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Super User

Investors sold technology stocks across the globe on Monday as they worried that the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of current AI leaders like Nvidia, shaving $592.7 billion off the chipmaker's market value.

Last week, Chinese startup DeepSeek launched a free AI assistant that it says uses less data at a fraction of the cost of incumbent services. By Monday, the assistant had overtaken U.S. rival ChatGPT in downloads from Apple's app store.

This led the tech-heavy Nasdaq to fall 3.1% on Monday. Nvidia was the Nasdaq's biggest drag, with its shares tumbling just under 17% and marking a record one-day loss in market capitalization for a Wall Street stock, according to LSEG data.

Nvidia's market-cap loss on Monday was more than double the previous one-day record, set by Nvidia last September.

The Nasdaq's next-biggest drag was chipmaker Broadcom Inc, which finished down 17.4%, followed by ChatGPT backer Microsoft, which fell 2.1% and then Google parent Alphabet, which ended down 4.2%.

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The Philadelphia semiconductor index tumbled 9.2%, for its biggest percentage drop since March 2020 and its biggest decliner was Marvell Technology, which tumbled 19.1%.

U.S. equity declines followed a selloff that started in Asia, with Japan's SoftBank Group finishing down 8.3%, and moved through Europe where ASML fell 7%.

"If it’s true that DeepSeek is the proverbial 'better mousetrap,' that could disrupt the entire AI narrative that has helped drive the markets over the last two years," said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.

"It could mean less demand for chips, less need for a massive build-out of power production to fuel the models, and less need for large-scale data centers."

The hype around AI has powered a huge inflow of capital into equities in the last 18 months, inflating valuations and lifting stock markets to new highs.

AI optimism supercharged Wall Street in recent years

As recently as Wednesday, U.S. AI-related stocks had rallied sharply after President Donald Trump announced a private-sector plan for what he said would be a $500 billion investment in AI infrastructure through a joint venture known as Stargate.

Since then, SoftBank announced a $19 billion commitment to help fund the Stargate venture whose other backers include ChatGPT developer OpenAI and Oracle , whose shares finished down 13.8% on Monday.

In their flight from risk, investors sought out safe-haven government bonds and currencies. The benchmark U.S. Treasury 10-year yield fell to 4.53% while in currencies Japan's yen and the Swiss franc rallied against the U.S. dollar.

Deutsche Bank analyst Adrian Cox wrote in a research note on Monday that DeepSeek was "sowing seeds of doubt to the 'bigger is better' approach that has fuelled the AI race up to now."

Still, Cox said that "cheaper AI is likely to mean more AI, with an explosion in real-life uses as it becomes available in myriad forms on every conceivable device."

DEEPSEEK 'SPUTNIK MOMENT'

After the release of the first Chinese ChatGPT equivalent, made by search engine giant Baidu, there was widespread disappointment in China over the gap in AI capabilities between U.S. and Chinese firms.

But the apparent quality and cost-efficiency of DeepSeek's models changed this view, with Silicon Valley executives showering praise on DeepSeek-V3 and DeepSeek-R1.

Little is known about the Hangzhou startup behind DeepSeek, whose controlling shareholder is Liang Wenfeng, co-founder of quantitative hedge fund High-Flyer, based on records.

Its researchers wrote in a paper last month that DeepSeek-V3 model, launched on Jan. 10, used Nvidia's lower-capability H800 chips for training, spending less than $6 million.

DeepSeek-R1, released last week, is 20 to 50 times cheaper to use than OpenAI's o1 model, depending on the task, according to a post on DeepSeek's official WeChat account.

Marc Andreessen, the Silicon Valley venture capitalist, said in a post on X on Sunday that DeepSeek's R1 model was AI's "Sputnik moment," referencing the former Soviet Union's satellite launch that marked the start of the space race in the late 1950s.

"DeepSeek R1 is one of the most amazing and impressive breakthroughs I've ever seen — and as open source, a profound gift to the world," he said in a separate post.

However, Daniel Morgan, senior portfolio manager at Synovus Trust Company, which owns almost a million Nvidia shares, called Monday's selloff an over-reaction.

