Author: user user

Bauchi Gov Signs Law Creating 13 New Emirates

Governor Bala Mohammed of Bauchi state has signed into law, the Chieftaincy Appointment and Deposition Law, which provides for the creation of 13 new emirates and over 111 districts heads across the State.

Also signed into law, was the repeal of the Sayawa Chiefdom and enactment of the Zaar Chiefdom with headquarters at Mhrim Namchi community in Tafawa Balewa local government area.

The governor equally signed into law the Local Government Pension Contributory Scheme, pledging to clear the backlog of pensions and gratuities owed to retired local government workers.

SPONSOR AD

In addition, the 2025 Appropriation Supplementary Act was signed to support the smooth implementation of ongoing developmental projects and programs initiated by his administration.

The new emirates include Burra Emirates with headquarters in Burra, Duguri Emirates with headquarters in Yuli, Dambam Emirates with headquarters in Dambam, Bununu with headquarters in Bununu, Lere with headquarters in Lere, Darazo Emirates, with headquarter in Darazo, Jama’a Emirates, with headquarters in Nabardo.

Others are Lame Emirates with headquarters in Gumau, Toro Emirates with headquarters in Toro, Ari Emirates with headquarters in Gadar Maiwa, Warji Emirates with headquarters in Katangar Warji, Giade Emirates with headquarters in Giade and Gamawa Emirates with headquarters in Gamawa. The Sayawa Zaar Chiefdom with headquarter at Mhrim Namchi.

Speaking while assenting the bills at Government House, on Tuesday, the governor warned against politicizing or undermining the implementation of the newly enacted laws, directing security agencies to take appropriate action when necessary.

‘Let me use this opportunity to issue a clear and firm warning. This administration will not tolerate any attempt to undermine, obstruct, or politicize the implementation of these laws.’

‘Any person or group found inciting division, spreading misinformation, or attempting to disrupt public peace will face the full consequences of the law. The law enforcement agencies, represented here today, are fully empowered to act decisively in maintaining peace and order,’ Mohammed said

‘Furthermore, any government official or traditional leader who acts contrary to the spirit of this reform, or engages in conduct capable of undermining its objectives, will face appropriate disciplinary action,’ the governor said

Mohammed noted that he had directed the Attorney General and Commissioner for Justice, in collaboration with the Secretary to the State Government, to immediately gazette, publish, and distribute copies of the laws to all relevant authorities and institutions for implementation.

Earlier in his remarks, Speaker of the Bauchi House Assembly Abubakar Y Suleiman, described the new law as a product of extensive public engagement, consultations, and consensus-building among critical stakeholders, including traditional rulers, civil society organizations, and professional associations.

Suleiman said the new legislation reflects the collective aspirations of the people and demonstrates the Assembly’s commitment to deepening democratic participation and inclusive governance.

‘This law represents not just administrative expansion but a reaffirmation of our shared responsibility to build a system that serves every community fairly,’ the Speaker stated. ‘Through open dialogue and public hearings, our people expressed overwhelming support for this initiative, which will strengthen traditional institutions and enhance service delivery in previously underserved areas.’

He added that the Assembly took into account fairness, due process, and respect for traditional norms in crafting the provisions for the appointment and deposition of traditional rulers under the new law.

He added that Bauchi State House of Assembly had passed a landmark bill providing a legal framework for the creation of additional emirates and districts across the state, in a move aimed at bringing governance, traditional leadership, and development closer to the people.

Many Feared Dead As Petrol Tanker Explodes In Niger

Many persons have been feared dead in a tanker explosion that occurred along the Essa axis of the Agaie-Bida Road in Katcha Local Government Area of Niger State, on Tuesday afternoon.

The incident led to heavy traffic gridlock on the major road.

Hajiya Aishatu Sa’adu, Sector Commander of Federal Road Safety Corps (FRSC), Niger Command, confirmed the incident but said the casualty figure could not be ascertained as of press time.

SPONSOR AD

According to her, the unfortunate incident has caused serious traffic gridlock on the ever busy expressway, particularly due to the bad nature of the road.

