Connect with us

Business

Aviation tax removal requires govt consensus, says Keyamo

Published

on

Minister of Aviation and Aerospace Development, Festus Keyamo, has stated that the removal of taxes in the aviation sector cannot be decided by one individual, noting that such policies are subject to collective government approval and legislative review.

He said this at an event in Abuja on Monday, celebrating 100 years of aviation in Nigeria. The minister clarified that despite industry pressure over multiple taxation, tax removal lies beyond the jurisdiction of the aviation ministry alone. He stressed that statutory levies require input from key institutions, including the Ministry of Finance, tax authorities, and the National Assembly.

“You can see that I am not the owner of Nigeria. There’s a Ministry of Finance. There’s a tax authority. The Minister of Aviation cannot wake up overnight and say, I’m removing taxes. It’s a whole ecosystem, a whole government system that will meet on that. Some of these things are statutory; they are laws already.”

He explained that the legislature must also deliberate on tax adjustments before they can be enforced. According to him, President Bola Tinubu has already shown commitment to addressing tax burdens in the industry.

“The National Assembly will be involved too, to remove some of these from the laws. But let me tell you, Mr President himself is so proactive. For the laws that are not taking place, for example, the tax law that was about to take place, he immediately excluded aviation, the four percent tax. The money could have been higher.”

Keyamo added that a review process is now in motion to tackle multiple taxation affecting airline operations.

See also  Lagos bond subscription hits N310bn

“The President has set up a team to review all of these multiple taxations. And so we are getting the ball rolling.”

Beyond taxation, Keyamo highlighted the infrastructure deficit as the biggest challenge facing Nigeria’s aviation growth. He said the country must develop fully functional airport hubs capable of handling seamless international transit.

“The big elephant in the room is infrastructure. We need to convert our major gateways to proper hubs where you can fly in, go through a process of processing you without even entering the country, into another wing, and then you board again and fly out. Now, we have airlines that have the capacity. They are already doing international routes.”

He argued that Nigerian airlines like Air Peace could operate more profitable, long-haul connecting routes if modern hub systems were in place.

“So, for instance, there’s no reason why Airpeace cannot take you from London. If you are coming to Nigeria, or if you are a resident in London, you can buy an Airpeace ticket going to South Africa. And so they lift you from London, they bring you to Nigeria. You don’t need to come to Lagos. We need that facility to process you into the next wing, and you board the same Airpeace, you are connecting to South Africa.”

See also  Tinubu directs immediate employment for 200 corps members, N250,000 cash awards

He added that domestic carriers rely heavily on such infrastructure to expand their operations. “So we need, first of all, infrastructure to develop proper hubs to assist our airline. Because they also need the hubs. Without those infrastructures, they cannot grow in a way to fly.”

Keyamo listed finance and aircraft leasing access as the second major obstacle to airline growth. “The second one is to ensure that we empower the airlines to have access to credits, access to financing, and access to lease aircraft. These are the two major problems. If not, the problem is not in the traffic.”

Despite current challenges, he maintained that market capacity, population, and location are in Nigeria’s favour. The new tax reform law, recently passed as part of the federal government’s fiscal restructuring, has consolidated several tax statutes into a unified framework aimed at widening revenue generation and reducing administrative overlap.

However, the aviation industry has expressed concern over the removal of certain long-standing exemptions, including duties on aircraft parts and components, VAT on tickets, and levies affecting airline operations.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

EFCC Begins Probe Of Ex-NMDPRA Boss After Dangote’s Petition

Published

on

The Economic and Financial Crimes Commission (EFCC) has commenced an investigation into a petition filed against the former Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, by the President of Dangote Group, Aliko Dangote.

It was gathered that Dangote formally submitted the petition to the EFCC earlier this week through his legal representative, following the withdrawal of a similar petition from the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

Dangote had initially approached the ICPC, asking it to investigate Ahmed over allegations that he spent about $5 million on his children’s secondary education in Switzerland, an expense allegedly inconsistent with his known earnings as a public officer.

Although the petition was later withdrawn, the ICPC had said it would continue with its investigation.

Confirming the new development, a senior EFCC officer at the commission’s headquarters in Abuja, who spoke on condition of anonymity because he was not authorised to speak publicly, said the petition had been received and investigations had commenced.

“They have brought the petition to us, and an investigation has commenced on it. Serious work is being done concerning it,” the source said.

In the petition signed by Dangote’s lead counsel, Dr O.J. Onoja (SAN), the businessman urged the EFCC to investigate allegations of abuse of office and corrupt enrichment against Ahmed and to prosecute him if found culpable.

The petition further stated that Dangote was ready to provide documentary and other evidence to support claims of financial misconduct and impunity against the former regulator.

See also  NAFDAC destroys 491,000 tramadol tablets worth N91m in Kano

“We make bold to state that the commission is strategically positioned, along with sister agencies, to prosecute financial crimes and corruption-related offences, and upon establishing a prima facie case, the courts do not hesitate to punish offenders,” the petition read, citing recent court decisions.

Onoja also called on the EFCC, under the leadership of its chairman, Olanipekun Olukoyede, to thoroughly investigate the allegations and take appropriate legal action where necessary.

When contacted, the EFCC spokesperson, Dele Oyewale, declined to comment on the matter but promised to respond later. No official reaction had been received as of the time of filing this report.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading

Business

IMPORTANT NOTICE REGARDING MONEY TRANSFERS IN NIGERIA (2026)

Published

on

Starting from *January 2026*, please ensure that *any money you send* to anyone — including me — comes with a *clear description* or *payment remark*. This is *very important* for tax purposes.

