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Hajj: Five States With $383m Debt Budget N9bn For Pilgrims

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Five states; Kogi, Kebbi, Jigawa, Bauchi and Kano states, have subsidised Hajj fares for 10,260 intending pilgrims for the 2024 exercise, with a combined sum of N9,120,997,990 billion.

The subsidy payments by the various states’ governments follow the announcement of the National Hajj Commission of Nigeria, asking already registered pilgrims to pay an additional sum of N1.9m to balance up fares for the 2024 exercise, in accordance with current foreign exchange rates.

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With the deadline for the payment given as March 28, the 48,414 pilgrims had only about 72 hours between the time of the announcement of the increase to either come up with the funds to secure their seats or apply for a refund of their money.

In the days that followed the expiration of the deadline, Kogi State Government under Governor Ahmed Ododo was the first to announce full payments of the sum for its 460 pilgrims.

READ ALSO: Nigerians React As FG Subsidises Hajj Fare With N90bn

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The Kano State Governor, Abba Yusuf, also announced a N500,000 subsidy for each of its 2,906 pilgrims, followed by Governor Bala Mohammed of Bauchi State, who announced a subsidy of N959,000 for the 2,290 pilgrims in the state, while Jigawa and Kebbi state governments also subsidised fares with N1m each for its 1,260 and 3,344 pilgrims respectively.

There are also reports that the Rivers State Government paid the total fare for the intending pilgrims, while the Osun State Government subsidised the fares with an undisclosed amount.

The subsidies given by the states are beside the N90bn subsidy allegedly given by the Federal Government to reduce the burden of the fares on the intending pilgrims.

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Meanwhile, the states have a combined debt profile of $382.9m, with Kogi indebted to the tune of $54.3m, Kebbi $40.8m, Jigawa $26.2m, Bauchi $170.4m, and Kano $101.3m, as of June 2023, according to the official website of the Debt Management Office.

READ ALSO: Tinubu Approves 3 Airlines For 2024 Hajj Pilgrimage

This, however, will not be the first time governors have sponsored citizens on pilgrimage.

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Between 2022 and 2023, 13 state governors spent N14.84bn to sponsor about 4,771 persons on both Muslim and Christian pilgrimages.

A resident of the FCT told our correspondent on the condition of anonymity that “all in all, N5bn set aside for thousands of students and N90bn earmarked for pilgrim subsidy. This can only happen in a country where leaders have no regard for quality education but believe in presenting fake certificates”.

Another respondent, who simply identified himself as Michael, expressed annoyance with the development, stating, “It’s annoying to see government on this path. Why subsidise for the rich who can afford to go on pilgrimage, either Christian or Muslim? Instead subsidise the price of food and transportation, which is what mostly affect the masses”.

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READ ALSO: Why Many Nigerian Pilgrims Fell Ill During Hajj — Official

Meanwhile, the National Hajj Commission of Nigeria has disclosed that over 50,000 pilgrims have completed payments for the 2024 Hajj exercise under the government quota.

NAHCON made the disclosure in a statement by the Assistant Director, Public Affairs, Fatima Usara, on Saturday.

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According to the statement, the official number of pilgrims now stood at 51,477 after the close of registration for the year’s exercise.

A breakdown of the numbers revealed the sub-total from Borno, Adamawa, Yola, Taraba and Yobe states as 5,492 pilgrims; northern sub-total, 36,261 pilgrims; Southern sub-total, 6,310 pilgrims, while the remaining 3,384 pilgrims were from the Hajj Savings Scheme and others, making the total 51,447.

Usara thanked the Federal Government for its “leading role” and “numerous sacrifices”, towards easing the burdens of the intending pilgrims, while also appreciating State governors and other stakeholders for providing support.
PUNCH

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EYIF: Utilize N2m Grant Provided By The Govt, Edo Deputy Gov Urges Youths

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says 1,500 applicants screened, 30 met requirements

Deputy Governor of Edo State, Hon. Dennis Idahosa, has urged youths in the state to make the best use of the N2 million start-up grant provided by the state government under the Edo Youth Impact Forum (EYIF).

Idahosa added that the youths must be innovative as they tapped into the two million start-up grant.

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In a statement, the Chief Press Secretary to the Deputy Governor, Friday Aghedo, said Idahosa made the remarks during an incubation class of EYIF.

The Edo number two citizen, while noting that EYIF was parts of the government’s drive to build a new generation of entrepreneurs that would impact and shape the state’s financial economy, showed them how to position themselves in the entrepreneurial space to boost the local economy.

