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Tag: VAT

  • Tinubu advises Fed Govt on how to fix economy

    Ex-governor: any hike in VAT will be a burden on Nigerians

    Buhari, Osinbajo, others honour Tinubu at birthday colloquium

    BEFORE a colourful crowd of dignitaries, former Lagos State Governor Bola Tinubu yesterday advised the Federal Government not to increase the Value Added Tax (VAT).

    To the All Progressives Congress (APC) stalwart, a new VAT regime will increase the burden of Nigerians. What should be done, he said, is to widen the tax net for more people to pay.

    The Federal Government has said there are no plans to increase VAT from five per cent.

    Tinubu noted that the time had come for Nigeria to look inward and initiate people-friendly policies. He warned that there were clear indications of the global economy gradually going into recession.

    According to him, forecasters have been predicting that the global economy will go into recession within the next 12 to 18 months.

    The audience applauded as Tinubu spoke. It was all at the 11th Bola Tinubu Colloquium at the International Conference Centre (ICC), Abuja in commemoration of his 67th birthday.

    He advised the government to revisit the privatisation of the power sector for a faster industrial development and job creation. Besides, said Tinubu, estimated billing should stop.

    He said: “I want to appeal to Prof Yemi Osinbajo, the Vice President and his team to put a huge question mark on any increase on VAT. If you reduce the purchasing power of the people, we can further slow down the economy.

    “Let us widen the tax net. Those who are not paying now, even if they are relatives of Bola Tinubu, let the net be bigger and we take in more taxes. That is what we must do in the country instead of another layer of taxes, for now.”

    Speaking on the need to industrialise the country, Tinubu said: “We require serious and bold reforms to achieve this. What is happening to our gas pipelines? Whatever we have to invest now for our future is a task that must be done boldly. The PDP administration shared out generation, distribution and transmission to their friends and cronies without very deep and thoughtful research and evaluation.

    “It has now become pork chops. This privatisation must be revisited. Put experts together for a more constructive reform to improve generation, transmission and distribution by any means necessary. We cannot afford to be too legalistic about this.

    ”We should push to end the practice of billing people for electricity they never received. This practice is a vestige of the past that should not accompany us into the future.  A person should be charged accurately and only for the power that they use.

    “Government should continue to aggressively implement its national infrastructure plan. We must commit ourselves to a national highway system linking our major cities and towns, our centres of commerce, with each other. This will save lives, spur commerce, cut costs and bring Nigerians closer together.”

    The co-Chairman of the APC Presidential Campaign Council stressed that the “Next Level” campaign slogan of the ruling party was not just a campaign jargon that should be discarded after the victory.

    He said: “The Next Level is not just a trendy campaign phrase to be quickly discarded once victory has been achieved. It has a much deeper and more profound meaning, perhaps even more than its authors contemplated. This is because we are a nation still in the process of defining itself politically and economically.

    “In this process, it is tempting and easy to borrow indiscriminately from those nations that seem to have mastered the art of democratic governance and to have achieved economic prosperity. However, to achieve durable progress, we can’t afford to work hard but in mindless devotion to the ways of other nations.

    “This truth is particularly acute when these very nations now face fundamental political and economic questions that cast doubt on the social utility and viability of the economic model under which they have travelled for the past 50 years.”

    He told the gathering that the global economy was facing stiff headwinds as “factors that are not of our making now cast the world economy towards low growth”.

    “Consumer spending is slipping. Aggregate private debt has attained historic levels. America and China are in a trade tug-of-war. Brexit is imminent. Whatever form Brexit takes, economic dislocation will emerge from the political confusion now underway.

    “Even without Brexit, the EU itself has entered a rough patch. The Eurozone may already be in recession. Stock markets experience wild swings that speak to an underlying weakness and pessimism about the immediate future.  Forecasters are predicting a global recession within the next 12-18 months.

    “I render these observations not to frighten anyone, but because they ring true. Wisdom requires that we accept reality instead of obscuring it under the cloak of wishful thinking. We must build policies that interact with the world as it is, and not with the world as it should be.”

    In Tinubu’s view, Nigerians must recognise these harsh economic tidings as advance warnings to the wise and those at the helm of affairs “must think deeper and work harder for our people in Nigeria”.

    Tinubu said: “I would be a most wicked friend if I knew a storm was approaching yet convince you to ready your family for an outdoor picnic under the tallest tree. The truth is always a more valuable guardian than fantasy.”

