Connect with us

News

VAT Hike Will Worsen Unemployment, Poverty- ABCON

Published

on

Kindly share this post

Association of Bureaux De Change Operators (ABCON) has warned against the proposed increase in Value Added Tax (VAT) to 7.2 per cent from five per cent.

 

The group insisted that the increase would accentuate unemployment and promote poverty in the country.

 

The group gave the warning at a forum it tagged:  ABCON Quarterly Economic Review for Third Quarter (Q3). It faulted the move to expand the VAT net and hike it, arguing that it was a conflicting strategy.

 

“The immediate implication is that every Nigerian will either directly or indirectly be affected by the whopping 50 per cent increase in VAT. The average VAT collection in the past six  years is about N900 billion. The revenue is shared 15 per cent to the Federal Government, 50 per cent to states and 35 per cent to LGs net of four per cent cost of collection to Federal Inland Revenue Service (FIRS).

 

“But beyond the revenue increase of about 50 per cent, there will be other attendant consequences, such as higher inflation rate, interest rate hike, more unemployment and people will generally become poorer.

 

“It will increase the burden on the poor and SMEs contrary to the 2017 National Tax Policy. We also believe that  seeking to expand the VAT net while also increasing VAT rate at the same time is a conflicting strategy.

 

“Instead ABCON review is of the opinion that the system can generate twice as much from VAT at current rate by expanding the scope of threshold and ensuring a robust administration rather than by increasing rate. A review of VAT waivers, better policing of the border to improve import VAT collection, framework for VAT on imported services and digital economy.”

 

The group also called for a downward review of the cash processing fees introduced by the Central Bank of Nigeria (CBN) under the cashless policy.

 

It stressed that though  the objective of the policy is laudable, the cash processing fees will  have severe impact on small businesses across the country.

 

“The policy  stipulates three per cent processing fees for withdrawals and two per cent processing fees for lodgments of amounts above N500,000 for individual accounts while corporate accounts would attract five per cent processing fees for withdrawals and three per cent processing fees for lodgments of amounts above N3,000,000.

 

“While the objectives of the policy are quite laudable and developmental in nature, a major observation is the consequent effect on small and medium scale business circles in Nigeria where business confidence is still largely low. Because of this,  a good volume of businesses are still largely in cash especially in the rural areas. Thus due to the likely negative effects in this critical segment of the economy,  we have recommended a lower processing fees  of between 0.5per cent to 0.75 per cent and one per cent to 1.25per cent for individual and business account holders.

 

“The impact on the general economic performance and compliance to cashless policy would be observed and analysed for further amendments.”

 

The group expressed concern over the rising level of the nation’s public debt, calling on the Federal Government to exercise caution and reduction in the public debt.

 

In its review of the BDC subsector in Q3, the group urged BDC operators to develop strategies for attracting autonomous foreign exchange as well as for boosting inter-BDC trade  so as to reduce dependence on CBN intervention.

 

“As business confidence increases within the BDC sub-sector, traders should improve on strategies to attract autonomous foreign exchange sources as against rigid concentration of CBN intervention funds,” the group said.


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

News

Nigeria Spends $470m on AI-powered Surveillance Devices- Report

Published

on

Kindly share this post

Nigeria has emerged as the largest investor in artificial intelligence-driven surveillance systems on the continent, committing over $470 million to advanced monitoring technologies, according to a new report.

Nigeria Spends $470m on AI-powered Surveillance Devices- Report

Pic credit…bokysee.com

The study found that Nigeria, alongside 10 other African countries, has collectively spent no less than $2.1 billion on AI-powered surveillance infrastructure.

AI-powered surveillance devices represent a significant shift from passive recording to active, real-time monitoring and threat detection

The study, described as the most comprehensive account of smart city surveillance in Africa, examined deployments in Algeria, Egypt, Kenya, Mauritius, Mozambique, Nigeria, Rwanda, Senegal, Uganda, Zambia and Zimbabwe.

These investments include facial recognition systems and automatic number plate recognition tools aimed at strengthening security and urban monitoring.

The report, titled “Smart City Surveillance in Africa: Mapping Chinese AI Surveillance Across 11 Countries,” was produced by the Institute of Development Studies and released in March 2026.

It highlights Nigeria’s position at the forefront of adopting smart surveillance technologies, reflecting a broader trend across Africa where governments are increasingly turning to AI solutions to address security challenges and improve urban management.

“This level of expenditure translates into an average spend in the region of $240m per country.

“Nigeria alone has documented public expenditure of $470m AI-enabled facial recognition and ANPR, making it the continent’s largest buyer of smart city surveillance technologies,” the report stated.

“In all cases, we know that the real total is significantly higher because surveillance spending is often secret; no figures were available for two of the 11 countries studied; the public accounts for the other nine countries were incomplete; and this study included only 11 of Africa’s 55 countries,” the researchers noted.

The report said most of the surveillance infrastructure deployed across the countries was supplied by Chinese firms and financed through soft loans from Chinese banks.

“The Chinese safe city surveillance package is typically financed by soft loans from Chinese banks.

