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Tuesday, 10 June 2025
JUDICIAL COMMISSION OF INQUIRY ON CHIEFTAINCY MATTERS
Monday, 2 December 2024
Tinubu Tax Reform Bill
Support for Remote Work and Digital Economy: Changes to income tax laws will facilitate remote work opportunities for Nigerians, empowering youths in the global digital economy.
Promotion of Exports: Zero-rated VAT and other incentives aim to encourage exports in goods, services, and intellectual property.
Relief for Small Businesses: Small businesses with an annual turnover of ₦50 million or less will benefit from tax exemptions, including withholding tax, VAT, and a 0% corporate income tax rate.
Reduced Personal Tax Burden: Minimum wage earners will be exempt from PAYE, and over 90% of workers in the private and public sectors will experience reduced tax burdens.
Essential Goods Exemptions: VAT exemptions on food, education, healthcare, rent, public transportation, fuel products, and renewable energy will alleviate the cost of living, especially for low-income households.
Corporate Tax Relief: Corporate income tax rates will reduce from 30% to 25% over two years, and loss-making companies will no longer face minimum tax.
Harmonized Tax System: Earmarked taxes on companies will be eliminated, replaced by a unified, lower single levy.
Enhanced Business Investment: Businesses will receive input VAT credits on assets and services, enhancing investment competitiveness and reducing costs.
Equitable Revenue Sharing: VAT revenue sharing will be more equitable to ensure fair treatment of states with fewer headquarter companies.
Simplified Compliance: Allowing taxes on foreign currency transactions to be paid in naira reduces exchange rate pressures and simplifies compliance.
Economic Contributions Rewarded: The rationalization of tax incentives aims to provide a level playing field and reward states' economic contributions.
New National Fiscal Policy: The policy emphasizes fair taxation, responsible borrowing, and sustainable spending.
These reforms aim to create a more inclusive, equitable, and competitive economic environment for all citizens.
Sunday, 1 December 2024
Spotlight on Night Markets (Oja-Ale)
In many societies, night markets (locally known as Oja-Ale) have become a vibrant hub for economic activities, catering to diverse needs ranging from food and fashion to entertainment and essential services. The extension of business hours into the night provides several economic benefits, fostering growth and development for both individuals and the broader economy. However, for night markets to thrive, the government must ensure adequate infrastructure, particularly street lighting and security.
Economic Benefits of Long Economic Activities and Night Markets
Increased Revenue for Businesses
Operating late into the night allows businesses to serve a wider customer base, including those who may be unavailable during regular business hours. Vendors and traders in Oja-Ale benefit from the opportunity to generate more income, which, in turn, improves their living standards and contributes to the local economy.
Job Creation
Extended business hours create additional employment opportunities for people such as security personnel, cleaners, transport operators, and vendors. This is particularly significant in urban areas with high unemployment rates.
Boosting Tourism
Night markets are often cultural attractions, drawing tourists who seek unique experiences. They offer a blend of local cuisine, art, and entertainment, enhancing the region's appeal and generating foreign exchange.
Promoting Informal Economy
Night markets often serve as an entry point for small-scale entrepreneurs who lack the resources to establish formal businesses. This supports grassroots economic activities and contributes to financial inclusion.
Reduced Congestion in Day Markets
By spreading economic activities across longer hours, night markets help reduce the overcrowding and stress associated with daytime markets, creating a more balanced and accessible trading environment.
The Role of Government in Supporting Night Markets
For night markets to fully realize their potential, the government has a critical role in creating an enabling environment. Two primary areas of intervention are provision of street lighting and enhanced security.
Provision of Street Lighting
Well-lit environments are critical for night-time economic activities. Street lights:
Enhance visibility, making it easier for buyers and sellers to interact.
Reduce accidents and improve overall navigation within market areas.
Discourage criminal activities, creating a sense of safety for all participants.
Investment in solar-powered street lights can provide an affordable, sustainable, and reliable solution for areas prone to electricity shortages.
Enhanced Security Measures
Safety concerns are one of the major deterrents to night-time economic activities. Governments can address this by:
Deploying trained security personnel to patrol market areas.
Establishing surveillance systems such as CCTV cameras.
Encouraging community policing initiatives to foster trust and cooperation between traders and law enforcement.