    He went on: “Nigerians must recognise a fundamental truth of our time. The economic model upon which the world is built is unravelling. The coming downturn is just a symptom of this great upheaval. The global economy faces either genuine reform or gathering ruin.

    “Because of this, the economic cohesion of Western nations is weakening. Income inequality has reached levels unseen in a century. The middle class in most countries is shrinking. Wages stagnate while prices are on a ceaseless march upward.

    “People the world over are questioning the centre-right conservative model that has, with few exceptions, governed the world for the last half century. In one form or another, people are protesting the way things are, and progressive politicians are trying to help the people change things for the better.”

    The Next Level, he said, must be seen as part of this global and historic dynamic. “Our pursuit of the Next Level cannot be achieved by blindly following the economic path of other nations. That would be tantamount to racing to live in a building just as its long-term occupants were frantically rushing out, screaming that the edifice was crumbling.  If we are smart, we dare not enter.

    ”Instead, we must construct our Next Level on a progressive ideology and vision that will take our people out of penury, diversify our economy more aggressively, and empower and retrain our youth.

    “To be the great nation we purport to be, we must reform and retool our economy according to our definition of what is best for our own people. We cannot assign that duty to anyone else. We must do more than simply work for the people.

    “The government must ‘work for the people in a way that enables them to better work for themselves. We must amend our basic ideas about the economy.  We must divorce ourselves from our fixation with GDP rates and similar statistics. These things were initially intended to be indicators, suggestive measurements.

    “However, we have misinterpreted these road maps by treating them as if they were the destination itself. This has caused us to distort the organic relationship between the people and the economy.

    “This dominant train of thought has made the people servants to the dictates of abstract economic theories. In a more effective system, the economy would be fashioned to serve the concrete needs and legitimate aspirations of the people.

    “Our economy must be redefined to be an efficient yet moral social construct with the primary goal of optimising the long-term welfare of the people through the sustained, productive and full employment of labour, land, capital and natural resources.

    “In the current global context, the best translation of laissez faire economics is ‘let’s stay poor’ economics. To believe that we are at our best when everyone focuses solely on maximizing their own position is to believe that one hundred hands can clutch at the same naira note but no one will get scratched.

    “To pull the nation from poverty, government must play a decisive role. It must at times direct and even develop markets and opportunities. This is nothing novel. I am only restating what the established economies did when they were young and assumed their trajectories toward growth.”

    Tinubu believes that in its second term, President Muhammadu Buhari administration will dedicate itself to changing the very structure of our economy for the better. The single most important sector for the government’s focus is infrastructure, the most important of which is power, according to the former governor.

    Tinubu argued that affordable and reliable power will drive industrialisation that can provide jobs and produce goods for Nigerians and take the people out of the dark ages and bring the nation into the light of a better day.

    He went on: “I believe the Buhari administration will work to increase electricity generation, transmission and distribution by more than 50 percent within the next four years.

    “In working to transform the face of our economy, government must also enact policies that encourage industrialisation and modern agricultural practices. We must applaud President Buhari for the historic innovations made in the agricultural sector.

    “We must further encourage him to do even more. Government funded social security for the aged and government backed affordable housing and mortgage facilities are things we must continue to explore in an aggressive manner.

    “In the end, our future is uncertain until we enter it and make of it what we will. We can either let the future happen to us or summon the courage to make the future belong to us as other nations have done. I don’t think we really have a choice in the matter. We must take the people to the next level. It is a promise made and thus a promise that must be kept.

    ”Our goal is nothing less than enabling the people to enjoy lives free of penury and lack. We seek to constitute a nation where all have basic sustenance and sufficient food on their tables, a sturdy and sheltering roof over their heads and the fair chance and means to sustain and further enrich their lives as they see fit.”

  • Fed Govt, states, local govts share N619.857b

    THE three tiers of government – federal, states and 774 council areas —yesterday shared N619.857 billion as Federal Allocation for  February.

    A communiqué issued by the Technical  Sub -Committee of the Federation Accounts Allocation Committee (FAAC) at the end of its February meeting, indicated that the gross statutory revenue received was N478.434 billion.  It was lower than the N505.246 billion received in the previous month by N26.812 billion.

    Addressing reporters at the end of yesterday’s meeting in Abuja, the Director of Funds in the Office of the Accountant-General of the Federation (OAGF), Muhammed Usman, said: “Federation crude oil export sales increased by about 46 per cent resulting in increased federation revenue from $425.00 million previously to $574.95 million. Shut-in and shut-down persisted while some terminals remained closed due to leaks and maintenance.

