Latest News
FEATURES
Seplat Energy says it has completed the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil.
In a statement on Thursday, Seplat Energy described the transaction as transformative.
Seplat said it will more than double production and position the company to foster growth and profitability, whilst contributing significantly to Nigeria’s future prosperity.
“MPNU adds substantial reserves and production to Seplat Energy; 409 MMboe 2P reserves and 670 MMboe 2P + 2C reserves and resources as at 30 June 2024 and 6M 2024 average daily production of 71.4 kboepd,” Seplat said.
“As operator, Seplat’s immediate tasks are to ensure smooth transition of MPNU staff into Seplat, and on the operations, to swiftly target numerous opportunities that exist to organically grow production and further enhance the value of the assets for all stakeholders.”
Seplat said detailed guidance for the enlarged group in 2025 would be provided with Seplat’s full-year 2024 results, expected to be filed in February 2025.
‘READMISSION OF SHARES TO TRADING’
As regards the completion of the acquisition of MPNU, Seplat said the listing of its existing ordinary shares on the official list of the Financial Conduct Authority (FCA) of the United Kingdom is expected to be cancelled with effect from the close of trading later today.
Afterwards, Seplat said the shares would be readmitted to the equity shares (international commercial companies secondary listing) segment of the official list of the FCA and to trading on the main market for listed securities of the London Stock Exchange (LSE).
Seplat said the readmission is expected to occur at 8:00am on December 13.
“No new shares will be issued in connection with Re-admission,” the company said.
“The Company’s ordinary shares will continue to trade under the name Seplat Energy plc with the ticker symbol “SEPL” and ISIN NGSEPLAT0008.”
Commenting on the transaction, Udoma Udoma, chairman of Seplat Energy, commended President Bola Tinubu for supporting the transaction, appreciating the support and diligence of the various ministries and regulators for all the efforts to reach a successful conclusion.
“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations,” he said.
“Seplat’s mission is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the Government, regulators, communities and our staff.”
On his part, Roger Brown, chief executive officer (CEO) of Seplat Energy, said the company has achieved a major feat.
Brown further thanked the entire Seplat team for their diligence and perseverance in completing the transaction.
“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group,” he said.
“We have acquired a company with one of the best portfolios of assets and related infrastructure in a world class basin, providing enormous potential for the Seplat Group. Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders.
“MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible and reliable energy for Nigeria alongside attractive returns to our shareholders.”
On October 21, Gbenga Komolafe, the CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced approval of the deal by the federal government.
Seplat had said it will complete the transaction with a final consideration of $800 million.
Former Minister of Aviation, Femi Fani-Kayode has slammed Kemi Badenoch, leader of the United Kingdom, UK, Conservative Party over her reply to Vice President Kashim Shettima.
Fani-Kayode in a statement on X on Thurday stated that Nigeria doesn't need Badenoch.
He said: “No you are not & neither do we need or want you to. You are however doing PR for the House Ni*gers Association & the racist, fascist scum that constitutes the far right wing of your adopted country. Do us a favour by shutting your foul mouth, dropping ‘Kemi’ as your name & changing it to ‘Aunty Jemimah’ instead.”
The statement comes after Kemi replied Nigeria’s Vice President, Kashim Shettima, saying she stands by her remarks about Nigeria despite criticism that she is denigrating the country.
Badenoch had allegedly described her upbringing in Nigeria as being overshadowed by fear and insecurity in a country plagued by corruption.
Reacting to the statement, Shettima on Monday accused Kemi of denigrating Nigeria.
Shettima spoke on Monday at the 10th Annual Migration Dialogue at the State House in Abuja.
The Vice President went on to ask Badenoch to remove the “Kemi” from her name if she was not proud of her nation of origin.
Replying Shettima, the Conservative Party leader reiterated her position on previous comments. She insisted that she was not doing PR for Nigeria.
The Minister of State for Defence, Bello Matawalle, has urged those criticising President Bola Tinubu and his administration to put a stop to their actions.
