The United States’ President Joe Biden has announced a $4 billion commitment to the International Development Association (IDA), the World Bank unit that provides low-interest loans and grants to the world’s poorest nations.

The pledge was made during a closed-door meeting with other Group of 20 (G20) leaders in Rio de Janeiro on Monday, according to a senior administration official.

The three-year commitment aims to strengthen the IDA’s resources amid uncertainty surrounding the incoming administration of President-elect Donald Trump.

IDA, which relies on periodic replenishments of donor funds, plays a critical role in financing development projects for approximately 75 of the world’s poorest countries.

However, the disbursement of the pledged funds will require Congressional approval—a process that may face delays until after Trump assumes office in January.

A shift in U.S. development policy? 

During his first administration, Trump and his advisers advocated for more unilateral approaches to development financing, including the establishment of the International Development Finance Corporation (DFC).

• Despite this, the U.S. contributed $3 billion to the IDA’s fund replenishment in 2019.
• Project 2025, a governance blueprint developed by Trump’s former advisers, had recommended the U.S. withdraw from the World Bank and the International Monetary Fund (IMF).
• However, Trump and his campaign distanced themselves from this proposal during the election.

World Bank’s ambitious goals 

• World Bank President Ajay Banga recently highlighted the institution’s efforts to mobilize more than $100 billion in funding for the poorest nations, surpassing the record $93 billion raised during the last donor round in 2021.
• The IDA’s funding supports essential projects in health, education, infrastructure, and economic development, aiming to uplift some of the most vulnerable communities worldwide.
• Biden’s pledge indicates a continued commitment to multilateral development efforts and global poverty alleviation.
• It also signals the administration’s intention to maintain U.S. leadership in international financial institutions, despite potential shifts in policy under the next administration.

IDA’s impacts in Nigeria 

The IDA has supported many projects in Nigeria, including the Nigeria Electrification Project (NEP), which uses IDA credits to provide reliable electricity to households, businesses, universities, and hospitals through solar systems.

• Another project is the North Core/Dorsale Nord Regional Power Inter-connector, which connects Nigeria, Benin, Burkina Faso, and Niger with high-voltage transmission lines to make electricity more reliable and affordable.
• The $700 million Nigeria Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project is also funded by the IDA to increase the use of sustainable landscape management practices in northern Nigeria.
• Similarly, the ongoing Nigeria Digital Identification for Development (ID4D) project, which aims to give every Nigerian a digital identity, is being funded by IDA and other institutions.

Under the financing plan for the project, which was approved by the World Bank unit in 2020, AFD is to release $100 million and the EIB is to fund it with $215, while the IDA is to add $115 million.

[Nairametrics]

Fela Durotoye, a Nigerian public speaker, says he worked in the administration of President Bola Tinubu for just six months without receiving a salary.

In October 2023, Tinubu appointed Durotoye as senior special assistant on national values and social justice.

Following Tinubu’s appointment of Daniel Bwala as special adviser on public communications and media, on Friday, some Nigerians on social media criticised the president for appointing a plethora of media aides without considering the cost of governance.

In a 13-man list that went viral on social media, Durotoye was named as one of the media aides to the president.

In an opinion piece published on Monday, Durotoye said his appointment as aide to the president ended in March 2024.

He added that throughout the six months of his appointment as the president’s aide, he didn’t receive any salary, allowance, or upkeep as a government official.

“Like many other issues in the public discourse, social commentary often has the tendency to overgeneralise; and broad assumptions may sometimes lead to errors of misconceptions, misstatements and misinformation,” Durotoye said.

“One of such errors is in a recent case study that went viral on social media regarding the current media team of the president, where my name was listed as one of the president’s media aides. Unfortunately, this statement needs to be updated to accurately reflect the current media team of the president.

“For clarity, I served briefly in the role of Senior Special Assistant to the President on National Values and Social Justice (SSA-NVSJ) for a tenure of six months, from October 2023 to March 2024.

“When I was invited to serve in this administration, I expressed, as a condition for accepting the call, my desire to NOT receive a salary from the government, as I considered this to be my service to my nation.

“When I finally accepted the role in October 2023, it was on the condition that I would not receive any salary or allowances. During my six-month tenure, I did not accept any government funds for my service, expenses, or upkeep.

“I rented my apartment and took my personal car to Abuja. My utility cost, fuel cost and upkeep were all borne by me and I never requested a reimbursement from the government for any expenses I incurred. Everything I contributed—time, effort, and resources—was paid for by me and my family.”

Members of the House of Representatives from the northern part of the country have raised fresh concerns over the four tax reform bills currently under consideration in the National Assembly.

