Economy
Oyedele Suggest Exemption of 95% Informal Sector from Tax
By Adedapo Adesanya
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC) set up by President Bola Tinubu, Mr Taiwo Oyedele, has hinted that the federal government has been advised to exempt 95 per cent of the informal sector from all taxes in order to revolutionise Nigeria’s tax system.
Mr Oyedele, who disclosed this to newsmen at the weekend at the end of the close-out retreat of the PFPTRC in Abuja, stressed that the move was aimed at reducing the burden of multiple taxation on small businesses and low-income individuals.
According to him, the informal sector is populated by citizens working hard to earn a legitimate living, emphasizing that in the eye of the committee, people in the category should not be over-burdened with taxation, but rather supported to grow economically to a point where they can fit into the more affluent categories before imposing taxes on them.
Mr Oyedele also explained that a lot was considered before the panel came up with the recommendation, noting that those who earn between N25 million and less annually should be exempted from paying all forms of taxes, including income and value-added tax (VAT).
“Everybody, even if you’re not a business person, feels the impact of multiple taxation almost everywhere you turn. It affects small businesses even more than large businesses, and the poor and vulnerable population are having to deal with it.
“So, we’re using data to inform our decisions, currently if you earn N25 million a year or less, you don’t have to pay company income tax, you don’t have to worry about VAT. We’re looking at increasing that significantly, first to recognize the inflation we’ve had to contend with over the past few years and also because we think that this whole idea and concept of your money is in the informal sector is not supported by data.
“We think that the informal sector are people who are trying to earn legitimate living, we should allow them be and support them to grow to a point where they can then have the ability to pay taxes.
“So, we think 95 per cent of the informal sector should be legally exempted from all taxes; withholding tax, company income tax, even payee on their staff, let them be.
“We can then focus our attention on the top 5 per cent of that sector and of course, the middle class and the elites. We think that the days of being above the law in paying taxes are over. The same thing we’re saying to our leaders, whether they are elected or appointed, we think they have to lead by example by showing that they have paid the taxes, not only on time, but correctly to the lawful authorities as contained in the various laws”, he said.
According to him, the committee’s proposal for tax reforms is expected to be submitted to the National Assembly by the third quarter of this year.
Mr Oyedele disclosed that the committee has concluded the proposal phase and is currently consulting with the private sector, with internal approvals expected by the end of June.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed lower by 0.14 per cent on the first trading day of the new week, Monday, May 19.
The bourse was under a selling pressure, which took out 4.37 points from the NASD Unlisted Security Index (NSI), leaving it at 3,150.49 points compared with the previous session’s 3,154.86 points.
In the same vein, the market capitalisation of the alternative stock exchange lost N2.56 billion to close at N1.844 trillion, in contrast to the N1.847 trillion it ended last Friday.
Business Post reports that FrieslandCampina Wamco Nigeria Plc depreciated by N1.00 to sell for N40.00 per unit versus the preceding session’s price of N41.00 per unit, and Geo-Fluids Plc went down by 23 Kobo to settle at N2.31 per share compared with last Friday’s rate of N2.54 per share.
On the flip side, AG Mortgage Bank Plc increased during the session by 5 Kobo to sell for 63 Kobo per unit versus the previous trading day’s 58 Kobo per unit.
The volume of securities transacted in the session jumped by 16,446.2 per cent to 42.0 million units from the 253,960 units traded in the previous trading day, the value of transactions rose by 1,264.5 per cent to N210.6 million from N15.4 million, and the number of deals fell by 75 per cent to nine deals from 36 deals.
At the close of business, Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with 536.9 million units worth N524.7 million, followed by Geo-Fluids Plc with 266.7 million units valued at N471.3 million, and Okitipupa Plc with 153.6 million units sold for N4.9 billion.
Also, Okitipupa Plc was the most traded stock by value on a year-to-date basis with 153.6 million valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 21.8 million units sold for N837.9 million, and Impresit Bakolori Plc with 536.9 million units worth N524.7 million.
By Aduragbemi Omiyale
Consumers of Premium Motor Spirit (PMS), otherwise known as petrol, in Nigeria have been assured price stability amid the unstable prices of crude oil in the global market.