Matawalle, in a statement on Thursday by the Director, Information and Public Relations, Ministry of Defence, Henshaw Ogubike, observed that several of the criticisms against President Tinubu are coming from the North.
He, however, observed that Tinubu is working, and his economic policies are producing positive results across the country, hence the call for those criticising the President to desist and join hands with him in the task of nation-building.
The Minister said the turnaround would benefit all Nigerians in the long run.
“In the light of ongoing criticism, particularly from some quarters in Northern Nigeria, I urge critics to be positive in their narratives.
“I also call on citizens to remain steadfast in their support for the President and to reject divisive narratives.
“It is crucial for Nigerians to stand united behind Mr President, who is diligently working hard to revitalise our economy through series of effective policies, programmes and reforms,” he said.
Speaking on the controversial tax reform bills, Matawalle said President Tinubu is laying a foundation for a sustainable economy through his reform proposals.
The Minister said the tax reforms, when effective, would turn the country’s economy around positively, increase revenue generation for the government and lessen the tax burden on ordinary citizens and small businesses.
“By broadening the tax base and ensuring that everyone pays their fair share, President Tinubu is laying the groundwork for sustainable economic growth.
“These reforms will not only increase government revenues but also stimulate investment and job creation across various sectors,” Matawalle explained.
The Minister also commended the Tinubu government for its strides in security and military welfare.
According to him, the present administration has made giant strides in enhancing the capabilities of the Nigerian military through the provision of modern hardware and equipment.
He added that the welfare of military personnel has been made the priority by the Tinubu government, and the troops always receive their salaries and allowances on time.
He, therefore, urged everyone to recognize the positive changes taking place under the current administration and give it all the necessary support.
“Under President Tinubu’s leadership, we are witnessing a renewed commitment to the safety and well-being of all Nigerians, and I encourage everyone to recognise the positive changes taking place,” the minister said.
There was an uproar at the house of representatives on Thursday after Ajang Iliya, a Plateau lawmaker, defected to the All Progressives Congress (APC) from the Labour Party (LP).
Tajudeen Abbas, speaker of the house, read the defection letter of Illiya who represents Jos south/Jos east federal constituency on the floor of the green chamber.
The Plateau rep cited the leadership crisis in the LP as the reason he left the party.
Though a court has since recognised Julius Abure as the chair of the LP, a caretaker committee led by Nenadi Usman has claimed to be in charge of the party.
Illiya said there is a need to also align with the developmental policies of President Bola Tinubu.
“It is difficult to align with LP’s position on current issues,” his letter read.
But some opposition lawmakers expressed dismay over the development.
Kingsley Chinda, minority leader of the house, said the defection should be rejected because the lawmaker had not met constitutional requirements to defect to the APC.
Chinda said Illiya needed to join the APC at his ward in Plateau first.
The development came about a week after four LP reps defected to the APC.
The lawmakers were Chinedu Okere (Owerri municipal/Owerri north/Owerri west federal constituency), Mathew Donatus (Kaura federal constituency of Kaduna), Akiba Bassey (Calabar municipal/Odukpani federal constituency of Cross River), and Esosa Iyawe (Oredo federal constituency of Edo).
The lawmakers attributed their defection to an alleged crisis in the LP.
Governor Monday Okpebholo of Edo State has opened up on his relationship with Senator Adams Oshiomhole.
He claimed the lawmaker is his father.
Okpebholo said he shares a strong bond with Oshiomhole that goes beyond politics, adding that he can always count on the senator’s advice.
The governor spoke during his valedictory session organized in his honor by the Senate on Wednesday.
Okpebholo was the senator representing Edo Central until his election as governor in September 2024.
However, speaking during the session, the governor said: “Allow me to extend my heartfelt thanks to Akpabio, the uncommon Senate President; your leadership has been remarkable.
“To the deputy Senate President, your wisdom has been a guiding force, and I want to acknowledge all my colleagues in this Senate, their friendship, support, and shared commitment to our great nation.
“Special mention goes to my father and dependable leader, Adams Oshiomhole. Being from the same state, we share a bond that goes beyond politics, and I can always count on you for advice as I take on my new responsibility.”