    Read also: Trouble brewing as NNPC owes FAAC $1.7bn

    “Petroleum Profit Tax (PPT) increased significantly while Companies Income Tax (CIT) recorded a marginal increase. Revenues from Value Added Tax (VAT), Oil Royalty, Import and Excise Duties decreased in February, 2019.

    “The distributable statutory revenue for the month is N478.434 billion. The total revenue distributable for the current month (including VAT, Exchange Gain, Excess Bank Charges recovered and Forex Equalisation) is N619.857 billion.

    “Therefore, from the total distributable revenue for the month, the Federal Government received N257.681 billion representing 52.68 per cent; states received N169.925 billion representing 26.72 per cent; local government areas received N127.722 billion representing 20.60 per cent; while the oil-producing states received N50.946 billion also representing 13 per cent derivation revenue.”

    Usman further disclosed that “the balance in the Excess Crude Account (ECA) as at 27th March, 2019 is $183 million.”

  • FG, States, LGs share N619.857bn for February

    A total of N619.857 billion has been distributed as federal allocation for the month of February 2019 among the Federal, States and Local Government Councils.

    A communiqué by the Technical Sub -Committee of the Federation Accounts Allocation Committee (FAAC) at the end of its February meeting, indicated the gross statutory revenue received was N478.434 billion.

    This sum is lower than the N505.246 billion received in the previous month by N26.812 billion.

    Addressing journalists at the end of the meeting in Abuja on Wednesday, the Director of Funds in the Office of the Accountant General of the Federation (OAGF) Mr. Muhammed Usman, said “Federation Crude Oil Export sales increased by about 46 percent resulting in increased Federation Revenue from $425.00 million previously to $574.95 Million.

    “Shut-in and Shut-down persisted while some Terminals remained closed due to leaks and maintenance.

    “Petroleum Profit Tax (PPT) increased significantly while Companies Income Tax (CIT) recorded a marginal increase. Revenues from Value Added Tax (VAT), Oil Royalty, Import and Excise Duties decreased in February, 2019.”

    Read also: NNPC’s $1.7b debt to FAAC

    The distributable Statutory Revenue for the month is N478.434 billion.

    The total Revenue distributable for the current month (including VAT, Exchange Gain, Excess Bank Charges recovered and Forex Equalization) is N619.857 billion.

    Therefore, from the total distributable revenue for the month, the Federal Government received N257.681 billion representing 52.68 percent; States received N169.925 billion representing 26.72 percent; Local Government Councils received N127.722 billion representing 20.60 percent while the Oil Producing States received N50.946 billion also representing 13 percent derivation revenue.

    Muhammed Usman also disclosed that “the balance in the Excess Crude Account (ECA) as at 27th March, 2019 is $183 million.

  • Foul call by Fowler?

    Just as well – the Federal Inland Revenue Service (FIRS) has denied that hiking value-added tax (VAT), by 35% to 50%, from its current five per cent, is imminent.  Given that the economy is just making it out of recession and the government is about implementing the new minimum wage, the move would have been counter-productive.

    Wahab Gbadamosi, FIRS head of communication and Servicom department, put the record straight on what Babatunde Fowler, FIRS executive chairman, told the Senate committee: “Though he indicated that there should be an increase in VAT rate by the end of the year, he never for once suggested a 50% hike or any percentage increase at all”

    Before that denial, Mr. Fowler was quoted to have told the Senate Committee on Finance, on the imperative to increase VAT to shore up the government’s revenue, as part of the Federal Government’s Medium Term Expenditure and Fiscal Strategy Framework (MTEF).  Jacking up VAT, he was reported to have insisted, was necessary to raise more cash, so the government could meet its obligation to citizens.

    “Nigerians should be ready for increase in VAT before the end of the year,” he reportedly declared. “VAT is higher in other countries, including Ghana and many others.  There should be increase in rate but not immediately.”

    To further underscore the imperative of making taxes – and less oil revenue – as primary basis of government spending, Mr. Fowler told the committee that the government’s tax revenue projection for 2019 was N8 trillion, out of which VAT was projected to rake in N3 trillion.  He also painted the progressive increase in tax receipts, in the last three years: 2016 (N3.31 trillion), 2017 (N4.03 trillion) and 2018 (N5.3 trillion), suggesting that for FIRS to gross the 2019 N8 trillion target, VAT should be pressed into service.

