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Air fares to drop following VAT removal

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Airl are planning to reduce fares in response to the removal of 7.5 per cent ValueOhunayoTax (VAT). The suspension of VAT from air fares took effect from January 1, 2021, as part of incentives contained in the Finance Act 2020.

Airline operators told our correspondent  that they have received the directive on VAT removal from the government, but they are waiting for the Federal Inland Revenue Service (FIRS) to implement the directive before the low fares regime comes into operation.

Investigations have shown  that fares that were around N90, 000 for a one-way trip on some routes, could come down to as low as N27, 500.

Possible reduction, an operator hinted, would take effect in the weeks ahead after airlines have enjoyed the huge passenger traffic on the return leg for the end of year festivities.

Spokesman of Dana Air, Kingsley Ezenwa said airlines were excited over the suspension of VAT, which he said should occasion considerable reduction in air fares.

Another airline official who pleaded anonymity however, said substantial reduction in air fares might not be realisable because even with the suspension of 7.5 per cent VAT on fares, airlines were still grappling with oscillating exchange rate as the airport authority moves to increase Passenger Service Charge (PSC)gooERTISEMENTSEME

Currently, airlines are charging from N27,500 to N38,800 on the Lagos-Abuja route. Airlines are also charging from N27,500 to N42,000 on the Abuja-Lagos route.

On the Lagos-Owerri route, airlines charge from N27, 500 to N33,000. Return fares on Owerri-Lagos route goes for between N60,000 and N90,000.

On the Lagos-Port Harcourt route,  fares are going for between N42,000 and N80,000.

On the Lagos-Kano route, airlines range from N29,900 N35, 700; N42,000.

Operators, however, expressed divergent views on how the removal of 7.5 percent VAT, hitherto factored into domestic airfares, would affect their operations.

They said though the removal of VAT could bring about considerable reduction of airfares, it was a step taken too late after two years of agitation by the Airline Operators of Nigeria (AON), the umbrella body of local carriers.

In 2018, the government had suspended five per cent charges on imported commercial  aircraft and spare parts through an executive order but, the FIRS claimed to be unaware of such a directive, hence it was never implemented leaving airlines confused on the pronouncement.

In an interview at the weekend, Chairman of West Link Airlines Captain Ibrahim Mshelia, however, said the suspension of VAT was a good development for domestic carriers.

“If implemented, the removal of Value Added Tax will ease, standardise and harmonise our system with international best practices. It is a good move in the right direction,” Mshelia said.

Chief Operating Officer, Dana Air, Obi Mbanuzor  said Dana Air said: “We are happy about the removal which we feel should naturally reflect on fares and possibly bring it down but with the inflation of other aspects of the chain like dollar rate this might not be possible. We know the government has no control over this but it is a major concern,” Mbanuzor said.

He noted that with all the other extraneous costs being borne by airlines, the adjustment to air fare may be minimal.

“So we are not saying it won’t affect but might be slight because other factors are still springing up and it’s a chain. Policy! Policy! Policy! Will impact the airlines better but this is also appreciated. One step at a time and this is one very good step at getting it right,” Mbanuzor said.

Head, Research, Zenith Travels, Olumide Ohunayo added: “I’m happy to see the implementation of the VAT because in the first place, the airlines were putting it on the ticket and oftentimes as in Virgin Nigeria case, they will not be remitted to the Federal Government and this amount was put on tickets and taken from passengers.

“The fares were loaded with security, fuel surcharge and other charges. I don’t expect much difference in the ticket prices those were the hidden charges airlines benefited from and now it is gone. We expect that airlines should be able to issue tickets stating clearly the fare and what the other charges are; it should not be hidden anymore so we can have some progress in the fare structure,” Ohunayo  said.

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JUST IN : N2.2bn Fraud, Court Upholds Ngige’s EFCC Bail, Insists on Senior Civil Servant as Surety

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The Federal Capital Territory High Court sitting in Gwarinpa, Abuja, on Thursday, granted a former Minister of Labour and Employment, Chris Ngige, to continue to enjoy the administrative bail earlier granted him by the Economic and Financial Crimes Commission.

The trial judge, Justice Maryam Hassan, made the order while delivering a ruling in the bail application filed and argued on behalf of the former minister by his lead counsel, Patrick Ikwueto (SAN).

Justice Hassan in the ruling directed Ngige to produce a surety who must be a director in the employment of the Federal Government and own a landed property.

Justice Hassan ruled that the surety is to deposit the title documents of the landed property, as well as his travel documents, with the court pending the time Ngige completes the retrieval of his own international passport.

The EFCC had previously granted Ngige bail on self-recognition and directed him to submit his travel documents to the commission, in addition to providing one surety.

 

 

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Breaking : Tinubu Removes NMDPRA Chiefs Farouk, Komolafe Over Sabotage, Corruption Allegations; Names Replacement

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The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, has resigned.

Similarly, his counterpart at the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, has stepped down.

Based on the development, President Bola Tinubu has asked the Senate to confirm new chief executives for the two agencies.

The President’s request was contained in separate letters to the Senate on Wednesday.

This was announced in a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga.

Both officials were appointed in 2021 by former President Muhammadu Buhari after the enactment of the Petroleum Industry Act.

According to the statement, Tinubu “has written to the Senate, requesting expedited confirmation of Oritsemeyiwa Amanorisewo Eyesan as CEO of NUPRC and Engineer Saidu Aliyu Mohammed as CEO of NMDPRA.”

The statement noted that Eyesan, an economist and oil industry veteran, spent nearly 33 years at the Nigerian National Petroleum Company Limited and its subsidiaries.

She retired in 2024 as Executive Vice President, Upstream, and previously served as Group General Manager, Corporate Planning and Strategy.