Sa’adu pointed out that the deplorable state of the road also impacted response time for the rescue operation.

Our correspondent gathered that no fewer that 40 persons were injured while scooping petroleum product from fallen tanker.

Sources said the petrol laden tanker fell around 11am on Tuesday due to deplorable state of the road at Essan, about 4km from Badeggi town.

The source said people trooped to the place to scoop fuel until the tanker exploded around 2pm.

The Director General, Niger State Emergency Management Agency, Abdullahi Baba Arah confirmed the incident to our correspondent.

He said 24 people had been confirmed dead while 40 were severely injured.

‘It is true that tanker fell down at Essa village. Our rescue officials are on ground. So far, 24 people have been confirmed dead while 40 others were injured and some of them had been taken to Federal Medical Centre, Bida’, he said.

The Chairman of Tanker Drivers Association, Niger State Chapter, Farouk Mohammed Kawo also confirmed the incident.

He said the tanker departed from Lagos and en route to the North when it fell down and subsequently got engulfed by fire.

Kawo lamented that over 30 tankers/trailers had been involved in accident on the same road within this month, due to the deplorable state of road.

He appealed to the Niger state government under the leadership of Governor Mohammed Umar Bago to urgently come to their aid by grading the particular area to ease movement and prevent loss of lives and properties.

The Bida-Agaie-Lapai road has been in the news over similar accidents in the past

At least 48 persons were confirmed dead in an explosion that occurred on the road after petrol tanker had a head-on collision with a truck loaded with travellers and cattle from Wudil in Kano State, last year.

The 48 persons who were burnt beyond recognition were later given mass burial in Lapai Local Government.

Editor’s note: This picture was used for illustrative purposes

A new leaf? A new leaf?

In what can be described as a commendable departure from an entrenched disposition by its political elite to blame outsiders for the challenges confronting the region, the Northern Elders Forum (NEF) has unveiled concrete home-grown initiatives designed to address the problems of poverty and underdevelopment in Northern Nigeria. At the end of the Northern Nigeria Investment and Industrialisation Summit (NNIIS), convened by the NEF in Abuja from September 29 to 30, the group announced the formation of the Northern Nigeria Economic Development Council (NNEDC) to serve as an institutional framework to implement a new Northern Nigeria Economic Development Master plan.

The NNIIS focused on security, policy coherence and private capital as building blocks of the region’s economic emancipation and transformation, with particular emphasis on mining, agriculture and power. It is well known that Northern Nigeria is immensely endowed to flourish in the mining and agricultural sectors given her vast arable land and bounteous mineral deposits, while power and other critical infrastructure are imperative to unleash the potential of other dormant sectors for the benefit of the people of the North and the country’s economy as a whole.

This initiative by the NEF is far more productive than the recent preoccupation, for instance, by sections of the northern elite with blaming the incumbent President Bola Tinubu administration for allegedly marginalising the region in terms of appointments and budgetary allocations for infrastructure projects. Detailed statistics released by the presidency have since debunked this notion and it is heartwarming that the NEF is charting a more positive cause. It is up to the elite of the North to seize the bull by the horns and assume responsibility for the development of their region; a task that no one else can do for them.

Following the showcasing of investment opportunities by investment promotion agencies, corporate sponsors and deal room/matchmaking sessions, it is significant that pledges worth over $10 billion were made by investors across the mining, agriculture and power sectors. This is surely a foretaste of the tremendous potential of this regional development initiative if its foundational principles and blueprints are meticulously and efficiently implemented.

For one, the scope of participating stakeholders at the summit that produced these developmental initiatives was wide-ranging and comprehensive. They included representatives of the Federal Government, northern state governors, academics, private sector operatives, civil society representatives, financiers and development partners.

The truth is that all hands must be on deck to meaningfully address the conundrums of poverty and underdevelopment that have ravaged and made most parts of the North a hell on earth. However, we believe that representatives of the local government councils, traditional rulers and community leaders as well as security agencies in the region should also have been part of the deliberations.

