Politics

Edun confirms plans to raise VAT to 15%, limits increase to luxury goods

Published

2 weeks ago

October 24, 2024

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By Emma Ujah, Washington DC

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has confirmed that the federal government plans to raise Value Added Tax (VAT) to 15%, but clarified that the increase would primarily affect luxury goods.

Speaking at an investor meeting during the ongoing IMF/World Bank Annual Meetings in Washington DC, Mr. Edun explained that a bill currently before the National Assembly aims to gradually raise VAT on luxury goods, while essential items consumed by poorer and vulnerable Nigerians would remain exempt from VAT or attract a zero rate.

“In terms of VAT, President Bola Tinubu’s commitment is that while implementing difficult and wide-ranging but necessary reforms, the poorest and most vulnerable will be protected,” Edun said. “So, the Bills going through the National Assembly in terms of VAT will raise VAT for the wealthy on luxury goods, while at the same time exempting or applying a zero rate to essentials that the poor and average citizens purchase.”

He added that the list of essential goods exempted from VAT will be made available to the public in due course.

Optimism About the Oil Sector

Mr. Edun also expressed optimism regarding Nigeria’s oil sector, noting that improved security in oil-producing regions and new investments, particularly by Total and ExxonMobil, would result in increased oil production and boost foreign exchange inflows.

Full Subsidy Removal Took Effect in September

Addressing the issue of fuel subsidy removal, Edun disclosed that while subsidy reform was announced earlier, the full implementation only took effect last month. He emphasized that the savings from the removal would start to have a more significant impact on the economy going forward.

Issuance of Domestic Dollar Bonds Against IMF Advice

In response to a question about the possibility of Nigeria entering an IMF program, Mr. Edun revealed that the Tinubu administration went ahead with the issuance of Domestic Dollar Bonds despite advice from the IMF against such a move.

He reaffirmed that Nigeria continues to maintain a relationship with the IMF as a member, benefiting from the institution’s support, but stressed that the country exercises its autonomy in financial decisions.

Politics

FCT: Wike notifies Apo Mechanic Village traders on imminent relocation

Published

3 hours ago

November 5, 2024

Ekwutos Blog

FCT: Wike notifies Apo Mechanic Village traders on imminent relocation

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The Minister of the Federal Capital Territory, FCT, Nyesom Wike, has said that traders at the Apo Mechanic Village will have no choice but to relocate for the interests of the public.

Wike made the declaration during the inspection of the ongoing construction of the left-hand service carriageway of the OSEX from Ring Road 1 (Nnamdi Azikiwe Expressway) to Wasa Junction on Tuesday.

The Apo Mechanic Village is located along the road corridor of the OSEX.

The minister assured that the committee on the relocation of the traders was doing its job to relocate them to a permanent site in Wasa in the overriding interest of the public.

He said the traders were already aware that the road project will pass through the area, adding that the FCTA was not envisaging any problem on the issue of relocating the traders.

“The committee is doing their work. You know that the road is going to pass through that area. So, that is not going to be a problem.

“We have told them that when we get to that point, they have no choice but to leave for the interest of everybody. It’s not for anybody’s particular interest. It’s for the public.

“It is the directive of Mr. President to see that all areas, not only the city but also in the satellite towns are all opened up with road infrastructure.

“You will not believe it now that all the roads we are doing in the satellite towns are going to be provided with solar street lights, which has never happened.

“So, it is wonderful, we are happy with what we are seeing and we are happy with what the contractors are doing. Indeed, the Renewed Hope Agenda is working, it’s a reality. People can see with their eyes. It’s not that you are told.”

Politics

US elections 2024: What Kamala Harris win means for Kenya, Africa

Published

3 hours ago

November 5, 2024

Ekwutos Blog

US vice president Kamala Harris smiling during a campaign rally (l) and William Ruto during an X space with Gen Zs (r). Photo: Jeff Kowalsky/William Ruto. Source: Getty Images

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US vice president Kamala Harris and former president Donald Trump are poised to learn their fates in the presidential race as the elections begin
Harris’s victory or her ability to succeed Joe Biden as president of the United States could have an impact on Kenya and Africa
In an exclusive interview with TUKO.co.ke, lawyer and political analyst Philip Mwangale discussed what Harris’s victory would mean for Kenya

Faith Chandianya, a journalist at TUKO.co.ke, brings over three years of experience covering politics and Current Affairs in Kenya

US vice president Kamala Harris is competing against former president Donald Trump in the race for the presidency.