Mohammed, a chemical engineer and former Managing Director of the Kaduna Refining and Petrochemical Company and the Nigerian Gas Company, has also served on several energy sector boards.

He recently emerged as an independent non-executive director at Seplat Energy.

“The two nominees are seasoned professionals in the oil and gas industry,” the statement noted.

Ahmed’s resignation comes amid a high-profile conflict with Africa’s richest man, Aliko Dangote, which drew national attention in December 2025.

The dispute arose from Dangote’s allegations that Ahmed and his family were living beyond their legitimate means, citing millions of dollars allegedly spent on overseas schooling for his four children.

Dangote petitioned the Independent Corrupt Practices and Other Related Offences Commission to investigate and prosecute Ahmed for abuse of office and corrupt enrichment, sparking a nationwide debate over regulatory oversight in Nigeria’s petroleum sector.

The NMDPRA chief dismissed Dangote’s claims as “wild and spurious,” insisting that he would rather defend himself before a formal investigative body than engage in public arguments.

The conflict, which traces its roots to 2024 when Ahmed criticised domestic refinery output—including Dangote’s refinery—prompted intervention by the House of Representatives, which summoned both parties to avoid destabilising the sector.

President Bola Ahmed Tinubu on Wednesday evening met with the embattled Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, at the State House, Abuja.

The meeting came amid allegations of financial impropriety made by industrialist and President of the Dangote Group, Alhaji Aliko Dangote, against the NMDPRA boss.

Dangote and Ahmed have been at odds for a while now over downstream petroleum regulation and the future of domestic refining in Nigeria.

At a press conference on Sunday at the Dangote Petroleum Refinery, Dangote accused the NMDPRA, under Mr Ahmed’s leadership, of economic sabotage, alleging that regulatory actions were undermining local refining capacity.

He claimed that the continued issuance of import licences for petroleum products was frustrating domestic refiners and deepening Nigeria’s reliance on fuel imports.

The billionaire industrialist further alleged that the regulator was colluding with international traders and petroleum importers to the detriment of local operators, accusations to which the NMDPRA has yet to publicly respond.

Mr Dangote also made personal allegations against the NMDPRA chief, claiming that Mr Ahmed was living beyond his legitimate means.

He alleged that four of Mr Ahmed’s children attend secondary schools in Switzerland at costs running into several millions of dollars, arguing that such expenditure raised concerns about conflicts of interest and the integrity of regulatory oversight in the downstream petroleum sector.

On Monday, Mr Dangote escalated the claims, accusing Mr Ahmed of corruption and misappropriation of public funds.

He alleged that about $5 million was spent on the secondary education and upkeep of the children over six years, with an additional $2 million on tertiary education, including an alleged $210,000 for a 2025 Harvard MBA programme for one of them.

The controversy deepened on Tuesday when Mr Dangote, through his lawyer, Ogwu Onoja, a Senior Advocate of Nigeria (SAN), petitioned the Independent Corrupt Practices and Other Related Offences Commission (ICPC), calling for Mr Ahmed’s arrest, investigation, and prosecution.

In the petition addressed to ICPC Chairman Musa Aliyu, Mr Dangote alleged that the NMDPRA chief “spent without evidence of lawful means of income amounting to over $7 million for the education of his four children” in Switzerland.

The petition reportedly included the names of the children, the schools attended, and detailed figures for verification.

Mr Ahmed arrived at the Presidential Villa at about 5:30 p.m. and left the President’s office after less than 30 minutes.

He declined to speak with journalists as he exited the State House and offered no comment on the allegations or the outcome of his meeting with President Tinubu.

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BREAKING: Ex-NIWA Boss Oyebamiji Clinches Osun APC Governorship Ticket

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The immediate past Managing Director of the National Inland Waterways Authority, Bola Oyebamiji, on Saturday emerged as the consensus candidate of the All Progressives Congress for the forthcoming Osun State governorship election.

Oyebamiji’s emergence followed a motion moved by two governorship aspirants, Kunle Adegoke (SAN) and Senator Babajide Omoworare, at the primary election venue located within the premises of Ebunoluwa Group of Schools, Osogbo.

The Chairman of the APC governorship primary committee and Governor of Edo State, Monday Okpebholo, thereafter subjected the motion to a voice vote, which received overwhelming support from party members present at the primary.

Okpebholo subsequently declared, “By the power conferred on me, I present to you Bola Oyebamiji, as the governorship candidate of our party.”

Newsthumb earlier reported that the APC governorship primary in Osun State commenced in Osogbo, the state capital, with the arrival of the committee chairman, Monday Okpebholo, who noted that the candidate will emerge by affirmation.

APC’s gov candidate Oyebamiji pledges to reposition Osun
He arrived at the venue alongside the co-chairman of the committee, Governor Lucky Aiyedatiwa of Ondo State, and other members of the governorship primary committee, including Governor Abdullahi Sule of Nasarawa State, Dr Obafemi Hamzat, who represented the Lagos State Governor, and former Kogi State Governor, Yahaya Bello.

Earlier on Tuesday, 1660 delegates that would elect the APC candidate in the December 13 governorship primary of the party emerged.

There were also clear indications that the seven APC governorship aspirants in the state had stepped down to back a consensus flagbearer after a late-night meeting with President Bola Tinubu at the State House, Abuja, on Wednesday.

A former APC National Secretary, Senator Iyiola Omisore, on Wednesday, speaking on a TVC News programme, Politics Tonight, declared his support for the party’s arrangement to choose a consensus candidate for the 2026 Osun State governorship election.

Omisore, who was among seven aspirants disqualified by the APC Screening Committee for alleged violations of party guidelines and electoral provisions, said he accepted the decision following guidance from President Bola Tinubu.

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