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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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BREAKING: Tinubu to meet Obasa, Lagos Assembly members in Abuja

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President Bola Tinubu is scheduled to meet with the Lagos State House of Assembly, at the Presidential Villa, Abuja.

Already, the Speaker, Mudashiru Obasa, arrived at about 2:50 pm, while his colleagues had earlier arrived in two coaster buses.

The meeting may not be unconnected with the recent leadership crisis in the State House of Assembly.

The Speaker, Rt. Hon. Obasa was impeached by some of his colleagues but he was later reinstated after the intervention of the political leaders especially the Governing Advisory Council, GAC.

Despite the Speaker’s reinstatement, it was gathered that the bad blood as a result of his impeachment is yet to be over.

Details later…

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UK, Nigeria launch creative industries technical Working Group

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The UK and Nigeria have officially launched the Creative Industries Technical Working Group, marking a pivotal development in the UK-Nigeria Enhanced Trade and Investment Partnership (ETIP).

This partnership aims to deepen bilateral ties and create a robust framework for growth within the creative sectors of both nations.

A statement by the UK High Commission in Lagos said the launch of this working group and a match-making event for UK-Nigeria creative industries leaders today in London represents a milestone in the UK-Nigeria relationship, designed to boost innovation, cross-border creative collaborations, and sustainable economic growth and development.

It said both events provided a dynamic platform to explore new opportunities and form commercial alliances within key creative subsectors such as Film and TV, Music, Fashion & Design, Architecture, Advertising, and Gaming.

The initiative is poised to foster long-term growth, enhance job creation, and unlock new pathways for creativity and innovation in both countries by prioritising collaboration and cultural exchange.

Speaking on the significance of the launch, Florence Eshalomi MP, the UK’s Trade Envoy to Nigeria and Co-Chair of the UK-NG Creatives Technical Working Group, said: “Today marks a significant moment as we launch the UK-Nigeria Creatives Working Group.

Our nations share a rich cultural bond and a deep belief in the transformative power of creativity, through music, film, fashion, and the arts.

“This initiative, rooted in our landmark Enhanced Trade & Investment Partnerships (ETIP), will drive stronger trade ties, foster deeper collaboration, and unlock the full potential of our creative industries.

“By enhancing market access and investing in skills, we are opening doors to new opportunities that will create jobs and boost economic growth in the UK and Nigeria.”

Emphasising the need for deeper creative and cultural ties, Mr Obi Asika, Director General of the National Council for Arts and Culture and Co-Chair of the UK-NG Creatives Technical Working Group in Nigeria, said: “Nigeria’s creative economy is a global force, driven by our storytellers, musicians, designers, and digital innovators.

From Nollywood to Afrobeats, fashion to gaming, our industries are reshaping global culture and commerce.

“However, to unlock the full potential of this sector, we need strategic investment and support not just in talent, but in the institutions and infrastructure that will sustain long-term growth.”

Representing Mr., Obi Asika from the Nigerian side, Prince Baba Agba, Special Assistant to the President of Nigeria on Creativity, underscored the importance of leveraging UK expertise for impactful collaborations, adding:

“The UK’s creative industries stand as a global benchmark for institutional excellence, market distribution, and innovation.

We are eager to tap into your expertise for meaningful partnerships.

“This Working Group isn’t just about discussions – it’s about taking concrete actions that will yield tangible outcomes for creators, businesses, and industry stakeholders on both sides.”

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BREAKING: Fubara denied access to present budget, locked out of Rivers Assembly complex (Video)

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Rivers State Governor, Siminalayi Fubara was on Wednesday denied access to the Rivers State House of Assembly quarters, where lawmakers currently hold plenary sessions.

ohibaba.com gathered that the governor arrived at the Assembly quarters on Wednesday morning to present the state 2025 budget but was met with a locked gate, preventing his entry.

Fubara had earlier pledged to implement the Supreme Court judgment, which includes the formal presentation of the 2024 budget.

The budget was initially presented to a four-member Assembly faction in December 2023.

Last week, the Assembly issued a 48-hour ultimatum for the governor to present the 2025 budget.

In response, Fubara stated that he was awaiting the Certified True Copy, CTC, of the court judgment before proceeding.

On Sunday, in a letter signed by the Secretary to the State Government, Tammy Danagogo, and addressed to Speaker Martins Amaewhule, Fubara invited lawmakers for discussions on the Supreme Court ruling.

The discussions were expected to cover issues such as the budget presentation and the payment of outstanding salaries to the legislators, amongst other issues to chart a way forward for the state.

Watch video below:

Video source: ChannelsTV

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