• Reassures citizens on fiscal stability
• Special FX rate for NNPCL will crash petrol prices, says TUC
Tayo Busayo, Abuja
DAILY COURIER - The Federal Government has dismissed recent reports claiming that the administration of President Bola Ahmed Tinubu is considering an increase in Nigeria’s Value-Added Tax (VAT) from 7.5% to 10%. This clarification was made by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in an official statement released earlier today.
Mr. Edun categorically refuted the circulating speculation, affirming that no such proposal is being considered by the government. He emphasized the administration’s commitment to maintaining fiscal stability and avoiding additional financial pressure on citizens, especially during these challenging economic times.
“The current VAT rate remains at 7.5%, and there are no plans to raise it to 10% as some reports have falsely claimed,” the Minister stated. He underscored that President Tinubu’s economic strategy is centered on sustainable policies that will strengthen the economy, reduce inflationary pressures, and mitigate the impact of global economic challenges on Nigeria without overburdening the populace.
Mr. Edun further highlighted that the government’s recent fiscal measures, including the suspension of import duties on key goods, reflect the administration’s efforts to alleviate the economic hardship faced by Nigerians. These initiatives, he noted, are designed to stabilize the economy while promoting growth and reducing inflation.
In addition, the Federal Ministry of Finance reaffirmed its commitment to transparent communication regarding tax policies and other economic decisions. The ministry assured the public that any future tax reforms would be announced through official government channels to prevent the spread of misinformation.
The statement concluded by urging Nigerians to disregard the baseless reports of a VAT hike and trust in the government’s dedication to responsible fiscal management.
Special FX Rate for NNPCL Will Crash Petrol Prices, Says TUC
Meanwhile, the Trade Union Congress (TUC) has called on the Central Bank of Nigeria (CBN) and the Nigeria Customs Service (NCS) to grant the Nigerian National Petroleum Company Limited (NNPCL) a special foreign exchange rate to help reduce the cost of petrol in the country.
TUC President Festus Osifo, while speaking on Channels Television’s *Politics Today*, suggested that granting NNPCL a special forex rate of about ₦1,000/$ instead of the official ₦1,600/$ rate would significantly lower the cost of petrol imports. He claimed that if implemented, this could bring petrol prices down to around ₦600 per liter, compared to the current price of over ₦900, depending on the region.
Osifo, who also serves as the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), argued that the primary factor driving high petrol prices is not the subsidy removal introduced by President Tinubu in May 2023, but rather the sharp devaluation of the naira under the current administration.
“The real issue is the devaluation,” Osifo noted, explaining that had the naira not depreciated from ₦700/$1 to over ₦1,600/$1, petrol prices would currently be around ₦350 per liter. He further pointed out that the NNPCL is still indirectly shouldering a subsidy on petrol despite the recent price increase to over ₦900.
The TUC leader proposed that by offering NNPCL a special forex rate, similar to the preferential rate provided to the Dangote Refinery, the need for further subsidies could be eliminated. He emphasized that this move would allow marketers to sell fuel at reduced rates, alleviating the burden on consumers.
Osifo warned that failure to implement these measures could result in widespread economic repercussions, including job losses and company closures, as predicted by organizations like the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Lagos Chamber of Commerce and Industry (LCCI).
The TUC has announced that it will convene meetings to discuss the next course of action if the government does not take immediate steps to revert petrol prices to more affordable levels.