This comes as the 2024 US presidential election is shaping up to be one of the most competitive, with the strongest candidates leading the race.

However, this article will focus on the implications of Harris winning the election and how her victory could impact Kenya as a nation.

What does Kamala Harris win mean for Kenya?

Political analyst and lawyer Philip Mwangale told TUKO.co.ke that Harris’ victory would maintain the status quo.

Since Joe Biden is a member of the Democratic Party, Harris winning the election would ensure the Democrats remain the ruling party in the United States.

Mwangale asserted that this could mean that the bilateral agreements between Kenya and the US established by Harris’s predecessor and President William Ruto will remain intact.

“A Democrat win means maintenance of the status quo. The bilateral agreements signed between Kenya and the US remain,” Mwangale asserted.

The political analysts affirmed that maintaining bilateral agreements between Kenya and the US means the country will continue to be alienated from its neighbouring African countries due to Ruto’s ties with the West.

Mwangale also remarked that Harris lacks defined foreign policy perspectives, allowing certain state actors and US interests abroad, especially in Africa and the Middle East, to act without restriction.

“The interference in affairs of states, especially Africa and the Middle East, will be more prominent. She has not concrete foreign policy views of her own,” he affirmed.

The political analyst stated that this will have a ripple effect, as further incursions in the Middle East could restrict Kenya’s fuel channels.

Who is likely to win US presidential election 2024?

Renowned historian and election forecaster Allan Lichtman stirred attention with his latest prediction, forecasting a victory for Democratic nominee, Harris.

Lichtman, whose prediction record includes nine correct forecasts from the last ten elections, is confident that Trump will lose the 2024 United States presidential race.

Lichtman expressed certainty that Harris would prevail on election day.

He acknowledged that although Harris’s lead in battleground states has fluctuated, this has not changed his forecast.

Politics

Belarus’ Lukashenko to face only pre-approved challengers in presidential election

Published

7 hours ago

November 5, 2024

Ekwutos Blog

In this photo released by Belarusian Presidential Press Service on Thursday, Oct. 31, 2024, Belarusian President Alexander Lukashenko speaks in Minsk. © AP Photo

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Belarus’ election commission on Monday allowed only seven politicians loyal to leader Alexander Lukashenko to start collecting signatures to oppose him in upcoming presidential elections.

Lukashenko, who has led the country for over 30 years, is set to seek a seventh term in January.

The authoritarian ruler faced criticism after he was elected in 2020 in a vote that was rejected by the country’s opposition and the West as rigged with fraud.

The election results triggered nationwide protests and resulted in the arrest of around 65,000 people — many of them opposition figures.

Human rights groups say Belarus holds around 1,300 political prisoners who are denied adequate healthcare and are often forbidden from contacting their families while in prison.

Last week, the country’s election commission registered an initiative group for Lukashenko to prepare for the upcoming election.

Sergei Syrankov of the Communist Party, Oleg Gaidukevich, the leader of the Liberal Democratic Party, and former Interior Ministry spokeswoman Olga Chеmоdanova are three of the seven candidates chosen to start collecting signatures.

The candidates are each required to collect at least 100,000 signatures by 6 December in order to qualify to run in the race.

“Those are alternative candidates, and I believe they just want to safeguard the incumbent,” Lukashenko said of his challengers.

The commission rejected two opposition politicians who requested to register initiative groups.

Sviatlana Tsikhanouskaya, a key figure of the Belarusian opposition who is currently living in exile, has denounced the upcoming elections as a farce.

“This is not an election but an imitation of an electoral process held amid terror when alternative candidates and observers aren’t allowed,” Tsikhanouskaya said.

In February, when the country held parliamentary and local elections, independent Western observers were not invited to monitor the vote for the first time since the country’s independence in 1991.