By Modupe Gbadeyanka

Governors of the 36 states of the federation have finally thrown their weight behind the controversial tax reform bills months after they earlier rejected them.

At a meeting of the Nigerian Governors Forum (NGF) on Thursday, the governors, however, proposed a new sharing formula for the Valued-Added Tax (VAT).

They want 50 per cent of the VAT to be shared based equality, 30 per cent based on derivation, and 20 per cent based on population.

The governors also recommended there must be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) for now for economic stability.

In addition, they suggested that there should be no terminal clause for TETFUND, the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA) in the sharing of development levies in the bills, supporting tthe continuation of the legislative process at the national assembly that will culminate in the eventual passage of the tax reform bills.

“The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernizing the tax system to enhance fiscal stability and align with global best practices.

“The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: 50% based on equality, 30% based on derivation, and 20% based on population.

“Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability,” the group said in a statement issued after the meeting.

By Adedapo Adesanya

The Naira halted four consecutive sessions of depreciation on Thursday after its value improved against the  US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by 0.17 per cent or N2.63.

Data obtained from the FMDQ Securities Exchange showed that the Nigerian currency was traded on the greenback yesterday by N1,548.47/$1, in contrast to the preceding day’s rate of N1,551.10/$1.

However, it closed flat against the Pound Sterling and the Euro during the trading day at N1,904.43/£1 and N1,600.79/€1, respectively.

As for the parallel market, the Naira depreciated against the Dollar yesterday by N20 to settle at N1,6770/$1 compared with the N1,650/$1 it was transacted a day earlier.

As for the cryptocurrency market, there was continued appreciation ahead of the inauguration of the US President-elect, Mr Donald Trump, who favours digital assets.

The biggest gainer remained Litecoin (LTC), which chalked up 16.6 per cent to trade at $140.06 spurred by prospective Litecoin exchange-traded funds (ETFs) which could see inflows of up to $580 million if investors adopt them at the same rate as Bitcoin (BTC) ETFs.

The possibility came into focus on Thursday as market participants began sizing up the likelihood that LTC might become the third crypto asset to get its ETF in the US, after BTC and Ethereum (ETH).

Ripple (XRP) jumped by 7.3 per cent during the trading session to close at $3.33, Cardano (ADA) added 6.5 per cent to its value to finish at $1.13, Solana (SOL) rose by 4.9 per cent to quote at $212.67, Dogecoin (DOGE) recorded a value appreciation of 1.6 per cent to sell at $0.3854, BTC grew by 1.6 per cent to settle at $101,346.11, and Binance Coin (BNB) went up by 0.9 per cent to end at $717.23.

On the flip side, ETH depreciated by 0.4 per cent to trade at $3,336.68, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.

By Adedapo Adesanya

Oil depreciated at the global market on Thursday amid plans to halt attacks on ships in the Red Sea as investors weighed strong US retail sales data.

Brent crude futures lost 74 cents or 0.9 per cent during the session to finish at $81.29 per barrel and the US West Texas Intermediate (WTI) crude futures went down by $1.36 or 1.7 per cent to $78.68 a barrel.

Reuters reported that officials were expecting the Houthi militia to announce a halt in its attacks on ships in the Red Sea after a ceasefire deal in the war in Gaza between Israel and the militant Palestinian group Hamas.

Israel and Hamas reached a Gaza ceasefire and hostage release deal following 15 months of war.

Houthi has carried out more than 100 attacks on ships crossing the Red Sea since November 2023, saying they are acting in solidarity with the Palestinians in Gaza. They have sunk two vessels, seized another and killed at least four seafarers.

The attacks have disrupted global shipping, forcing firms to re-route to more expensive journeys around southern Africa for more than a year, making commodities like oil more expensive.

The US Secretary of State, Mr Antony Blinken, said the Gaza Strip ceasefire should start on Sunday as planned, despite the need for negotiators to tie up a loose end.

However, investors remained cautious about the possibility of a breach of the ceasefire deal.

Meanwhile, the US Commerce Department reported U.S. retail sales increased in December as households bought more motor vehicles and a range of other goods, pointing to strong demand in the world’s largest economy.

Support also came after US Federal Reserve Governor Christopher Waller said inflation is likely to continue to ease and possibly allow the U.S. central bank to cut interest rates sooner and faster than expected.

Investors also continued to weigh the Biden administration’s latest round of sanctions targeting Russia’s military-industrial base and sanctions-evasion efforts, after earlier levying broader sanctions on Russian oil producers and tankers.

The market also continued to look forward to possible friction between Donald Trump and the Organisation of the Petroleum Exporting Countries (OPEC).