Business

Why FG Can’t Intervene In Rising Kerosene Price – Sylva

Published

3 years ago

January 9, 2023

The Minister of State Petroleum Resources, Chief Timipre Sylva, said on Monday, that the federal government has no powers to intervene in the rising price of household kerosene, a major cooking energy for low-income earners and rural dwellers in Nigeria.

The minister, who made the claim at a media briefing in Abuja to unfold the achievements of the Buhari administration in the petroleum industry since the assumption of office in 2015, pointed out that the price of kerosene had already been deregulated and could no longer be controlled by the government.

The minister said: “Kerosene, which is the fuel for the average household, is already a deregulated product. It is not necessarily within the purview of the government but a now a commercial decision. Companies will import and sell kerosene at a commercial rate. It is a deregulated product”.

The latest data from the National Bureau of Statistics shows that kerosene price has risen by 145.86 per cent from N441 per litre in November 2021 to N1,083 per litre in November 2022.

Chief Sylva expressed the hope that Nigerians would see the need for petrol to be similarly deregulated to free up funds for the government to execute other development projects.

The minister explained that it was important for Nigerians to understand that petroleum products prices are market-driven and based on the prevailing exchange rate, adding that petroleum products were still being sold at the cheapest rates in Nigeria compared to its neighbours.

While insisting that the best way to make petrol readily available for all Nigerians was through the removal of subsidies, which is not sustainable, the minister however pointed out that the government is to ensure that the price is market-driven.

“If petroleum product prices are market-driven it would drive a lot of investments. A lot of private investors want to come in and invest in the Nigerian petroleum industry but who would want to invest under a subsidy regime?

“If you build a refinery, how is your refinery going to make a profit under a subsidy regime? But if you have a market-driven situation, a lot of investors will come and the problem of access to petroleum products will be a thing of the past,” Sylva stated.

He disclosed that the rehabilitation of the Port Harcourt Refinery was on track, saying the 60,000 barrels per day component of the refinery would come on stream before the end of the first quarter of 2023.

Chief Sylva also expressed optimism that oil production would continue to improve as security in the Niger Delta region is beefed up, insisting that the Federal Government’s target of three million per day production was realisable.

He said the government was committed to the expansion of gas development, adding that the $250 million funding from the Central Bank of Nigeria would facilitate investments into domestic gas usage in Nigeria.

The minister dismissed the notion that the new Nigerian National Petroleum Company Limited, NNPCL, which was created under the Petroleum Industry Act, PIA, was an independent company, pointing out that it remains under the Petroleum Resources Ministry.

“NNPC is not a private company; it is still 100 per cent government-owned. What has happened is that NNPC is now a commercial company and we allow it to operate commercially but it is still NNPC Limited, 100 per cent owned by the Federal Government of Nigeria and still under the purview of the Ministry of Petroleum,” Sylva pointed out.

Earlier, the Minister of Information, Alhaji Lai Mohamed, who coordinated the press briefing, berated those who accuse the Buhari administration of doing nothing tangible since coming into power, pointing out that the administration has left a legacy of achievements in all sectors of the economy.

Mohammed said, “Distinguished ladies and gentlemen, between the last edition of the PMB Administration Scorecard Series on Dec. 22nd, 2022, and today’s opening edition for 2023, a lot of things have happened in the polity.

“But the most significant has been naysayers and the opposition trying to distort the achievements of President Muhammadu Buhari for their own selfish ends.

“While some of the Administration’s fiercest critics said we have achieved nothing, others have admitted, though seemingly tongue in cheek, that it’s only in the area of infrastructure that the Administration has performed.

“Well, I want to say that both groups are wrong, very wrong. Yes, infrastructure development under the Buhari Administration is unprecedented since the nation’s return to democratic rule in 1999, and it has set the country on the path of development. But no, our legacy is more than infrastructure.

“The Buhari Administration is leaving a legacy of a revamped security sector, in the face of unprecedented security challenges in the country. Today, the Nigerian military is being restored to its glorious past, thanks to Mr. President’s foresight and doggedness in re-equipping the various services. And this has made it possible for the military to tackle insurgency and all other security challenges facing the country.

“As you can now see, this military has been recording success after success. Compare this with those who literally passed a vote of no confidence in our military by bringing in mercenaries to fight insurgency. Not only that, they looted dry all the funds earmarked to buy arms and ammunition for the military.

