BY AMAYINDI YAKUBU
The trajectory of this year takes the world by surprise with unpredicted developments as well as undesiring changes, witnessed in every sphere of society. Significant events of wars, conflicts, protests, climate change, and the economy in certain countries have reshaped government activities and the economies of other nations, making the world a global village each being a recipient of what happens abroad elsewhere.
Here in Nigeria, all sectors have been greatly impacted from economy, governance, policies, health, social activism, innovation, leadership, sports, entertainment, international relations, and religion.
Dangote 650,000 Barrels Refinery
The narrative of the oil and gas sector in the country took a different perspective with the Dangote 650,000 barrels per day refinery in Lagos coming into the picture to begin petrol production. After 28 years, Nigeria set the record straight with an Indigenous oil company commencing the refining of petroleum products. This is coming after several decades of the Nigerian National Petroleum Company’s (NNPC) failure to sustain any of its four oil refineries within the country that have led to heavy dependence on the importation of refined petroleum products abroad. Despite the significant stride in uplifting the nation, the business mogul Alhaji Aliko Dangote’s refinery faced a lot of political witch hunts in the hands of cabals whose interests are yet to be publicly made known.
Bad Governance Protests
The #EndbadGovernace protests that swept through the nation starting on August 1, 2024, is yet another tale of Nigeria’s rising social activism. The 2020 #EndSars protests in Nigeria left the world surprised as Nigerians could not bear the subjugation anymore. Here we are in 2024 another similar protest broke out demanding an end to continued hunger and bad governance by Nigerians. Even after pressure from President Bola Ahmed’s government and other high-profile Nigerians plea for the protest planners to put the demonstration to a halt, the protest still held as Nigerians took to the streets to show their frustration. Crackdown on protesters by law enforcement officers was witnessed leading to injury, arrest, and deaths of some protesters.
Proposed Tax Reforms
The Presidential Committee on Fiscal and Tax Reform, led by Taiwo Oyedele, proposed four key tax bills to streamline Nigeria’s taxation system, eliminate double taxation, and promote private sector investment. These bills the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill focus on harmonizing revenue administration, enhancing compliance, and increasing disposable incomes through targeted tax exemptions.
The proposed tax reforms signal a significant shift in Nigeria’s fiscal policy, aiming to ease financial burdens on businesses, support households, and drive economic development. A central feature of these reforms is the planned reduction in corporate income tax rates from 30% to 25% over the next two years. This change is expected to enable businesses to reinvest profits, innovate, and expand. Additionally, small businesses with annual turnovers of N50 million or less will benefit from a complete exemption from corporate income tax, VAT, and withholding tax.
The reforms also extend significant advantages to workers and households, particularly those in lower income brackets. Workers earning below the minimum wage will be exempt from personal income tax, while over 90% of employees in both public and private sectors are expected to experience reduced tax obligations. Moreover, essential goods and services such as food, education, healthcare, and renewable energy will attract a 0% VAT, while rent and public transportation will be entirely VAT exempt. These provisions aim to lower the cost of living, particularly for low-income households, enhancing their financial stability and well-being.
Further changes aim to simplify and harmonize the tax system. Over 50 nuisance taxes will be repealed, and the remaining levies will be consolidated into a streamlined structure. Minimum taxes for loss-making and low-margin companies will be abolished, while businesses will benefit from reduced production costs through input VAT credits. Tax incentives will also be introduced for exports, services, and intellectual property. The creation of the Nigeria Revenue Service, replacing the Federal Inland Revenue Service, underscores the government’s commitment to a centralized, efficient tax administration system that collaborates with state governments and other agencies. One of the standout innovations in the reforms is the establishment of a Tax Ombudsman under the Joint Revenue Board (JRB), replacing the Joint Tax Board. This office will advocate for taxpayers’ rights, resolve disputes, and simplify tax processes, fostering greater trust and transparency in the system.
Lg Autonomy
Another move by the federal government this year was to strengthen the autonomy of the local government from the control of the state government. The Supreme Court of Nigeria issued a landmark ruling against the thirty-six state governments in Nigeria delivering the full autonomy of the local government to them, allowing them to decide their destiny rather than being at the mercy of the state government. The development is seen as a significant step towards upholding the tenets of democracy and encouraging grassroots development at the local level. For decades state governments have enjoyed control of the finances and decided how elections and governance are administered in local areas, but with the autonomy, the state is denied such privilege as the law mandates that federal allocations are paid directly to local government accounts and elections are held independent of state control. Despite the state government fighting back, the court gave the mandate of governance to the hands of local councils.
Minimum Wage
In an intense tussle with the Nigerian Labour Congress, President Bola Tinubu bowed after a series of strike threats and protests by the labour group and increased Nigeria’s minimum wage raising from N30,000 to N70,000 Naira. With the rising cost of living in the country, Nigeria could not bear it any longer but ventilates their anger and plights leading to an increase in their wage. Although the move has been perceived as a vital move towards uplifting workers’ welfare and condition of service yet, the present reality remains that such amount can only do little. If N70,000 naira can not buy a bag of rice, how does the government expect them to celebrate in the yuletide season? This points to the fact that the general cost of surviving in the country is more than what workers leave their respective places of work with. In a way of being inquisitive, apart from the government workers are Nigerians in the private sector even paid N70,000, especially the lower-grade officers?