The Independent National Electoral Commission (INEC) has proposed the use of computer-generated slips for voter accreditation during elections.
Mahmood Yakubu, INEC chairman, disclosed this on Thursday at a meeting with the resident electoral commissioners (REC) on planning and reform learning from the experience of the 2023 general election.
Yakubu said the commission consulted widely internally with its officials and external stakeholders to identify 142 recommendations dealing with the general state of preparedness, voter management, voter education, public communication and the electoral legal framework.
The chairman said on the legal review, there are eight recommendations that require legislative action by the national assembly.
“Very soon, the commission will make a presentation to the joint committee of the senate and house of representatives on electoral matters as they continue to deliberate on electoral reform,” he said.
Yakubu said with the introduction of the bimodal voter accreditation system (BVAS), the use of the permanent voters’ cards (PVC) as the sole means of identification for voter accreditation on election day should be reviewed.
“Those who already have the PVCs can still use them to vote, but going forward, computer-generated slips issued to the voter or even downloaded from the commission’s website will suffice for voter accreditation,” he said.
“This will not only save cost, it will also eliminate the issues around the collection of PVCs and the diabolical practice of buying up the cards from voters in order to disenfranchise them.”
He said the report also contains recommendations on early/special voting for the millions of Nigerians who do not vote at the moment on account of the roles they play during elections.
They include INEC officials, security personnel, ad hoc staff, observers and journalists who are deployed outside the places where they registered to vote.
“There are also recommendations in support of diaspora voting, the unbundling of the commission with the establishment of electoral offences tribunal and a separate agency to handle the registration and regulation of political parties,” he said.
“Similarly, the commission will step up action on voter access and distribution to polling units.”
Access Holdings says its banking subsidiary, Access Bank Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of a 100 percent equity stake in Bidvest Bank Limited.
Sunday Ekwochi, Access Holdings’ secretary, announced the agreement in a corporate filing on the Nigerian Exchange Limited (NGX) on Thursday.
Access Holdings said the acquisition is expected to close in the second half of 2025, subject to regulatory approvals.
“This agreement reflects the Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies,” the statement reads.
“Founded in 2000, Bidvest Bank is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.
“As of its financial year ended June 2024, Bidvest Bank reported total assets equivalent to $665 million and audited profit before tax of $20 million.
“Upon conclusion of this acquisition, Bidvest Bank will be merged with the Bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.”
‘ACQUISITION OF BIDVEST BANK WILL SUPPORT ACCESS BANK’S EXPANSION PLAN’
Commenting on the deal, Roosevelt Ogbonna, managing director (MD) and chief executive officer (CEO) of Access Bank, said the acquisition supports the company’s ambition to expand across Africa and solidify its presence in key markets, with South Africa being a top priority.
“It underscores our commitment to establishing a more resilient, diversified, and sustainable business model that leverages technology to meet evolving customer needs,” Ogbonna said.
“Bidvest Bank provides a unique opportunity to blend its strong local expertise with Access Bank’s robust trade and retail banking capabilities, creating a platform for long-term growth and value creation.”
On his part, Mpumi Madisa, chief executive officer of Bidvest Group, said he is pleased that Access Bank meets the objectives of the South African company, and provides reassurance for the continued sustainability and prosperity of the bank.
“The transaction aligns with Access Bank’s expansion objective to build the scale needed to become a major player in its market,” Madisa said.
“By leveraging Bidvest Bank’s robust local capabilities and Access Bank’s established pan-African presence, the Bank will have increased capacity for intra- and inter-Africa trade, connecting businesses and creating new opportunities for regional integration.”
Madisa said the deal will enable the bank to advance, scale, and sustainably grow in today’s fast-changing, technology-driven, and highly competitive sector.
The World Bank has said until Nigeria has an efficient data-gathering process the fight against corruption and transparency in governance will continue to be affected.
The World Bank Country Director, Dr. Ndiamé Diop, stated this in Abuja at the AGORA Policy conversation on anti-corruption.
Represented by the Senior Bank Official, Debby Isa, Diop noted that Nigeria must get its data-gathering process right to avoid leakages.
