Government U-Turn On VAT Leads To Price Drop

Nigeria's Federal Government has reversed its recent decision to increase VAT rates from 5% to 10% following vehement protests from unions. A nationwide strike kicked off on June 20 as the Nigeria Labour Congress (NLC) and other trade unions protested at a range of controversial economic policies enacted by outgoing President Olusegun Obasanjo. This included the aforementioned doubling of VAT, a hike in fuel prices and the privatisation of two oil refineries. And while the new President Umaru Yar'Adua relented on the issue of VAT, the fuel price hike remains unresolved and by June 21, economic activity in Nigeria had ground to a virtual halt.

To read the full article, please choose one of the following options: