FG Exempts Minimum Wage Earners from Income Tax

Image
Tax Waiver

Ahmed Rahma

In order to reduce the impact of inflation on Nigerians, especially the low-income earners, the federal government is planning to exempt those earning the N30,000 national minimum wage from the payment of personal income tax from next year.

President Muhammadu Buhari, speaking on Monday at the opening session of the 26th Nigerian Economic Summit Group conference themed Building partnerships for resilience in Abuja, stated that this has been included in the 2020 Finance Bill to be forwarded to the parliament soon.

The President, who was represented at the event by the Vice President, Mr Yemi Osinbajo, expressed optimism that this policy will go a long way to cushion the effect of the inflation and recession in the country.

“We are proposing in the new Finance Act that those who earn minimum wage should be exempted from paying income tax,” Mr Buhari said.

“These provisions, which complement the tax breaks given to small businesses last year, will not only further stimulate the economy, but are also a fulfilment of promises made to take steps to help reduce the cost of transportation and the impact of inflation on ordinary Nigerians,” he added.

The President emphasised that it was clear that Nigeria must diversify the economy away from dependence on crude oil exports, speed up human capital development and improve infrastructure, stating that, “Above all, our economy must be made more resilient to exogenous shocks.”

Mr Buhari gave insights into the collaboration between the Central Bank of Nigeria (CBN), the Nigerian Sovereign Wealth Investment Authority (NSIA) and other stakeholders in the creation of an Infrastructure Company Fund to address some of the nation’s critical infrastructure needs.

He said the government was working actively with the CBN, NSIA and state governments under the auspices of the National Economic Council (NEC) to design and put in place a N15 trillion fund for the transport sector, which would be independently managed.

“The Infraco Fund will help to close the national infrastructural gap and provide a firm basis for increasing national economic productivity and growth,” the President explained.

Responding to the issue of import duties raised at the summit during the speech presentation, Mr Buhari explained that the reduction of import duty on vehicles would help cut down transportation cost.

“The point of the reduction in levies on motor vehicles, commercial vehicles for transportation is to reduce the cost of transportation by reducing the cost of vehicles,” he stated.

He added that, “With subsidy removal and the increase in fuel price and the pass-through to food prices, transportation costs had to be reduced. Now the automotive policy is directed at localising the production of vehicles.

“So, the logic was to increase the duty and levies so that local production becomes more competitive. But the annual demand for vehicles is about 720,000 vehicles per year. Actual local production is 14,000 vehicles a year.”

He noted that the current rate of production would not meet the serious national needs and this would mean higher prices of vehicles and greater strain on other sectors of the economy that depend on transportation.

The President, however, stated that the government was not giving up on the local auto industry, noting that the government was also promoting a policy of buying only locally manufactured cars.

“Two important things to note; the first is that we still have a relatively high duty at 35 per cent; so, there is still a disincentive for importation,” he said.

Share
Related Stories
Image
01-December-2023

Angola May Exit OPEC Amid Quota Rift

By Adedapo Adesanya  Angola, one of Africa’s top crude oil producers and a key member of the Organisation of the Petroleum Exporting Countries (OPEC), has officially rejected the proposed production quota for the year 2024 and may even exit the group. This was signalled by Mr Diamantino Pedro Azevedo, Angola’s Minister of Energy and Mineral Resources, confirming the nation’s decision and indicating a divergence from OPEC’s suggested allocations for both member and non-member countries. The announcement was made during the 26th OPEC+ Meeting on Thursday, where the organisation proposed 1.11 million barrels of crude oil per day production quota for

Image
01-December-2023

Nigeria Accepts OPEC 1.5mbpd 2024 Oil Output Quota

By Adedapo Adesanya Nigeria will accept and work with a production quota of 1.5 million barrels of crude oil per day in 2024 as the country aims to grow on the back of its oil resources, following a revision done by the Organisation of the Petroleum Exporting Countries and its allies, OPEC+. According to a statement issued by the Press and Public Relations unit of the Ministry of Petroleum Resources, Thursday’s meeting of the 23-man group addressed crucial aspects, including the completion of assessments by independent sources (IHS, Wood Mackenzie, and Rystad Energy) on the projected production levels for Angola,