They spoke at an interactive session organised by the House of Representatives with the members of the Presidential Committee on Fiscal Policy and Tax Reforms on Monday.

The bills, particularly the proposed amendment to the distribution of Value Added Tax (VAT) revenue, have sparked widespread debate.

The bills are: The Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country; and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.

The others are: the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service (NRS), and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.

The National Economic Council (NEC) and state governors have urged President Bola Ahmed Tinubu to withdraw the bills for further consultations.

Also, northern leaders, including traditional rulers and lawmakers, have expressed their opposition, saying the proposed reforms are skewed against the region.

Despite this, President Tinubu has maintained that the legislative process should proceed, emphasising that ongoing deliberations allow for inputs and amendments without the need to withdraw the bills.

During the session yesterday, lawmakers, including Rep. Yusuf Adamu Gagdi (APC, Plateau), Rep. Ahmed Jaha Babawo (APC, Borno), Rep. Zainab Gimba (APC, Borno), and Rep. Zakariah Dauda Nyampah (PDP, Adamawa), expressed concerns about the bills’ potential impacts on the North.

They argued that the region’s economy, already weakened by insecurity and poor productivity, could suffer further under the proposed amendments.

But the presidential tax reform team allayed the fears, saying the current VAT distribution favours few states and is unfair to others. 

‘North’s economy plagued by insecurity’

The northern lawmakers raised concerns that the socio-economic vulnerabilities faced by states in the region, largely driven by insecurity, have not been adequately considered in the proposed tax reform bills.

The lawmakers called for a balanced approach to the tax reform process, one that considers the region’s security challenges and ensures fair treatment for all states.

Rep. Gagdi said insecurity has disrupted the previously vibrant economies of many northern states and questioned how conflict-displaced citizens in the North could benefit from VAT proceeds tied to consumption and other import-related taxes.

He noted that industries, factories, and other means of production in these areas have been severely impacted, with large portions of the productive population displaced or rendered less effective due to challenges such as Boko Haram insurgency and banditry.

Rep. Jaha said the timing of the proposed tax amendments is inappropriate given the current security situation in the North, which has significantly affected its economy.

He expressed reservations about the derivation-based revenue-sharing formula, which he said would unfairly disadvantage economically fragile states.

“There are regions, especially in the North, that are not economically viable due to security challenges. The proposed VAT allocation formula would treat these states unfairly,” Jaha said.

Rep. Gimba emphasised the plight of states like Borno, where insurgency has significantly hindered economic activities.

She called for a more equitable VAT-sharing formula that would account for the unique challenges faced by such states.

Similarly, Rep. Nyampah called for careful consideration of the controversial provisions in the reform bills that could adversely affect northern states, both individually and collectively.

We’ll prioritise constituents’ wishes – Senator Kawu Sumaila

The Senator representing Kano South, Abdurahman Kawu Sumaila, has assured that lawmakers, particularly those from the northern region, will align their decisions with the wishes of their constituents regarding the bills.

Speaking with Daily Trust on Monday, Senator Sumaila emphasised that the views of the people, as communicated through regional leaders, would guide their actions.

“We are studying the bill as usual and liaising with our constituents and relevant stakeholders to understand their feelings and views. It is the peoples’ views and will that will prevail in the end. This is what will happen,” he said.

When asked about his stance on the position advanced by northern governors and traditional leaders, Senator Sumaila said there was nothing unusual in the ongoing process. He highlighted that such deliberations are standard for all bills, although he acknowledged the heightened importance of this particular legislation.

“This bill will come to a debate in parliament, and we will debate it. We will not do anything against the interest of our people. We will ensure our actions align with their thinking. Nigeria is our constituency, and we will do justice to it, Insha’Allah. I am not far from the thinking of my constituency,” he added.

We’ll be guided by national interest – Doguwa

The Leader of the Northern Regional Caucus in the House of Representatives, Rep. Alhassan Ado Doguwa, has assured that lawmakers from the region will prioritise national interest in deliberating on the proposed tax reform bills.

Speaking to reporters after an interactive session on the bills, Doguwa emphasised the importance of a meticulous and inclusive legislative process.

He stressed that the caucus would ensure justice for Nigerians by carefully examining the bills before their passage.

“These proposed bills are fundamentally about fiscal federalism, focusing on the equitable sharing of resources among federating units and key government institutions,” Doguwa said.

He further explained that lawmakers would avoid rushing the legislative process to prevent enacting laws that fail to address the nation’s economic realities effectively.

“National interest will be our guiding principle. We will thoroughly study the bills clause by clause to ensure they serve the people and align with the country’s overarching needs.

“We will continue consultations at the state and regional levels to raise awareness among our members and other stakeholders. Ultimately, the law will reflect the collective good of the people,” he added.

