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FG Plans 50% Tax Relief To Help Firms Increase Salaries

The Federal Government is introducing a 50 per cent tax relief for companies that increase salaries or offer transportation allowances to low-income workers, as part of a new legislative bill designed to reform Nigeria’s tax system.
The proposed law, titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters,” is dated October 4, 2024, and was obtained from the National Assembly.
A review of the bill on Friday indicated that it aims to introduce certain income tax exemptions to incentivise salary adjustments.
According to a section of the bill, companies will be allowed an additional 50 per cent deduction in their relevant years of assessment for costs incurred during the 2023 and 2024 calendar years.
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The qualifying expenses include wage increases, transportation subsidies, or transport allowances granted to workers, whose gross monthly earnings are brought up to N100,000 or less.
The provision, however, stipulates that any additional salary increases granted to employees earning above N100,000 monthly will not be eligible for the tax deduction.
Also, firms that hire new employees resulting in a net increase in their workforce between 2023 and 2024 will qualify for the deduction, provided the new employees remain employed for at least three years and are not involuntarily disengaged.
A section of the bill read, “A company shall be entitled to an additional deduction of 50 per cent in the relevant years of assessment in respect of costs incurred in 2023 and 2024 calendar years on the following –
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“(a) wage awards, salary increases, transportation allowance or transport subsidy granted to a low-income worker, which bring the gross monthly remuneration of the worker up to an amount not exceeding N100,000.00; provided that any additional award or salary increase to an employee earning above N100,000.00 as monthly salary shall not qualify for the additional deduction under this subsection; and
“(b) salaries of any new employee constituting a net increase in the average number of new employees hired in 2023 and 2024 calendar years over and above the average net employment in the 3 preceding years, provided that such new employees are not involuntarily disengaged within a period of 3 years post-employment.”
Also, the Federal Government plans to introduce an Economic Development Incentive Certificate as a tax incentive for companies investing in capital projects.
As outlined in the bill, firms seeking the certificate must submit their applications through the Nigerian Investment Promotion Commission, accompanied by a non-refundable fee of 0.1 per cent of the capital expenditure, capped at N5m.
The NIPC will review and recommend the applications to the Minister for approval, after which the Minister may forward the recommendation to the President.
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Ooni’s Palace Slams Oluwo Over ‘Ife Not Yoruba Origin’ Claim
The palace of the Ooni of Ife on Tuesday slammed the Oluwo of Iwo, Oba Abdulrosheed Akanbi, over his claim that Ile-Ife is not the origin of the Yoruba people.
Reacting to the comments, the Ooni’s spokesperson, Moses Olafare, dismissed the statement, saying, “No reasonable person will react to Oluwo’s comments.”
Oba Akanbi, known for his controversial views, had in a video posted on his Facebook page while conferring a chieftaincy title in his palace, insisted that “Ile-Ife has no Yoruba culture.”
Flanked by his chiefs, the Iwo monarch argued that the language spoken in Ile-Ife — widely regarded as the cradle of the Yoruba race — differed from mainstream Yoruba. He also questioned the use of certain expressions.
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“Ife is not the origin of the Yoruba race. Those people don’t speak our language. Their language is different. They refer to God as Eledumare, and there is nothing like Eledumare in the Yoruba language. What we have is Olodumare.
“Ife people will always say Olofin. If you ask them the meaning, they will tell you it means the owner of the palace. But in Yoruba, that is Alaafin. Ile-Ife has no Yoruba culture.
“I am the Arole Olodumare because I am here to tell you the true history. Iwo is where you can get the real history that was not even documented,” he said, stressing his determination to preserve his version of history.
Debates over the origin of the Yoruba and the authority of monarchs to confer titles have long been contentious.
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In August, The PUNCH reported a similar face-off between the Ooni of Ife, Oba Adeyeye Ogunwusi, and the Alaafin of Oyo, Oba Akeem Owoade, over the title of Okanlomo of Yorubaland, allegedly conferred on Ibadan businessman Chief Dotun Sanusi by the Ooni.
