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Nigerians groan over effects of 7.5% VAT on petrol prices

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Nigerians have begun to lament the effects of the introduction of a 7.5 per cent Value-Added Tax on the price of premium motor spirit, otherwise known as petrol.

This comes barely a month after President Bola Tinubu removed the subsidy on petrol during his inaugural speech on May 29, raising the price of PMS from N188 to about N580 in different states of the federation.

Recall that the Minister of Finance, Budget and National Planning, Zainab Ahmed, announced that the Finance Act 2020 raised the previous 5 per cent VAT of the country to 7.5 per cent on commodities including automobile gas oil and it was implemented on February 20, 2020.

But the VAT-exempt items include honey, bread, cereals, cooking oils, culinary herbs, fish, flour, starch, fruits, meat, poultry, milk, nuts, pulses, roots, salt, vegetables, water, sanitary pads, tampons, tertiary, secondary, primary and nursery tuition.

While other commodities have been VAT-compliant, PMS was not until recently because it was being subsidised by the Federal Government.

However, the new development has hit Nigerians hard, as many have called for an utmost review of it, especially because of the recent removal of fuel subsidies.

See reactions below:

A user, Ingawa said, “That means for every litre of AGO you will buy, you have to pay 7.5% Consumer Tax (VAT) of the Pump Price. For example; If 1 litre of AGO is N650 at the filling station, then you have to pay an additional N48.75 being payment for 7.5% VAT. The total price per litre will be N698.75 per litre.”

Another user, Angry Non-Nigerian, said, “When Tinubu said ‘widen the tax net, you people thought he was joking. The only thing that man knows is tax, tax and tax. As Lagosians.”

One Oyo said, “The Citizens will be the main IGR for this government. There is no single move to cut the cost of government from the Senate to the House to other departments. They went to education first by trying to add tuition fees, now 7.5% VAT on PMS. Everything directly to the common man.”

Akwa Ibom 1st son opined, “So after the removal of subsidy and the price of fuel jumped to 530, they’ve now decided to add 7.5%. VAT on AGO. In all of these, what are the politicians losing, and what are they sacrificing?”

“7.5% VAT on diesel after subsidy on petrol was removed? They will show you people shege banza pro max air 2. The government is after our lives bro!. 

“Even those that were shouting ‘Akanbi’ will not be left out. They might even end up being the most affected. The evil will go round. I swear!

“Good governance is not attained by wishful thoughts, things don’t work that way. Now, Tinubu is going for a check-up after ruining the economy with senseless policies.

“His supporters have been crying since last week because the pressure is going around. We must all learn a lesson,” Madu Obi wrote.

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President Tinubu returns to Lagos ahead of APC primaries tomorrow (Video)

Tinubu’s aircraft touched down at about 7:12 p.m. at the Presidential Wing of the Murtala Muhammed International Airport, Ikeja.

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• President Tinubu chats with African business leaders during the African CEO Forum in Nairobi, Kenya.

President Bola Tinubu on Friday arrived in Lagos after a three-nation visit to France, Kenya and Rwanda.

Tinubu’s aircraft touched down at about 7:12 p.m. at the Presidential Wing of the Murtala Muhammed International Airport, Ikeja.

A statement issued by his special adviser on information and strategy, Bayo Onanuga, said that the president was received by Lagos State Governor, Babajide Sanwo-Olu; Deputy Governor, Femi Hamzat; Chief of Staff to the President, Femi Gbajabiamila; Speaker of the Lagos State House of Assembly, Mudashiru Obasa; and other government officials.

President Tinubu, while in France, met with global investors, emphasising transparency and fiscal discipline and explaining the rationale for the swift implementation of the bold economic reforms his administration has instituted.

Watch Video below:

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Anxiety as chemical pollution affects 6 Ogun schools, 90 students

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Triggers Widespread Panic One Month After Similar Incident

More than 90 students across several secondary schools in Ijebu-Ode were hospitalised on Friday after a suspected chemical odour permeated the town, sparking panic among parents and residents.

Ohibaba.com learned that the pollution was caused by gas leak along the Agoro/Okunowa Road axis of Ijebu-Ode; the situation is now under control by the state environmental monitoring agency, and poses no further danger.

The incident occurred barely one month after a similar chemical odour episode at Our Lady of Apostles Girls School left several students hospitalised.

Eyewitnesses reported that a strange smell spread rapidly across parts of the ancient town, prompting parents and guardians to rush to schools to evacuate their children. Emergency responders moved over a thousand students from affected schools to the State Hospital, Ijebu-Ode, for medical attention.

Medical personnel at the hospital said many of the affected students complained of abdominal pain and related symptoms. Residents in surrounding communities and adjoining streets were also reportedly impacted by the unusual odour.

Affected schools include Our Lady of Apostles School, Anglican Girls Grammar School, Ijebu-Ode Grammar School, Sambadola Private School, Adeola Odutola Secondary School, and St. Anthony School, Esure, in Ijebu Mushin.

As of the time of reporting, no senior government officials had arrived at the State Hospital, where anxious parents and residents gathered in large numbers.

Ogun State Commissioner for Education, Prof. Abayomi Arigbabu, urged parents to remain calm, assuring them that medical personnel were attending to the students. He added that environmental officials from both federal and state agencies had been mobilised to investigate the situation.

The General Manager of the Ogun State Environmental Protection Agency (OGEPA), Hon. Kehinde Bello, disclosed that an air quality monitoring device installed at Ijebu-Ode Grammar School recorded elevated methane gas concentrations, with peak readings of about 13,500 ppm in surrounding areas.

Bello explained that the device was deployed under the state government’s environmental surveillance programme for early detection of abnormal air quality. He noted that while the methane level remains below the lower explosive limit, it is environmentally significant and requires urgent investigation.

The Ogun State Government has since activated a multi-agency team comprising environmental regulators, emergency responders, and technical air quality experts to assess the situation.

Bello advised residents to stay calm, continue normal activities, and avoid open flames or ignition sources in areas where unusual gas odours are noticed. He urged anyone experiencing symptoms such as dizziness, headaches, nausea, or respiratory discomfort to seek immediate medical attention at nearby health facilities.

The government assured the public of its commitment to protecting lives and public health, promising further updates as investigations progress.

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JUST IN: Dangote files new lawsuit against FGN over fuel import licences

The new filing asks the Federal High Court in Lagos to set aside import permits issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing they breach an earlier order to maintain the status quo.

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Dangote Petroleum Refinery has filed a new lawsuit against Nigeria’s attorney general in a bid to overturn fuel import licences issued to ‌marketers and the NNPC state oil firm.

Reuters reported that the new filing asks the Federal High Court in Lagos to set aside import permits issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing they breach an earlier order to maintain the status quo.

The case signals renewed tensions almost a year after Dangote withdrew an earlier lawsuit challenging similar licences.

That case sought to nullify import permits issued to the Nigerian ⁠National Petroleum Company and several traders.

NMDPRA did not immediately respond to a request for comment.

Regulators and marketers have previously argued imports are needed to ‌ensure ⁠adequate supply and prevent shortages.

Dangote said in the filing that the licences issued this month undermine its operations and contravene the law, which it argues allows imports only when domestic supply falls short.

Dangote ⁠ended the earlier lawsuit in July 2025 without explanation, leaving unresolved questions over competition and supply in one of Africa’s largest fuel markets.

Nigeria ⁠has long relied on petrol imports due to underperforming state refineries. Dangote’s $20 billion facility, with a capacity of 650,000 barrels ⁠per day, was billed to end that dependence, but imports have continued to cover supply gaps as the refinery ramps up output.

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