Morgan said that because DeepSeek's AI model is for use on mobile phones and PCs rather than data centers, it competes with ChatGPT, Meta Platforms and Alphabet’s Gemini.

"The real money in AI is providing the chips for the data centers from the likes of (Nvidia), Advanced Micro Devices and Broadcom," said Morgan. "Overall, I view the AI tech selloff today as an opportunity to add high-quality tech shares on weakness."

Still, Nvidia fell $24.20 on Monday to end at $118.42. The stock, now down 11.8% for the year to date, rose 171% in 2024 and about 239% in 2023 to trade at 56 times the value of its earnings as investors saw it as the best way to bet on the emergence of AI technology.

Among other stocks, Vertiv Holdings, which builds data center infrastructure, slumped 29.9%.

Investors also sold off shares of power utilities, which had recently rallied sharply on hopes for a massive demand surge from power-hungry data centers needed for AI.

Vistra shares fell 28.3% while Constellation Energy shares fell 20.8% and NRG Energy lost 13.2%.

 

Reuters

The Central Bank of Nigeria (CBN) has announced the waiver of the 2025 licence renewal fee for all Bureau De Change (BDC) operators. This decision was disclosed on Friday by Jonah Onojah, Director of the Financial Policy and Regulation Department, and takes immediate effect.

In a statement, the CBN clarified that the waiver aligns with the newly introduced Regulatory and Supervisory Guidelines for Bureau De Change Operations in Nigeria, 2024, as well as the ongoing transition to a revised regulatory framework for BDCs.

The statement read: “This is to inform all existing Bureau De Change operators that, in line with the 2024 Regulatory and Supervisory Guidelines for Bureau De Change Operations and the transition to the new BDC regulatory structure, the Central Bank of Nigeria has approved the waiver of the 2025 licence renewal fee, effective immediately. BDCs that have already paid the 2025 renewal fee are advised to apply for a refund through the Director of the Financial Policy and Regulation Department at the CBN.”

The CBN reiterated its commitment to promoting stability, transparency, and efficiency in the foreign exchange market, while ensuring that BDC operators comply with the updated regulatory framework.

This development follows the CBN’s approval of new guidelines for BDC operations on May 22, 2024, aimed at enhancing compliance and oversight. Under the new guidelines, all existing BDCs are required to reapply for licences under the tier or category of their choice. The CBN emphasized that these measures are part of broader efforts to reposition the BDC sector to fulfill its intended role in Nigeria’s foreign exchange market.

Hoodlums suspected to be kidnappers have invaded the Chikakore area of Kubwa in Bwari Area Council of the Federal Capital Territory, kidnapping a man, his wife, son and two others.

A resident of the community told our correspondent that the kidnappers, numbering about 30 and armed with AK-47 rifles stormed the community around 12 am on Monday and went straight to the house of one Adefija Micheal Akinropo, who was kidnapped alongside his wife, son and elder brother.

The resident, who is close to the victims, said the kidnappers later moved to another building housing a poultry farm, kidnapped a man and injured his wife.

He said police officials from Byazin police station had visited the scene, adding that the abductors are yet to make contact with the family members.

When contacted, the FCT Police Public Relations Officer, Josephine Adeh, a Superintendent, said she was driving to the office and promised to get back to our reporter when she gets to the office.

She was, however, yet to call back up till the time of filling the report.

 

Daily Trust

Gaza hostages were held in tunnels for months, Israeli medical officer says

Some of the hostages released from Gaza so far during the ceasefire had been held in Hamas tunnels for up to eight months straight, deprived of daylight and with little to no human contact, an Israeli general said on Monday.

Three Israeli civilians and four soldiers - all women - have been released so far in the ceasefire, which began on Jan. 19. In return, Israel has released 290 Palestinian convicts and detainees.

"Some of them told us that they've been in the past few months, that they've been through the entire time, in tunnels, underground," deputy chief of the Israeli military's medical corps, Colonel Dr. Avi Banov, told journalists online.

"Some of them were alone through the entire time they were there," he said. "Those who said they were together were in better shape."

The Israeli military oversees the first health checks that the hostages receive upon their arrival in Israeli territory. Reuters was unable to reach Hamas' armed wing for comment but it said on Saturday that it maintains hostages' wellbeing.