Image
30-November-2023

House of Reps to Halt IOCs from Selling Oil Assets

By Adedapo Adesanya The House of Representatives has pledged to stop international oil companies (IOCs) operating in the Niger Delta from divestment of their offshore assets without being accountable to the environment. The Chairman of the House of Reps Committee on Host Communities, Mr Dumnamene Dekor, said this during a technical session on the implementation of the Host Communities Development Trusts (HCDT), organised by Spaces for Change (S4C) with support from Ford Foundation. Mr Dekor raised the alarm that since the passage of the Petroleum Industry Act in 2021, host communities have not experienced any positive change, rather have remained

Image
29-November-2023

Tinubu Targets 3.76% GDP, 21.4% Inflation in 2024

By Adedapo Adesanya President Bola Tinubu is targeting to grow Nigeria’s economy by 3.76 per cent next year and moderate the country’s inflation to 21.4 per cent. Speaking at his first budget speech to lawmakers on Wednesday, President Tinubu also projected higher oil production and tax collection, noting that this will boost government revenues and cut down on reliance on borrowing to finance budget deficits. Nigeria plans on spending N27.5 billion in the 2024 fiscal year, with priorities on security, infrastructure and easing the high cost-of-living crisis. The country will borrow around N9 trillion and N18.5 billion generated from internally

More Stories
Image
03-January-2020

NASD Exchange Opens 2020 Flat, Records Higher Turnover

By Adedapo Adesanya The first trading session of the new year at the unlisted securities market in Nigeria closed flat on Thursday, January 2, 2020, for the fifth consecutive session. The market capitalisation of the NASD OTC Exchange, which closed the last trading day of 2019 at N501.14 billion, remained at the same amount at the close of transactions yesterday. Similarly, the Unlisted Security Index (USI) ended the day at 697.54 points just like it did at the previous session. But despite the market closing flat on Thursday, the level of activity improved, with the volume, value and the number

Image
10-December-2021

CSCS, Friesland Return Sanity to NASD With 0.9% Growth

By Adedapo Adesanya The bull returned to the floor of the NASD Over-the-Counter (OTC) Securities Exchange following a 0.9 per cent rise on Thursday, December 9. The favourable outcome came on the back of gains recorded by Central Securities Clearing Systems (CSCS) Plc and FrieslandCampina Wamco Nigeria Plc. Friesland made a N1.85 or 1.6 per cent rise to close at N112.65 per share as against N110.80 per share it closed at the last session, while CSCS Plc appreciated by 84 kobo or 4.7 per cent to close at N17.75 per unit in contrast to N16.91 per unit it closed at

Image
12-April-2021

NITDA Begins Challenge to Drive Vibrant Digital Economy

By Adedapo Adesanya The National Information Technology Development Agency (NITDA), as part of the United Nations’ World Creativity and Innovation Day 2021, has opened the application for an Innovation Challenge to support Nigeria’s plans to become a 21st-century digital economy. Themed Inspiring Creativity and Innovation in the Nigerian Digital Economy, the competition hopes to harness innovative and impactful solutions for the development of a vibrant digital economy. The World Creativity and Innovation Day is a global United Nations day celebrated to raise awareness around the importance of creativity and innovation in problem-solving with respect to advancing the UN Sustainable Development

Image
15-October-2022

FBNQuest Recommends Mutual Fund to Diversify Country-Specific Risks

FBNQuest, the investment banking and asset management subsidiary of FBN Holdings Plc, is recommending one of its mutual fund products, the FBN Specialized Dollar Fund, to investors as a prudent move to diversify their portfolios from country-specific investment risks. Rising inflation, negative real rates of returns, exchange rate volatility, and digitalization have increased the demand for global financial assets that provide an opportunity to diversify investors’ portfolios and earn potentially higher returns. The FBN Specialized Dollar Fund (FSDF) is an investment vehicle connecting investors to these broader asset classes. The Fund, an open-ended active fund, is designed to provide competitive

