Economy
Proposed 7.5% VAT Won’t Affect Poor Nigerians—FG
By Dipo Olowookere
Nigerians have been informed by the federal government that the proposed hike of the Value Added Tax (VAT) next year will not affect the poor as being feared by many.
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said this on Monday at the opening of the 25th Nigerian Economic Summit (NES#25) taking place at Transcorp Hilton Hotel, Abuja.
She said at the yearly gathering that the raising of VAT to 7.5 percent from the present 5 percent would affect the wealthy in the society more than the poor in the country.
“The proposed VAT increase is likely to impact more on consumption by the urban communities and the wealthier sections of the population, than on the poor,” Mrs Ahmed said at the event, which was declared open by President Muhammadu Buhari.
The Minister said the 7.5 percent VAT increase proposal was in line with the recommendations of the Presidential Committee on the Funding Options for the Minimum Wage Increase.
According to her, “This administration remains committed to increasing finance for investment health and education, to improve our human capital development indices.”
“However, our target is also to increase funding for capital expenditure such that this constitutes at least 30 percent of federal budgeted expenditures. Given these aspirations, the government has been compelled to review our fiscal policies including the proposed VAT rate increase,” she declared.
She noted that Nigeria’s VAT as a share of Gross Domestic Product (GDP) has declined in the last four years (2015 – 2018), adding that the present level was below the median of 5 percent of GDP in other comparable African countries.
She attributed Nigeria’s low VAT-to-GDP to the low nominal VAT rate, which at 5 percent is the lowest in the African region (which averages at about 16 percent).
NES#25
Speaking on theme of this year’s summit, Nigeria 2050: Shifting Gears, the Minister emphasised the imperatives for the country to move to a more robust competitive private sector economy with focus on the implications of the projected population of the country hitting over 400 million, making Nigeria the third most populous country in the world by 2050.
According to her, the structure of this population shows that majority will be under the age of 35, representing a large percentage of Africa’s young working-age population. The opportunities are endless, as are the risks, however, if we do not accelerate our efforts towards sustainable and inclusive growth, and improved human capital.
Based on these, the Minister said, “There is an urgent need to design policies that will not only address the rising population but ensure paradigm shift to a competitive private sector led economic growth and development.”
“The agenda for this summit is therefore, to provide strategic and innovative ways of getting the maximum benefits from the expected demographic dividends,” she further declared.
Mrs Ahmed noted that as you are aware, the summit organised by the Federal Ministry of Finance, Budget and National Planning and the Nigeria Economic Summit Group has indeed remained the foremost platform for the public and private sector stakeholders to discuss issues and challenges facing the nation with a view to evolving common strategy and policy frameworks for addressing them.
“This summit, though a celebration of 25 years of its commencement, is a testament to a successful partnership between the public and private sectors.
“These 25 years of collaborative engagement has helped in shaping the policies of government. Let me briefly state that past summit outcomes have contributed to policies on Power sector reforms, Agriculture sector reform, and the Pension Reform among others,” she said.
Minister Envisages Her Future Nigeria
The Minister said she sees a future where the majority of Nigerians have been sustainably lifted out of poverty, and have access to fundamental services including education, health care, water supply and sanitation. A future where all are financially included, with affordable access to financial products and services. A future where no one is left behind.
“I see a future Nigeria with a thriving and booming private sector led economy that can translate into domestic revenues for governments to reinvest in sustainable growth levers.
“I see a future where our young and vibrant population is well educated (particularly in STEAM [Science, Technology, Engineering, the Arts and Mathematics] education) – creating a workforce with the skills that well position our youth to be gainfully employed. This includes high value digital jobs that will not only tap into but also drive the limitless global digital economy.
“I see an advanced high-tech manufacturing sector that is globally competitive, and can ensure value addition for our natural endowments in raw materials.
“I see a safe and secure environment where people and businesses move freely and fearlessly to go about their trade, work and other daily activities.
“This future we crave for will not be created by luck, neither will it be created by the Federal Government nor by State Governments alone. It will require collective action by all stakeholders including citizens and the private sector.
“As we all know the private sector has a crucial role to play. This future will require comprehensive targeted reforms, tough decisions, a radical shift in the current culture, including attitudes towards taxes and public finance. Just as the saying goes ‘no pain no gain’- I must say, the journey will be a painstakingly tough and will require sacrifices on all sides- including Government, the private sector, citizens and other stakeholders,” the Minister stated.
Speaking further, Mrs Ahmed said the future requires huge financial investments on multi-faceted physical and social areas by both the federal, state and local governments to be able to provide quality, useful, accessible and affordable education, healthcare, transportation, housing, electricity, water.
“Additionally, we must be in a position to provide digital connectivity and innovation, and rise above the tide of disruption that the Fourth Industrial Revolution will bring.
“The outputs of this 25th Anniversary Summit will be critical as we work towards co-creating the Nigeria we envision and we deserve. They will aid Government in developing and implementing the next generation of National Plans, and towards implementing policies and programmes,” she said.
Concluding, the Minister said, “As representatives of government, the private sector, civil society, and most importantly as Nigerians, [we must] join hands to co-create a future Nigeria in which: (a) no one is left behind; (b) growth is not only competitive but is also inclusive and sustainable; (c) and in which we as the Giant of Africa will lead the way in terms of innovation, industrialization, and human capital on the continent and beyond.”
By Aduragbemi Omiyale
The board of Presco Plc has proposed the payment of an interim dividend of N10 per share to shareholders of the organisation for the first six months of this year.