Conclusion
The economic benefits of extended business hours and night markets are undeniable. They stimulate commerce, create jobs, and enhance the cultural and social fabric of a community. However, these benefits can only be maximized if governments prioritize the provision of essential infrastructure such as street lighting and security. By doing so, night markets like Oja-Ale can flourish, contributing significantly to the economic resilience and vibrancy of cities and towns.
Thursday, 28 November 2024
HOW TO LOCATE ALL THE NYSC ORIENTATION CAMPS IN THE 36 STATES INCLUDING F.C.T
Wednesday, 3 July 2024
History of Minimum Wage Increments in Nigeria
Nigeria’s minimum wage evolution reflects decades of labor agitation, political negotiation, and economic necessity. Each adjustment tells the story of inflation pressures, workers' demands, and government responses to shifting socio-economic realities.
1. Pre-1981: Informal and Regional Wage Structures
Before 1981, Nigeria had no legislated national minimum wage. Wages were determined regionally and by employers’ discretion. Colonial policies and post-independence economic conditions created disparities in pay, especially between urban and rural workers.
Unions such as the Nigeria Trade Union Congress (NTUC) and later the Nigeria Labour Congress (NLC, formed in 1978) pushed for wage reform and uniform pay.
2. 1981 – Nigeria’s First Minimum Wage Law
- Minimum Wage: ₦125/month
- President: Shehu Shagari
- Context: Marked Nigeria’s first attempt to formalize a national wage floor. The 1981 Minimum Wage Act followed nationwide labor protests led by the NLC.
- Significance: First uniform national minimum wage for workers in public and private sectors with at least 50 employees.
3. 1990 – Wage Increase Under Military Rule
- Minimum Wage: ₦250/month
- Head of State: General Ibrahim Babangida
- Context: Economic hardship caused by SAP (Structural Adjustment Programme) led to wage reviews.
- Response: Despite doubling the wage, inflation quickly diminished its value. Protests and strikes intensified.
4. 2000 – Post-Military Major Adjustment
- Minimum Wage: ₦5,500 (state workers), ₦7,500 (federal workers)
- President: Olusegun Obasanjo
- Context: Transition to democracy raised expectations. Labor unrest forced the government to raise the minimum wage significantly.
- Issue: Disparity between federal and state implementation persisted.
5. 2011 – Fourth Minimum Wage Review
- Minimum Wage: ₦18,000/month
- President: Goodluck Jonathan
- Legislation: National Minimum Wage (Amendment) Act, 2011
- Context: After years of agitation and national strikes, a new wage was signed into law. Many state governments delayed compliance.
- Significance: First wage backed by robust legal reforms and broader applicability.
6. 2019 – Fifth National Minimum Wage
- Minimum Wage: ₦30,000/month
- President: Muhammadu Buhari
- Legislation: National Minimum Wage Act, 2019
- Context: Inflation and cost of living necessitated another increase. Labour unions forced negotiations after years without review.
- Challenges: Widespread non-compliance by state governments, who claimed inability to pay.
7. 2024 – 2025: Latest Wage Reform
- New Minimum Wage: ₦70,000/month
- Effective Date: July 19, 2024
- President: Bola Ahmed Tinubu
- Context:
- Triggered by the removal of fuel subsidy in 2023
- Soaring inflation and cost of living
- Initial government offer: ₦62,000
- Labour demand: ₦250,000
- Agreement reached after multiple strikes and tripartite negotiations
- Outcome: ₦70,000 officially became Nigeria’s national minimum wage from July 2024, replacing the ₦30,000 law.
- Significance: Most substantial increase in Nigeria’s wage history; reflects the urgency of economic relief for workers.
Challenges Across the Years
- Inflation: Rapidly erodes the real value of wages.
- Implementation Gaps: Especially at the state and local government levels.
- Irregular Reviews: Contrary to expectations of 5-year reviews, wage laws often lag behind economic realities.
- Union-Government Disputes: Regular industrial actions required to enforce wage compliance.
Conclusion
The journey of Nigeria’s minimum wage—from ₦125 in 1981 to ₦70,000 in 2024—shows a pattern of delayed adjustments in response to economic crises and labor pressures. While the latest review marks a historic improvement, challenges remain in ensuring sustainable living wages, regular reviews, and full enforcement across all sectors.
The future of wage reform in Nigeria depends on strong institutions, equitable revenue distribution, and an economy that supports not just minimum survival—but dignified living for all workers.