Current VAT distribution favours few states, unfair to others – FIRS boss

The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has criticised the current allocation of Value Added Tax (VAT) proceeds, which channels 70 per cent of the revenue to Lagos, Rivers, and the Federal Capital Territory (FCT).

He described this arrangement as unfair to the remaining 34 states.

Adedeji disclosed that Lagos alone received 42 per cent of October’s VAT proceeds, while Rivers, Oyo, and the FCT received 16 per cent, 5.2 per cent, and 10 per cent, respectively.

“This structure does not reflect Nigeria’s collective interest. VAT is derived from consumption, and 70 per cent of consumption occurs outside these states,” he said, noting that many revenue-generating companies are headquartered in Lagos and Rivers, skewing VAT distribution.

To illustrate the imbalance, Adedeji cited MTN, Nigeria’s leading mobile telecommunications provider, which contributes the highest VAT revenue to Lagos, despite offering services nationwide.

He highlighted the disparity in VAT allocations, revealing that states like Borno and Bauchi receive as little as 0.32 per cent and 0.4 per cent of proceeds, respectively.

“Every time I sign off VAT proceeds, it doesn’t feel like this structure represents our national values. This is why the president, in his wisdom, has proposed changes to ensure fairness,” Adedeji remarked.

The FIRS boss assured lawmakers that the proposed reforms aim to distribute VAT proceeds more equitably, focusing on consumption, rather than the location of corporate headquarters.

“Under this bill, all states—irrespective of their economic situations—would benefit. It’s about ensuring a fairer structure that aligns with the national interest,” he added.

Similarly, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, clarified that the proposed tax reform bills are designed to create equal opportunities for all states without favouring any region.

Speaking on VAT distribution, Oyedele explained that the current policy requires companies to remit VAT from their headquarters, disproportionately benefiting states where these headquarters are located.

He emphasised that the reforms aim to address this inequity.

“Under the current VAT Act, revenue is allocated as follows: 15 per cent to the Federal Government, 50% to states and the FCT, and 35 per cent to local governments.

“The proposed law seeks to reduce the federal government’s share and ensure companies remit VAT based on where taxable services are delivered,” Oyedele said.

He noted that the reforms are not intended to impact negatively on any region but to foster fairness and align VAT revenue allocation with economic activity across the country.

Regarding Nigeria’s broader fiscal structure, Oyedele highlighted the nation’s eight main revenue sources: personal income tax, property tax, stamp duties, value-added tax (VAT), and land-related taxes (primarily collected by states), alongside corporate income tax, customs duties, and petroleum and solid minerals revenue (shared among the federal, state, and local governments).

He lamented the underperformance of all these revenue streams but expressed optimism about their untapped potential.

“The unfortunate reality is that every one of these revenue sources is underperforming. However, the good news is that they all represent opportunities for significant improvement,” he said.

Oyedele also pointed out the inadequacy of Nigeria’s budget relative to its size, stressing the need for reforms to enhance revenue generation and financing capabilities.

The proposed reforms, he said, aim to recalibrate the fiscal framework, reduce imbalances, and promote sustainable economic growth for the benefit of all Nigerians.

[DailyTrust]

A special offences court in Ikeja has convicted Fatuyi Phillips, a former chairman of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), over N43.5 million fraud.

Mojisola Dada, the presiding judge, sentenced Phillips to 21 years in jail.

The Economic and Financial Crimes Commission (EFCC) on April 5, 2022, arraigned Philips alongside his firm, Oceanview Oil and Gas Limited.

The NOGASA chairman had pleaded not guilty to a two-count charge, bordering on obtaining money by false pretence to the tune of N43,502,000.

The EFCC called five witnesses and tendered several documentary evidence, while the defendants called three witnesses.

According to a statement by the EFCC, Dada, while delivering the judgment, held that the prosecution proved its case against the defendants beyond reasonable doubt.

The judge sentenced Phillips to 14 years imprisonment on count one and seven years on count two, without an option of a fine.

The sentences are to be served concurrently.

Also, the judge ordered the second defendant, Oceanview Oil and Gas Limited, to pay a fine of N500,000 in respect of count one and another N250,000 in respect of count two within 30 days or be wound up.

“The court further ordered the convicts to make restitution in the sum of $90,202 or the prevailing naira equivalent to the nominal complainants,” the statement reads.

“Phillips’ journey to the correctional centre began when he collected the sum of N43, 502,000.00 from Elochukwu Okoye and Elebana Unique Ventures Nigeria Limited on behalf of WAPCIL Nigeria Limited with a false promise of selling its dollar equivalent ($98,870.00) to them.

“He neither returned the naira nor dollar equivalent to the petitioners.”