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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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Breaking : Tinubu returns to Abuja tonight after diplomatic visits to Saint Lucia, Brazil,Says Onanuga

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President Bola Ahmed Tinubu is expected to arrive Abuja later tonight following a two-nation diplomatic tour that took him to Saint Lucia in the Caribbean and Brazil in South America.

His return was confirmed in a message posted on Saturday afternoon by the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, on his verified X handle, @aonanuga1956.

“President Bola Ahmed Tinubu returns to Abuja today after his two-nation visit to Saint Lucia and Brazil,” the presidential aide stated.

The President departed Nigeria on Saturday, June 28 for what was described as a strategic outreach aimed at strengthening ties with regions historically under-engaged in Nigeria’s diplomatic matrix.

His first stop was Saint Lucia, where he made a historic visit to build new ties and explore emerging partnerships with Caribbean states.

While in Saint Lucia, Tinubu interacted with regional leaders under the Organisation of Eastern Caribbean States (OECS), reinforcing Nigeria’s growing interest in Caribbean diplomacy and South-South cooperation.

He subsequently proceeded to Brazil to participate in the 17th BRICS Summit held in Rio de Janeiro.

On the sidelines of the summit, President Tinubu held a bilateral meeting with his Brazilian counterpart, President Luiz Inácio Lula da Silva.

The leaders co-chaired the Nigeria-Brazil high-level bilateral meeting , where they discussed mechanisms to boost trade, infrastructure financing, and cultural cooperation between Africa’s most populous country and Latin America’s largest economy.

With the President’s return, focus is expected to shift to domestic engagements and follow-up actions on the diplomatic and investment commitments made during his foreign tour.

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2027 Election: Group Moves To recover 10m Lost Votes In Northern States, Says Muhammad Gamawa

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A non-governmental organisation, Advocacy for Integrity and Rule of Law (Airlin) in Nigeria, has kicked off a grassroots campaign across the 19 northern states to promote civic awareness, respect for the rule of law, and voter participation ahead of the next general elections.

Speaking during the inauguration of the Yobe State chapter of the organisation on Sunday, the National Chairman, Muhammad Ibrahim Gamawa, said the initiative was designed to “re-Nigerianise Nigerians” by instilling a deep respect for national values, laws, and democratic responsibilities.

Gamawa noted that the campaign specifically targets Nigerians who refused to vote during the last election, which recorded barely 40 per cent voter turnout.

He said his team is engaging directly with this silent majority in their homes to encourage them to reclaim their civic duty.

“We are going to those who didn’t vote not just to ask them to vote, but to educate them on their rights, how to make informed decisions, and to choose leaders based on ideology, not money,” Gamawa said.

He added that Airlin has appointed state and local government coordinators in all the LGAs of Yobe State as part of its broader plan to mobilise at least 10 million voters from its membership base in the coming election.

Airlin already has functional offices in 16 northern states, strengthening its capacity to reach the grassroots and drive consistent civic engagement.

According to him, “If you refuse to vote, you’re giving the bad eggs a chance to emerge. We’re telling people: don’t stay back. Come out and close the gap left during the last elections.”

He stressed that one of the key tasks for the newly inaugurated officials is to discourage vote-buying and reject financial inducement from politicians.

“Anyone who collected N1,000 or even N1 million two years ago already knows the money is gone. What is left is the broken promise and bad leadership. We must now live by political ideology. Don’t give your vote for money give it for policy, for vision, for something that aligns with your future,” he warned.

Gamawa said Airlin doesn’t engage in partisan campaigns or political endorsements, but instead evaluates political manifestos and meets with candidates to ask direct questions about their plans for the first term.

He added, “Our duty is to look beyond the noise and see who has a workable plan. We sit with these leaders and assess what they can deliver in the first 100 days. That is how we guide our members to vote consciously.”

The group’s core message revolves around respect for the rule of law, civic responsibility, and citizen-led accountability, with Gamawa stressing that the time had come for Nigerians to stop waiting for government agencies to enforce good governance.

“Let the rule of law live in our minds, in our bodies. It’s our job as citizens to keep Nigeria together not just the job of the government,” he said.

Gamawa concluded with a strong warning against vote trading, describing it as an act of betrayal to the nation, “Collecting money from politicians for votes is the worst thing citizens can do to their country.”

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Breaking : US cuts Nigerian non-immigrant visas to three months, single entry, With immediate effect

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The United States Department of State has announced an update to its non-immigrant visa policy for Nigerians.

According to a press release issued by the US Embassy in Abuja on Tuesday, “most non-immigrant and non-diplomatic visas issued to citizens of Nigeria will be single-entry visas with a three-month validity period.”

The new visa restrictions take immediate effect.

However, the embassy clarified that, “those US non-immigrant visas issued before July 8, 2025, will retain their status and validity.”

The statement emphasised that this move is part of the Department’s global visa reciprocity process, which the embassy described as “a continuous process and is subject to review and change at any time, such as increasing or decreasing permitted entries and duration of validity.”

The US explained the rationale behind the policy update, noting that “US visa criteria and standards are designed to protect the integrity of US immigration systems.”

The embassy added that “these standards are based on global technical and security benchmarks.”

According to the embassy, the US Mission is working with Nigerian authorities to meet these benchmarks.

“The US Mission is working with the Government of Nigeria to ensure that Nigeria can meet the criteria,” the statement said.

Examples of these standard criteria include “Secure Travel Documents: Ensuring countries issue secure travel documents with verified traveler identities.

“Visa Overstay Management: Implementing measures to limit overstays by travelers on US visas, and Information Sharing: Sharing relevant security and/or criminal record information to protect public safety.”

Despite the new restrictions, the embassy reaffirmed its diplomatic relationship with Nigeria.

“The United States values its longstanding relationship with Nigeria and remains committed to expanding our partnership based on mutual respect, shared security priorities, and economic opportunity, keeping both our countries safer and stronger,” the statement read.

The embassy also expressed support for ongoing Nigerian reforms, stating, “We commend the ongoing efforts by the Government of Nigeria’s immigration and security agencies to meet standards of international best practices.”

Nigerian travelers were advised to comply with visa regulations.

“Nigerian travelers are encouraged to respect and adhere to the terms of their visas, and ensure travel documents are authentic, accurate, and up to date,” it added.

The embassy concluded with a reaffirmation of its engagement with the Nigerian people and government.

“The United States remains a committed partner in deepening people-to-people ties with Nigeria via business, educational, and cultural exchanges.

“We look forward to continued cooperation at all levels with the Nigerian public and government officials to ensure safe and lawful travel between the United States and all countries,” it said

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