“Some of the alleged looters said they spent billions just praying against Boko Haram! The Nigerian military, which has excelled in global peacekeeping operations since 1960 and has sacrificed a lot to keep our country united, has regained its respect and influence.

“Ditto the Nigeria Police, which is steadily being repositioned to be efficient and well-motivated, and to improve its capacity to face modern-day security challenges. As the Honourable Minister of Police Affairs told us here last month, the Nigeria Police now has a state-of-the-art National Command and Control Centre.

“This is unprecedented. Other security agencies have not been left behind in the area of capacity enhancement through training and modernization of equipment.

“The Buhari Administration is leaving a legacy of inclusiveness, especially in the areas of infrastructure and social development. There is no state in Nigeria that is not witnessing at least a road, a bridge or a housing project. None!

“The Honourable Minister of Finance, Budget and National Planning has also told us here how Mr President approved tranches upon tranches of funds to states, irrespective of their party affiliation, to enable them to meet their obligations to the people.

“We dare any part of this country to say that it has not benefitted from the programmes of the Buhari Administration in one way or another and we will happily counter that with verifiable evidence,” Mohammed boasted.

VANGUARD

Business

Naira Records Highest Depreciation Against US Dollar

Published

1 day ago

January 10, 2026

Editor

The Naira recorded the highest depreciation against the United States dollar at the official foreign exchange on Friday to end the week on a negative note.

Central Bank of Nigeria data showed that the Naira extended its dip on Friday to N1,423.17 against the dollar, down from N1,419.72 traded on Thursday.

This represents a N3.45 depreciation against the dollar on a day-to-day basis, the highest in the week under review and in 2026 so far.

Meanwhile, at the black market, the naira remained at N1,490 per dollar on Friday, the same rate recorded on Thursday.

In the other week, the Naira recorded three gains and two losses against the US dollar and other currencies.

The development comes amid the continued rise in the country’s external reserves, which hit $45.67 billion as of January 8, 2026.

Business

KPMG Flags Five Major ‘Errors’ In Nigerian Tax Laws

Published

2 days ago

January 9, 2026

Editor

Fresh apprehension has surfaced over Nigeria’s newly implemented tax framework after KPMG Nigeria highlighted what it described as “errors, inconsistencies, gaps, and omissions” in the new tax laws that took effect on January 1, 2026. The professional services firm in a recent statement cautioned that failure to address these issues could weaken the overall objectives of the tax reforms.

Nigeria’s tax overhaul is built around four major legislations: the Nigeinpieces of legislation:ria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), the Nigeria Revenue Service (NRS) Establishment Act, and the Joint Revenue Board (JRB) Establishment Act. The laws were signed by President Bola Ahmed Tinubu in June 2025 and formally commenced in 2026. However, the reforms have continued to attract controversy since they were first introduced in October 2024.

Despite the concerns, government officials have consistently described the reforms as essential to improving Nigeria’s low tax-to-GDP ratio and modernisingpieces of legislation:modernizing the country’s tax system in line with evolving economic conditions.

In a detailed review, KPMG outlined several areas of concern.

Capital gains, inflation modernizing inflation and market response

KPMG flagged Sections 39 and 40 of the Nigeria Tax Act, which require capital gains to be calculated as the difference between sale proceeds and the tax-written-down value of assets, without adjusting for inflation. According to the firm, this approach is problematic given Nigeria’s prolonged high-inflation environment.

Data from the National Bureau of Statistics shows that headline inflation has remained in double digits for eight consecutive years, averaging over 18 percent between 2022 and 2025. Over the same period, asset prices have been significantly influenced by currency depreciation and general price increases.

Market data also reflects investor sensitivity to tax policy changes. Although the NGX All-Share Index gained more than 50 percent over the year and market capitalisation inflation,capitalization approached N99.4 trillion, equities experienced sharp sell-offs in late 2025. In November alone, market value reportedly declined by about N6.5 trillion amid uncertainty surrounding the new capital gains tax regime.

KPMG warned that taxing nominal gains in such an environment could result in investors paying tax on inflation-driven increases rather than real economic gains. The firm recommended introducing a cost indexation mechanism to adjust asset values for inflation, noting that this would reduce distortions while still enabling the government to earn revenue from genuine capital appreciation.