The hostages said their treatment improved in the days leading up to their release, Banov said, when they were allowed to shower, change their clothes and received better food. They appeared to be in good condition and smiling in videos on the days of their release.

Citing the hostages' privacy, Banov would not say whether any of the seven bore signs of torture or abuse.

Some had not received proper treatment for wounds sustained when they were captured during the Hamas-led attack on Israel on Oct. 7, 2023, and some showed signs of "mild starvation", Banov said.

The three civilians, released on the first day of the ceasefire, were discharged from hospital on Sunday. The four soldiers, freed in the ceasefire's second swap on Saturday, were still being treated in another medical centre.

Eitan Gonen, father of 24-year-old Romi Gonen who was released on Jan. 19, told Israel's public broadcaster Kan: "Romi is amazing. We met a mature, amazing woman who stunned us all."

Gonen would not elaborate on her medical condition or details of her ordeal. But he said that while in captivity she had heard some of the radio interviews he had given.

"Even if only 10% of the interviews reach the hostages' ears, it is enough to give them strength," he said. "It gave her a lot of strength, energy and great hope."

More than 250 hostages were abducted in the Hamas attack in October 2023. Around half were released the following month during the war's only previous truce, and others have been recovered dead or alive during the fighting. Israel still lists 90 captives in Gaza, with around 30 declared dead in absentia.

Twenty-six women, children, elderly, ill or injured hostages are still meant to be released in the six-week first phase of the ceasefire. Hamas provided a list late on Sunday detailing their condition.

Israeli authorities have said that they believe most due to be released in the first phase are alive and they fear for the lives of the rest. They have given no new details since receiving the list.

Banov said he expected that some of next hostages "will be more ill and also people who have died during their time in Gaza".

 

Reuters

RUSSIAN PERSPECTIVE

Half of Ukrainians back compromise to end war – poll

Half of Ukrainians now favor a compromise to end the conflict with Russia through peace negotiations involving international mediators, a recent survey by Ukrainian pollster Socis has suggested.

According to a report by Ukrainskaya Pravda on Monday, the latest survey, conducted in December 2024, reflects shifting public sentiment in Ukraine, with increasing support for a diplomatic solution after years of conflict and the depleting situation on the battlefield.

According to the poll, 50.6% of respondents support negotiations involving international leaders to secure guarantees for ending the conflict. This marks a significant increase from 36.1% in February 2024.

The percentage of Ukrainians who back continuing the fight until Ukraine regains its 1991 borders, has significantly dropped from 33.5% in February 2024 to 14.7% in December 2024.

The survey also indicated that support for suspending hostilities and freezing the conflict along the current front lines has more than doubled over the year, from 8.2% to 19.5%.

According to the Socis poll, the percentage of Ukrainians advocating the restoration of borders as of February 2022 has remained relatively stable, fluctuating between 8.6% and 13.2% throughout the year.

The Ukrainskaya Pravda report emphasized that “one of the greatest challenges in the negotiation process” will be securing the support of both the Ukrainian public and the military for the decisions of the country’s leadership.

The outlet also cited an unnamed “influential”member of Vladimir Zelensky’s team, who stated that one major priority is securing “some kind of agreement on guarantees with the US, which would be ratified by Congress.” Another key task, according to the official, is resisting Russian demands for Ukraine’s neutrality.

Zelensky stated earlier that at least 200,000 “European peacekeepers”would be needed to uphold a ceasefire.

Moscow has dismissed the idea of Western peacekeepers in Ukraine, which has come to the fore in recent weeks following US President Donald Trump’s pledge to pursue a swift resolution to the conflict. Since his inauguration last week, Trump has called on Moscow to strike a deal with Kiev or face new sanctions, but maintained that he is “not looking to hurt Russia.” Trump has reportedly given his new Ukraine envoy, Keith Kellogg, 100 days to finalize a settlement. According to the Kremlin, however, it has so far received no specific proposals from Washington.

Negotiations between Russia and Ukraine broke down in the spring of 2022, with both sides accusing each other of making unrealistic demands. Russian President Vladimir Putin has said Ukraine must become a neutral country and renounce claims to new Russian regions for any peace talks to succeed.