This assurance was given by the Dangote Petroleum Refinery and Petrochemicals, which sells the crude oil derivative in the country.
In recent times, the private oil refiner has reduced the PMS pump price to make the product accessible to motorists and other users.
The company, in a release signed its Group Chief Branding and Communications Officer, Mr Anthony Chiejina, said the decision to maintain price stability reflects its unwavering commitment to supporting the Nigerian economy and alleviating the burden on consumers from the increase in fuel prices by maintaining price stability.
The decision, the firm stated, underscores its dedication to providing affordable, reliable, and high-quality petroleum products without compromising operational efficiency and sustainability.
“Our approach aligns with the objectives of the Federal Government’s Nigeria First policy, which promotes the prioritisation of locally-produced goods and services.
“By refining petroleum products domestically at the world’s largest single-train refinery, we are proud to make a substantial contribution to Nigeria’s energy security, foreign exchange savings, and overall economic resilience—aligning with President Bola Tinubu’s Renewed Hope Agenda, which is focused on addressing the nation’s economic challenges and improving the well-being of Nigerians.
“We are immensely grateful to President Tinubu for making this possible through the commendable Naira-for-Crude Initiative, which has enabled us to consistently reduce the price of petroleum products for the benefit of all Nigerians,” the organisation said.
The company assured all stakeholders—consumers, partners, and the government—of its continuous dedication to operational excellence and national service.
“Dangote Petroleum Refinery remains committed to ensuring that the benefits of our local refining capacity are fully realised and enjoyed by the Nigerian populace. We will continue to prioritise affordability, quality, and national interest in every facet of our work,” it noted.
By Adedapo Adesanya
The Naira appreciated against the United States Dollar in the parallel and official markets on Monday as the financial markets anticipate the decision of the Monetary Policy Committee (MPC) on Tuesday.
The MPC of the Central Bank of Nigeria (CBN) is expected to keep the key interest rate of 27.50 per cent for a second straight meeting as inflation continues to cool.
In the black market yesterday, the Nigerian currency improved its value against the Dollar by N5 to settle at N1,620/$1 compared with the preceding session’s rate of N1,625/$1.
In the same vein, the local currency gained 63 Kobo or 0.04 per cent on the American currency in the Nigerian Autonomous Foreign Exchange Market (NAFEX) during the session to trade at N1,598.94/$1, in contrast to last Friday’s value of N1,599.57/$1.
However, the Naira depreciated against the Pound Sterling in the spot market by N13.87 to close at N2,137.29/£1 versus the previous trading day’s N2,123.42/£1 and lost N10.99 against the Euro to finish at N1,799.00/€1 versus N1,788.01/€1.
Meanwhile, the cryptocurrency market was bullish on Monday as investors looked past Moody’s downgrade of the US’ credit rating last Friday, extending the markets’ rally from last week on the US-China’s temporary trade truce.
The 90-day tariff pause has given market participants a clear, short-term positive signal that’s supportive for risk assets including crypto.
Moody’s lowered the US credit rating down one notch to Aa1 from Aaa, bringing the agency in line with peers.
The firm cited financing challenges tied to the federal government’s growing budget deficit and the ramifications of rolling over existing U.S. debts in a period of high borrowing costs.
The debt downgrade pressured bond prices and sent yields higher at a time when the economy is already awaiting the full impact of President Donald Trump’s unfolding tariff policy, but it didn’t stop the direction of crypto prices.
Ethereum (ETH) jumped by 6.8 per cent to $2,550.21, Solana (SOL) grew by 3.8 per cent to $168.81, Dogecoin (DOGE) increased by 3.6 per cent to $0.2253, Bitcoin (BTC) grew by 2.9 per cent to $106,006.35, Cardano (ADA) rose by 2.6 per cent to $0.7413, Litecoin (LTC) improved by 2.2 per cent to $97.53, Binance Coin (BNB) gained 1.9 per cent to sell for $650.85, and Ripple (XRP) appreciated by 1.2 per cent to $2.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00, respectively.
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