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Government

Yobe State Clears Gratuities Backlog with ₦15.4bn Payout to Retirees

  • dollaers
  • January 15, 2026
  • Finance, Government
  • 0 comments

The Yobe State Government has announced that it has fully cleared outstanding gratuity obligations owed to retirees of both the state and local governments, spending a total of ₦15.4 billion to offset arrears accumulated over several years.

The disclosure was made on Wednesday in Damaturu by the Secretary to the State Government (SSG), Alhaji Baba Wali, during a press briefing marking six years of the administration of Governor Mai Mala Buni.

According to Wali, the payments have eliminated all gratuity liabilities, providing long-awaited relief to retired public servants across the state. He described the clearance of the backlog as a major social intervention by the administration, aimed at restoring dignity and financial stability to retirees who had waited years for their entitlements.

Security, jobs, and capacity building

Beyond gratuity payments, the SSG outlined several interventions undertaken by the state since 2019. On security, he said the government had procured 250 operational vehicles and 500 motorcycles for security agencies, while more than 300 patrol and specialised vehicles were rehabilitated. In addition, over 2,000 vigilantes, hunters, and hybrid force operatives were engaged to complement formal security operations across the state.

In employment and human capital development, Wali disclosed that the government had recruited 6,449 workers and organised about 35 training programmes for more than 6,395 civil servants. He added that over 26,000 teachers had been trained or retrained, while more than 4,000 teaching and non-teaching staff were recruited into primary and secondary schools statewide.

Infrastructure and social services

On infrastructure, the SSG said approximately 500 kilometres of roads had either been completed or were ongoing. Key projects include the Geidam–Bukarti, Damagum–Gubana, Nguru–Bulanguwa, and Fika–Maluri roads.

He also revealed that the ₦22 billion flyover and underpass project in Damaturu, being executed by Triacta Nigeria Limited, is expected to be delivered in the first quarter of 2026.

In the education sector, Wali said the administration constructed six model schools, seven mega schools, nine girls’ secondary schools, and eight co-educational secondary schools. He added that the government continues to pay WAEC, NECO, and NABTEB registration fees for all students in the state.

Healthcare interventions include the construction or rehabilitation of Primary Healthcare Centres in 140 of the state’s 178 wards, the procurement of 88 tricycle ambulances, and the enrolment of over 300,000 residents into the state health insurance scheme. He also said drugs worth ₦2.3 billion were supplied to the Yobe Drugs and Medical Consumable Management Agency.

On transportation and power, the SSG noted that the state acquired 20 buses for the Yobe Transport Corporation, sold over 100 vehicles at subsidised rates, electrified 25 villages, extended power to more than 200 locations, and ensured 24-hour electricity in all general hospitals.

What you should know

Yobe State’s clearance of gratuity arrears and infrastructure investments build on broader development efforts. In 2024, the African Development Bank approved a $50 million loan for the Yobe State Environmental and Climate Change Action Project (ECCAP), part of a $101.34 million programme to address climate vulnerabilities, improve food security, and enhance livelihoods for over 3.5 million residents. The project also received $30 million co-financing from the Arab Bank for Economic Development in Africa.

In April 2025, the Federal Government commissioned the first phase of a 400-kilowatt solar power plant at the Yobe State University Teaching Hospital in Damaturu under the Renewed Hope Agenda, a move expected to cut power costs, reduce outages, and improve healthcare delivery.

Overall, the state government says the clearance of gratuity arrears underscores its commitment to fiscal responsibility, social welfare, and long-term development.

Senator Says Fuel Subsidy Removal Is Saving Nigeria Over N10 Trillion Every Year

  • dollaers
  • January 4, 2026
  • Government
  • 0 comments

Nigeria is saving more than ₦10 trillion annually following the removal of fuel subsidies, a move Senator Solomon Adeola has described as one of the most consequential economic reforms undertaken by the administration of President Bola Ahmed Tinubu.

The chairman of the Senate Committee on Appropriation made the disclosure over the weekend in Ogun State, where he defended the controversial policy and argued that it has significantly eased the country’s fiscal burden after decades of what he called wasteful public spending.

According to Senator Solomon Adeola, the fuel subsidy regime had for years acted as a major drain on Nigeria’s finances, benefiting only a narrow segment of the population while forcing the government to borrow heavily to keep petrol prices artificially low. He said the decision by President Tinubu to discontinue the subsidy marked a turning point in the nation’s economic management.