Moscow has since repeatedly voiced readiness to resume talks, firmly rejecting the idea of a temporary freeze to the conflict, which it says would only help Ukraine to rearm.

Kiev must give up its ambitions to join NATO, demilitarize, denazify, and abandon plans to obtain nuclear weapons, Moscow has insisted.

 

WESTERN PERSPECTIVE

Ukraine replaces commander of eastern front after Russia captures another town

Ukrainian President Volodymyr Zelenskiy replaced the commander of the eastern front, the most heated battlefield of the Ukraine war, after Russian forces captured another strategic town there.

Brigadier-General Andriy Hnatov was replaced as the battlefield commander in the east by Major General Mykhailo Drapatyi, overall commander of ground forces, who will keep his previous duties. Hnatov was given a role overseeing training and communications.

In his nightly video address late on Sunday, Zelenskiy said the aim was to strengthen the command of troops in the Donetsk region. Donetsk, a battlefield since 2014 and one of four provinces Russia claims to have annexed since its 2022 full-scale invasion, has been the main focus of fighting for more than a year.

The Ukrainian military confirmed on Monday that it had withdrawn from the Donetsk region town of Velyka Novosilka, a day after Russia said it had captured it. Viktor Trehubov, a military spokesperson for Ukraine's eastern front, confirmed that Russian troops had entered the town but said fighting continued on the outskirts.

Russian forces have been slowly but steadily advancing in eastern Ukraine for more than a year in relentless ground combat that has caused massive military losses on both sides. Kyiv, for its part, has managed to capture and hold a pocket of territory inside Russia over the past six months.

The new eastern commander, Drapatyi, 42, is well respected in the army, where he is credited with stopping a Russian offensive in the northeastern Kharkiv region last year.

Ukrainian forces halted Russia's initial assault on the capital Kyiv after Russia's invasion in 2022 and achieved several big successes recapturing territory during the first year of the war. But they have largely been on the defensive since the failure of a major counterattack in mid-2023.

Ukrainian analysts estimate Russia captured about 3,000 square km (1200 square miles) of territory last year.

With the war approaching its three-year mark in February, Ukraine is outmanned on the battlefield and its troops are exhausted.

The government tried to address the issue by lowering the mobilisation age to 25 from 27 and introducing tougher rules for those evading the call-up. But it has so far resisted lowering the mobilisation age further to boost manpower.

Trehubov, the eastern forces spokesperson, said that the logistics hub of Pokrovsk in the Donetsk region remained the main Russian target. Around 7,000 people are believed to remain inside Pokrovsk, which had around 60,000 residents before the invasion.

"The Pokrovsk direction accounts for at least half of all combat clashes, there is a lot of fighting there. It is the most active direction," Trehubov told Ukrainian TV. "They are trying to bypass the city, cut the supply lines and drive our troops out of the city."

 

RT/Reuters

Throughout history, men have been under immense societal pressure to produce male heirs to carry on their names and legacies. This expectation has often led to strife, stress, and sometimes untoward actions. The preference for male heirs is deeply rooted in many societies, possibly stemming from the belief in male superiority.

Historically, patriarchal families believed that women were economically dependent on men and thus became their subjects as daughters married, lived in their husbands’ homes, and did not carry the responsibility of caring for their parents. Despite these societal norms, women have shown remarkable resilience, often challenging these beliefs and carving their paths in the face of reinforced societal norms and laws favouring men. This resilience is a source of inspiration and hope for a more equitable future.

Rural families with no sons were looked down upon. Sons were expected to carry on the family lineage, increase the family’s reputation, and protect the family’s interests. The lack of sons was a sign of humiliation and a curse. In some cultures, historical records document the practice of female infanticide. The Arabs, before the advent of Prophet Muhammad (SAW), were notorious for killing their female daughters.

In traditional Chinese society, the need to continue the family line, the assumption that sons have greater earning capacity, and the belief that men would care for the parents in old age conspired to make sons preferred over daughters.

In Hinduism, the desire for male children is every woman’s aspiration and is linked to their spirituality. It also reflects Bhuti’s intense longing for offspring, prompting him to undertake rigorous austerities.