“We talk about transparency, but to achieve transparent reports, you need accurate and reliable data. Right now, the data system involves numerous manual processes that allow for leakages, long compromising fiscal transparency,” Diop said.
Delivering the keynote address, Professor Adele Jinadu, explained that the current method anti-corruption agencies are adopting in tackling graft would not achieve the desired result.
He condemned the country’s leaders’ attitude towards the law. He also warned against scapegoating some citizens in the guise of fighting corruption.
“We are dealing with a toxic environment where corruption pervades every institution. No matter the reforms, corruption is ultimately about morality. Our leaders consistently act contrary to the laws they pledge to uphold.
“The message is clear: eternal vigilance is the price of liberty. Let the sentinels on the watchtower remain awake. Nurturing such civic virtues is an indispensable guardrail against the culture of impunity in our political system,” Professor Jinadu said.
The Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, decried that corruption is pervasive in all government offices at all levels.
Represented by Mrs. Adjoke Liman, Olukoyede called for attitudinal change.
He assured that the commission would continue to intensify its fight against graft.
“Corruption remains a huge enterprise involving theft of public resources at all levels of government. Public skepticism and the ease with which public funds are siphoned without warning systems hinder the fight,” he said.
Daniel Bwala, the Special Adviser on Public Communications and Media to President Bola Ahmed Tinubu, has stated that his principal is qualified to contest elections in 2027.
Bwala insisted that Tinubu would not be distracted by people’s comments about the 2027 poll.
He stated this in Abuja on Wednesday at the national secretariat of the All Progressives Congress (APC).
“So, the time for politicking is not yet, and when that time comes, we are going to be ready for everyone.
“The president’s agenda, which is working well, is what will naturally endear Nigerians to vote for him for the second term.
“He is more than eminently qualified constitutionally to contest for the second term in office, and God willing, if God gives him life and health, we do hope that he will run his cause as provided by the Constitution,” he said.
Bwala said the APC is not bothered by the victory recorded by the opposition National Democratic Congress (NDC) in Ghana’s presidential election.
The presidential spokesperson said Tinubu’s administration has gained public trust, noting that Nigerians are witnessing its impactful efforts, “focusing on everyday realities beyond political affiliations”.
“They don’t actually care whether you are white or black-skinned or whatever, as long as what matters to them on their dinner table is dealt with,” he said.
There is palpable tension in the nation’s aviation sector as the tenure of the Nigerian Civil Aviation Authority (NCAA) acting director general, Capt Chris Najomo, expires on Thursday, December 12, 2024.
The minister of aviation and aerospace development, Festus Keyamo, appointed Capt. Najomo in acting capacity on December 13, 2023, after suspending the substantive director-general, Capt Musa Nuhu, over alleged corrupt practices.
However, Section 7 of the federal government’s Public Service Rules on Acting Appointment states that any officer appointed in acting capacity cannot serve more than 12 months in such a position.
The relevant Section 7 of the federal government’s Civil Service Rules also said that recommendations for such an appointee in acting capacity must be forwarded to the Federal Civil Service Commission and must include a certificate stating that the acting officer would assume the full duties and responsibilities of the post.
With Najomo’s assumption of office in acting capacity on December 13, 2023, according to the civil service rules, his one-year tenure is expected to end today, December 12, 2024.
With this, he is expected to step down from office unless reappointed by the president on the recommendation of the minister on or before December 13, 2024.
However, stepping down from office will create a vacuum in the administration of the nation’s leading regulatory agency in the aviation sector.
The rules added, “The period of acting appointment shall not exceed one year but, in exceptional circumstances, may be extended for another year.”
LEADERSHIP, however, gathered that the substantive DG, Capt Nuhu’s refusal to resign or step down from office delayed Capt. Najomo’s confirmation kept him in the acting position for 12 months.
This is because section 3 of the Management and Staff of the Authority of NCAA Act 2022 states that the substantive director-general can only be removed from office by the president, subject to confirmation by the Senate, when he is of unsound mind, absent from five consecutive board meetings without the chairman’s consent unless he shows good reason for such absence, or guilty of serious misconduct.
