Tinubu's eat the rich era?
This edition was written by Rosemary, and edited by Muhammed & Adetomiwa.
That New News is an independent self-funded project by me (Adetomiwa). Thank you for reading, sharing and donating. I love you like I birthed you đ
In this edition:
Tinubuâs tax reform
Inflation is getting realer
FG hate pensioners
Journalist arrested than feed, thanks to you
This edition is 2,000 words. (approx 5 min read)
Tinubuâs tax reform
Whether or not youâve heard about the tax reform commotion at the National Assembly. The tax reform debate has been stressing lawmakers out, but it seems like the âforâ group is winning. The four tax reform bills proposed by President Tinubu have passed a second reading in the Senate.
Here are some bits you might want to know
People earning N800,000 or less annually will no longer pay income tax - presently people who earn N800,000 have to pay a little over 80k in taxes.
Taxing the ârichâ: Only those earning above N50 million (large and medium companies) will pay 25% personal income rate (at the moment people earning N3.2million pay 24%)
Previously small businesses were defined as businesses that earn N 25million at least, they have changed that benchmark to 50 million, so in Tinubuâs proposed rule, most small businesses in Nigeria are exempt.
In the current law, large and medium companies are charged a default 1% on gross earnings, whether they make a profit or a loss. If this law passes, only profits will be charged
Education tax (2.5%), NITDA(1%), and NASENI(0.25%) that many companies pay in addition to their income tax will be lumped together into a tax of 2% that will be used to fund student loans.
Tinubu is also proposing a progressive increase in VAT. presently its at 7.5% - he is proposing that they increase it gradually until it is at 15% in 2030.
Inflation
NBS says people are poor poor
A report by NBS says 20.8% of Nigerian households borrowed food or sought help to survive over the past 30 days as food inflation reached 40%. The report also said more than 65% of households cannot afford healthy food. As a result, about 48.8% of households are forced to limit food consumption.
In the face of food poverty, rice project disappears
The Mitros Rice Project, launched in 2017 by the former governor of Ogun state has been left in ruins.
The project was initiated with about N4 billion in funding with the aim of making Ogun a rice production hub.
The mill was initially designed to produce 50,000 metric tons annually but has failed to keep up with that.
In 2019, just two years after the launch and the year the new governor was sworn in, the 1.2 million hectares project they stopped producing rice. Wild
Farmers and stakeholders are now calling for explanations for the collapse.
This highlights the challenge of continuity public projects often face when office holders change. No one is ever willing to finish what someone else started and we need to know why.
And governors are hoarding minimum wage
State governments are still hoarding minimum wages. The NLC's Head of Protocol, Benson Upah, has reaffirmed that December 1 is the deadline for states to implement the new minimum wage. While some states have made progress, others are still dragging their feet.
In Sokoto State, the government recently met with the NLC to review a proposal for wage adjustment, and Deputy Governor assured swift action.
The Zamfara State Government says theyâre still finalizing worker verifications due to the issue of ghost workers. They say once that is done, they will start new minimum wage payment. Note: Zamfara also failed to implement the N30,000 minimum wage in 2019.
In Taraba State, the government has approved the implementation of a new minimum wage of N70,000, effective November 2024, as approved by the state governor.
Meanwhile, progress varies in other states. In Cross River, the Committee on Minimum Wage is still negotiating, Imo has not made any announcement, and Osun is yet to propose a minimum wage package.
But spending on themselves with reckless abandon
Meanwhile, the government continues to spend lavishly. Despite persistent calls to reduce the cost of governance, the State House has reportedly spent âŚ7.4 billion on foreign currencies and 16 vehicles within just four months. This includes excessive spending on presidential travel.
President Bola Tinubu and Vice President Kashim Shettima spent 180 days abroad across 41 trips, spending a total of 3.4 billion naira in travel expenses from June to December 2023.
The government spent about 637.85 million naira on just air tickets for both local and foreign trips.
President Tinubu is the one that has travelled the most. He has spent 124 days abroad across 29 trips to 16 countries. Most recently, he went to France for 3 days, apparently to â enhance both countryâs relations. This was the first visit to France by a Nigerian President in over 20 years.
During the same period, the president approved âŚ3 billion for the purchase of three bulletproof Mercedes Benz S-Class 580 vehicles and 3.43 billion naira was paid for 16 Toyota Prado V6 vehicles.
In all of this, the CBN is hustling to control inflation
CBN raised the monetary policy rate to 27.50% from 27.25% in response to increasing inflation.
The rate hike addresses rising inflation in areas like food and core prices.
The Central Bank Governor, Mr Cardoso acknowledged ongoing challenges with exchange rate stability, driven by high market demand.
However, he pointed out that the Naira had remained stable since June, describing this stability as a critical factor for economic growth.
Mr. Cardoso emphasized that there is often a time lag between policy implementation and its full impact. He expects more positive impacts in the first quarter of next year's current policies.
Electricity Shortfall
Even though the Electricity Distribution Companies billed a total of 225.8 billion naira in September this year, they only got 171.58 billion naira, a collection of 75.99%. This is an almost 5% drop to the previous month. They say its due to inefficiencies in revenue collection, but I bet its because people are tired of their bullshit now and more people are going off the grid.
Nigeria hates pensioners
Unpaid pensions
Pensioners under the Contributory Pension Scheme are frustrated because the government has refused to pay their pensions. Despite a peaceful rally and assurances from the minister of finance, Wale Edun, their pensions remain unpaid.
They are also calling for unpaid pension increments of 15%, 33% and 28% from 2007, 2010, and 2024 respectively.
