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Tinubu: FG ‘ll Close Tax Gap, Limit Borrowing N20trn
By Mathew Dadiya, Abuja
The Federal Government said yesterday, that it was targeting to close the tax revenue gap in the country, which stood at about N20 trillion annually, as a strategy to make the country financially buoyant.
This is even as President Bola Tinubu expressed his resolute commitment to break the vicious cycle of overreliance on borrowing for public spending, and the resulting burden of debt servicing it places on the management of Nigeria’s limited government revenues.
Tinubu who spoke at the inauguration of Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, on Tuesday at the Presidential Villa, Abuja, charged the committee to improve the country’s revenue profile and business environment as the Federal Government moves to achieve an 18% Tax-to-GDP ratio within three years.
The President directed the Committee to achieve its one-year mandate, divided into three main areas: fiscal governance, tax reforms, and growth facilitation.
He also directed all government ministries and departments to cooperate fully with the committee towards achieving its mandate.
Tinubu told the Committee members the significance of their assignment, as his administration carried the burden of expectations from citizens who wanted government to make their lives better.
”We cannot blame the people for expecting much from us. To whom much is given, much is expected.
”It is even more so when we campaigned on a promise of a better country anchored on our Renewed Hope Agenda. I have committed myself to use every minute I spend in this office to work to improve the quality of life of our people,” he declared.
Acknowledging Nigeria’s current international standing in the tax sector, the President said the nation still faced challenges in areas such as ease of tax payment and its Tax-to-GDP ratio, which lags behind even Africa’s Continental average.
“Our aim is to transform the tax system to support sustainable development while achieving a minimum of 18% tax-to-GDP ratio within the next three years.
”Without revenue, government cannot provide adequate social services to the people it is entrusted to serve.
”The Committee, in the first instance, is expected to deliver a schedule of quick reforms that can be implemented within thirty days. Critical reform measures should be recommended within six months, and full implementation will take place within one calendar year,” the President directed.
In a chat with State House Correspondents after the inauguration, Oyedele explained that “there is a huge tax gap. What that means is, as of today without introducing any new taxes. If you get everyone that needs to pay their taxes to pay, we will not be where we are.”
According to him, tax gap was somewhere in the region of N20 trillion, and assured that the committee will ensure the gap was closed.
“In addition to that, you would also imagine that we have in efficiencies in the way we collect the little that we currently collect, and that inefficiency is coming from… Sometimes, I think in the 2023 budget we have, like 63 MDAs they were given revenue targets. Those MDAs want to be able to focus on their primary duties of why they were established.
“The revenue mandate is a distraction for them. You have the FIRS for example. So FIRS is built up and created to administer taxes efficiently. Imagine that we asked the FIRS to collect those revenues on their behalf.
“So those agencies by focusing on their primary mandate, they will facilitate the economy development we’re looking for. FIRS will collect the revenues efficiently, which means not only is the top line growing, the cost of collection is reducing, and that leads to a much bigger margin to take care of the people.”
Oyedele pledged the total commitment of members to give their best in the interest of the nation.
“Many of our existing laws are out-dated, hence they require comprehensive updates to achieve full harmonisation to address the multiplicity of taxes, and to remove the burden on the poor and vulnerable while addressing the concerns of all investors, big and small,” he said.
Recounting the President’s sterling track record on revenue transformation, the Special Adviser to the President on Revenue, Mr. Zacchaeus Adedeji described the committee members, drawn from the public and private sectors, as accomplished individuals from various sectors.
”Mr. President, you have the pedigree when it comes to revenue transformation. You demonstrated this when you were the Governor of Lagos State over 20 years ago,” the Special Adviser said.
Also, the World Bank’s Country Director for Nigeria, Shubham Chaudhuri said that the removal of subsidy payment has increased the nation’s revenue to Gross Domestic Product (GDP) to two percent, strengthen the economy’s strenthn.
Chaudhuri said, “just the fact that what Mr President did on his first day in office, which is eliminate fuel subsidies that already added close to two percent points of GDP to government revenues.
He said that Nigeria was losing about N10 trillion per year payment of subsidy. Right now the target is 18%, over time, it will grow.
“Most, if you look at other sub Saharan African countries, or I would actually say other middle income countries, countries like India, Indonesia, it would be good to see they’re not very high. It’s about between 15 to 20% of GDP.
“At a minimum, I think Nigeria, we would hope would get there from seven to 8% of GDP, that it is today.”
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NNPCL Reduces Petrol Price to Match Dangote’s N899 Per Litre
By David Torough, Abuja
In what appears like a marketing war, the Nigerian National Petroleum Company Limited (NNPCL) has reduced the petrol pump price from N1,020 to N899 per litre.
This pricing competition emerged in the downstream sector emerged on Saturday after NNPCL reduced its depot price of petrol.
This just few days after the Dangote Refinery reduced its price to N899.
The new price indicates a reduction of N141 or 13.
56 percent, from N1,040 per litre it sold to customers living in the Federal Capital Territory (FCT).According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the price reduction was based on regional pricing scheme.
The association said under the arrangement, it would sell for N970 per litre in parts of the South South region.