READ ALSO: Idahosa Optimistic Shaibu Will Perform As National Sports Institute DG

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Idahosa encouraged the youths to put behind their challenges and make the best of the opportunity provided by the Senator Monday Okpebholo-led government.

According to him,
though 1,500 applicants got screened ahead of the finale scheduled for July 2, 2025, only 30 met the requirement and thus scaled the initial process.

“This number has again been pruned to 10 participants today and will eventually be reduced further to five finalists at the end of the day.

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“Irrespective of who emerges as finalists, I want you to know that you are all winners. We are here as a government to encourage the youths because any society that strives to grow must have an active youth involvement,” Idahosa reiterated.

Earlier, the Special Adviser to the Governor on Finance, Investment and Revenue Generation, Mr. Kizito Okpebholo, presented the participants to the deputy governor.

 

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Things To Know About Nigeria’s New Tax Laws

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President Bola Tinubu on Thursday signed four new tax laws aimed at modernising and streamlining the country’s tax system.

In the new tax law, the Value Added Tax rate remains at 7.5 per cent despite initial proposals to increase to 12.5 per cent, but its scope is expanded.

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Essential items—such as food, education, healthcare, public transport, residential rent, and exports—are zero-rated to ease inflationary pressure.

For revenue allocation is restructured: now 30 per cent of VAT proceeds are distributed based on consumption (rather than contribution), 50 per cent equally among states, and 20 per cent to population-based allocation.

With the latest development, it is expected that state revenue streams will increase, and it will also discourage tax evasion.

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Overview of the four new laws

Nigeria Tax Act: Consolidates various tax rules into a single, simplified code, eliminating over 50 small, overlapping taxes. This reduces complexity and duplication, making it easier for businesses to comply.

READ ALSO:Nigerian Lawmakers Approve Tinubu Tax Reform Bills

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Tax Administration Act: Establishes uniform rules for tax collection across federal, state, and local governments, ensuring consistency and reducing administrative conflicts.

Nigeria Revenue Service Act: Replaces the Federal Inland Revenue Service with the independent Nigeria Revenue Service, aiming for greater efficiency and autonomy in tax administration.

Joint Revenue Board Act: Enhances coordination between different government levels and introduces a Tax Ombudsman and Tax Appeal Tribunal to handle disputes fairly.

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Key objectives of the new tax rules

Simplify Tax System: Reduces bureaucratic hurdles and overlapping taxes to make compliance easier, especially for small businesses and informal traders.

Increase Revenue Efficiency: Aims to boost Nigeria’s tax-to-GDP ratio from 10% (below the African average of 16–18%) to 18 per cent by 2026 without raising taxes on essential goods.

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Reduce Financial Burden: Provides relief for low-income households and small businesses while ensuring high-income earners and luxury consumers contribute more.

READ ALSO:Senate Passes Two Tax Reform Bills

Fund Public Services: Increased revenue will support infrastructure, healthcare, and education, reducing reliance on borrowing.

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Who benefits and how
Low-Income Households:
Individuals earning up to ₦1 million ($650) annually receive a ₦200,000 rent relief, reducing taxable income to ₦800,000, exempting them from income tax.

VAT exemptions on essential goods and services (food, healthcare, education, rent, power, baby products) lower living costs.

Small businesses:

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Businesses with an annual turnover below ₦50 million ($32,400) are exempt from company income tax.
Simplified tax filing without requiring audited accounts reduces compliance costs.

Large businesses:

Corporate tax rates drop from 30 per cent to 27.5 per cent in 2025 and 25 per cent thereafter.
Tax credits for VAT paid on expenses and assets allow businesses to recover the 7.5 per cent VAT.

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Charitable, educational, and religious organisations:

READ ALSO:FG Sues Binance For $81.5bn In Economic Losses, Back Taxes

Tax incentives for non-commercial earnings, encouraging community-focused activities.
Impact on different groups
Low-Income Earners: Benefit most from income tax exemptions and lower costs for essentials, increasing disposable income.

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Small Businesses and informal traders: Simplified rules and tax exemptions encourage compliance and reduce financial strain, potentially formalising more businesses.

High-income earners and luxury consumers face higher VAT on luxury goods and premium services, plus capital gains tax on large share sales.

Government: Expects increased revenue for public services without overburdening vulnerable citizens.