Other conditions for removal are if the person is disqualified or suspended from practising his profession in any part of the world by an order of a competent authority or is in a conflict of interest as stipulated in the First Schedule to the Act, among others.
LEADERSHIP gathered that Capt. Nuhu had assumed office on February 24, 2020 and that his five-year tenure was expected to end on February 23, 2025.
Speaking on the uncertainty about the agency’s leadership, an industry analyst and former Commandant of Murtala Muhammed Airport (MMA), Lagos, Capt. John Ojikutu said a substantive DG cannot be appointed without Capt Nuhu’s exit.
He wondered why Capt Najomo’s name was not sent to the National Assembly almost 12 months after his appointment.
“I understand that they still have runnings with the issue about Nuhu, and if they refuse to settle, they can’t proceed on Najomo,” Ojikutu argued.
All efforts to speak to the minister on when Najomo’s name will be sent to the Senate for confirmation were futile. At the time of filing this report, text messages sent to the minister, Festus Keyamo, and his spokesman, Tunde Moshood, had not been responded to.
LEADERSHIP reports that stakeholders have been seriously lobbying for Najomo to be confirmed as substantive DG in the last few weeks.
For instance, the Airline Operators of Nigeria (AON), through its vice president, Allen Onyema, has urged the government to approve Najomo’s appointment as substantive DG.
Onyema, who is also the chairman of Air Peace, said that Najomo’s arrival at the NCAA had revolutionised the sector by ensuring the safety of aircraft and passengers and other topical issues that airlines and airport workers take seriously.
He said, “This man has come into the industry; he is not a novice. This is one of Nigeria’s finest pilots ever created under the sun. Quote me: Captain Chris Najomo is one of the most proficient pilots, not just in Nigeria. He has paid his dues.
“Not only that, but he has also paid his dues in airline management. Don’t forget that he was once the managing director of an airline. So he knows the pains of the operators. On the other hand, you need to go to the NCAA. When you go to the NCAA today, the people are full of smiles because of Najomo. This is the kind of thing nobody should pray to lose. If we take it for granted, our fingers will be burnt.”
Cargo Airplane Skids-off, Safety Bureau Investigates Incident
The Nigerian Safety Investigation Bureau (NSIB) has launched an enquiry into the runway incident involving a Boeing 737-400 Cargo aircraft at the Nnamdi Azikiwe International Airport (NAIA), Abuja.
Both the Nigeria Civil Aviation Authority (NCAA) and the Federal Airport Authority of Nigeria (FAAN) confirmed the safety of all crew members after a cargo airplane skidded off the runway at the Nnamdi Azikiwe International Airport, Abuja.
The aircraft with registration and nationality marks 5N-JRT is operated by Allied Air.
The director of consumer protection and public affairs, Nigeria Civil Aviation Authority (NCAA), Michael Achimugu, while confirming the incident, said, “Due to an incident at the Abuja airport, passengers may experience some delays, please be patient and orderly.”
FAAN spokesperson Obiageli Orah said: “At 10:05 am on December 11, 2024, an Allied Air Cargo aircraft with registration number 5N-JRT skidded off Runway 22 at Nnamdi Azikiwe International Airport in Abuja with five souls on board with no reported injury. They were all safely evacuated and taken to the FAAN clinic for further checks.”
The FAAN thanked the aviation community and the general public for their understanding and patience and requested that all speculation be put on hold until the preliminary report is released by the Nigeria Safety Investigation Bureau (NSIB).
Director of Public Affairs and Family Assistance Bimbo Oladeji said the incident occurred at approximately 10:06 a.m. local time on Wednesday, December 11, 2024.
“The aircraft, operating as flight AJK206 from Murtala Muhammed International Airport, Lagos, skidded off the right side of Runway 22 into the grass verge after landing. No fatalities or injuries to the crew or ground personnel have been reported.
“The aircraft sustained significant damage. Emergency response teams were promptly deployed to the scene to ensure the safety of all personnel and secure the site.