“I am a living testimony to what the president has done within his first two years in office,” Adeola said. “He removed a cankerworm that has eaten deep into our economy for decades. The fuel subsidy benefited very few Nigerians, but its cost was borne by the entire country.”

Drawing from his experience as a former chairman of the Senate Committee on Finance, Adeola said Nigeria routinely borrowed between ₦6 trillion and ₦7 trillion every year just to finance fuel subsidies. When combined with other associated costs and inefficiencies, he noted, the total annual burden on public finances exceeded ₦10 trillion.

“With that singular action, the president is saving this country over ₦10 trillion on a yearly basis,” the senator stated, adding that the savings have created fiscal space for investment in critical infrastructure and other development priorities.

Adeola also praised the Tinubu administration for what he described as an aggressive push to rebuild Nigeria’s infrastructure base, arguing that the long-term benefits would outweigh the short-term pain Nigerians are experiencing as a result of higher fuel prices. He said the president remains committed to building a secure and prosperous country despite economic headwinds and widespread public criticism.

Context and background

Nigeria officially ended fuel subsidies in May 2023, shortly after President Tinubu was sworn into office. The announcement, made during his inaugural address, brought an abrupt end to decades of government intervention in petrol pricing. The policy was designed to reduce budget deficits, eliminate leakages and corruption associated with subsidy payments, and redirect scarce resources toward infrastructure, education, healthcare, and social programmes.

However, the removal of subsidies triggered a sharp increase in petrol prices nationwide, leading to higher transportation costs, rising food prices, and increased inflation. Labour unions, civil society organisations, and opposition figures criticised the move, arguing that it worsened the cost-of-living crisis for ordinary Nigerians.

Despite these concerns, Adeola maintained that the reform was unavoidable and long overdue. He argued that the previous system was unsustainable and had left the country vulnerable to debt accumulation and fiscal instability.

Infrastructure as reinvestment strategy

The senator said the federal government is channeling subsidy savings into large-scale infrastructure projects designed to stimulate economic growth and create jobs. He cited the Lagos-Calabar Coastal Highway as a flagship project that will traverse multiple states and unlock economic activity along Nigeria’s southern corridor.

He also highlighted the Sokoto-Badagry Super Highway, describing it as a transformational project that would reshape connectivity across the country. According to Adeola, the highway is expected to include up to 66 dams upon completion, supporting irrigation, power generation, and regional development.

“The Lagos–Calabar road alone will cut across about 10 to 15 states. That is a new Nigeria being built,” he said. “Along the Sokoto–Badagry corridor, we are talking about dozens of dams that will drive agriculture and development.”

What you should know

In 2024, the presidency disclosed that Nigeria is saving about $7.5 billion annually from funds previously allocated to fuel subsidies. The disclosure was made by Sunday Dare, Special Adviser on Media and Public Communications to President Tinubu.

Meanwhile, projections by the Federal Ministry of Finance under the Accelerated Stabilisation and Advancement Plan (ASAP), presented by Wale Edun, showed that fuel subsidy spending could have reached ₦5.4 trillion in 2024, compared with ₦3.6 trillion budgeted in 2023, had the policy not been scrapped.

Overall, Adeola’s remarks reinforce the government’s argument that subsidy removal, while painful in the short term, is central to restoring fiscal discipline and laying the foundation for sustainable economic growth in Nigeria.

Kebbi Government Approves N650 Million Transformer Project to Curb Power Outages

  • dollaers
  • January 3, 2026
  • Government, Infrastructure
  • 0 comments

The Kebbi State Government has approved the release of N650 million for the procurement and installation of a 15-megavolt-ampere (15MVA) power transformer, in a decisive move aimed at improving electricity supply and reducing persistent power outages across the state. The intervention underscores the administration’s willingness to directly address infrastructure bottlenecks that continue to affect households, businesses, and public services.

The approval was announced in Birnin Kebbi by the Secretary to the State Government, Yakubu Bala-Tafida, during a media briefing on recent decisions taken by the state government. According to him, the transformer project is part of broader efforts by the administration of Nasir Idris to ease the economic and social hardship caused by unreliable electricity supply.

Electricity challenges have remained a recurring concern for residents of Kebbi State, with frequent outages disrupting small businesses, increasing operating costs for manufacturers and traders, and affecting the delivery of essential public services such as healthcare and water supply. Bala-Tafida noted that the new transformer is expected to significantly improve load capacity and system stability, particularly in high-demand areas of the state.