Tinubu’s “Budget of Restoration”
President Bola Tinubu presented the 2025 federal budget, a massive N47.9 trillion financial plan titled “Budget of Restoration: Securing Peace and Rebuilding Prosperity.” Addressing the National Assembly, Tinubu described the budget as a collective effort to reshape Nigeria’s narrative and secure a brighter future, calling for collaboration among government, institutions, private enterprises, and citizens. This ambitious budget prioritizes defence, infrastructure, healthcare, and education, laying the groundwork for enhanced security, economic stability, and human capital development. Defense got the largest allocation, N4.91 trillion, representing a 27.5% increase from the 2024 budget. Tinubu emphasized enhancing military welfare, training, and modernization to secure Nigeria’s borders and restore order in ungoverned spaces. “This budget provides the resources to not just defend but restore our nation’s security and unlock its full economic potential,” Tinubu said
The healthcare sector, allocated N2.4 trillion, receives a 50% boost from the 2024 budget. Investments will strengthen primary healthcare, revitalize hospitals, and ensure better access to medications and services. Tinubu highlighted N402 billion for infrastructure and N282.65 billion for the Basic Care Fund. Education ranks third in priority, receiving N3.52 trillion 7.35% of the budget and a 49.15% increase from 2024. Tinubu allocated N825 billion for infrastructure and highlighted funding for Universal Basic Education and nine new higher institutions, calling education the “key to a prosperous tomorrow.” Infrastructure, a vital driver of economic growth, was allocated N4.06 trillion to enhance transportation, energy, and commerce.
The government projects a 15% inflation rate by 2025, citing enhanced security, increased domestic production of refined petroleum products, and reduced upstream production costs as key drivers. Improved exports and macroeconomic stability are also expected to bolster the naira and stabilize the economy. The government also projects N34.8 trillion in revenues by diversifying income sources through improved tax collection and an expanded tax base, with crude oil benchmarked at $75 per barrel, a production target of 2.06 million barrels per day, and an exchange rate of N1,500/$1; despite a fiscal deficit of 3.89% of GDP (N13 trillion) exceeding the Fiscal Responsibility Act’s 3% limit, it is considered necessary to fund critical infrastructure and social programs through domestic debt, concessional external borrowing, and public-private partnerships (PPPs).
Ngozi Okonjo-Iweala, Kemi Badenoch Exceptional Leadership
Nigeria’s Ngozi Okonjo-Iweala reappointment as the World Trading Organization (WTO) Director-General on 29th November 2024 by the general council of the WTO reflects her excellent leadership of the body and demonstrates Nigerian capability to produce world-class leaders steering the realm of business and governance at the international scene. Kemi Badenoch a Nigerian and leader of Britain’s Conservative Party, an opposition party of the Labour Party is doing amazingly well in the British parliament. Being the First female black opposition leader, she will have the privilege to lead the United Kingdom as the first black prime minister if her party gains control of the parliament.
Nigeria’s Dry Olympic
Despite a substantial N12 billion budgets allocated to Team Nigeria, their performance fell far short of expectations, leaving Nigerians baffled and deeply disappointed at the Paris Olympics. Between July 26 to August 11, Nigeria competed alongside over 200 nations in the 2024 Paris Olympic Games. Since debuting at the Olympics in Helsinki in 1952, Nigerian athletes have participated in every Summer Games except Montreal 1976. However, this year’s event proved disheartening as the country’s 88 athletes returned home empty-handed, failing to secure a single medal.
… Feat At Caf Award 2024
The 2024 Confederation of African Football (CAF) Awards brought Nigeria back to the limelight as Ademola Lookman and Chiamaka Nnadozie took the CAF Player of the Year (Men) and Goal Keeper of the Year (Women) respectively stole the night event in the energetic city of Marrakech, Morocco. Victor Oshimhen handed the baton of the CAF Player of the Year to Ademola Lookman a forward playing for Atalanta his Nigerian brother after being the recipient of the award last year. Another remarkable win for Nigeria is the award of the National Team of the Year (Women). Victor Oshimen and Ademola Lookman also featured in the Men’s CAF Best XI while Asisat Oshoala, Rasheedat Ajibade, Michelle Alozie, and Osinachi Ohale were all spotlighted in the Women’s CAF Best XI category.
Nigeria 2024 story is tale mixed with both reactions of exciting event and sad ones that have left many perplexed. But the important virtue still remains that our resilience spirit in spite of great challenges abides with us. As we look forward toward year 2025, our hopes are high of new change we expect from both government and citizens alike. Let’s remain resolute and firm in our faith of a better Niaja. As we celebrate Christmas, the peace, love and joy that the season brings gladdened our heart.
Merry Christmas!