“A typical package involves a loan of $250m from Eximbank tied to the purchase of surveillance cameras from Hikvision and a command and control centre built and serviced by Huawei or ZTE,” it said.

The report explained that the packages usually include thousands of smart closed-circuit television cameras capable of transmitting geo-located facial recognition and vehicle number plate data in real time.

“The Chinese safe city package typically includes installing thousands of smart CCTV surveillance cameras, which transmit geo-located facial recognition and car number plate data in real time for analysis using artificial intelligence at dedicated data centres that serve as command and control facilities for police and security operatives,” the report added.

The study further revealed that China supplied smart city surveillance technologies to all 11 countries reviewed, while South Korea and Russia supplied three countries each, and the United Arab Emirates supplied two.

It added that the actual spending across the region could be significantly higher due to secrecy around surveillance budgets and incomplete public financial records.


Kindly share this post
Continue Reading

News

Metaverse Collapses, Horizon Worlds Shuts Down on Quest

Published

on

Kindly share this post

The metaverse, championed by Meta (formerly Facebook) in 2021, has largely collapsed due to low user adoption, technical limitations, and massive financial losses exceeding $80 billion.

Metaverse Collapses, Horizon Worlds Shuts Down on Quest

Mark Zuckerberg

Meta is shutting down its flagship VR platform, Horizon Worlds, in June 2026, marking a major shift toward AI and mobile-first strategies.

The app will be removed from the Quest store on March 31 and discontinued in VR by June 15, continuing only as a mobile service.

Horizon Worlds, launched in 2021, was central to Meta’s rebranding from Facebook and its vision of a fully immersive virtual environment.

Despite billions in investment and high-profile partnerships, the platform failed to attract a large user base and struggled with design limitations and weak engagement.

Reality Labs, the division behind the metaverse push, has accumulated nearly$80 billion in losses since 2020, including more than$6 billion in a single quarter.

Recent layoffs affecting around 10 percent of the VR workforce, along with the shutdown of related projects, underscore a broader pullback.

Competition and shifting priorities have accelerated the decline.

Rival platforms such as VRChat maintained stronger communities, while Meta increasingly redirected resources toward AI and hardware, including its Ray-Ban smart glasses.

Although Meta says it remains committed to VR, the closure of Horizon Worlds signals a strategic reset.

The company is repositioning its future around AI-driven products, marking a decisive shift away from its earlier metaverse vision.


Kindly share this post
Continue Reading

News

FG Plans New HIV Prevention Injection in 8 States, FCT

Published

on

Kindly share this post

Federal government has commenced is to roll out a new long-acting HIV prevention drug, Lenacapavir, in selected states as part of efforts to reduce new infections and end AIDS as a public health threat by 2030.

FG Plans New HIV Prevention Injection in 8 States, FCT

Dr Iziaq Salako, minister of State for Health and Social Welfare, who disclosed this during a media briefing in Abuja, on Monday said the injectable drug will be deployed in eight states and the FCT.

The states are Anambra, Ebonyi, Gombe, Kwara, Akwa Ibom, Cross River and Benue.

Lenacapavir, a twice-yearly injectable pre-exposure prophylaxis (PrEP), is designed for HIV-negative individuals at substantial risk of infection.

Dr Salako said its introduction marks a significant shift from daily oral prevention options, particularly for individuals who struggle with adherence.

The Minister explained that Nigeria’s adoption of the drug followed its selection by the Global Fund as one of nine early adopter countries, after expressing interest in 2025.

He further said about 52,000 doses have already been secured to support the initial phase, with the first batch delivered and preparations underway for facility-level deployment.

He, however, stressed that the drug is strictly preventive and not a treatment for people living with HIV, warning against misconceptions that could encourage risky behaviour.

“This is not a cure or a licence for unsafe practices. It is an additional layer of protection for those at higher risk,” he said.

The minister explained that the rollout would begin on a controlled scale to allow close monitoring of safety outcomes and effectiveness before expanding nationwide.

He noted that implementation would be guided by the National Pre-Exposure Prophylaxis Implementation Plan covering 2025 to 2028, with focus on service delivery, supply chain management, financing and community engagement.

Adebobola Bashorun, national coordinator of the National AIDS, Viral Hepatitis and Sexually Transmitted Infections Control Programme, said the rollout strategy was informed by data and stakeholder collaboration.

He added that the injectable would complement, not replace, existing prevention methods such as oral PrEP and other long-acting options.

According to him, early observations show minimal side effects, mostly mild pain at the injection site.

Dr Temitope Ilori, director-general, National Agency for the Control of AIDS, described the development as a major boost to HIV prevention strategy, especially among high-risk populations.

She cautioned that the drug does not protect against other sexually transmitted infections or unintended pregnancies and is not recommended for pregnant women.

Similarly, Charles Nzelu, director of Public Health, said the innovation could significantly improve adherence to prevention programmes, given its twice-yearly dosage, but emphasised the need to sustain other preventive measures.

International partners also expressed support for the initiative while Josephine Aseme, chairperson of the Nigeria Key Population Health and Rights Network, described the injectable as long-awaited and potentially transformative for vulnerable groups.

 

 


Kindly share this post
Continue Reading

Trending