What the government is saying
While electricity distribution is the statutory responsibility of the Kaduna Electricity Distribution Company (KAEDCO), the Kebbi State Government said it deemed it necessary to intervene in the interest of its citizens.

“Although power distribution falls under the purview of KAEDCO, the Kebbi State Government considered it expedient to step in and alleviate the suffering of residents caused by persistent and epileptic power supply,” Bala-Tafida said. He explained that the decision reflects the administration’s people-centred approach, especially at a time when energy costs and operational challenges are placing pressure on local economies.

Beyond the one-off N650 million transformer project, the SSG disclosed that the state government also provides monthly financial support of N150 million to KAEDCO. This recurring intervention, he said, is intended to enhance service delivery, support maintenance activities, and ensure a more sustainable electricity supply framework within the state.

Bala-Tafida also appealed to residents to play their part by promptly paying electricity bills and avoiding illegal connections, stressing that improved cooperation between consumers, the government, and the distribution company is critical to sustaining gains in power supply. According to him, enhanced revenue collection will enable KAEDCO to invest more in network upgrades and fault resolution.

Broader development context
The transformer project fits into a wider pattern of public investment by the Kebbi State Government across key social and economic sectors. In October, the state approved N4.05 billion for the rehabilitation of seven General Hospitals, a move aimed at strengthening healthcare delivery and improving access to quality medical services across urban and rural communities.

In the education sector, the government approved N1.4 billion for the procurement of school furniture for public schools, addressing long-standing shortages that have affected learning conditions. To improve data-driven governance, an additional N900 million was approved as a take-off grant for the newly established Kebbi State Bureau of Statistics, with Umar Usman appointed as the substantive Statistician-General.

The state has also announced plans to recruit 500 additional health workers and to absorb 390 staff members previously engaged under the Global Alliance for Vaccines and Immunisation (GAVI) into the state workforce. This is particularly significant for Kebbi, which has long struggled with shortages of healthcare personnel, especially at the level of Primary Healthcare Centres.

Investment and outlook
Governor Idris has consistently linked infrastructure improvements, including power supply, to the state’s broader economic ambitions. In February 2025, he disclosed that the state had attracted over N330 billion in foreign investment targeted at boosting tourism and preserving cultural heritage. Reliable electricity, analysts note, is a critical enabler for such investments, particularly in hospitality, creative industries, and small-scale manufacturing.

By approving the N650 million transformer project and sustaining monthly support to KAEDCO, the Kebbi State Government is signalling a pragmatic approach to development—one that prioritises immediate solutions to pressing challenges while laying the groundwork for long-term economic growth. If effectively implemented, the intervention could ease power-related constraints, lower business costs, and improve overall quality of life for residents across the state.

Kano State Approves N6.9 Billion for Infrastructure, Welfare, and Institutional Reforms

  • dollaers
  • January 3, 2026
  • Government, Infrastructure
  • 0 comments

The Kano State Government has approved over N6.9 billion in fresh spending for infrastructure development, social welfare programmes, and governance-related initiatives, reinforcing its commitment to addressing critical development gaps across the state. The approvals were granted at the 36th meeting of the Kano State Executive Council, held at the Government House in Kano, and reflect a broad-based approach that combines physical infrastructure delivery with human capital development and institutional strengthening.

Briefing journalists after the meeting, the Commissioner for Information, Ibrahim Waiya, explained that the approved projects span road construction, drainage systems, water supply, education, entrepreneurship support, anti-corruption initiatives, and legislative reforms. According to him, the decisions underscore the administration’s intention to pursue inclusive development while ensuring that governance structures are modernised to support long-term growth.

A significant share of the approved funds is directed at road infrastructure and related compensation, highlighting the government’s focus on improving mobility and connectivity. The Executive Council approved N859.2 million for compensation payments to property owners affected by a five-kilometre road construction project in Tudun Wada Local Government Area. This measure is aimed at minimising social disruptions, ensuring fairness to affected residents, and enabling smooth execution of the project without prolonged disputes.

In addition, the council approved N2.6 billion for the construction of the Yandodo–Mai-Allo Road, a key transport corridor expected to enhance inter-community connectivity and support economic activity, particularly for traders and farmers who rely on efficient road networks. A further N1.2 billion was approved for the construction of a box culvert, while N896 million was allocated for the reconstruction of a failed culvert in Kiru Local Government Area, where recurring flooding has repeatedly disrupted transportation and economic life.