This information was conveyed in the unaudited financial statements of the company released to the Nigerian Exchange (NGX) Limited.
In the results for the half-year ended June 30, 2026, the fully integrated agro-industrial firm said the cash reward reinforces its commitment to delivering consistent shareholder returns.
It further assured that looking ahead, it remains focused on disciplined capital allocation, operational efficiency and long-term value creation while navigating evolving market conditions.
A look at the key financial highlights of the results showed that revenue was relatively stable at about N199.0 billion in the first half of 2026 and the same period of 2025 amid a high-cost operating environment and softer crude palm oil prices.
However, the pre-tax profit rose by 9.3 per cent to N122.2 billion from N119.9 billion as result of a 31.9 per cent reduction in financing costs.
Further, the Edo State-based company posted an EBITDA of N123.1 billion, which yielded a margin of 61.9 per cent, as the organisation strengthened its balance sheet, reducing total liabilities by 42.5 per cent to N277.8 billion, while equity grew 13.8 per cent to N503.6 billion, with a current ratio of 345.6 per cent, which underscores robust liquidity.
“Our H1 2026 performance underscores the strength of our operational model in a challenging environment. The 9.3 per cent growth in profit before tax, driven largely by a 31.9 per cent reduction in financing costs, reflects our deliberate focus on cost optimisation and balance sheet discipline.
“With equity up 13.8 per cent and liabilities down by 42.5 per cent, we have further fortified our financial foundation.
“The proposed interim dividend of N10 per share signals our confidence in the business’s trajectory and our commitment to rewarding shareholders,” the chief executive of Presco, Mr Reji George, stated.
By Aduragbemi Omiyale
The ex-depot prices of the two major petroleum products in the country, Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (Diesel), have been slashed by Dangote Petroleum Refinery.
The company, in a statement on Wednesday, disclosed that while petrol is now N1,165 per litre, diesel is now N1,570 per litre.
The energy firm said it slashed the prices to reaffirm its commitment to providing affordable, high-quality petroleum products to the Nigerian market.
The latest cut in the price of PMS represents N50, as it was previously sold to marketers at N1,215 per litre, while diesel witnessed an N80 reduction, as it was formerly being sold at N1,650 per litre.
Dangote Refinery stated that the downward price review reflects its ongoing efforts to enhance energy affordability, improve access to refined petroleum products, and support economic activities across Nigeria, saying it remains committed to ensuring stable supply while leveraging operational efficiencies to deliver value to consumers, businesses, and stakeholders.
As Africa’s largest refinery, Dangote Petroleum Refinery continues to play a pivotal role in strengthening Nigeria’s energy security, reducing reliance on imports, and supporting the nation’s economic development through the supply of world-class petroleum products.
The company reaffirmed its dedication to contributing to the growth of the Nigerian economy and passing on the benefits of improved operational efficiencies to consumers whenever market conditions permit.
By Adedapo Adesanya
Dangote Petroleum Refinery is preparing to raise about $5 billion through an initial public offering (IPO) expected to conclude in October, in what could become the largest stock market listing in Africa’s history.
The company has already submitted an initial application to the Securities and Exchange Commission (SEC), with approval expected in the coming weeks. Once authorised, the refinery is expected to release its prospectus in September ahead of the public offer.
The primary listing will be on the Nigerian Exchange (NGX) Limited, although investors across Africa are expected to participate through structured investment instruments rather than a dual listing.
The proceeds will be used to expand the capacity of the 700,000-barrels-per-day refinery in Lagos and possibly support plans to replicate the project in Kenya as Dangote seeks to deepen Africa’s energy independence.
The proposed IPO comes after the refinery benefited from increased demand for refined products during the recent Iran conflict, supplying jet fuel across Africa and into Western Europe as global shortages disrupted markets.
As per Reuters, stock exchanges in South Africa, Kenya, Egypt, Ghana and Rwanda have held discussions with advisers to the transaction as interest in the offering continues to build across the continent.
Kenya alone could account for as much as $500 million of the targeted capital raise, driven largely by demand from institutional investors, including pension funds, the publication reported.
While the company is targeting a $5 billion raise, the final amount will depend on the outcome of the SEC’s review. If achieved, the offering would represent more than four per cent of the Nigerian Exchange’s current market capitalisation.
The IPO follows a $2.5 billion private placement completed last month, in which a six per cent stake in the refinery was sold, implying a valuation of about $40 billion.
That valuation, however, would place the refinery well above several listed global refining companies. Turkey’s Tupras, which operates a similar combined refining capacity across four facilities, has a market value of roughly $12 billion, while US-listed HF Sinclair, with a comparable processing capacity, is valued at around $16 billion.
Although the NGX generally requires companies on its main board to maintain a minimum free float of 20 per cent, there have been exceptions. Dangote Cement, for instance, currently has a free float of just over 12 per cent.
The publication also reported that investors outside Nigeria are likely to gain exposure through instruments such as global depositary receipts or exchange-traded products linked to the Nigerian-listed shares, rather than through a cross-listing on other African exchanges.
The founder of the 700,000-barrels-per-day capacity plant, Mr Aliko Dangote, said in April that the refinery aims to increase production capacity to 1.4 million barrels per day.
Mr Dangote is also pursuing plans to build another refinery in Lamu along Kenya’s coast in partnership with other East African governments, although it remains unclear whether part of the IPO proceeds will be allocated to that project valued at an estimated $17 billion.