    “I can certainly see an increase in VAT of at least 35% to 50% this year, based on our enforcement activities.  There certainly will be an increase in company income tax (CIT) and also petroleum profit tax (PPT),” he said, adding that “A lot of Nigerians travel to Ghana and other West African countries and they can see that theirs is much higher.  They pay when they go for those trips.  We should be ready for an increase on VAT.”

    There is a lot to be said for making taxation the main driver of public spending; just as there is much to be decried in the present practice of oil money, driving public expenditure.  Taxation could be the single antidote to combat public sector corruption, since citizens are much likelier to exert control and demand accountability, if the cash, by tax, is hard earned money, coming from their pocket.

    Indeed, the present endemic corruption could well have emanated from the feeling that oil money is nature’s manna, and not anyone’s direct sweat.  So, tax as main engine of public spending, is near-unassailable. Since VAT is consumption tax, the points that push other taxes should, other things being equal, push the case of VAT.

    Still, the weakest argument is clearly the one that presupposes that since Ghana’s VAT is 10%, Nigeria’s should automatically be so.  That is soft and emotive; and commands little or no merit, beyond a mere wish.  First, it shuns the economy of scale VAT should enjoy, with Nigeria’s huge population.  Then, it underplays the lack of enforcement, that the FIRS boss himself admitted.  If these two factors are harnessed, VAT earnings should soar, other things being equal.  So, instead of making a lazy, surface-to-surface comparison with Ghana and other West African countries, FIRS should first revamp its enforcement machine.  But there is also talk of some West African ECOWAS tax protocol, to which Nigeria is bound.  That is true.  But even regional protocols should not be at the expense of locals’ economic benefits.

    The argument is, therefore, not ever to increase VAT.  That would come when the economic indices allow it.  Right now, however, it is bad timing: with Nigeria’s economy slowly coming out of recession and the new minimum wage regime about to take off.

    You don’t increase minimum wage with the left hand only to take it back, from the poor and most vulnerable, with the right, through VAT.  That is why any call for VAT increase right now is nothing but a foul call.

  • VAT designed to support the poor, says Fowler

    The Federal Inland Revenue Service (FIRS) yesterday explained that Value Added Tax (VAT) is a consumption tax primarily designed to support poor people, and not to create hardship for them.

    Its Executive Chairman, Babatunde Fowler allayed fears that the increase in VAT may cause hardship for the poor, stating that VAT is charged on consumption and capacity to consume.

    He said:  “When you don’t consume certain categories of goods and services, you are not liable to pay VAT charges on those items. VAT is not charged on all medical and pharmaceutical products. It is not charged on basic food items. It is not charged on books and educational materials. It is not charged on baby products, fertilizers, locally produced agricultural and veterinary medicine. VAT is not charged on farming machinery and farming transportation equipment.

    “VAT is not charged on all exports, plant machinery and goods imported for use in Export Processing Zones and free trade zone: Provided that 100 per cent production of such company is for export.

    “Other services exempted from VAT are medical services, services rendered by Community Banks, People’s Bank and Mortgage Institutions, plays and performances conducted by educational institutions as part of learning and all exported services are exempted from VAT.

    Fowler said some people misunderstood what VAT is. VAT is a consumption tax. If you don’t have money to purchase certain categories of goods and services and you don’t consume them, then VAT is not your problem.  “VAT is used to assist the needy.

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    VAT provides support for the needy, not a hardship on them; 85 per cent of VAT collected is shared among states for them to provide free education, free health services, provide basic amenities among others.

    “We can see what the Federal Government is doing with the tax money. Look at the rail system, the Abuja-Kaduna rail is complete.  Look at the Lagos-Ibadan expressway, look at the education system, the school feeding programme among others. If at the state level, your government cannot justify the taxes you pay to them, you have the right to vote them out in the next four years,” Fowler said, according to a statement from FIRS.

    Fowler said if countries such as United Arab Emirate (UAE), Saudi Arabia which are rich in oil resources would be laying emphasis on taxation, Nigeria should also emulate them.

    The FIRS Chairman also explained that Nigeria’s economy is only picking up in recent times because former administrations over-looked tax reforms and depended on the depletable mineral resources.

     

  • VAT designed to support the poor, says Fowler

    The Federal Inland Revenue Service (FIRS) has stated the Value Added Tax (VAT) is a consumption tax primarily designed to support poor people, and not to create hardship for them.

    Executive Chairman of the FIRS Babatunde Fowler allayed fears that the increase in VAT may cause hardship for the poor, stating that VAT is charged on consumption and capacity to consume.

    A statement by the Service on Tuesday quoted the FIRS Chairman as saying: “When you don’t consume certain categories of goods and services, you are not liable to pay VAT charges on those items.