“The NSIB has initiated an investigation to determine the causal and contributory factors that led to this incident. Our Go Team has been dispatched to the site to conduct an on-site assessment, recover relevant data, and interview involved parties.
[Leadership]
More...
The Presidential Fiscal Policy and Tax Reforms Committee and the Revenue Mobilisation Allocation and Fiscal Commission are locked in a dispute over the constitutional rights to administer and allocate Value Added Tax revenues in the country, The PUNCH has learnt.
While both entities support the need for tax reforms, their positions differ sharply on the constitutional interpretation and implications for revenue sharing.
The RMAFC has maintained that VAT allocation should strictly adhere to the principles of fairness and equity outlined in the 1999 Constitution.
In a memo to the National Assembly, which was seen by The PUNCH, the commission emphasised its constitutional mandate to determine revenue-sharing formula and cautioned against any arbitrary changes that could disrupt the VAT allocation system.
A part of the memo read, “Section 162 (2) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) empowers the Revenue Mobilisation Allocation and Fiscal Commission to determine the formula for the equitable sharing of revenue among the three tiers of government. Ensure that such formula reflects the principles of fairness and justice. The Constitution therefore made RMAFC the empire arbiter in matters of revenue allocation for the three tiers of government.
“The Constitution, being supreme, does not envisage that any other Act of Parliament such as the VAT Act could assume this responsibility. Any such attempt would contravene the Constitution. Therefore, the RMAFC remains the sole arbiter in producing allocation formulae that are fair, just, and equitable for the three tiers of government; any deviation from a formula crafted by the RMAFC risks violating constitutional provisions and undermining the Commission’s role as the impartial arbiter of revenue allocation in Nigeria.”
It further argued that VAT, as a consumption tax, must be distributed in a way that supports less economically developed states to ensure national cohesion and stability.
In contrast, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, contended that VAT predated the 1999 Constitution and was fundamentally a state tax.
This is according to a statement he shared on his X (formerly Twitter) page on Wednesday.
In the statement, he argued that VAT’s design as a consumption tax meant its administration and allocation should reflect its nature.
Oyedele also pointed out that the existing system, which allocated 85 per cent of VAT revenue to states and local governments, already reinforced its classification as a state tax.
His statement read, “The tax predates the 1999 Constitution and despite having been in operation for over five years, the tax is not mentioned in the 1999 Constitution, making it a residual matter within the purview of the states.
“As a result of the above, VAT is paid into a special pool account and not treated along with the other revenues accruable to the federation for which the RMAFC is expected to play an advisory role regarding the sharing formula as contained in section 162 of the 1999 Constitution.
“A similar revenue item is stamp duties which also belong to states and it is meant to be shared among them based on 100 per cent derivation without any requirement for the RMAFC to be involved in determining the sharing formula.”
VAT was introduced in 1993 to replace the state-administered sales tax system, with the goal of broadening Nigeria’s tax base and modernising its revenue framework.
Initially set at five per cent, the VAT rate was raised to 7.5 per cent in 2020 as part of measures to boost non-oil revenue.
Over the years, VAT has grown to become a critical revenue source, managed centrally by the Federal Inland Revenue Service.
Under the current revenue-sharing formula, 15 per cent of VAT is allocated to the Federal Government, 50 per cent to states, and 35 per cent to local governments.
However, states like Rivers and Lagos have criticised the existing system and called for a derivation-based model that allocates revenues based on consumption within their jurisdictions.
In its memo to the National Assembly, RMAFC expressed its support for the proposed tax reform bills but highlighted significant concerns over the application of the derivation principle to VAT.
It argued that VAT revenues should be shared equitably to provide financial support to weaker states, warning that arbitrary changes could undermine the country’s unity.
The commission also pointed to administrative challenges in tracking VAT consumption across states, citing the lack of robust digital infrastructure to monitor consumption patterns effectively.
Oyedele, however, rejected some of the points raised by the RMAFC.
He clarified that the horizontal distribution of VAT among states is determined by a formula that allocates 20 per cent based on derivation, 50 per cent on equality, and 30 per cent on population, a different framework from what the RMAFC previously cited.