A statement signed by the association’s National Public Relations Officer, Dr Joseph Obele, and quoting a document released by NNPCL’s Commercial Department, said marketers could offtake products based on the regional pricing scheme.
The document indicated that marketers would buy the product at N899 per litre in Lagos State, matching the price offered by the Dangote refinery a few days ago.
Marketers purchasing from its Warri, Oghara, Port Harcourt, and Calabar depots would pay N970 per litre to offtake products.
The statement read, “The Nigerian National Petroleum Company Limited has taken a significant step in response to the competitive impact of deregulation in the downstream sector.
“The company recently reduced the ex-depot price of Premium Motor Spirit from N1,020 to N899 per litre.
“The price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector.”
However, the NNPC spokesperson, Olufemi Soneye, declined to speak when contacted.
But Obele noted that the price reduction by the national oil firm was a response to the competitive impact of deregulation, which had led to increased competition in the downstream sector.
He expressed optimism that PMS prices would drop further before the end of January 2025 given the global decline in crude oil prices and the naira’s recent gain against the dollar.
Obele described the trend as a price war and emphasised that the price reduction by the Dangote refinery and the NNPCL demonstrated the benefits of competition. He advocated the immediate privatisation of government-owned refineries.
The move is expected to spark a price war among oil marketers, ultimately benefiting consumers.
In his reaction, National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, said Nigerians would get fuel at cheaper rates once the marketers start taking the product at the reduced rate from NNPCL.
“The two most critical stakeholders in the sector have already reduced the rate, which is a very good development for us.
“So once we start taking fuel at the reduced rate, we are going to reduce our price too. We will also apply the price reduction percentage of the NNPCL,” he stated.
Also, the National Publicity Secretary of IPMAN, Mr Chinedu Ukadike, expressed satisfaction with the price reduction.
According to him, the price adjustment underscores the benefits of healthy competition brought about by the deregulation of the downstream sector.
“It’s a welcome development. And that is the duty of deregulation. Once the competition is held, there will be constant reduction in price of fuel,” Ukadike said.
He attributed the price drop not only to NNPCL’s readiness for the deregulated pricing regime but also to a reduction in the foreign exchange rate.
“As we continue to have multiple choices, we will also have multiple chances of continuous reduction. So IPMAN is very happy, and as we are buying the product cheaper, we will also see it cheaper to the consumers,” he added.
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Tinubu Cancels Engagements after Stampedes Kill 39
By Johnson Eyiangho & Laide Akinboade , Abuja
Following the tragedies that followed attempts to distribute food to Nigerians, President Bola Tinubu yesterday cancelled all his official events in Lagos, including his attendance at the 2024 Lagos Boat Regatta to mourn the stampede victims in Abuja and Okija, Anambra.
Tinubu was scheduled to watch the boat parade and other activities of the Boat Regatta from the waterfront of his Queen’s Drive residence in Ikoyi, his spokesman, Mr Bayo Onanuga, said in a statement.
Dignitaries, including top officials of the Lagos State Government and chiefs from the state, were already seated when the president cancelled his appearance following briefings on the tragedies.
Commiserating with the victims of the incidents in Anambra and the FCT, Tinubu urged states and relevant authorities to enforce strict crowd control measures immediately.
Tinubu said local and state authorities should no longer tolerate operational lapses by organisations and corporate bodies involved in charitable and humanitarian activities.
No fewer than 39 Nigerians have lost their lives following stampedes during food-sharing events in Okija, Anambra State, and Maitama, Abuja during the weekend.
In the struggle to get ahead and obtain the free food items distributed by organisers, the residents trampled upon one another, leading to the deaths.
While 10 residents died in Abuja, 29 were reported killed in Anambra.
These stampedes came days after a similar incident occurred in Ibadan, Oyo State, where 35 children lost their lives and several others were left critically injured during a funfair.
Similarly, 10 persons were confirmed dead at the Holy Trinity Catholic Church, Maitama, Abuja in a stampede, where a food outreach was held on Saturday.
It was gathered that the incident occurred around 6am during an annual charity event organised by parishes of the Catholic Church to distribute foodstuffs to the poor and the vulnerable in the community.
An eyewitness said the crowd remained orderly until around 5am.
He said, “Many people came from Mararaba, Nyanya, and Mpape areas to benefit from the church’s food distribution.
“To be honest, the church didn’t anticipate the size of the crowd that showed up. Although there were two security operatives on duty, they couldn’t manage the growing crowd effectively.
“Initially, everyone was orderly, but as the day broke, the number of people doubled. In their desperation to get the rice first, people began pushing and shoving.
“Before we knew it, we started hearing cries for help from those who had fallen or sustained injuries. The police came to rescue those injured and dispersed others who waited behind with the hope that the distribution would continue.”
In Anambra, no fewer than 29 persons have been reported dead and many others injured during a stampede that occurred at the gate of the Charity Event at the Obijackson Centre in Amanranta, Okija, Ihiala LGA of Anambra State.
It was also gathered that the stampede, which occurred at the venue of the sharing of palliatives, including 25kg bags of rice, vegetable oil, and money, was a result of poor crowd control.
