News

Nigerians groan over effects of 7.5% VAT on petrol prices

Published

2 years ago

June 19, 2023

75 Views

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.

News

FG Resolves NUPENG Dangote Rifts, Allowing Workers Join Union

Dangote Group has agreed to allow workers at its refinery and petrochemicals operations to join the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

Published

13 minutes ago

September 8, 2025

OCHEFA

14 Views

The Federal Government has resolved the industrial dispute between the NUPENG and Dangote Group

Accordingly, a landmark memorandum of understanding (MoU)is being drafted for signature by the two parties as Dangote Group has agreed to allow workers at its refinery and petrochemicals operations to join the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

At tonight’s meeting mediated by the Minister of Labour and Employment, Mohammed Dingyadi, as well as the Minister of State for Labour and Employment, Nkiruka Onyejeocha, the parties are also considering a two-week timeframe for implementation of the MoU.

Present at the meeting are the national executives of NUPENG and officials of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

Also present is the Executive Director, Distribution Systems, Storage and Retailing Infrastructure of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ogbugo Ukoha, as well as representatives of the Dangote Group and MRS Petroleum.

News

BREAKING: Lagos Says Won’t Adopt New Education Curriculum for Now

That those logistics that will make it to work, such as the scheme of work for the terms, the materials and training of staff, need to be sorted first before the curriculum can be adopted.

Published

3 hours ago

September 8, 2025

OCHEFA

12 Views

The Lagos State Government, through the Ministry of Education, says it is not adopting the newly released curriculum for basic and senior secondary education immediately.

The curriculum was released last week by the federal government ahead of the September back-to-school season across the country.

Ohibaba.com gathered from people who have knowledge about the matter that at a meeting with the Commissioner of Education, school owners raised concerns about what the schemes will be, and the instructional materials, etc.

The source said, “So, the system is not ready for the curriculum because all those trade subjects that are there, they need equipment to work on them and they are not readily available.

So, the Commissioner when asked how do we go about it?, the commissioner said that it’s a projection into the future.

That for the next section, they will adopt it but for this first term, the curriculum won’t work in Lagos State.

That those logistics that will make it to work, such as the scheme of work for the terms, the materials and training of staff, need to be sorted first before the curriculum can be adopted.”

Business

UPDATE: NUPENG Skips Meeting to Resolve Dispute with Dangote in Abuja

Published

4 hours ago

September 8, 2025

Charles Flames

17 Views

The leadership of the National Union of Petroleum and Natural Gas Workers (NUPENG) failed to attend a crucial Federal Government meeting aimed at resolving its dispute with the Dangote Group, as tensions escalate over a planned nationwide strike by oil workers.

The meeting, called by the Minister of Labour and Employment, Muhammad Dingyadi, was set for 10:00 a.m. on Monday at the ministry’s headquarters in Abuja. However, by 2:30 p.m., the meeting had yet to start due to the absence of NUPENG representatives.

On Sunday, the Federal Government appealed to NUPENG to postpone the industrial action, assuring that it had intervened in the dispute. It also urged the Nigeria Labour Congress (NLC) to withdraw its “red alert” issued to affiliate unions preparing for a solidarity strike.

An insider noted that even if NUPENG plans to attend the meeting, it won’t be immediate. “They can’t be expected to fly into Abuja and rush into talks the same day. Consultations with NLC leadership and others need to happen first,” the source explained.

The core of the conflict centers on the Dangote Group’s alleged anti-union policy, which NUPENG claims violates workers’ rights. The union insists that no oil worker will be allowed to work at Dangote without union membership, accusing the company of an “anti-worker and anti-union” stance aimed at exploiting refinery employees.

NUPENG officials were still in Lagos on Monday afternoon, coordinating the strike effort. “You don’t wait until a strike is declared before calling for talks,” one union source said, criticizing the government’s delayed response. “The union gave sufficient notice, but the ministry only acted after tensions rose.”

Meanwhile, while journalists awaited the start of the NUPENG meeting, Minister Dingyadi held a separate closed-door session with representatives of the Nigerian Medical Association (NMA).

The government has yet to announce a new meeting date or confirm if NUPENG will participate at a later time.