Urban resilience also featured prominently in the approvals. To address flooding and environmental risks, the council sanctioned N358.5 million for stormwater drainage projects in Kano Municipal. Complementing this, N85.6 million was approved for the extension of water pipelines in Gwale Local Government Area, aimed at improving access to potable water while also reducing flood-related challenges in densely populated neighbourhoods.

Beyond physical infrastructure, the Executive Council approved several initiatives targeted at education, youth empowerment, and public sector accountability. A total of N285 million was approved for classroom construction across the state, reflecting efforts to improve learning environments and accommodate growing enrolment. In addition, N431.7 million was earmarked for graduation ceremonies and empowerment programmes at the state’s Entrepreneurship Institute, reinforcing the government’s focus on skills development and job creation.

Institutional reform also received attention, with N157.7 million approved for the organisation of an anti-corruption workshop designed to strengthen transparency, ethics, and accountability within the public service. According to officials, this initiative aligns with broader efforts to improve governance standards and restore public confidence in state institutions.

On the legislative front, the council authorised the transmission of four bills to the Kano State House of Assembly. These include the Kano State Local Governments Administration Bill 2025, the Kano State Economic Planning and Development Council Bill 2025, the Kano State Education Bill 2025, and a bill to rename the Audu Bako College of Agriculture, Science and Technology, Dambatta. Collectively, the proposed laws are intended to strengthen local governance, improve planning coordination, reform the education sector, and update institutional identities.

The council also approved the implementation of the state’s Public-Private Partnership (PPP) Policy and Manual, signalling a strategic push to attract private sector participation in infrastructure delivery and public service provision.

Why this matters
The approval of over N6.9 billion highlights Kano State’s continued focus on tackling infrastructure deficits while investing in education, entrepreneurship, and governance reforms. Improved roads, drainage, and water infrastructure are expected to boost economic activity, reduce environmental risks, and enhance quality of life, particularly in rapidly growing urban and peri-urban areas.

The latest approvals also build on earlier investment decisions by the Kano State Executive Council. In previous briefings, the government announced approvals of N14.8 billion and over N69 billion for various developmental projects spanning healthcare, education, energy, and humanitarian interventions. Taken together, these cumulative investments signal a sustained and aggressive public investment posture aimed at driving holistic development across multiple sectors, even amid broader national debates on public finance and fiscal sustainability.

Governor Mbah Signs Enugu 2026 Budget into Law, Sets Ambitious N870 Billion IGR Target

  • dollaers
  • December 25, 2025
  • Budget, Government
  • 0 comments

Governor Peter Mbah has signed the Enugu State 2026 Appropriation Bill into law, formally ushering in a new fiscal year defined by aggressive revenue mobilisation, institutional reforms, and accelerated development spending. The signing ceremony took place on Wednesday at the Enugu State Government House, shortly after the bill was swiftly passed by the State House of Assembly, underscoring a rare level of alignment between the executive and legislative arms of government.

With the governor’s assent, the 2026 budget takes immediate effect, positioning it as a continuation—and deepening—of the reforms initiated by the Mbah administration since assuming office. According to the governor, the new fiscal plan is designed to consolidate earlier gains, scale up infrastructure delivery, and entrench a governance culture anchored on efficiency, accountability, and long-term sustainability.

Speaking after signing the bill, Mbah said the 2026 budget is firmly rooted in principles of inclusivity, transparency, accountability, traceability, and the strengthening of institutions to ensure that every naira of public spending delivers value to residents. He emphasised that fiscal discipline and clear performance benchmarks would guide implementation across all ministries, departments, and agencies.

Central to the 2026 fiscal framework is an ambitious Internally Generated Revenue (IGR) target of N870 billion, a figure that would represent a dramatic leap in Enugu State’s revenue profile if achieved. Mbah expressed confidence that the target is not only realistic but attainable, citing the state’s recent revenue trajectory as evidence of sustained momentum.

“Our N870 billion IGR target is realisable,” the governor said. “We grew our IGR from below N30 billion in 2023 to over N180 billion in 2024, and we are on course to close 2025 at about N400 billion. With discipline, creativity, and hard work, we will not only achieve but overshoot N800 billion in 2026.”

He added that the administration’s strategy is focused on unlocking multiple streams of economic potential across Enugu State, ranging from infrastructure-led growth and investment attraction to reforms in land administration, taxation, and public service delivery. According to Mbah, these efforts will significantly reduce the state’s dependence on monthly allocations from the Federation Account Allocation Committee (FAAC).