Yet despite all this fixation on the male child, history has shown us that, in many instances, it was the female children who kept the names of their fathers or husbands alive long after they might have departed this world.

Many people know of Marie Curie, the first woman to win a Nobel Prize and the only woman to win it twice because she discovered radium and polonium, and Mother Theresa, known for her commitment to helping the poor, sick, abandoned, and dying. These women, along with others like Cleopatra, the last Pharaoh of Egypt, and Rosa Parks, who raised the consciousness of not only Black Americans but that of all people to the evils of racism, have left an indelible mark on society. Their achievements are not just a testament to the potential and power of women but a reason for all of us to take pride in their contributions, which have significantly shaped our world and influenced societal norms.

Known for her famous quote, “I was taught that the road to progress was neither quick nor easy”, Marie Curie was the first woman to win a Nobel Prize and the first person to receive it twice (in Physics in 1903 and Chemistry in 1911). She is still the only scientist to have won the Nobel Prize twice.

Cleopatra (69 BC—30 BC) was an educated, cultured polyglot and shrewd ruler who achieved great political success by signing alliances with Julius Caesar and Mark Antony, the most influential leaders of the time.

In 1955, Rosa Parks was arrested for refusing to give up her seat to a white passenger on a bus and that contributed to the end of racial segregation. She became a symbol of the fight against racism in the United States and was recognised as the founder of the civil rights movement due to her fight for equality. 

History will never forget Benazir Bhutto, the first elected female Muslim prime minister of an Islamic country, whose murder in 2007 shocked the world. Born to Zulfikar Ali Bhutto, a Pakistani lawyer, politician, and statesman who served as the fourth president of Pakistan and later its ninth prime minister, she was one of four children consisting of two boys who kept her father’s name on the front burner.

What of Diana, Princess of Wales, arguably the most popular royalty in contemporary times? Born Diana Frances Spencer, she was a member of the British royal family, the first wife of King Charles III, and the mother of Princes William and Harry. By the time she died in 1997 at 36, her activism and glamour had made her an international icon, earning her enduring popularity.

Many women have extended their fathers’ legacies beyond what their male siblings could do or their husbands’ names beyond what sons could achieve. Such women are found in all aspects of human endeavour, from science to literature to politics. Their diverse and impactful achievements are a potent reminder and a reason to take pride in their contributions to history. Without a doubt, they have significantly shaped our world.

These women, who faced the challenge of maintaining their own identity in a patriarchal society, have shown remarkable strength and resilience in preserving and extending their fathers' and husbands' legacies. They have not just been passive recipients of these legacies but active contributors, shaping and expanding them in their own right.

Jacqueline Lee (Jackie) Kennedy Onassis is worthy of mention. An American writer, book editor, and socialite, she was named after her father, John Vernou “Black Jack” Bouvier III, a Wall Street stockbroker.

Even after her death, she remained one of the most popular and recognisable first ladies in American history. In 1999, she made the list of Gallup’s Most-Admired Men and Women of the 20th century, and surveys of historians conducted periodically by the Siena College Research Institute consistently ranked her among the most highly regarded American first ladies since 1982.

She later became known in the business world when she married her second husband, Aristotle Onassis, a Greek shipping magnate in 1968, who amassed the world’s largest privately-owned shipping fleet and was one of the world’s richest. She outlived both men and bore their names with dignity to her grave.

Then, here we have Dame Bianca Onoh-Ojukwu. Bianca Odinakachukwu Olivia Odumegwu-Ojukwu is a Nigerian politician, diplomat, lawyer, businesswoman, and beauty pageant winner. She has won multiple international pageant titles, including Most Beautiful Girl in Nigeria, Miss Africa, and Miss Intercontinental. She is the daughter of Chief Christian Chukwuma Onoh, better known as CC Onoh, a former Governor of Anambra State. She later married Chief Chukwuemeka Odumegwu Ojukwu, including protestations from her father.

You can search in vain for Onoh’s or Ojukwu’s sons who have achieved close to what their daughter or wife, respectively, have achieved.

Or Hadiza Bala Usman. Which other children of the respected, erudite, intellectually acclaimed Pan-Africanist professor of history do you know of?

