• Tax Reform Bill proposes 55% VAT revenue for states
• NERC reveals it would have spent ₦2.4 trillion on electricity subsidies by the end of 2024
• NPC announces population census may begin next year, 2025
• Tinubu entices French investors with financial opportunities
• Naira trades at ₦1,644/$ in official markets as FX supply rises above $500 million

Across Nigeria’s 36 states and the Federal Capital Territory, these are the five top Nigerian news stories you shouldn’t miss.

Tax Reform Bill proposes 55% VAT revenue for states

On November 28, 2024, the Senate passed the Tax Reform Bill, proposed by President Bola Tinubu, for a second reading despite the objections of many Northern leaders and lawmakers.

The content of the bill proposes that all states will earn 55% of the Value Added Tax (VAT), there will be tax exemption for minimum wage earners, no tax for small businesses with ₦50 million or less annual turnover, no Value Added Tax (VAT) on food items, pharmaceuticals, medical services, electricity tariffs, and educational fees, reduction of income tax from 30% to 25%, and lastly, streamlining of collection of taxes.

Senate Leader Opeyemi Bamidele, who sponsored the bills, explained the new sharing formula: “Unlike the current tax system where the Federal Government receives the majority of VAT revenues, the proposed formula allows State Governments to share 55% of VAT revenue. This changes the distribution from the existing 15% to a new 10% sharing structure.”

NERC reveals it would have spent ₦2.4 trillion on electricity subsidies by the end of 2024

The Nigerian Electricity Regulatory Commission (NERC) has announced that by the end of 2024, it will have spent about ₦2.4 trillion on electricity subsidies for Nigerians.

NERC’s Commissioner of Planning, Research, and Strategy, Dr Yusuf Ali, revealed this at the PwC’s Annual Power and Utilities Roundtable, where he explained that the subsidy budget and spending had fluctuated due to the inconsistent foreign exchange.

“As of November, the subsidy amount stood at N1.9tn, but with current trends, the monthly subsidy for electricity is expected to reach N260bn in December,”

NPC announces population census may begin next year, 2025

The Chairman of the National Population Commission (NPC), Isa Kwarra, has informed Nigerians that a population census may occur next year, 2025.

The NPC Chairman stated that President Bola Tinubu may approve the population census as the last time the exercise occurred was 19 years ago, in 2006.

The population census was initially meant to occur in 2023 under ex-president Buhari’s administration, but it was postponed for the incoming president’s administration to oversee.

Tinubu entices French investors with financial opportunities

President Bola Ahmed Tinubu promised French investors during his meeting with President Emmanuel Macron of France that Nigeria was committed to strengthening the cooperation with France in building and enhancing significant sectors like food security, education, security, solid minerals, and energy.

According to the information released by Bayo Onanuga, the President’s Special Adviser on Information and Strategy, President Tinubu reiterated that he would equip Nigerians, especially children out of school for years, with skill acquisition training.

“We have confidence that you, Mr. President, will reinforce our relationship with Nigeria, and it will cover the West Coast region, with ECOWAS playing the leading role,” Macron said.

Naira trades at ₦1,644/$ in official markets as FX supply rises above $500 million

The Naira has gained value against the US dollar in the official market, trading at ₦1,644/$ compared to the previous day’s trading rate of ₦1,660.

The rise resulted from the $560.34 million increase in forex liquidity in the official forex exchange market.

The Naira has also appreciated in the black market, as it trades at ₦1,740/$ rather than the previous rate of ₦1,750/$.