Providing further context, the governor explained that the projected IGR would dwarf expected federal allocations, which he estimated would account for just 27 to 28 per cent of total revenue in 2026. “If we stay the course and realise this projected revenue, we can effectively govern Enugu State without recourse to FAAC. In that scenario, FAAC becomes savings for the future,” he stated.

Mbah, however, cautioned that meeting the IGR target would demand exceptional commitment from political appointees and public servants. He urged officials to abandon the mindset of prolonged festive breaks and adopt a results-driven approach to governance. “Generating over N800 billion means raising more than N70 billion monthly, over N18 billion weekly, and more than N2.5 billion daily. We do not have the luxury of wasting even one day,” he said, stressing that the administration is prepared to make short-term sacrifices in pursuit of long-term prosperity.

On the legislative side, Speaker of the Enugu State House of Assembly Enugu State House of Assembly, Uchenna Ugwu, praised the collaborative relationship between the executive and legislature, noting that early engagement and shared priorities made the budget process smooth and people-centred. He assured residents that the Assembly would rigorously exercise its oversight function to ensure faithful implementation.

Ugwu disclosed that the 2026 budget makes provisions for major infrastructure and social investment projects, including extensive road construction, a 135.5-kilometre rail project, the acquisition of additional aircraft, new transport terminals, smart secondary schools, and the completion of 260 farm estates across the state. These projects, he said, are expected to stimulate economic activity, create jobs, and improve living standards.

Earlier in the month, Governor Mbah had presented the appropriation bill to lawmakers, describing it as the “Budget of Renewed Momentum.” The proposal represents a 66.5 per cent increase over the N971 billion budget for 2025, reflecting the administration’s shift toward a more expansionary fiscal stance aimed at fast-tracking development.

With the 2026 budget now signed into law, implementation begins immediately, placing Enugu State on a bold fiscal path that prioritises self-reliance, accelerated growth, and the transformation of public finance management at the subnational level.

2025 Budget: FG Beats EMTL Revenue Target by ₦88.73bn as Electronic Transactions Surge

  • dollaers
  • December 19, 2025
  • Finance, Government
  • 0 comments

Nigeria’s rapid shift toward digital payments has delivered a major revenue boost to the Federal Government, helping it exceed its Electronic Money Transfer Levy (EMTL) target by ₦88.73 billion at the half-year point of the 2025 fiscal year. The strong performance underscores the growing importance of electronic transactions as a reliable non-oil revenue source amid persistent weakness in oil receipts.

The figures are contained in the Federal Government’s newly released 2025–2027 Medium Term Expenditure Framework (MTEF), published by the Budget Office of the Federation. The document shows that EMTL collections significantly outperformed expectations, helping to bolster non-oil revenue and partially offset the impact of underwhelming oil earnings.

What the data shows

Based on the EMTL’s full-year revenue projection of ₦230 billion, the Federal Government had expected to generate about ₦134.17 billion by mid-year 2025. Instead, actual collections surged to ₦222.90 billion, representing an outperformance of ₦88.73 billion or 66.1 percent above target.

This sharp rise reflects the increasing volume and value of electronic transactions carried out by Nigerians, as cashless payments continue to gain traction across households and businesses.

Overall, non-oil revenue performance during the period was mixed. Corporate Income Tax (CIT) collections came in at ₦5.86 trillion, slightly exceeding the prorated projection of ₦5.44 trillion. This represents a 7.6 percent overperformance, suggesting some resilience among corporate taxpayers despite broader economic challenges.

Value-Added Tax (VAT) delivered an even stronger showing. VAT receipts reached ₦4.82 trillion by mid-year, surpassing the half-year target by ₦439.22 billion, or roughly 10 percent. The performance reflects improved compliance, higher transaction volumes, and the spillover effects of increased digital payments.

However, despite the strong showing from EMTL, VAT, and CIT, net non-oil revenue told a less encouraging story. Including receipts from solid minerals, total non-oil revenue stood at ₦12.14 trillion by June 2025, falling short of projections by ₦1.81 trillion, a gap of about 13 percent. The shortfall highlights ongoing structural weaknesses in tax collection and subdued economic activity in segments outside the formal and digitally enabled economy.