Use descriptions like:

– *Gift*
– *Loan*
– *Loan Repayment*
– *House Rent*
– *School Fees*
– *Feeding*
– *Medical*
– *Support*,
– School fee etc.

*Why this matters:*

In 2026, any money entering your account *without a description* may be treated as *income*, and *IRS (or relevant tax authority)* could tax it — or even worse, ask you to explain the source.

The *first ₦800,000* may be *tax-free*, but after that, any unexplained funds might attract up to *20% tax*, or in extreme cases, lead to legal issues.

So please:

– *Always include a payment remark.*
– *Avoid using USSD or apps that don’t allow descriptions.*
– *Ask the receiver for the correct description BEFORE sending.*

As for me, *do not send me any money* without discussing it with me first.
And no, I don’t want to hear “Sir/Ma, I used USSD” – if you can’t add a description, *hold your money*.

From now on, *I will tell you exactly what to write in the payment remark.*
Let’s all form the habit of *adding payment descriptions now* to avoid problems later.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

See also  FG generates N5.21tn from oil sales in H1
Continue Reading

Business

FG earmarks N1.7tn in 2026 budget for unpaid contractors

Published

on

The Federal Government has budgeted the sum of N1.7tn in the 2026 Appropriation Bill to settle outstanding debts owed to contractors for capital projects executed in 2024.

A breakdown of the proposed 2026 national budget shows that the amount is captured under the line item titled “Provision for 2024 Outstanding Contractor’s Liabilities,” signalling official recognition of delayed payments to contractors amid recent protests over delayed settlements.

This budgetary provision follows mounting pressure from indigenous contractors and civil society groups who, in 2025, raised alarm over unpaid contractual obligations allegedly exceeding N2tn.

Some groups under the All Indigenous Contractors Association of Nigeria had also staged demonstrations in Abuja, lamenting the severe impact of delayed payments on their operations, with many contractors reportedly unable to service bank loans taken to execute government projects.

Earlier, Minister of Works David Umahi had promised to clear verified arrears owed to federal contractors before the end of 2025. However, only partial payments were made amid revenue constraints, prompting the inclusion of the N1.7tn line item in the 2026 budget as a catch-up mechanism.

In addition to the N1.7tn for 2024 liabilities, the government has also budgeted N100bn for a separate line item labelled “Payment of Local Contractors’ Debts/Other Liabilities”, which may cover legacy debts from previous years, smaller contract claims, or unsettled financial commitments that were not fully verified in the current audit cycle.

The total N1.8tn allocation is part of the broader N23.2tn capital expenditure in the 2026 fiscal plan, which seeks to ramp up infrastructure delivery while cleaning up past obligations.

See also  FG to disburse ₦6.3bn interest-free loans to 21,000 flood victims

Nigeria’s contractor debt backlog has been a recurring fiscal issue, worsened by delayed capital releases, partial cash-backing of budgeted projects, and underperformance in revenue targets.

Speaking with journalists at the entrance of the Federal Ministry of Finance in December 2025, the National Secretary of the All Indigenous Contractors Association of Nigeria, Babatunde Seun-Oyeniyi, said the government’s failure to release funds after multiple assurances had forced contractors to resume protests. He said members of the association were owed more than N500bn for projects already completed and commissioned.

He explained that despite recent assurances from the Minister of Finance, Wale Edun, no payment had been made. “After the National Assembly intervened, they told us that they will sit the minister down over this matter.  And we immediately stopped the protest,” he said.

According to him, repeated follow-up meetings with the minister had produced no tangible progress. “They have not responded to our request,” he said. “In fact, more than six times we have come here. Last week, we were here throughout the night before the Minister of Finance came.”

Oyeniyi said that although some payment warrants had been sighted, no funds had been released. “Specifically, when we collate, they are owing more than N500bn for all indigenous contractors. We only see warrants; there is no cash back.”

He accused officials of attempting to push the payments into the next fiscal year. “The problem is that they want to put us into a backlog. They want to shift us to 2026; that 2026, they are going to pay,” he alleged. “They will turn us into debt, and we don’t want that. We won’t leave here until we are paid.”

See also  CBN announces new withdrawal limit, removes deposit cap

However, The PUNCH observed that earlier in August 2025, the Federal Government claimed that it had cleared over N2tn in outstanding capital budget obligations from the 2024 fiscal year, with a pledge to prioritise the timely release of 2025 capital funds.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this at a ministerial press briefing in Abuja, where he also declared that Nigeria is “open for business” to global investors on the back of improved economic stability.

“In the last quarter, we did pay contractors over N2tn to settle outstanding capital budget obligations. That is from last year,” Edun said. “At the moment, we have no pending obligations that are not being processed and financed. And the focus will now shift to 2025 capital releases.”

By December 2025, The PUNCH reported that President Bola Tinubu expressed “grave displeasure” over the backlog of unpaid federal contractors and set up a high-level committee to resolve the bottlenecks and fund repayments.

Briefing State House correspondents after the Federal Executive Council meeting in Abuja, Special Adviser on Information and Strategy, Bayo Onanuga, said the President was “upset” after learning that about 2,000 contractors are owed. “He made it very, very clear he is not happy and wants a one-stop solution,” Onanuga told journalists.

Tinubu directed the setting up of a committee to verify all claims from federal contractors. The new budget’s provisions are expected to draw from the outcome of that verification exercise and may be disbursed in tranches based on confirmed and certified claims.

See also  Lagos bond subscription hits N310bn

The total proposed 2026 national budget stands at N58.47tn, with N23.2tn earmarked for capital expenditure, N15.9tn for debt servicing, N15.25tn for recurrent spending, and N4.09tn for statutory transfers.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading

Trending