He also dismissed claims that advanced technology was required to track VAT consumption, asserting that existing input-output VAT mechanisms were sufficient.
The statement noted, “There is no need for any technology to track the location of consumption, every eligible business will simply be required to indicate the location of sales in its VAT returns as stipulated under section 22(12) of the Nigeria Tax Administration Bill. It is not necessary to tag VAT collections to end-user locations from sale to consumption, neither is it practical to do so. After all we may not be able to tag services or creative work that are digitally delivered as intangible goods.
“The horizontal distribution of VAT revenue among states is not based on a formula of 50 per cent derivation, 35 per cent population and 15 per cent equality as stated by the commission but rather 20 per cent derivation, 50 per cent equality and 30 per cent population.”
Also, Oyedele cautioned that decentralising VAT administration would likely result in significant revenue losses for many states, disrupt interstate commerce and heighten fiscal risks.
He said, “Moving away from the central collection of VAT will not only lead to significant revenue loss of over 50 per cent for all the states, they will also face challenges in collecting VAT as evident from the old sales tax regime administered by states and the consumption tax being collected currently by some states.”
Both RMAFC and the Presidential Committee have called for constructive dialogue to address the VAT allocation controversy.
Proposed solutions include the development of a VAT formula that balances derivation, equity, and consumption; engaging stakeholders from all levels of government; amending VAT laws to clarify ambiguities; and improving digital infrastructure to enhance transparency and accountability in VAT collection and allocation.
In a related development, the National Bureau of Statistics disclosed that a total of N4.77tn was earned from Value Added Tax on local, foreign and imported goods and services within the first nine months of 2024.
An analysis of the VAT sectorial reportt released by the NBS revealed a sharp increase in VAT revenue for the first nine months of 2024, with collections soaring by 95.76 per cent compared to the same period in 2023.
The data shows total VAT receipts for the nine-month period in 2024 amounted to N4.77tn, significantly higher than the N2.44tn recorded during the corresponding period last year.
Breaking down the figures, VAT collections in the first quarter of 2024 were N1.43tn, nearly double the N709.59bn generated in Q1 2023.
This upward trend continued into the second quarter, with collections reaching N1.56tn compared to N781.35bn in Q2 of the previous year.
By the third quarter, VAT revenue had climbed to N1.78tn, surpassing the N948.07bn recorded in Q3 2023.
The surge in VAT revenue has been attributed to a combination of factors, including naira devaluation, rising inflation, and improved tax compliance.
The sharp depreciation of the naira has increased the naira-equivalent value of taxable goods and services, especially those involving imports or priced in foreign currencies.
Additionally, persistently high inflation, which has driven up the cost of goods and services, has naturally translated into higher VAT collections since the tax is based on consumption value.
[Punch]
Kemi Badenoch, the leader of the United Kingdom (UK) Conservative Party, says she is not interested in laundering the image of Nigeria after Vice-President Kashim Shettima criticised her for denigrating the country.
Badenoch was born in the UK in 1980 to Nigerian Yoruba parents. She returned to Nigeria, where she grew up. Badenoch finally departed for the UK when she turned 16.
Before she was elected leader of the Conservative Party, Badenoch described Nigeria as a socialist nation brimming with thieving politicians and insecurity.
“This is my country. I don’t want it to become like the place I ran away from,” she said.
“I grew up in Nigeria, and I saw firsthand what happens when politicians are in it for themselves, when they use public money as their private piggy banks, when they pollute the whole political atmosphere with their failure to serve others.
“I saw what socialism is for millions. I saw poverty and broken dreams. I came to Britain to make my way in a country where hard work and honest endeavour can take you anywhere.”
Badenoch also said she “grew up in a place where fear was everywhere. You cannot understand it unless you’ve lived it. Triple-checking that all the doors and windows are locked, waking up in the night at every sound, listening as you hear your neighbours scream as they are being burgled and beaten, wondering if your home would be next”.
On Monday, Vice-President Kashim Shettima hit back at Badenoch, accusing her of denigrating Nigeria.