Oil revenue remains a major drag

Oil and gas revenue performance continued to disappoint, placing additional strain on government finances. Gross oil and gas revenue for 2025 was projected at ₦51.04 trillion. By July 2025, however, only ₦11.17 trillion had been realised, compared with a prorated target of ₦29.78 trillion. This translates to a performance rate of just 37.5 percent.

The weak showing reflects a combination of factors, including lower-than-expected crude oil production, price volatility in global markets, and limited refining margins. After statutory deductions—such as the 13 percent derivation for oil-producing states and other first-line charges—net inflows into the Federation Account stood at ₦9.61 trillion. This was ₦15.78 trillion, or 62.2 percent, below the half-year target.

The magnitude of the oil revenue shortfall has intensified pressure on non-oil revenue streams, making the strong EMTL performance particularly significant for fiscal stability.

Why EMTL is outperforming

The 66.1 percent outperformance of the EMTL line reflects the deepening penetration of digital financial services across Nigeria’s economy. More Nigerians are relying on mobile banking, instant transfers, and electronic payment platforms for everyday transactions.

Data from the Nigeria Inter-Bank Settlement System (NIBSS) shows that Nigerians spent ₦284.9 trillion electronically in the first quarter of 2025 alone. This represents a 22 percent increase from the ₦234.4 trillion recorded in the same period of 2024.

The growth was driven largely by the NIBSS Instant Payment (NIP) platform, an account-number-based, real-time interbank payment solution launched in 2011. The NIP system facilitates transactions across multiple channels, including internet banking, mobile applications, USSD, point-of-sale terminals, and automated teller machines.

The bigger picture

The strong EMTL performance highlights the Federal Government’s growing reliance on digitally driven revenue sources as oil earnings continue to underperform. While electronic transactions are providing a much-needed cushion, analysts note that sustainable fiscal stability will require broader improvements in non-oil tax efficiency, economic diversification, and oil sector reforms to address persistent revenue leakages.

Ebonyi Governor Approves ₦150,000 Christmas Bonus for Civil Servants, Reaffirms Commitment to Workers’ Welfare

  • dollaers
  • December 15, 2025
  • Government
  • 0 comments

The Governor of Ebonyi State, Francis Ogbonna Nwifuru, has announced the approval of a ₦150,000 Christmas bonus for all categories of civil servants in the state, a gesture aimed at easing the financial pressures faced by workers during the festive season and reinforcing his administration’s commitment to staff welfare.

The announcement was made on Sunday during a church service held at the Government House Chapel in Abakaliki, the state capital. Addressing congregants that included senior government officials, civil servants, and other public stakeholders, Governor Nwifuru disclosed that the bonus would be paid across board to workers in the state’s civil service, with no exclusions, ahead of the Christmas celebrations.

According to the governor, the decision was taken despite the fiscal constraints confronting the state, underscoring his administration’s resolve to prioritize the wellbeing of public servants even in challenging economic times. He acknowledged that Ebonyi State, like many other subnational governments in Nigeria, has faced modest revenue inflows over the past year amid broader macroeconomic headwinds, including high inflation, currency volatility, and rising costs of governance.

Nevertheless, Governor Nwifuru said his government believes that civil servants remain the backbone of public administration and service delivery, and therefore deserve tangible support, particularly during periods of heightened household spending such as the Christmas season.

“This administration remains committed to the welfare of our workers,” the governor said in remarks released after the service. “Even with limited resources, we must find ways to support those who keep the state running. Our workers deserve to feel valued, especially at a time like this when economic pressures are affecting families across the country.”

The announcement has drawn attention given the prevailing economic climate, where many Nigerian states are struggling to balance budgets amid declining real revenues and increasing expenditure demands. Christmas bonuses, which were once a regular feature of public service compensation in some states, have become less consistent in recent years as governments grapple with debt obligations, salary backlogs, and competing development priorities.

Against this backdrop, Ebonyi’s decision to grant a uniform ₦150,000 bonus to civil servants is being viewed as a notable welfare intervention, particularly for lower- and mid-level workers who are most vulnerable to rising living costs.

Beyond the bonus, Governor Nwifuru also used the occasion to address political developments in the state, specifically the forthcoming local government elections. He pledged that the electoral process would be transparent, competitive, and free from undue influence by the executive arm of government.

The governor stated unequivocally that he has no preferred candidates and has not endorsed any aspirant for chairmanship or councillorship positions ahead of the polls. According to him, democracy at the grassroots level can only be strengthened when the will of the people is allowed to prevail without interference.

