Instagram etc.
And when you give them something to do, after a few minutes, they would start taking permissions to go home and take care of their babies, or going to take their children from school.
The system is so annoying and you can do very little about it. And they always steal whatever comes their ways. Those in higher positions are always likely cheat to cart away what belongs to the junior ones.
And when it's come to going out for field assignments, which would involve money, you would see everybody prowling around the place.
And this same group, who would always escape writing field reports would always find themselves in the list.
To be frank, we don't need more than a quarter of the so called civil servants, who should be closely supervised.

I always stood up against the system. They tried to destroy me. I became a director by grace of God and they made me to Head servicom because they knew I would not compromise my principle and I would not be bringing money to the CEO.

For the public service to be productive, it should adopt the culture of the private sector.
Promotion should be based on productivity and the system of seniority should be abrogated.
So many times, I worked under morons and the only thing they know how to do is defend themselves whenever there are issues. Go to their tribalised directors and speaking hoaouosua.
Honestly, the system is annoying. Even though I was a part of it. They said I had no friends. How could they be my friends?
The only thing they scout for is money. Not interested in service at all!