The Alaafin, through his media aide Bode Durojaiye, insisted no traditional ruler other than him had the authority to bestow a title covering the entire Yorubaland. He issued a 48-hour ultimatum to the Ooni to revoke the title or “face the consequences.”
In response, the Ooni’s spokesperson, Olafare, dismissed the ultimatum, saying the monarch had chosen to leave the issue “in the court of public opinion.”
“We cannot dignify the ‘undignifyable’ with an official response. We leave the matter to the public court of opinion, as it is already being treated. Let’s focus on narratives that unite us rather than those capable of dividing us. No press release, please. Forty-eight hours, my foot!” he wrote on Facebook.
News
[OPINION] Rivers: The Futility Of Power And The Illusion Of Victory
By Israel Adebiyi
Power is a strange thing. To some, it is a crown that dazzles; to others, it is a sword that conquers. Yet history, both ancient and modern, is replete with reminders that power is fleeting, fragile, and often fatal to those who cling to it without wisdom. Nigeria’s Rivers State has, in recent months, provided a theatre where this truth has played out in its rawest form, a play in which the actors ranged from elected governors to godfathers in high places, from lawmakers turned pawns to a weary citizenry who bore the bruises of political combat.
As you may have learnt, the democratically elected Governor Siminalayi Fubara is back in the saddle. What a traumatising six months it must have been for the man who thought being the Chief Security Officer of his state truly makes him the man in charge. What a tormenting time it must have been for the legislature, those who, entrusted with making laws, would rather sink the ship of state than allow Fubara to sail. And what excruciating experience it must have been for the people of Rivers themselves: to have their choice nearly swapped for a civilian in khaki, to watch their lives held hostage by political gladiators in a power struggle that never had their welfare at heart.
At the centre of this drama stood the godfather, one who straddles Abuja and Port Harcourt, ministering to the Federal Capital Territory while seeking to lord it over Rivers, unchallenged. His triumphs and setbacks are well-documented, but the bigger question remains: what has the political elite learnt from all this? From potential godsons, to godfathers, to supporters, to the rest of us, the truth is painfully clear, no one wins in a state of anarchy, not even the chest-beating King Kong.
The Rivers imbroglio reinforces a timeless principle: governance does not happen in chaos. The seat of power may be occupied, but when the instruments of state are weaponised against one another, the business of the people suffers. Schools do not function, hospitals languish, investments are scared away, and trust in government crumbles. A peaceful atmosphere is the precondition for governance, for no policy, no matter how well-crafted, can thrive in the soil of instability.
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In this sense, what happened in Rivers is not new. History shows us that the vanity of power games leaves behind a trail of ruins. Rome, mighty and invincible, crumbled not because its armies lost their strength but because its leaders indulged in intrigues, conspiracies, and betrayal, weakening the republic from within. In Africa, the ghosts of Liberia’s civil war and Sierra Leone’s dark decade still whisper lessons of how political egos, once unchecked, descend into rivers of blood where the people are the ultimate casualties.
Even in more stable democracies, we see shades of this futility. Recall the Watergate scandal in the United States: an overreach of power that forced President Nixon’s resignation, not because America lacked laws, but because one man believed his political survival was above the rule of law. In Zimbabwe, Robert Mugabe’s prolonged hold on power may have begun with promises of liberation but ended with economic collapse and national despair. In all these, the lesson is the same: unchecked power, exercised without restraint, consumes itself.
The real victims of Rivers’ crisis are not the gladiators in high office; they will always find soft landings. The true casualties are the people, the market woman in Port Harcourt whose business was disrupted by endless protests and palpable fears, the civil servant whose progress and commitment are beclouded by uncertainties, the student whose classroom leaks under the rain because the funds for renovation are trapped in political crossfire.
What is often forgotten in the heat of power play is that governance is not an abstract exercise; it is the daily bread of the people. When leaders quarrel, roads go untarred, hospitals go unequipped, and children go unfed. To reduce governance to a chessboard of egos is to mortgage the people’s welfare for vanity. This, tragically, is the recurring story in Nigeria’s democratic experiment.
