Business

Buhari will respect final court verdict on VAT – Adesina

Published

5 years ago

September 13, 2021

The Presidency has said President Muhammadu Buhari will respect the final verdict on the Value Added Tax as decided by the Supreme Court.

There has been a raging controversy whether the states or the Federal Government through the Federal Inland Revenue Service should have the powers to collect VAT.

But reacting to the issue, spokesman for the President, Femi Adesina, “Eventually, we will have a legal pronouncement, which may come from the highest court in the land…. Knowing the Buhari administration, it will obey the rule of law.”

He added, “All these states are not unanimous. You have heard some governors speaking out against the position of certain states which are so militant on this VAT issue.”

According to him, the matter will affect the ongoing conversation on fiscal federalism.

He said, “The VAT is good because there have been talks about restructuring and fiscal federalism in the country. If states eventually get their demands in respect of VAT, there will be something like fulfilling fiscal federalism. But then, fiscal federalism itself must be done within the ambits of the law.”

The row over who collects VAT between the Federal Government and the state governments broke out after last month’s verdict by a Federal High Court in Port Harcourt that Rivers State is legally in order to collect VAT in its domain.

The Rivers State Government quickly enacted a VAT law and commenced the process to start the collection.

But the FIRS insisted on continuing with the collection and has challenged the judgment at the Court of Appeal, which on Friday ordered the maintenance of the status quo until the determination of the appeal.

Lagos State, which generates the highest amount of VAT, has enacted its own law empowering it to collect the consumption tax in its domain.

Adesina, speaking on Arise TV, also touched on Nigerian National Petroleum Corporation (NNPC) 2020 financial report, and the security situation in the Northwest.

On the NNPC 2020 audited reports and the declared profit after tax of N287 billion, Adesina lashed out at those who always fail to see positive developments, but are always looking for bad in every good being recorded in Nigeria’s recent history.

He described the state of minds of those picking holes in the news of the profit as those that have been accustomed to hearing bad news, adding that they questioned its authenticity because they never thought that positive things could happen in government.

“Well, we have heard stories in this country before; how Presidents will just give notes to NNPC and their wishes got done without records. There was a lot of impunity in this country, but the NNPC GMD is on record, even the Chief Finance Officer, Umar Ajiya, is on record as saying that President Buhari does not interfere in their operations. It used to happen, but under this administration, it has never happened. That was why you had that declared profit.

“But the surprising thing is that it seems some Nigerians are already so used to bad news, that they have got inured to good news. When that good news came, their first instinct was to pick holes in it because all their lives they are used to bad news.

“When that good news came, they couldn’t imagine it, but it happened. I watched your engagement with the Chief Finance Officer of the NNPC, how he explained that profit and anybody who is not cynical, will know that there’s a lot of truth in what the CFO said.

“Yes, I watched the encounter with the CFO, like I said, and he emphasised that one of the things they had to do was to cut costs. Cut costs for operations; cut costs of production, running costs, and it all redounded to the profit that was declared.

“It shows that there was a lot of wastage, extravagance, lack of accountability in the previous years and the man also said both the President and the Vice President never interfere in the operations.

“As we said in the beginning, we knew and heard and it was indeed true that presidents and those in the corridors of power used to give directives to the NNPC to do certain things, which at the end of the day will erode the profitability of the corporation. That doesn’t happen again and that is why that perfect came.”

Asked if the President would be disposed to speaking to members of the Academic Staff Union of Universities (ASUU) in a private audience, in order to avert the industrial action they just threatened to embark on, Adesina said “why not? The President will do everything that will contribute to industrial harmony in any part of the country, but I also recall that in 2020, just before the COVID lockdown began, ASUU came to see the President, the President personally received ASUU, I was at that meeting, but ASUU still went on strike that lasted about 10 months or more.

“So, what I’ll like to say is that we shouldn’t have the ‘we against them mentality’ in this country. Nigeria belongs to all of us; it belongs to lecturers, it belongs to ASUU, it belongs to those serving in government, it belongs to the ordinary Nigerians. This ‘we against them mentality’ serves nobody any good purpose. Whatever will account for industrial harmony, including on our campuses, let all sides do”, he said.

On the lingering ban of the international social media platform, Twitter, from Nigeria, and the recent shutdown of telecommunication coverage in Zamfara and parts of Katsina State, the presidential spokesman said they were actions taken in the overall interest of security and peace in the country.

Auto

Auto Imports Drain Nigeria’s Economy as Vehicle Spare Parts Bill Hits N6.54tn

Published

6 hours ago

May 13, 2026

Trends Admin

Auto Imports Drain Nigeria’s Economy as Vehicle Spare Parts Bill Hits N6.54tn

Nigeria’s ambition to build a thriving local automotive industry is facing mounting pressure as the country’s spending on imported vehicles and spare parts soared to N6.54 trillion between 2023 and 2025, raising fresh concerns over the survival of indigenous auto manufacturing.

The Director-General of the National Automotive Design and Development Council (NADDC), Oluwemimo Osanipin, disclosed the figures in Lagos on Tuesday during the opening of the West African Automotive Summit, where industry stakeholders warned that the nation’s dependence on foreign automotive products was deepening despite ongoing efforts to promote local assembly.