Image
30-April-2020

VFD Group to Pay Shareholders N3.30 Dividend

By Adedapo Adesanya Proprietary investment firm, VFD Group Plc, has proposed the payment of N3.30 as dividend to its shareholders for the year ended December 31, 2019. The dividend recommended by the board was announced in a notice sent on Wednesday, April 29, 2020, to the NASD OTC Securities Exchange, the bourse where the proprietary investment company trades its securities. The firm stated that the dividend will be paid to shareholders, who have equities of VFD Group as at the close of business on Friday, May 1, 2020. After the qualification date, the register of members of VFD Group would

Image
10-December-2021

The Copa Libertadores de América

The Copa Libertadores de América is a continental football competition organized by CONMEBOL, which is the football confederation from South America. The competition was held for the first time in 1960. Back then it was called Copa de Campeones de América (Champions of América Cup). This competition is available at 1xbet.com.gh – betting sites in Ghana, where lots of betting options can be enjoyed. In 1965, the tournament adopted the name “Libertadores” (liberators in English) in honour of the leaders of the Spanish-American and Brazilian wars of independence in South America. This is the name for which it became well

Image
16-June-2017

5 Foods Nursing Mothers Must Avoid

By Adeniyi Ogunfowoke You spent the last nine months streamlining what you eat and drink in order to ensure that what you put in your stomach does not affect your baby’s development. Now that you are nursing your baby, you still have to be careful of what you eat. It is, therefore, essential that mothers maintain regular meals when breastfeeding to acquire important nutrients and also to increase their breast milk. Regardless, Jumia Travel, the leading online travel agency shares some foods women should avoid while breastfeeding. Fish You don’t need to abandon fish completely, but you need to be

Ad
Ad
Recent Stories
Image
02-December-2023

Sanwo-Olu Assures Businesses More Incentives, Commissions New Godrej Factory

By Modupe Gbadeyanka Business owners in Lagos have been assured of more incentives by the state governor, Mr Babajide Sanwo-Olu, who added that this is part of his administration’s commitment to reforms aimed at improving the ease of doing business and enhancing investment opportunities. Speaking at the commissioning of the newly-built wet hair production factory of Godrej Nigeria Limited, the Governor said his government would continue to pursue actions that would eliminate red tapes and regulatory impediments hindering the growth of businesses in the state, thereby demonstrating his willingness for continued collaboration with the private sector to improve the livelihood

Image
02-December-2023

Nigerian Exchange Begins December With 0.08% Growth

By Dipo Olowookere The Nigerian Exchange (NGX) Limited commenced the first trading session in December 2023 on a bullish note, with a marginal growth of 0.08 per cent. Sustained buying pressure kept Nigerian stocks in the positive territory, extending the dominance of the bulls on Customs Street, though the turnover waned. Business Post observed that investors cherry-picked equities in the banking and the energy sectors during the session, leaving them rising by 1.14 per cent and 0.05 per cent, respectively. However, the insurance counter lost 1.10 per cent, the consumer goods index depreciated by 0.08 per cent, and the industrial

Image
01-December-2023

CBN Orders Banks to Place PND on Accounts Without BVN, NIN

By Adedapo Adesanya All bank accounts without Bank Verification Number (BVN) and National Identification Number (NIN) will from April 2024 have “Post No Debit (PND)” placed on them. This is the latest directive of the Central Bank of Nigeria (CBN) to financial institutions operating in the country. In a circular issued by the apex bank and sent to all deposit money banks (DMBs) on Friday evening, the CBN said all the BVN or NIN attached to and/or associated with AL accounts/wallets must be electronically revalidated by January 31, 2024. In the circular seen by Business Post, the central bank said

Image
01-December-2023

LCCI Demands Transparency in CBN Recapitalisation Plan

By Adedapo Adesanya The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to strengthen its banking supervision to prevent some crucial Nigerian banks from failing due to its planned recapitalisation. Last Friday, the Governor of CBN, Mr Olayemi Cardoso, said the CBN would be directing banks to increase their capital base to serve a $1 trillion economy to be achieved by 2030. In a statement signed by Mrs Chinyere Almona, the director general of LCCI, the chamber said, “On recapitalisation of banks, we commend the plan of the apex bank to review the