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Philosophers have long wrestled with the meaning of power. Shakespeare, in Macbeth, captured it as “a walking shadow, a poor player that struts and frets his hour upon the stage and then is heard no more.” The story of Rivers is a fresh Nigerian adaptation of this drama. For months, power appeared to belong to one, then another, and then another still. Yet in the end, it was revealed that no one truly wielded power in its purest sense, because power without legitimacy, without the consent of the governed, and without the peace to implement vision, is no power at all.
The futility of the Rivers crisis holds lessons for Nigeria as a whole. Across our federation, godfatherism continues to haunt governance. From Lagos to Kano, from Anambra to Oyo, the tussle between political benefactors and their protégés has become a recurring decimal. Rarely do these battles end in progress for the people; more often than not, they end in paralysis.
The comparison need not be far-fetched. Look at Kenya, where post-election violence in 2007 consumed more than 1,000 lives and displaced hundreds of thousands. The fault line was political ego, the refusal to let the people’s will stand unchallenged. It took the Kofi Annan-led mediation to restore peace. In the Democratic Republic of Congo, decades of instability trace back to leaders who personalised power, treating the state as property and the people as pawns.
Rivers may not have descended into outright war, but the undertones of instability remind us that democracy is not guaranteed; it must be guarded. When politicians play roulette with the rule of law, they court a descent into chaos that ultimately swallows everyone.
The Rivers episode should compel us to reflect on the foundations of Nigeria’s democracy. For too long, politics has been driven not by institutions but by personalities. Our allegiance is more to godfathers than to constitutions, more to individuals than to principles. Yet sustainable governance is only possible when the rule of law, not the whims of men, governs the game.
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What does this mean in practice? It means state assemblies must not be reduced to errand boys of powerful interests. It means governors must respect their oaths of office, governing for all, not just for loyalists. It means party structures must operate with transparency, giving room for dissent without retribution. Above all, it means citizens must rise in defence of their democracy, insisting that their mandate cannot be traded on the altar of ego.
The Rivers drama may be easing, but the scars remain. It was a sobering reminder that power, when divorced from service, becomes poison. That democracy, when stripped of rule of law, becomes anarchy. That in the final analysis, no one truly wins when the people lose.
From the godfathers to the godsons, from the lawmakers to the electorate, we must all acknowledge a shared truth: we are losers when power games eclipse governance. The real triumph is not in who sits in Government House, but in whether that House delivers schools, hospitals, jobs, and peace.
Let Rivers be a lesson to Nigeria: that power is not an end in itself, but a means to service. That peace is not weakness, but strength. And that the greatest legacy any leader can leave is not monuments of ego, but institutions that outlast them.
For if Rivers has taught us anything, it is that governance cannot happen in a state of anarchy, and the futility of power is revealed when its pursuit leaves the people broken. Let us, therefore, rise to build a democracy where power serves the people, not the other way round.
News
NYSC Deploys 1,900 Corps Members To Bauchi State
The National Youth Service Corps (NYSC), has deployed 1,900 corps members to Bauchi State for the 2025 Batch ‘B’ Stream II orientation exercise.
Mr Kufre Umoren, NYSC State Coordinator, told journalists on Tuesday in Bauchi, that registration would be conducted from Sept. 24 to Sept. 26, at the NYSC Permanent Orientation Camp, Wailo in Ganjuwa Local Government Area of the state.
He said the swearing-in ceremony of the corps members is billed for Sept. 26, and the orientation exercise would end on Oct. 14.
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Umoren said each of the corps members would be allowed into the camp after being adequately certified to be genuine graduates.
He said discreet screening of the corps members would be conducted to guard against intrusion or impersonation.
“Registration dates have been announced to the corps members, and they are advised to adhere strictly to all camp rules and regulations.
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“Defaulters will be sanctioned in accordance with the scheme’s extant rules,” he said, warning the scheme frowned at late-night journeys and urged corps members to avoid it for their own safety.
While urging them to be punctual, diligent, and comply with dress code, Umoren warned that defaulting corps members would be sanctioned.
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