Therefore, it is often not sons but daughters and wives that keep men's memories fresh in a world that is quick to forget.

** Hassan Gimba is the CEO/Publisher of Neptune Prime.

Suri Nuthalapati

Key Takeaways

  • Reliable data is the cornerstone of successful AI-driven decision-making and innovation.
  • Data governance, modern architectures and automation ensure data quality and reliability for AI.
  • AI-powered insights depend on breaking silos, mitigating bias and prioritizing data ethics.

As AI transforms various industries, its effectiveness hinges on a single, vital factor: reliable data. Without a solid data foundation, even the most sophisticated AI systems can struggle to deliver results.

Data is the lifeblood of AI. Machine learning models, predictive analytics and other AI-driven tools rely on accurate, timely and relevant data to function effectively. Poor-quality data can lead to biased results, inaccurate predictions, and costly decisions. A recent study by Gartnershows that poor data quality costs organizations an average of $12.9 million annually.

To harness the true potential of AI, businesses must make data reliability a priority by ensuring:

  • Accuracy: Data must be error-free and validated.
  • Completeness: Gaps in data can compromise model outputs.
  • Consistency: Data should follow uniform standards across systems.
  • Timeliness: Insights lose value if data is outdated.
  • Relevance: Only data aligned with business objectives should be utilized.

How to build a strong data foundation

1. Implement robust data governance

Data governance ensures that data is well-managed throughout its lifecycle. Establishing clear policies for data ownership, access and usage mitigates risks and fosters accountability.

Key steps:

  • Appoint a Chief Data Officer to lead all data governance initiatives.
  • Define data quality metrics and monitor adherence.
  • Regularly audit and cleanse data repositories.

2. Leverage modern data architectures

Legacy systems often hinder data integrationand scalability. Adopting modern architectures like data lakehouses enables businesses to unify structured and unstructured data, making it AI-ready.

Benefits include:

  • Improved scalability and performance.
  • Simplified data sharing across departments.
  • Enhanced support for real-time analytics.

3. Utilize automated data pipelines

Manual processes for data collection and transformation are prone to errors and inefficiencies. Automated pipelines streamline these workflows, ensuring consistent and reliable data flow.

Consider solutions such as automated orchestration platforms and cloud-native services for efficient data handling and integration.

4. Embed data quality assurance

Integrating quality assurance mechanisms into your data processes reduces the risk of errorsand inconsistencies. This can include real-time validation, deduplication and anomaly detection.

5. Foster a data-driven culture

Building a culture where data is valued across all levels of the organization is critical. Encourage employees to adopt data-driven decision-making by providing training and making insights accessible.

Turning trusted data into actionable insights

Establishing a strong data foundation is the first step in turning trusted data into actionable insights. This foundation enables businesses to leverage AI for a competitive advantage. AI models can analyze historical data to forecast future trends, allowing retailers to predict inventory needs during seasonal spikes and financial institutions to anticipate potential credit risks.

Additionally, AI facilitates highly personalized customer experiences by examining data on customer preferences, behaviors and purchase histories. This ultimately enhances customer loyalty and increases lifetime value.

AI-driven automation streamlines repetitive tasks like data entry and invoice processing, freeing up resources for more strategic initiatives. Finally, AI tools can identify anomalies and potential risks in real-time, strengthening security and compliance efforts within organizations.

Overcoming challenges

While the benefits of AI and Trusted data are immense, businesses must navigate challenges such as:

  • Data Silos: Encourage cross-departmental collaboration to break down barriers.
  • Bias in AI Models: Regularly audit algorithms to identify and mitigate bias.
  • Privacy Concerns: Adhere to regulations like GDPR and CCPA to ensure data privacy and ethical usage.

The AI era presents transformative opportunities for businesses, but only those with a foundation of reliable data can fully capitalize on its potential. By investing in robust data governance, modern architectures and data-driven culture, businesses can unlock actionable insights that fuel innovation and resilience. As we move deeper into this era of AI, the mantra for success is clear: Reliable data leads to reliable insights.

