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Tertiary Education Tax Will be Increased to Three Percent says FG

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The Federal Government of Nigeria has increased the tertiary education tax from 2.5 percent to 3 percent for the second time in two years, after it was increased from 2 percent in the Finance Act 2021 to 2.5 percent and has gone up to 3 percent in the backdated 2023 Finance Act.

Recall that the former President Muhammadu Buhari signed the Finance Act 2023 on May 28, 2023 and backdated the commencement date of the Act to 1 May, 2023 and imposed on every company at the rate approved by the President of the assessable profit for each year of assessment. 

The funds are disbursed for the general improvement of education in federal and state tertiary institutions, specifically for the provision or maintenance of: Essential physical Infrastructure for teaching and learning; instructional material and equipment; research and publications.

Also contained in this year’s Finance Act is the reintroduction of the payment of taxes for purchasing life insurance policy for an individual or a couple.

According to the Act: “Tax deduction is restored for premium paid in respect of insurance on own life and spouse”.

Other changes made to the old Finance Act include: taxation of gains on the disposal of digital assets including cryptocurrency at the rate of 10 percent; deduction of capital losses on assets for capital gains tax purposes. This may be carried forward for a maximum of 5 years.

There is now the rollover relief on sale of shares. This is however subject to reinvestment of the proceeds within the same year of assessment. There is now the deletion of investment allowance on plant and equipment.

Government has imposed a 0.5 percent levy on goods imported into Nigeria from outside Africa. 

All services including telecommunication services are liable to excise tax at rates to be prescribed by the President.

Buhari in his last minute assent to the 2023 Finance Act retained the contentious sharing formula of Electronic Money Transfer (EMT) levy at 15 percent to the federal government, 50 percent to state governments and 35 percent to local governments. 

EMT is a singular and one-off levy of N50 on the recipient of any electronic receipts or transfers of N10,000 or above.

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Business

I sold heavy weapons internationally – Orji Kalu

“Yes, so I stopped because my parents, my mother, my father came and said I must stop, and I stopped,” he said.

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The Senator representing Abia North, Orji Kalu, has disclosed that he previously engaged in the international trade of heavy weapons, selling arms to buyers in different countries before quitting the business at the insistence of his parents.

Kalu made the revelation during an interview on Arise Television on Monday, while discussing his business background and relationships with former and current South African leaders.

Asked whether he was an arms dealer, the former Abia State governor answered in the affirmative, saying he stopped after his parents intervened.

“Yes, so I stopped because my parents, my mother, my father came and said I must stop, and I stopped,” he said.

Asked whether he sold weapons to people who intended to use them to kill others, Kalu dismissed the suggestion, saying his motivation was to make money.

“No, no, no, no, no, no. I was selling guns to make money, whether they blow up it’s not my business,” he said

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Dividends: Airtel Africa To Pay Nigerian Shareholders USD N1,347.44 / Share

For London investors, the sterling equivalent was fixed at $1 to £0.7464

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Airtel Africa Plc says it will pay its 3.1 US cents interim dividend at a dollar-to-naira conversion rate of N1,347.44.

That translates to about N41.77 per qualifying share for Nigerian investors.

The company disclosed the rate in a notice filed with the Nigerian Exchange (NGX).

The interim dividend is 3.1 US cents per ordinary share, a 9.2% increase from the previous year’s payment.

The approved naira rate is about 7.5% lower than the N1,456 per dollar that applied to the corresponding 2025 interim dividend.

Both the naira and sterling conversion rates were derived from dollar exchange rates available on October 30, 2026.

For London investors, the sterling equivalent was fixed at $1 to £0.7464. That puts the payment at approximately 2.31 pence per share.

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Business

Domestic Flights Fare Surges Ahead of Christmas, New Year

United Nigeria and ValueJetUnited Nigeria Airlines recorded one of the highest fares. A Lagos to Anambra return ticket between December 22 and January 2 costs ₦822,000.

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Local airlines operators the like of Air Peace, United Nigeria Airlines and ValueJet have reviewed their fares upward for December 2026 and early January 2027, with return tickets on some routes climbing to ₦822,000.

Quoted fares seen by Ohibaba.com shows that Air Peace listed a Lagos to Anambra return ticket between December 24, 2026 and January 2, 2027 at ₦676,000.

The outbound flight costs ₦341,500, while the return is priced at ₦335,500. Abuja to Anambra will cost about ₦677,000 for a return ticket, while Lagos to Owerri costs ₦671,000.

The fares reflect prices available during checks and may change with seat availability and booking dates.

United Nigeria and ValueJetUnited Nigeria Airlines recorded one of the highest fares. A Lagos to Anambra return ticket between December 22 and January 2 costs ₦822,000.

The outbound journey costs ₦511,000, while the return flight is priced at ₦311,000. Other United Nigeria return fares are Abuja to Anambra at ₦757,000, Lagos to Enugu at ₦656,000 and Lagos to Owerri at ₦682,000.

ValueJet’s Lagos to Owerri return fare stands at about ₦658,094.

This comprises ₦326,666 for the outbound flight and ₦331,428 for the return journey.

Quoted return fares on other routes include ₦622,000 for Lagos to Port Harcourt and Abuja to Port Harcourt, and ₦679,000 for Lagos to Asaba.

Aviation experts attributed the increases to surging festive demand, limited aircraft capacity and growing concerns over insecurity on major highways.

Aviation analyst Dr James Odaudu said airlines frequently struggle to accommodate the influx of passengers travelling to the South-East and South-South during Christmas.

According to him, insufficient flight capacity allows operators to increase fares, sometimes substantially.

He warned that although seasonal pricing is understandable in a deregulated market, excessive increases could raise legitimate concerns about passenger exploitation.

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