“The will of the people must prevail,” he said. “The people must choose their representatives freely, without pressure or interference from any quarter.”

He further reiterated an earlier directive requiring political appointees who intend to contest in the local government elections to resign their positions in line with existing electoral laws and guidelines. Governor Nwifuru emphasized that adherence to due process is non-negotiable and that his administration would not bend the rules for any individual or group.

“It is not my responsibility to pick chairmen for local government areas,” he stated. “If you are an appointee and you want to contest, you must resign, as the law requires.”

The governor’s comments appear designed to send a dual message: reassurance to civil servants that their welfare remains a priority, and assurance to political stakeholders that the state government is committed to fairness, transparency, and the rule of law in the conduct of local elections.

As the year draws to a close, the ₦150,000 Christmas bonus and the governor’s electoral assurances are likely to shape public perception of the Nwifuru administration. While the immediate financial relief will be welcomed by workers, observers will be watching closely to see how these commitments translate into sustained confidence, improved morale within the civil service, and credible democratic processes at the local government level.

FG to Forfeit ₦1.4 Trillion in 2026 as Corporate Income Tax Is Cut to Spur Economic Growth — Oyedele

  • dollaers
  • December 13, 2025
  • Government
  • 0 comments

The Federal Government is set to forgo an estimated ₦1.4 trillion in revenue in 2026 following its decision to reduce the corporate income tax (CIT) rate from 30 per cent to 25 per cent, a move that sits at the heart of Nigeria’s newly consolidated tax reform framework. The disclosure was made by Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, during a media workshop on the new tax laws held on Friday.

According to Oyedele, the decision to lower the CIT rate is a deliberate policy choice aimed at stimulating economic growth rather than an attempt to introduce new taxes or impose additional burdens on businesses. He explained that data from the Federal Inland Revenue Service (FIRS) shows that corporate income tax collections amounted to about ₦8.6 trillion in 2024. A five-percentage-point reduction from the current 30 per cent rate, he said, would mathematically translate to approximately ₦1.4 trillion in revenue that the government would effectively give up annually.

“If you do the maths, taking away five per cent out of 30 per cent translates to around ₦1.4 trillion. So this is government giving ₦1.4 trillion to businesses next year,” Oyedele said, framing the move as a form of indirect support to the private sector.

He stressed that the reforms are built on the principle that sustainable government revenue cannot be achieved by simply increasing tax rates, but by expanding the size of the economy. According to him, an economy that is growing creates jobs, supports profitable businesses, and ultimately broadens the tax base in a more sustainable way. In contrast, excessive taxation in a weak economy only discourages investment and deepens stagnation.

“The fastest and most sustainable way to generate revenue is to allow the economy to grow,” Oyedele explained. “If I’m unemployed, you can have the best personal income tax law in the world, but you can’t collect tax from me.” He added that the new tax laws are designed to remove structural bottlenecks, lower the cost of doing business, and encourage compliance, rather than relying on higher rates to boost collections.

Beyond the reduction in corporate income tax, Oyedele noted that businesses are expected to gain additional benefits from significant changes to the Value Added Tax (VAT) regime, which will come into effect from January 2026. Under the revised framework, companies across multiple sectors will be able to claim input VAT credits on assets, overheads, and services—items that were previously excluded under the old law.

“You’ve never been able to claim any input credits for VAT because the law says you can’t,” he said. “From January next year, you become eligible to claim input credits. Like you will get money in your bank accounts.” These new credits will be in addition to existing input VAT claims on inventory, which will continue under the new system.

Oyedele illustrated the potential impact of the VAT changes using the example of bread production. Currently, bread is VAT-exempt, meaning bakers do not charge VAT on sales but also cannot recover VAT paid on inputs such as sugar, butter, machinery, vehicles, and utilities. These unrecoverable VAT costs are often embedded in the final price of bread, making it more expensive for consumers.

Under the new framework, bread will be zero-rated rather than exempt. This allows producers to charge VAT at zero per cent while still claiming refunds on VAT paid on their inputs. According to Oyedele, this shift will lower production costs and, in theory, reduce prices for consumers. He added that the same zero-rating approach will apply to essential sectors such as food, education, and healthcare, which are critical to household welfare.

While acknowledging that the reforms will reduce government revenue in the short term, Oyedele insisted that the trade-off is intentional. The expectation, he said, is that improved business conditions, lower operating costs, and stronger economic growth will ultimately lead to higher and more sustainable tax revenues over time.

