Category: Economy

The federal government, through Ben Akabueze, Director General of Nigeria’s federal budget office, said the new 7.5% Value Added Tax (VAT) being proposed by government will only apply to businesses with turnover of N25 million and above. At a closing press session of the just concluded 25th Nigerian Economic Summit in Abuja, Akabueze also noted that the finance bill which President Buhari will present to the National Assembly on Wednesday has exempted some critical consumables from the VAT hike.According to him, “the question of increasing the VAT rate in Nigeria…

Minister of Labour and Employment, Dr Chris Ngige, on Thursday, said that the demand of labour over the implementation of the new minimum wage would cost the Federal Government N580 billion annually. Ngige said that such adjustment, in line with labour’s demand, was not sustainable as the government would have to lay off some workers to be able to meet their demands. The minister said government cannot afford that kind of money now, adding that the focus of President Muhammadu Buhari’s government is on workers on grade level 1 step…

The lower chamber of the National Assembly has asked the Central Bank of Nigeria (CBN) to suspend the recently imposed charges on cash deposits in some selected states in the country. It would be recalled that in a circular released on Tuesday, the CBN had directed all deposit money banks in the country to charge 3% processing fees for withdrawals and 2% for deposits of amounts above N500, 000 for individual accounts. Corporate account holders would be charged 5% processing fees for withdrawals and 3% for deposits of amounts above N3 million.…

Starting from September 18, 2019, Nigerians operating bank accounts will begin to pay charges for deposits and withdrawals. Making the announcement on Tuesday, the Central Bank of Nigeria said that the nationwide implementation of the cashless policy will begin by March 2020. The apex bank said that implementation of the policy would signal the imposition of charges on deposits in addition to already existing charges on withdrawals. According to the circular, the charges will attract three per cent processing fees for withdrawals and two per cent processing fees for lodgments…

Experts and groups have warned that many businesses will shut down operations and many Nigerians will become poorer if the recently aanounced VAT increase is implemented. One of such is the Nigeria Employers’ Consultative Association. The group posited that the VAT hike from five per cent to 7.2 per cent will lead to closure of many businesses. The Director-General of NECA, Mr Timothy Olawale, noted that the timing of the increase in VAT rate was wrong, stressing that the government ought to support businesses in reducing the alarming unemployment rate…

The Federal Executive Council (FEC) has approved the gradual increase of Value Added Tax from 5% to 7.2peecent. Announcing this today after the federal Executive Council meeting, Minister of Budget and National Planning, Zainab Ahmed said the increase will take effect after the mandatory review of the VAT Act as well as necessary input from the National Assembly.