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CSOs Asks FG Not Hike VAT, Says It Will Increase Poverty

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Civil Society Organizations (CSOs) have warned federal government not to go ahead with the proposed increase in the Value Added Tax (VAT), saying that such action would exacerbate poverty and increase inequality in the land.

 

The CSOs under the aegis of Tax Justice and Governance Platform, (TJGP), said it had followed the trend around the Federal Government’s effort to improve revenue mobilization to fund development in Nigeria with diverse views from different interest parties on which measures will be more strategic and sustainable.

 

Recall that the minister of finance had said it would increase in the VAT rate at the last Federal executive council held on September 11, 2019 after several denials of the possibility of an increase in VAT in Nigeria.

 

The group is a joint statement signed by Christian Aid, Action Aid Nigeria, Centre for Democracy and Development Civil Society Legislative Advocacy Centre, OXFAM Nigeria, Imo state Tax Justice and Governance Platform called on the federal government to pay serious attention to widening the tax net rather than increasing the rate which will only place more burden on the few that complies already and still exempt the majority that do not pay taxes.

 

It also called on the Federal government to improve market information and transparency by implementing the National Tax Policy, promoting the commitment to progressive taxation and taking measures to improve financial transparency while cooperating with regional and international bodies to address the issues of illicit financial flows.

 

‘‘We welcome the VAIDS is an opportunity to increase the tax net, though it has not yielded the optimum result expected. We want to state our position for advocacy and campaign which is that Government designs and implements policies and programmes that enhance the welfare of the poor and protects disadvantaged groups that constitute much of the Nigerian population and address issues of inequality.

 

‘‘We have followed with keen interest, the trend around the Federal Government’s effort to improve revenue mobilization to fund development in Nigeria. There have been diverse’ views from different interest parties on which measures will be more strategic and sustainable.

 

‘‘We welcome the VAIDS is an opportunity to increase the tax net, though it has not yielded the optimum result expected. There are still myriads of companies and other taxable entities in Nigeria who are not in the tax net and still not convicted or punished in any way.

 

‘‘The Platform hopes that the proposed measures can be effectively implemented to solve the revenue deficit in the country rather than an increase in VAT rate which will only exacerbate poverty and hunger on the “ultimate burden-bearer” ‐ the poor and vulnerable.

 

‘‘We call on the federal government to concentrate more efforts at ensuring proper collection of appropriate tax from multinationals and large corporations which have continued to benefit from undeserved tax incentives and had for years engaged in tax avoidance practices.

 

‘‘We call on government and relevant institutions to develop strategies to curb the tax avoidance practices of big businesses in the country and pay attention to challenges of illicit financial flow that had continued to undermine the economy,’’ the group added.

 

They further called on all Nigerians, especially civil society, the media, labour and citizens working in the development sector and public finance management to continue to raise their voices against measures and policies that will further impoverish Nigerians and introduce new dimensions of inequality.

 


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LIRS to Invoke NTAA to Recover Unpaid Taxes from Bank Accounts, Others

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Lagos Internal Revenue Service (LIRS) pursuant to Section 60 of the Nigeria Tax Administration Act (NTAA), plans to ask Nigerian banks to debit bank accounts of employers who failed to remit tax liability.

LIRS to Invoke NTAA to Recover Unpaid Taxes from Bank Accounts

This was disclosed in a recent notice on Sunday.

LIRS stressed that the move was in line with the implementation of the country’s NTAA and other new tax laws, which took effect on January 1, 2026.

“Where a taxpayer fails, neglects, or refuses to settle any established outstanding tax liability when due, LIRS may exercise its power under Section 60 to direct any of the following persons to pay the amount owed by the taxpayer:

“Banks and other financial institutions; Employers; tenants, debtors, or customers of the taxpayer; Agents, business partners, and any person holding money on behalf of the taxpayer; Any person owing money to the taxpayer, whether presently due or accruing. Once a substitution notice is issued, the person served is statutorily required to remit to LIRS the amount. Specified in the notice from funds belonging to, or payable to, the defaulting taxpayer,” the LIRS notice partly read.

Meanwhile, Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, weeks ago ruled out claims that the government would debit personal accounts over tax remittances.


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Anambra Cuts Monday Pay to Kill Sit-at-Home

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Anambra State will implement pro-rata salary payments for civil servants starting February 2026, targeting chronic Monday absenteeism from the long-running sit-at-home order, Information Commissioner Dr. Law Mefor announced Saturday.

Anambra Cuts Monday Pay to Kill Sit-at-Home

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Speaking at an Awka briefing after the Executive Council’s end-of-tenure retreat, Mefor said improved security and transport have eliminated excuses for the four-year disruption, which cost the state trillions in lost revenue. “Workers enjoyed full pay despite staying away; now, no work means no pay for that day, calculated over 24 working days,” he stated.

Compliance measures include mandatory Monday clock-in forms, with markets urged to reopen fully amid bolstered security. This builds on a January 22 executive order docking 20% pay from teachers absent on Mondays.

Mefor warned that lost Mondays cripple revenue collection and productivity, rejecting alternatives like Saturday shifts as capitulation to agitators.


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Stakeholders Demand Stronger Governance and Infrastructure to Drive Tech Adoption @ Lagos AI Summit

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As AI adoption accelerates across Nigeria, leaders at the “AI in Action Now” conference 2026 have called for a balance between rapid innovation and strict regulatory governance. The event, held at the Lagos Oriental Hotel, highlighted both the doggedness of Nigerian builders and the risks of unregulated data usage.

Dotun Adeoye, Co-Founder of AI Nigeria, raised alarms over “Shadow AI”, a trend where employees upload sensitive official documents to public AI platforms. He praised the Nigerian Data Protection Commission (NDPC) for its recent aggressive stance, including multi-million-dollar fines against major banks and social media brands.

“Innovation without governance is dangerous. The regulator now has the job of educating players. We are working in partnership with them to ensure players don’t just get fined, but actually understand how to protect data locally rather than storing it abroad, ” Adeoye noted.

Addressing issues of lack of infrastructure to carry AI adoption, Conference Convener Debola Ibiyode admitted that while Nigeria lacks the traditional foundation for AI adoption, the tech community cannot afford to wait.

“The simple answer is we don’t have the infrastructure, but Nigeria has never really had infrastructure to drive anything, and we still thrive, ” Iboyode said, encouraging students and builders to look beyond current limitations. “Once we start to build based on what we have now, it will encourage those who need to provide the infrastructure to do their part. The world will not wait for us,” she insisted.

To bridge this gap, she highlighted the AI Foundry Africa, an incubator designed to mentor ideas into market-ready products.

Meanwhile, speaking to journalists on the sidelines, Biodun Ogunleye, the Lagos State Commissioner of Energy and Mineral Resources, echoed the sentiment that the government’s role is to facilitate the right environment through partnership. He emphasized that data generated from interactions with the government must have long-term value.

“We must ensure that in all facets from production to interaction with government, the tools required to ensure data has value are appreciated,” Ogunleye stated.

He concluded that through private-sector collaboration, the government can focus on its primary functions while leveraging AI to ensure the nation aspires for the future.


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