It was learnt that the victims, particularly elderly women and children, were trampled upon as they struggled to gain entrance amid a large and uncontrollable crowd.
It was observed at the scene that many shoes and slippers belonging to the victims were littered on the ground in front of the gate as security operatives battled to control the surging crowd, who were still forcing their way onto the premises.
Despite the stampede and the tragic incident, the sharing of palliatives continued, with beneficiaries going home with 25kg bags of rice, vegetable oil, noodles, and cash gifts from the foundation.
The palliatives were being donated by a notable member of the community, Chief Ernest Obiejesi (Obijackson), on behalf of the Obijackson Foundation.
Eyewitnesses at the venue said many who collapsed were rushed to hospital, while those who died were taken to the morgue.
Anambra State Commissioner for Information, Dr Law Mefor, confirmed the incident.
The 2023 presidential candidate of the Labour Party, Peter Obi, also mourned victims of the stampedes, describing the development as a reflection of poverty and systemic failure.
Obi, in a tweet on his official X handle at the weekend said the desperate quest for survival in the harsh economy drove the people to the extremes in search of food at the cost of their lives.
He said, “While I will not cast blame, but instead appreciate the organisers of these respective events for their kind gestures in providing palliatives and support to society, especially the poor, these tragedies reflect the systemic failures that plague our society.”
Similarly, the Peoples Democratic Party (PDP) described the widespread food stampede in the country as a testament of an alarming level of misery, poverty, hunger, starvation, sense of hopelessness and desperation for survival by the citizens under the All Progressives Congress (APC)-led administration.
The party said it was devastated that the APC-led administration had wrecked the nation’s once thriving economy and pushed millions deeper into abject poverty and hunger with many citizens, not being able to afford their daily meals, now resorting to desperate measures including slavery mission abroad and fighting for crumbs for survival.
In a statement by its Spokesman, Hon. Debo Ologunagba, yesterday lamented the tragic stampede at private events in Oyo and Anambra states as well as Abuja which claimed the lives of more than 60 vulnerable citizens including children in their desperate struggle for food as a result of the pervasive hunger in the land.
The statement called on Nigerians to hold the Tinubu-led APC administration responsible for the remote cause of those tragic occurrences for which it must recompense.
The PDP accused the APC of false performance claims including empty assurances of food sufficiency while deliberately failing to make the required investments to boost the productive sector, particularly in agriculture and food production.
It demanded the immediate review of all the ‘suffocating economic and tax policies’ of the APC administration which it said are bringing misery and death to Nigerians daily.
The Inspector-General of Police, Kayode Egbetokun, expressed deep concerns over the unorganised distribution of palliatives and relief items across Nigeria during the festive period.
The Force Spokesperson, Muyiwa Adejobi, said the IG had ordered the Commissioners of Police in the affected states to investigate the deaths for possible legal actions.
He stated that the organisers of this charity are liable for criminal offences, citing relevant provisions in Nigeria’s Penal and Criminal Codes.
COVER
Tinubu Orders Investigation into Ibadan Stampede Incident
By David Torough, Abuja
President Bola Tinubu has directed the relevant authorities to investigate the circumstances that led to the tragic incident at the Children’s funfair in Ibadan, which resulted in the loss of lives and injuries.
Presidential Spokesman Bayo Onanuga, in a statement stressed the importance of determining whether negligence or deliberate actions contributed to this painful development, ensuring a transparent and accountable process.
The president, who expressed profound sadness over the tragic incident on Thursday, extended condolences to the government and people of Oyo State, as well as to the grieving families who have lost their beloved children.
The statement read, “In this moment of mourning, President Tinubu stands in solidarity with the affected families and offers prayers that the Almighty God will grant peace to the souls of those who have departed in this unfortunate event.
“President Tinubu has urgently directed the relevant authorities to investigate the circumstances of this tragedy thoroughly. He emphasises that it is imperative to determine whether negligence or deliberate actions contributed to this painful incident, ensuring a transparent and accountable process.
“The President urges the Oyo State Government to take every necessary measure to prevent such a tragedy from reoccurring.”
The president wants a comprehensive review of all public events’ safety measures, strict enforcement of safety regulations, and regular safety audits of event venues.
He called on event organizers to prioritize the safety of all attendees, especially children, just as he stressed the importance of integrating professional security, protocol, and logistics at events to ensure the utmost safety of all participants.
According to the president, “Our children’s safety and well-being remain paramount. No event should ever compromise their safety or take precedence over their lives.”
So far, police have confirmed that 35 children died while six others were critically injured.
According to a statement by the Oyo State Police Command through the spokesman, Adewale Osifeso, yesterday, the organisers of the event, including the main sponsor, Naomi Silekunola, the estranged wife of the Ooni of Ile-Ife, Oba Adeyeye Enitan Ogunwusi, and her media partner, Agidigbo FM, the principal of the school, and five others, have been arrested in connection with the tragedy.
The police stated that the event was organised by the Wings Foundation and media partners Agidigbo FM, without proper permission or safety measures in place.
The police said they have commenced an investigation into the incident and have promised to bring those responsible to justice.