According to him, data obtained from the National Bureau of Statistics showed that imports of transport equipment and spare parts rose sharply from N3.15 trillion in 2023 to N6.54 trillion in 2025, representing a 107 per cent increase within two years.

He added that vehicle imports alone gulped more than N4.3 trillion during the period, underscoring the huge outflow of foreign exchange from Africa’s largest economy.

Osanipin said the trend reflects growing consumer preference for imported vehicles amid persistent concerns over maintenance support, spare parts availability, and technical service delivery within the local automotive ecosystem.

He warned that unless Nigeria develops a reliable after-sales structure capable of supporting locally assembled vehicles, the country may continue to struggle with low patronage of domestic brands and rising dependence on imports.

Speaking on the summit theme, “After-Sales as a Growth Engine,” the NADDC boss argued that the future of the automotive sector extends beyond vehicle sales, stressing that maintenance services, warranties, technical support, and customer satisfaction are now central to industry growth globally.

He noted that countries with strong automotive industries built extensive after-sales networks that not only boosted consumer confidence but also stimulated local manufacturing, job creation, and investment.

According to him, weak after-sales systems discourage buyers, reduce repeat purchases, and undermine investor confidence in the sector.

Osanipin also said the transition toward electric and hybrid vehicles makes technical capacity development more urgent, as mechanics and service personnel would require new skills to manage emerging vehicle technologies.

He disclosed that NADDC is currently partnering with industry stakeholders on technical training, skills acquisition programmes, and policy initiatives aimed at improving service standards across the automotive value chain.

The council further urged automobile companies, dealers, and service providers to strengthen customer support systems and expand access to genuine spare parts nationwide in order to improve confidence in locally assembled vehicles.

Industry stakeholders at the summit also called for stronger local content policies, improved maintenance culture, enhanced technical expertise, and greater collaboration across West Africa to drive sustainable automotive growth in the region.

Business

Nigeria’s Daily Petrol Consumption Surges Despite N1,370 Per Litre Price

Published

17 hours ago

May 13, 2026

Trends Admin

Nigeria’s Daily Petrol Consumption Surges Despite N1,370 Per Litre Price

Nigeria’s daily consumption of Premium Motor Spirit (PMS), popularly known as petrol, increased by 10.78 per cent in April 2026 despite higher pump prices across the country, according to new data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The report showed that Nigeria’s petrol consumption rose to 52.4 million litres per day in April, up from 47.3 million litres recorded in March.

The increase came amid another sharp rise in the retail price of petrol following the deregulation of the downstream petroleum sector. Average petrol prices in Nigeria climbed to about N1,370 per litre in April from N1,180 per litre in March, representing a 13.8 per cent increase within one month.

Despite the surge in pump prices, fuel demand remained strong, highlighting the continued dependence of millions of Nigerians on petrol for transportation, electricity generation and business operations amid persistent power supply challenges.

According to the NMDPRA, combined fuel supply from the Dangote Refinery and imported petrol also rose by 10.7 per cent to 44.4 million litres per day in April, compared to 40.1 million litres supplied daily in March.

A breakdown of the figures revealed that supply from the 650,000 barrels-per-day Dangote Refinery increased significantly by 19 per cent to 40.7 million litres per day in April from 34.2 million litres in March.

Nigeria’s Daily Petrol Consumption Surges Despite N1,370 Per Litre Price

Business

CBN Raises Alarm Over Rising Risks In Non-Interest Banking Sector

Published

2 days ago

May 11, 2026

Trends Admin

CBN Raises Alarm Over Rising Risks In Non-Interest Banking Sector

The Central Bank of Nigeria (CBN) has raised fresh concerns over growing risks in the country’s non-interest banking sector, warning that weak governance, regulatory non-compliance, and emerging technology risks could undermine financial stability and erode public confidence if not urgently addressed.

The apex bank said the rapid expansion and increasing complexity of Non-Interest Financial Institutions (NIFIs) have exposed the sector to operational vulnerabilities, governance weaknesses, and heightened exposure to digital and fintech-related risks.

The warning was issued during the second Annual Interactive Session between the CBN Financial Regulation Advisory Council of Experts (FRACE) and the Advisory Committees of Experts (ACE) of Non-Interest Financial Institutions in Abuja.

Represented by the Director of the Financial Policy and Regulation Department, Dr. Rita Ijeoma Sike, the Deputy Governor in charge of Financial System Stability, Mr. Philip Ikeazor, said the risks confronting the sector require stronger oversight, improved compliance, and more effective governance frameworks.

He warned that failure to properly manage these risks could damage the credibility of Nigeria’s growing Islamic finance and non-interest banking system, reduce investor confidence, and weaken the sector’s contribution to financial inclusion.

According to him, the establishment of FRACE and mandatory Advisory Committees of Experts across all non-interest financial institutions was designed to strengthen Shariah governance, ensure regulatory alignment, and promote consistency across the industry.

“The objective is to institutionalise a robust Shariah governance system, provide structured dialogue, and enhance collaboration between regulators and market operators,” Ikeazor said.