    “VAT is not charged on all medical and pharmaceutical products. It is not charged on basic food items.

    “It is not charged on books and educational materials. It is not charged on baby products, fertilizers, locally produced agricultural and veterinary medicine.

    “VAT is not charged on farming machinery and farming transportation equipment.

    “VAT is not charged on all exports, plant machinery and goods imported for use in Export Processing Zones and free trade zone: Provided that 100 percent production of such company is for export.

    “Other services exempted from VAT are Medical services, Services rendered by Community Banks, People’s Bank and Mortgage Institutions, plays and performances conducted by Educational Institutions as part of learning and all exported services are exempted from VAT.”

    Fowler said he understands “that some people misunderstand what the VAT is. VAT is a consumption tax.

    “If you don’t have money to purchase certain categories of goods and services and you don’t consume them, then VAT is not your problem.

    “The VAT is used to assist the needy. VAT provides support for the needy, not a hardship on them.

    “85 percent of VAT collected is shared among states for them to provide free education, free health services, provide basic amenities among others.

    “We can see what the Federal Government is doing with the tax money. Look at the rail system, the Abuja-Kaduna rail is complete.

    “Look at the Lagos-Ibadan expressway, look at the education system, the school feeding program among others.

    “If at the state level, your government cannot justify the taxes you pay to them, you have the right to vote them out in the next four years,” Fowler said.

    Fowler said that if countries like United Arab Emirate (UAE), Saudi Arabia who are rich in oil resources would be laying emphasis on taxation, Nigeria should also emulate them.

  • Telcos: tariff hike inevitable…if

    Telecoms firms have warned of the inevitability of end-user tariff hike across their services should there be hike in Value Added Tax (VAT) as being proposed by the Federal Government.

    Acting under the aegis of Association of Licensed Telecoms Companies of Nigeria (ALTON) and Association of Telecoms Companies of Nigeria (ATCON), the carriers are unanimous on the inevitability of hike in tariff to reflect the new VAT rate that will be charged by the government.

    ATCON President Olushola Teniola said at five per cent, Nigeria has one of the lowest rates of VAT in the world and a budget deficit that cannot be continually sustained by government relying only on increasing its borrowing to fund the shortfall.

    He said without any measurable improvement in the diversification of the revenue base of the economy and the income resulting from the sale of oil (via oil receipts), it appears that the increase in recurring expenses in the form of public sector minimum wage bill has forced the government to push the burden of this increase back on the public that consume VAT-itemised products and services.

    “This means in the short term that prices where VAT applies will increase and impact consumer consumption of such items, with a tapering off in the medium term, and in the long-term wage bills across board will need to increase to take in the impact of further wage demands by other sectors that will readjust wage bills upwards to reflect the increase in living costs and standard of living (since a majority of VAT goods are related to imported products and services).

    “VAT applied to all voice and data communication-related services that are VATable will be subjected to an increase to reflect the new VAT charges imposed by government,” Teniola said in an email response to questions.

    His counterpart in ALTON, Gbenga Adebayo, agreed no less with Teniola, saying any like VAT rate would inevitably increase the cost of doing business across board.

    Read also: Mayor, business leaders to meet on tariff hike

    He said: “This will increase the overall cost of doing business and sadly consumers of telecommunications services, like all other sectors, will pay more to reflect the increase in the VAT rates. This development, however, won’t lead to increase in the base rates, but will result in increase in the end-user rates to reflect the upward review of VAT collection.

    “As you are aware, VATs are collected and remitted to the Federal Government; it is not part of colony income; it’s a collection on behalf of the Federal Government for goods and services, and that’s why it’s called VAT.’’

    Couldn’t the government have looked elsewhere to source for funds to pick the minimum wage bills? The telcos think so. According to them, the government should think about reducing the cost of governance rather than robbing Peter to pay Paul.

    Adebayo said: “Certainly yes, it’s like the old saying of robbing Peter to Pay Paul: it’s unfair to tax the consumers, some of who are not direct beneficiaries of minimum wage, and using it to pay government minimum wage. Private companies which are expected to comply with the national minimum wage will have an increase in their wage bills and they can’t fund it from other taxation. They have to lower their costs or have to increase their product/goods/services prices to accommodate the minimum wage.

    “In my view, the entire economy will suffer any increase in VAT.  And this should be handled very carefully. Mere conversation around it is causing jitters in the economy and I advise all stakeholders to discuss and handle these issues very carefully. Most importantly, government should reduce its own cost of governance to accommodate any wage increase.”

    Teniola said it is a delicate balance of spreading the burden across board. “This is a delicate balance of applying the burden across board or deliberately targeting a specific segment of the population/society. In my opinion it is common for government to take the least course of resistance and in this case other alternatives, such as cost savings and efficiencies within federal, state and local government level to pay for this increase would not have the political support, simply due to the number of public sector workers that will have to be laid off to afford this minimum wage increase,” he said.

  • LCCI: VAT hike’ll compound business woes

    The Lagos Chamber of Commerce and Industry (LCCI) Director-General, Mr. Muda Yusuf, has warned against the upward review of Value Added Tax (VAT) as a means of funding the national minimum wage.

    He said the development would create further problem for the business community and compound already operating environment challenges.

    Acording to him, the way tax is operated in the country is different from the way it is operated in the other countries., adding that it is not favourable to the average man on the street.

    Yusuf added that taxation is about creating an environment which allows the rich to support the poor, stating that this same principle could be extended to micro enterprises in the economy.

    “Such category of business owners should also enjoy tax exemption,” he stated.

    According to him, a minimum wage of N30, 000 is not too much to be paid to the lowest worker of an organisation, whether in the public and private sector, taking into account, the cost of living  in the country.

    He said: “Let us take a scenario of a family man that has to pay school fees for his children, provide feeding for the family, pay for health care, pay for transportation, pay house rent and possibly even support some dependants. A monthly income of N30,000 certainly cannot cover these basic responsibilities. It is therefore even worse when we talk about N18,000, minimum wage.

    “However, the challenge with many of the state Governments is that they have a workforce that is very unwieldy and not sustainable. There is also the problem of too many political appointees on the payroll of many of the state governments.’’

  • Umahi faults FG’s plans to increase VAT

    Governor David Umahi of Ebonyi has faulted the Federal Government plan to increase the Value Added Tax (VAT) from 5 per cent to 35 per cent.

    Umahi, who made the declaration on Wednesday while addressing staff of his office celebrating his re-election for a second term, described the FG’s plan as ‘digging a hole to fill a hole’.

    Umahi noted that implementing the VAT increment to pay workers the new N30, 000 minimum wage would make things more difficult for the people.

    “I call on the organised labour to dialogue with the government on such plans as people will make 30 per cent payment more on goods than what it used to be.

    “We have not come to a point of realization or honesty on how to solve our problems and this is important.

    “The Federal Government is borrowing money while states have been banned from borrowing.

    “When VAT is increased from 5 per cent to 35 per cent, it means that anyone who wants to buy something will pay 30 per cent more than what he used to buy,” he said.

    The governor noted that there was no fraud perpetuated in the civil service that was not to the consent of civil servants.

    “We can plug the stealing or cut the cost of projects to have enough to cater for civil and non-civil servants.

    “No governor or president will perform magic and if they give us N2 billion and the wage bill is N2 billion, you pay only wage bill and go to sleep.

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    “No amount of money paid to civil servants can be enough as it is only the one they make themselves that will assist them.

    “When someone on grade level 10 is paid N50, 000 by the minimum wage, he goes to the hospital with high bills because VAT will be paid on the drugs.

    “When someone goes to buy exercise books for his children, he will pay more and by the end, civil servants may be crying and wishing for a return to status quo,” he said.

    He however, called on civil servants to engage in agricultural and other meaningful ventures to sustain themselves rather than depending on the government.

    “We will not share money as usual in the second tenure but will encourage all hardworking workers to improve and meet their needs,” he said.

    The News Agency of Nigeria (NAN) reports that the governor’s office staff thanked God for ensuring his victory at the polls and pledged to redouble their efforts in making him succeed.

     

     

  • ANN berates Fed Govt for planning to increase VAT

    Alliance for New Nigeria (ANN) has criticised the Federal Government for planning to increase the Value Added Tax (VAT) from five per cent to 7.5 per cent, saying it is not good for the people.

    In a statement in Kano, the party’s Presidential Campaign Director-General Lanre Oyegbola said additional 2.5 per cent increase in VAT would lead to an increase in the price of most goods and that this would lead to a ripple effect across sectors. He blamed the government for the timing of the increase.

    He maintained it was wrong for the President Muhammadu Buhari-led government, which was yet to finalise the minimum wage with labour, is increasing VAT, adding that what it is giving with one hand, it is taking with another hand. ‘’This is nothing but a show of deception and insensitivity to the plight of Nigerians,’’ he said.