 

Entrepreneur

The ongoing debate over the Value Added Tax (VAT) sharing formula in Nigeria highlights deep-seated tensions between equity, justice, and national integration. The current system, which redistributes VAT revenue disproportionately, has sparked significant controversy, particularly between states that contribute heavily to the VAT pool and those that benefit more from redistribution. The proposals by President Bola Tinubu and the Nigeria Governors' Forum (NGF) reflect differing priorities, with Tinubu emphasizing derivation (60%) and the NGF advocating for equality (50%). To address these issues, a balanced VAT sharing formula must prioritize national integration while ensuring equity and justice.

Key Issues in the Current VAT System

1. Disproportionate Contributions vs. Allocations:

   - Lagos and Rivers states are the largest contributors to the VAT pool, generating N2.75 trillion and N832 billion, respectively, in 2024. However, they received only 16.7% and 22.4% of their contributions in return.

   - In contrast, states like Katsina, Kano, and Abia received significantly more than they contributed. For instance, Abia contributed N8.68 billion but received N63.78 billion—a 734.8% return.

   - This disparity is particularly pronounced between the southern and northern regions. Southern states contributed N4.28 trillion but received only 40.5% of their contributions, while northern states contributed N540.31 billion but received 258.2% of their contributions.

2. Regional Imbalances:

   - The south-west and south-south regions, driven by economic hubs like Lagos and Rivers, contributed the most to the VAT pool but received far less in return.

   - The north-west, north-east, and north-central regions, despite contributing significantly less, received disproportionately higher allocations. For example, the north-west contributed N211.27 billion but received N574.32 billion—a 271.8% return.

3. Economic and Social Implications:

   - The current system discourages economic productivity in high-contributing states, as they receive minimal returns on their contributions.

   - It also creates dependency in low-contributing states, potentially stifling efforts to improve local revenue generation and economic development.

Principles for a Fair VAT Sharing Formula

To address these issues, the VAT sharing formula should be guided by the principles of equity, justice, and national integration. National integration, in particular, emphasizes supporting weaker members of the federation while ensuring fairness.

1. Equity:

   - Equity requires that states receive a fair return on their contributions to the VAT pool. High-contributing states like Lagos and Rivers should receive a larger share of the revenue they generate, as this incentivizes economic productivity and rewards effort.

   - However, equity does not mean absolute equality. It acknowledges the varying capacities of states and seeks to balance contributions with allocations.

2. Justice:

   - Justice demands that the VAT system does not perpetuate systemic inequalities. States with lower economic output should not be penalized, but they should also not rely excessively on redistribution at the expense of high-contributing states.

   - A just system would ensure that all states have the resources needed to provide basic services and promote development, without creating disincentives for economic growth.

3. National Integration:

   - National integration requires a VAT sharing formula that supports weaker states while fostering unity and cohesion. This means redistributing some revenue to less economically viable states to ensure they can meet their developmental needs.

   - However, this redistribution should not be so excessive that it undermines the economic viability of high-contributing states or creates resentment.

Proposed VAT Sharing Formula

A balanced VAT sharing formula should incorporate elements of both the NGF and Tinubu proposals, with adjustments to ensure equity, justice, and national integration. The following formula is recommended:

- 40% based on derivation: This ensures that states receive a fair return on their contributions, incentivizing economic productivity and rewarding effort.

- 40% based on equality: This promotes national integration by redistributing revenue to weaker states, ensuring they have the resources needed for development.

- 20% based on population: This addresses the needs of states with larger populations, which often require more resources to provide basic services.

Rationale for the Proposed Formula

1. Derivation (40%):

   - Allocating 40% based on derivation strikes a balance between rewarding high-contributing states and ensuring they are not overly disadvantaged. This is a compromise between Tinubu's 60% and the NGF's 30%.

2. Equality (40%):

   - Allocating 40% based on equality ensures that weaker states receive adequate support, promoting national integration and reducing regional disparities. This is higher than Tinubu's 20% but lower than the NGF's 50%.

3. Population (20%):

   - Allocating 20% based on population ensures that states with larger populations receive the resources needed to provide services. This aligns with both proposals and addresses the needs of densely populated states.