Nigeria is currently implementing one of its most comprehensive tax overhauls in decades, with the main provisions of four new tax reform acts scheduled to take effect on January 1, 2026. The reforms are designed to simplify the tax system, broaden the tax base, and introduce far-reaching changes for both individuals and businesses. To ensure effective implementation, President Bola Tinubu has approved the establishment of the National Tax Policy Implementation Committee, which will be chaired by renowned tax expert Mr. Joseph Tegbe.

Peter Obi Criticises Federal Government Over Non-Payment of Contractors Despite Revenue Boom

  • dollaers
  • December 12, 2025
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Former presidential candidate and former Anambra State Governor, Peter Obi, has sharply criticised the Federal Government for failing to pay contractors who executed federally approved projects, even as the government continues to tout impressive revenue gains for 2025. Obi made the remarks in a detailed statement posted on X (formerly Twitter), responding to fresh protests by contractors across Abuja and several other parts of the country.

The protests, which have intensified in recent weeks, stem from months of mounting frustration among local contractors whose payments for verified and completed projects in 2024 and 2025 remain outstanding. Many of these contractors claim that they fulfilled all contractual obligations, only to be stalled by federal bureaucracies despite repeated assurances of forthcoming payments. As the demonstrations continue, Obi has positioned the issue as both an economic and governance failure.

Obi’s Concerns and Criticisms

In his statement, Obi described the plight of local contractors—especially small and medium-sized enterprises (SMEs)—as alarming and unacceptable. He emphasised that many of the contractors currently protesting represent everyday Nigerians who rely on government contracts to survive, retain employees, and keep local economies functioning.

He noted that several images and reports circulating online show contractors demonstrating at key federal institutions, demanding payment for work that has already been certified as completed. According to Obi, the unfolding events underscore a pattern of disregard for the economic wellbeing of SMEs, which he described as “the backbone of regional development.”

“Most of these contractors are small and medium-sized businesses that are essential to the economy in various regions, comprising ordinary Nigerians who have delivered vital public services with the expectation that the government would honour its commitments,” Obi said.

He further expressed concern that the protests were occurring in the same period that the government has repeatedly announced strong revenue performance. He recalled President Bola Tinubu’s public declaration in August that Nigeria had “met and surpassed its revenue target for the year,” a claim widely circulated by government officials and state media.

According to Obi, such declarations create a contradiction when the same government fails to meet basic financial obligations. He argued that the disparity raises deeper questions about transparency, prudence, and accountability in Nigeria’s public finance management.

“A responsible government cannot claim record revenue while simultaneously leaving thousands of contractors unpaid. This contradiction highlights deeper issues related to transparency in our public finance management and governance,” he added.

Broader Economic Impact

Beyond the governance concerns, Obi warned that the non-payment of contractors carries long-term economic risks. Many affected businesses, he noted, are already struggling with rising operational costs, inflationary pressures, and reduced access to credit. Delayed payments could force contractors to lay off workers, suspend operations, or shut down entirely—outcomes that could directly reduce Nigeria’s productive capacity.

He stressed that unpaid obligations ripple across families and communities: workers lose salaries, small suppliers lose revenue, and regional economies slow down. According to him, no government that neglects local businesses can build a strong and sustainable economy.

He called on the Federal Government to convert its improved revenue performance into concrete economic support by promptly settling outstanding contractor payments and strengthening the micro, small, and medium-sized enterprise (MSME) ecosystem. Honour, credibility, and trust in governance, he said, rest heavily on fulfilling financial commitments.

Context and Background

Contractors—particularly members of the All Indigenous Contractors Association of Nigeria (AICAN)—have been protesting intermittently for months. Demonstrations have taken place at the Federal Ministry of Finance, the National Assembly, and other strategic locations. AICAN earlier threatened a nationwide protest beginning November 3 over what it described as “long-overdue payments” for projects, some of which had even been commissioned without settling contractors.

In June, the Federal Government announced plans to clear verified outstanding payments. The Office of the Accountant General confirmed ongoing efforts to reconcile and settle approved obligations. The Nigerian Senate also approved a second extension of the 2024 capital budget implementation deadline, shifting it from June 30, 2025, to December 31, 2025—an extension meant to allow for proper funding and execution of capital projects.

Despite these steps, many contractors say payments remain elusive, fueling public criticism and reinforcing Obi’s position that Nigeria’s fiscal management still suffers from systemic gaps.

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