Indirect transfers and foreign investment concerns

Attention was also drawn to Section 47 of the Nigeria Tax Act, which subjects gains from indirect transfers by non-residents to Nigerian tax where the transactions affect ownership of Nigerian companies or assets.

This provision comes at a time of subdued foreign investment. Figures from the United Nations Conference on Trade and Development indicate that foreign direct investment inflows into Nigeria remain below pre-2019 levels, reflecting ongoing investor caution.

While similar rules exist in other countries, KPMG noted that they are often supported by detailed guidance and clear thresholds. The firm advised Nigerian tax authorities to issue comprehensive administrative guidelines to clarify scope, thresholds,capitalizationthresholds, and reporting obligations inorder to reduce disputes and limit potential negative effects on foreign investment.

Foreign exchange deductions and business impact

Another issue identified relates to Section 24 of the Act, which restricts businesses from deducting foreign-currencyforeign currency expenses beyond their naira equivalent at the official Central Bank of Nigeria exchange rate.

In reality, limited access to official foreign exchange forces many companies to source FX at higher parallel market rates. Under the current rule, the additional cost becomes non-deductible, effectively increasing taxable profits and overall tax liabilities.

KPMG observed that although the provision aims to discourage FX speculation, it does not adequately reflect supply constraints. The firm recommended allowing deductions based on actual costs incurred, provided transactions are properly documented, to avoid penalisingforeign currencypenalizing businesses for factors outside their control.

VAT-related expense disallowances

Section 21(p) of the Nigeria Tax Act also came under scrutiny for disallowing deductions on expenses where VAT was not charged, even if the costs were entirely business-related.

Given Nigeria’s large informal sector and persistent VAT compliance gaps, analysts argue that the rule unfairly shifts part of the VAT enforcement burden onto compliant taxpayers. KPMG advised that the provision be removed or significantly amended, stressing that expense deductibility should be based on whether costs were wholly and necessarily incurred for business, while VAT compliance should be enforced directly on defaulting suppliers.

Non-resident taxation uncertainties

KPMG further highlighted ambiguities around the compliance obligations of non-resident companies. While the Nigeria Tax Act recognizespenalizingrecognizes withholding tax as the finalthe final tax for certain nonresident payments in the absence of a permanent establishment or significant economic presence, the Nigeria Tax Administration Act does not clearly exempt such entities from registration and filing requirements.

Nigeria’s network of double taxation treaties, including agreements with the UK, South Africa, Canada, and France, generally supports the principle that final withholding tax extinguishes further obligations. Experts warn that inconsistencies between the laws could create uncertainty and discourage foreign participation.

KPMG recommended harmonizing the relevant provisions of the NTA and NTAA, with explicit exemptions for non-resident companies whose tax obligations have been fully settled through withholding tax. The firm noted that such alignment would ease compliance and enhance Nigeria’s appeal for cross-border transactions.

As Nigeria undertakes its most extensive tax reform in decades, KPMG concluded that the success of the overhaul will depend on clarity, consistency, and alignment with international best practices. Without timely amendments, businesses may face higher costs, foreign investors could remain cautious, and capital markets may continue to experience volatility.

Recall that KPMG concerns come after a lawmaker, Abdulsamman Dasuki, raised alarm over alleged alterations to the gazetted tax laws.
(DAILY POST)

Business

Naira Records First Depreciation Against US Dollar In 2026

Published

2 days ago

January 9, 2026

Editor

The Naira recorded its first depreciation against the United States dollar in the official foreign exchange market on Thursday, the first time in 2026 so far.

The Central Bank of Nigeria’s data showed that it weakened on Thursday after days of gains to N 1,419.72 per dollar, down from N 1,418.26 on Wednesday.

This means that for the first time this year, the Naira dipped by N1.46 against the dollar on a day-to-day basis.

Similarly, the Naira also depreciated by N10 at the black market to N1,490 on Thursday, down from the N1,480 recorded the previous day.

This comes despite the continued rise in the country’s foreign reserves to $45.64 billion as of Wednesday, 7th January 2026.

DAILY POST reports that the Naira recorded a seven-day bullish run at the official foreign exchange before Thursday’s decline.