Shettima compared Badenoch to Rishi Sunak, a “brilliant young man” who “never denigrated his nation of ancestry”.
Former Prime Minister Sunak hails from India.
However, a spokesperson for Badenoch said the politician stood by her statement.
“Kemi is not interested in doing Nigeria’s PR; she is the leader of the opposition in the UK,” the spokesperson said.
“She tells the truth. She tells it like it is. She’s not going to couch her words, and she stands by what she says.”
Shettima had urged Badenoch to change her first name if she no longer wanted to identify with her homeland.
Born Olukemi Adegoke to Nigerian parents, the lawmaker married Hamish Badenoch, a Scottish banker, and took her husband’s surname.
[TheCable]
…Dangote Refinery, Neptune Oil Announce their first export transaction of Refined Products to Cameroon
In a landmark move for regional energy integration, Dangote Refinery and Neptune Oil jointly announced the first-ever export of Premium Motor Spirit (PMS) from Dangote Refinery, Africa's largest oil refinery, to Cameroon.
This milestone, resulting from a strategic collaboration between the two companies, underscores their commitment to strengthening economic ties between Nigeria and Cameroon while meeting the region's growing energy demands… Alhaji Aliko Dangote, President and CEO of the Dangote Group, stated: “This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa. With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people.”
Antoine Ndzengue, Director and Owner of Neptune Oil emphasized: “This partnership with Dangote Refinery marks a turning point for Cameroon. By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development. This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”
The collaboration between Dangote Refinery and Neptune Oil does not end with this first export. Both companies are exploring new initiatives to establish a reliable supply chain that will help stabilize fuel prices and create new economic opportunities across the region.
A Major Regional Impact
For Nigeria, this export showcases Dangote Refinery’s ability to meet domestic needs and position itself as a key player in the regional energy market. It represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.
About Dangote Refinery
Located in Lagos, Nigeria, Dangote Refinery is the largest single-train refinery in the world, with a processing capacity of 650,000 barrels per day. It is a flagship project of the Dangote Group, which is dedicated to transforming Africa’s energy landscape.
About Neptune Oil
Neptune Oil is a leading energy company in Cameroon, committed to providing reliable and sustainable energy solutions. Through collaborations with international partners, Neptune Oil plays a pivotal role in driving economic growth in the region.
The national grid has collapsed for the eleventh time in 2024, leading to a nationwide blackout.
Data obtained from the Nigerian system operator’s portal showed that the grid recorded zero megawatts (MW) as of 2pm on Wednesday.
Confirming the collapse on its X page, Abuja Electric Distribution Company (AEDC) said the system failure at the grid happened at 1:33pm.
“We wish to inform you that a system disturbance occurred on the national grid at 1:32pm today causing power outage across our franchise areas,” AEDC said.
“While gradual restoration of power supply has commenced, be assured that we are coordinating closely with relevant stakeholders to restore power fully as soon as the grid is stabilized.”
Also, Friday Adakole, head, corporate communications, Jos Electricity Distribution Company (JEDC), on Facebook, said the current outage affected all feeders.
“The current outage being experienced within our franchise States is a result of loss of power supply from the national grid,” Adakole said.
“The loss of power supply from the national grid occurred this afternoon at about 1333 hours of today, Wednesday, 11th December 2024, hence the loss of power supply on all our feeders.
“We hope to restore normal power supply to our esteemed customers as soon as the grid supply is restored back to normalcy.”
The Transmission Company of Nigeria (TCN) had yet to confirm the incident at the time of the report.
On February 4, Nigerians experienced the first national grid collapse.
The national grid collapsed again on March 28, April 15, July 6, and August 5.
Another blackout was recorded on October 14, October 15 and October 19.
On November 6, another grid collapse was recorded and 72 hours later, the grid collapsed again.
Adebayo Adelabu, minister of power, had on October 17, said the frequent system failure at the national grid is inevitable due to the outdated infrastructure.
The minister also said the country will continue to experience grid disturbances until there is a complete overhaul of the system.
Adelabu said more investment in power infrastructure will prevent future collapses.