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Why reforms were needed

Nigeria’s tax system was outdated, inefficient, and disproportionately harsh on low-income groups.
The low tax-to-GDP ratio (10%) limited funding for critical services like healthcare and infrastructure.
Overlapping taxes and complex rules deterred compliance, especially among small businesses and informal traders.
Public and expert reactions

READ ALSO:JUST IN: Tax Reforms Here To Stay, Says Tinubu

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Positive sentiment: Small business owners welcome tax exemptions but seek clarity on enforcement to avoid unexpected levies.

Low-income earners appreciate relief on essentials but remain cautious about implementation.
Taiwo Oyedele, head of the Presidential Fiscal Policy and Tax Reform Committee, claims 90% public support, emphasising that success depends on awareness and trust.

The reforms align with Tinubu’s administration’s goal to reduce economic inequality and boost fiscal capacity without overburdening citizens.

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By encouraging voluntary compliance and reducing reliance on loans, Nigeria aims to strengthen its economy and fund development projects.

These reforms mark a significant step toward a fairer, more efficient tax system, with a focus on supporting vulnerable groups while fostering economic growth. However, their success hinges on transparent enforcement and public trust. For further details, you can refer to official statements from the Nigerian government or credible news sources covering the reforms.
(PUNCH)

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US S’Court Limits Judges’ Power, Boosts Trump’s Executive Authority

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The US Supreme Court handed President Donald Trump a major victory on Friday by curbing the power of lone federal judges to block executive actions.

In a 6-3 ruling stemming from Trump’s bid to end birthright citizenship, the court said nationwide injunctions issued by district court judges “likely exceed the equitable authority that Congress has granted to federal courts.”

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The top court did not immediately rule on the constitutionality of Trump’s executive order seeking to end automatic citizenship for children born on American soil.

But the broader decision on the scope of judicial rulings will remove a big roadblock to Trump’s often highly controversial orders and reaffirm the White House’s power.

READ ALSO:Elon Musk Deletes Post Claiming Trump Was ‘In The Epstein Files’

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Federal courts do not exercise general oversight of the Executive Branch; they resolve cases and controversies consistent with the authority Congress has given them,” said Justice Amy Coney Barrett, author of the opinion.

When a court concludes that the Executive Branch has acted unlawfully, the answer is not for the court to exceed its power, too,” Barrett said in an opinion joined by the other five conservative justices on the court.

The three liberal justices dissented.

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The ruling has far-reaching ramifications for the ability of the judiciary to rein in Trump or future American presidents.

The case was ostensibly about Trump’s executive order signed on his first day in office ending birthright citizenship.

But it actually focused on whether a single federal district court judge has the right to issue a nationwide block to a presidential decree with a universal injunction while the matter is being challenged in the courts.

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READ ALSO:‎Italian PM Trumpets Plan To Boost African Economies At EU Summit

Trump’s birthright citizenship order has been deemed unconstitutional by courts in Maryland, Massachusetts and Washington state, leading the president to make an emergency appeal to the Supreme Court in an effort to get the top court to strike down the use of nationwide injunctions.

The issue has become a rallying cry for Trump and his Republican allies, who accuse the judiciary of stymying his agenda against the will of voters.

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Trump’s executive order on birthright citizenship is just one of a number of his agenda items that have been blocked by judges around the country — both Democratic and Republican appointees – since he took office in January.

During oral arguments in the case before the Supreme Court in May, both conservative and liberal justices had expressed concerns about the increasing use of nationwide injunctions by district courts in recent years.

– ‘Nuclear weapon’ –

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Justice Samuel Alito, an arch-conservative, said nationwide injunctions pose a “practical problem” because there are hundreds of district court judges and every one of them is “convinced” they know best.

READ ALSO:Trump Orders Mass Layoffs At Voice Of America, Other US-funded Media

Solicitor General John Sauer compared injunctions to a “nuclear weapon,” saying they “disrupt the Constitution’s careful balancing of the separation of powers.”

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The Trump administration had asked the Supreme Court to restrict the application of a district court’s injunction solely to the parties who brought the case and the district where the judge presides.

Past presidents have also complained about national injunctions shackling their agenda, but such orders have sharply risen under Trump, who has seen more in two months than Democrat Joe Biden did during his first three years in office.

Trump’s executive order on birthright citizenship decrees that children born to parents in the United States illegally or on temporary visas would not automatically become citizens.

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The three lower courts ruled that to be a violation of the 14th Amendment, which states: “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States”

AFP

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