Image
01-December-2023

IFC, ACP to Scale Emerging Market Climate Investments

By Adedapo Adesanya  The International Finance Corporation (IFC) has announced a collaboration with Allied Climate Partners (ACP) that will help create a pipeline of viable climate investments in emerging markets including Southeast Asia, Africa, the Caribbean and Central America, and India. ACP’s new platform is backed by philanthropic capital and designed to mobilize investment in climate-related projects in emerging economies to create significant environmental, economic, and social impact. In a statement seen by Business Post, the parties said the collaboration with IFC will provide advisory and structuring support, technical assistance, and sustainability and impact-management support as needed to help bring

Image
01-December-2023

Obaseki Wishes Rema Speedy Recovery

By Bliss Okperan The Edo State Governor, Mr Godwin Obaseki, has wished Afrobeats singer, Divine Ikubor, popularly known as Rema, a speedy recovery. In a message via his X (formerly Twitter) handle on Thursday, the Governor said the people of Edo State, where the singer hails from, are proud of him and remain behind him every step of the way. “We are extremely proud of you and remain behind you every step of the way,” a part of his post read. Mr Obaseki said the remarkable achievements of the artiste “over the years fill us with immense pride and joy.”

Image
01-December-2023

Nigeria Customs Service Develops App to Automate Transire

By Bliss Okperan The Tincan Island Port (TCIP) Command of the Nigeria Customs Service (NCS) has created a mobile application to automate its bond and license unit, Transire. At the unveiling of the app on Thursday, the Customs Area Controller, Comptroller Dera Nnadi, said the need to automate the Bond and License Unit had become imperative for administrative and procedural ease of doing business in the command. Speaking at a sensitization program on the automation process, Mr Nnadi informed participants that the application was developed by Superintendent of Customs Samuel Bello, to reduce the volumes of documents being deployed in

Image
01-December-2023

Nasarawa Assembly Elects New Speaker, Deputy

By Bliss Okperan The Nasarawa State House of Assembly has announced its election of Danladi Jatau, representing Kokona West Constituency, as the new Speaker. The state parliament also disclosed on Friday that it now has a new Deputy Speaker, who is Mohammed Oyanki, the lawmaker representing Doma North Constituency. The election of the two principal officers of the legislative arm of the state followed the sacking of its former Speaker, Mr Ibrahim Abdullahi, by the Appeal Court sitting in Abuja on Tuesday. While the new Speaker is a member of the All Progressives Congress (APC), his deputy is a member

Image
01-December-2023

Nico Williams Signs Contract Extension With Athletic Bilbao

By Bliss Okperan A 21-year-old Spanish international winger, Nico Williams, has extended his current deal with Athletic Bilbao, which expires in June 2024, by three seasons. He agreed to remain with the Spanish football outfit until 2027, the La Liga club confirmed this action on Friday. Nico Williams, whose elder brother, Inaki Williams, also plays for Athletic Bilbao, scored nine goals in 43 games in all competitions for the club last season. He represented Spain in the last World Cup in Qatar, while his brother played for their home country, Ghana. The younger Williams has reportedly been targeted by league

Image
01-December-2023

12 LASTMA Officials Face Disciplinary Panel

By Bliss Okperan Twelve officials of the Lagos State Traffic Management Authority (LASTMA) have faced a disciplinary panel constituted to look into the allegations of unethical misconduct against them. The Acting General Manager of LASTMA Mr Olalekan Bakare Oki, confirmed on Thursday that the affected personnel of the agency could be dismissed or demoted if found guilty. He disclosed that the disciplinary panel was statutorily constituted with three Permanent Secretaries as guided by the Lagos State Civil Service Rules and Regulations. Mr Oki said one of the 12 persons was exonerated, while the others have been recommended for dismissal and