Pensioners across the country plan to occupy the Ministry of Finance starting December 16, 2024.
They also asked the government to demand a state of emergency to address the pension scheme challenges.
The federal governmentâs response? has come out to say pensioners will be paid based on the availability of funds. Nawa.
Meanwhile, Note: Ministry of Labour and Employment does NOT create jobs
The Minister of Labour and Employment, Muhammadu Dingyadi says Nigerians expecting his ministry to provide jobs would be disappointed because that is not part of its mandate.
The minister says the role of his office is to foster an environment conducive to job growth, rather than directly providing employment.
He explained that job creation is part of broader national strategies, such as the Renewed Hope Agenda, which focuses on sustainable investment and improved productivity.
Additionally, he highlighted the President's ongoing reforms aimed at economic transformation.
Petrol progress
Dangote Refinery
The Dangote Petroleum Refinery says it has reduced the price of its petrol from N990 per liter to N970/liter.
According to a statement by Anthony Chiejina, Dangote Group Chief Branding Officer, the price cut is a gesture to thank Nigerians for their support in making the refinery a success.
Chiejina reassured that the quality of their petroleum products will remain high, sustainable, and environmentally friendly.
Port Harcourt Refinery
After a year and at least seven missed deadlines, the NNPC said it had finally activated the 60,000 petrol barrels (200 trucks) per day phase one of the Port Harcourt refineries. The facility is also producing gasoline, fuel oil, diesel and kerosene.
The refineryâs rehabilitation began in 2021 with a $1.5 billion contract, aimed to restore its full capacity of 210,000 bpd. They intend to hit the full capacity during phase 2 and 3 of the facilityâs activation.
The Port Harcourt Refinery sells at N1,045 per litre higher than Dangoteâs price. NNPC says theyâre working to reduce the high price.
However, nobody trusts these NNPCL guys so word on the street is that the recently loaded petrol is not newly refined but stored for years.
Ongoing see finish
150 Nigerians have been deported from Liberia. Recall that this beef started when the Nigerian football team refused to play football because of how the country treated them. Since then, there have been rumors of targeted harassment against Nigerians, although the ministry of foreign affairs has denied them.
Insecurity
Simon Ekpa has been arrested
Biafra agitator, Simon Ekpa was arrested in Finland for promoting separatism and inciting violence in Nigeriaâs southeast.
Ekpa, a Nigerian-Finnish citizen, allegedly used social media to spread separatist propaganda, causing disruptions in Nigeria's Southeast.
Finland authorities linked him to violence in Nigeria and charged him with incitement.
Nigeria exerted diplomatic pressure on Finland to act against Ekpa.
The Enugu State Government welcomed his arrest, labelling him a fraudster and murderer responsible for Southeast instability.
Doctor who raped a minor has been released
The court of Appeal has nullified the conviction of Olufemi Olaleye, a doctor who was arrested for raping a minor.
When he was arrested, the evidence against Olufemi Olaleye was extremely damning; he was fund guilty of raping his wifeâs 17-year-old niece who lived in his house and sentenced to life in prison.
The court of appeal has now ruled the prosecution lacked âcredible evidenceâ and the court relied on tainted testimonies.
Justice Oshodi initially convicted Olaleye in October 2023 based on alleged confessions, Olaleyeâs wifeâs testimony and the survivor's testimony.
Olaleyeâs lawyer appealed, citing inconsistencies in the trial courtâs judgment. So now he is out.
Investigative journalist arrested by the army
Journalist Fisayo Soyombo was arrested by the Nigerian Army at an illegal oil bunkering site in Port Harcourt
The Nigerian Army confirmed the arrest of journalist Fisayo Soyombo at an illegal oil bunkering site after the Foundation for Investigative Journalism (FIJ) disclosed Soyombo's three-day detention.
Lieutenant Colonel Danjuma Danjuma of the 6 Division Army stated the arrest followed intelligence on oil theft and pipeline sabotage
The Army emphasized its ongoing efforts against illegal oil bunkering, citing recent successes in such operations.
Soyombo was released three days after his arrest following intense public and media advocacy
Soyomboâs recounts said that the army was uncorporative and there was no telling how long they would have kept him if concerned citizens on social media had not taken it personally. So shout out to you, Twitter user.
Anambra Sit-at-home Problem
The Monday sit-at-home in Anambra State has intensified following recent attacks across the state. In response, private and mission schools that had been operating on Mondays have suspended classes until further notice.
SS3 students in Anambra will attend special lessons on Mondays and Saturdays, without uniforms, due to security concerns.
The directive followed threats from unidentified individuals targeting schools and buses operating on Mondays.
Commercial activities were disrupted, with Awka traders closing shops after reports of potential gunmen attacks.
The Anambra Innovation Week experienced low turnout, with normal participation expected from Tuesday.
Gunmen attacked vigilante officers in Aguata LGA, injuring one and burning a vehicle; police increased patrols to address the situation.
Police responded to a fire in Okpoko, secured the area, and initiated investigations.
Other news
Yahaya Bello, the former governor of Kogi State, has finally been arrested by the EFCC over allegations of money laundering, breach of trust, and the misappropriation of N80.2 billion - Arise
After two weeks of fraught negotiations at the UN climate summit (COP29) in Baku, Azerbaijan, delegates decided the new goal to support developing countries fight against climate change is at least $300 billion annually by 2035, triple the amount of the previous target - World Resources Institute
Dr Eric Odo, Chairman, Igbo-Etiti Local Government Area of Enugu State, has vowed to arrest parents of any child hawking goods during school hours - Daily Trust