Conclusion

The VAT sharing formula in Nigeria must balance the competing principles of equity, justice, and national integration. While high-contributing states like Lagos and Rivers deserve a fair return on their contributions, weaker states also require support to ensure balanced development and national cohesion. The proposed formula—40% derivation, 40% equality, and 20% population—offers a pragmatic solution that addresses these concerns. By adopting this formula, Nigeria can promote economic productivity, reduce regional disparities, and foster national unity.

A significant shift is occurring in Nigeria's petroleum market as imported fuel becomes more cost-effective than domestically refined products from the Dangote Petroleum Refinery. According to recent data, the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has dropped to N922.65 per litre, undercutting Dangote's gantry price of N955 per litre by N32.35.

This price differential could prompt oil marketers to return to importing fuel, despite recent efforts to promote domestic refining. The landing cost includes various expenses such as shipping, import duties, and current exchange rates, which are calculated at N1,550 per dollar.

Market analysts note that this development presents an attractive opportunity for private depot owners and independent marketers. "The lower cost of imported petrol is often an incentive to dealers," explained a major marketer who requested anonymity due to lack of authorization to speak on the matter.

Recent Market Activity

Data from the Major Energies Marketers Association of Nigeria shows:

- Current on-spot estimated import parity: N922.65 per litre

- 30-day average cost: N939.52 per litre (up from N929.07)

- Brent crude price: $78.29 per barrel (down from $78.88)

Despite the lower landing costs, retail prices remain elevated, with major marketers in the Federal Capital Territory selling between N990 and N1,010 per litre.

Depot Price Variations

Last week saw notable price adjustments across various depots:

- Nipco: N970 per litre

- Aiteo and Sahara: N960 per litre

- Swift: Reduced from N970 to N960

- Wosbab and AA Rano: N960 per litre

- Port Harcourt's Bulk Strategic Depot: Decreased from N1,005 to N981

- Delta and Calabar depots: Maintained prices between N972 and N990

Recent Import Activity

Port data reveals significant import activity, with oil marketers bringing in 57,301 metric tonnes of fuel (approximately 76.84 million litres) between January 21-22, 2025. Two vessels berthed at Lagos ports:

- Apapa Port: 20,400 metric tonnes

- Tincan Port: 36,901 metric tonnes

Additionally, two vessels of undocumented capacity arrived at the Dangote terminal in Lekki Deep Seaport.

Industry Perspectives

The import situation has sparked debate among industry stakeholders. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, expressed surprise at the continued imports, citing an informal agreement to pause imports for 180 days to assess Dangote refinery's production capacity.

However, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, clarified that the non-import directive was merely a "mutual understanding" rather than a binding agreement. He emphasized that the Nigerian Midstream and Downstream Petroleum Regulatory Authority should permit imports that offer more competitive prices.

The current market dynamics highlight the ongoing challenges in Nigeria's petroleum sector, particularly the impact of exchange rates and global market fluctuations on domestic fuel prices. As the industry continues to evolve, the competition between imported and locally refined products may significantly influence future market trends and pricing strategies.

Suspected Islamist militants killed at least 20 Nigerian soldiers, including a commanding officer, during a brazen assault on an army base in northeastern Borno state, security sources and residents reported on Sunday. The attack, carried out by members of the Islamic State West Africa Province (ISWAP), targeted the Nigerian Army’s 149 Battalion in Malam-Fatori, a remote town near the border with Niger.

According to survivors, the militants arrived in gun trucks on Friday and launched a surprise attack, overwhelming the troops after more than three hours of intense fighting. "They rained bullets everywhere," said one soldier who survived the assault. "We tried to repel the attack, but they overpowered us, killing our commanding officer, a lieutenant colonel." The soldier, who requested anonymity, confirmed that 20 soldiers died and several others were injured.

Residents reported that the militants remained in the town as late as Saturday night, burning buildings and forcing civilians to flee. Malakaka Bukar, a local militia member assisting the army, said the insurgents also preached to some residents before retreating.

Boko Haram and ISWAP, both active in Borno state, have intensified attacks in the region since the beginning of the year, targeting security forces and civilians alike. Despite being weakened by military operations and internal conflicts, the groups continue to pose a significant threat, displacing thousands and causing widespread devastation.

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