Equally important is the need to work closely with the newly established North- East, North-West and North-Central Development Commissions to actualise the region’s developmental goals. It is important for the region to cultivate and link up with international development partners to aid in achieving these goals.

A key feature of the summit was the signing by the governors of the region of the Northern Nigeria Economic Development Charter, through which they committed their states to a unified regional economic vision. There is no reason why the state governments should not be more impactful in realising developmental objectives and improving significantly the well-being of their citizens given the humongous resources available to them as a result of the Tinubu administration’s economic reforms.

The implementation of the Northern Nigeria Economic Development Master plan (NNEDM) will be coordinated jointly by the NEF and the Northern Nigeria Governors’ Forum, which will also supervise the new Northern Nigeria Economic Development Council. It is indicative of the seriousness that went into the deliberations that a Joint Implementation and Monitoring Taskforce (JIMT) has been charged with overseeing transitional actions and publishing an operational roadmap within 60 days.

There is a sense of urgency about the action plans and prescribed mode of operations that suggests a desire to go beyond the talk shops that previous summits represented and transform theory into visible practice this time around. For instance, the NNEDC has been charged with issuing quarterly scorecards to track measurable outcomes such as jobs created, energy capacity added and investments mobilised. We agree with the Director-General of NEF, Professor D.D Sheni, that this event signalled ‘a decisive pivot in Northern Nigeria’s development journey and that ‘With security as the bedrock, policy coherence as the framework, and private capital as the engine, Northern Nigeria can transform its endowments into sustainable growth ‘.

Some of the measures outlined to achieve the sectoral goals of the development initiative include mobilising capital market instruments such as infrastructure funds, sukuk/green bonds, and project bonds to finance generation, transmission, distribution and off-grid/mini-grid solutions in provision of power; institutionalising land administration reforms, including digitised cadaster, clear titling and time-bound consent with community benefit agreements and grievance redress mechanisms to modernise agriculture and launching a Northern Nigeria Capital Mobilisation Programme to leverage Direct Foreign Investments, pension funds, as well as sovereign and diaspora capital, among others.

This initiative to extricate Northern Nigeria from the stranglehold of poverty and underdevelopment acquires added urgency as the socio-economic situation in the region continues to deteriorate with attendant worsening youth unemployment, declining agriculture, a collapsed industrial sector, a dearth of qualitative social services in education and health and gradual descent into existential anarchy.

Some features of the abysmal quality of life in the North include high child mortality with 187, 134 and 97 deaths per 1,000 live births in the Northeast, Northwest and North central, respectively; about 16 million out-of-school children; high rates of malnutrition, with millions of children in particular affected by stunting, wasting and anaemia; high electricity deficit worsened by incessant vandalisation of public power supply infrastructure; over 90 per cent reliance on firewood and charcoal as cooking fuels with deleterious effects on human and environmental health, as well as drastic plummeting of agricultural productivity as a result of sustained insecurity and the consequences of climate change.

Impressive as these proposals for fundamental transformation in the North are, we can only hope that they indeed transcend rhetoric and impact the development of the region positively. Northern Nigeria is too richly endowed to continue to be bogged down by the blight of poverty.

Speaking at the opening ceremony of the Bauchi State Investment Summit, the Sultan of Sokoto, Alhaji Muhammad Sa’ad Abubakar 111, stressed the need for such summits to translate into practical results as the North’s challenges called for homegrown solutions motivated by visionary leadership.

In his words, ‘We come together, deliver fine speeches, and host prominent industrialists – but at the end of it all, what do we achieve?.No one can develop our region better than we can. We must take charge of own destiny ‘. These are words of truth and wisdom.

Product debuts in Nigerian market

Fercullen Irish Whiskey has made its debut in Lagos.

Head of Sales, Ryan Stapleton, said: ‘We are delighted to launch Fercullen Irish Whiskey. I am sure people who know good wine will love it. The launch showcases our best of brands.

‘We showcase unique product launches and are excited about this whiskey as the cask was hand-chosen by our ambassadors.’

The event, attended by Elozonam, Uriel, and Denrele, celebrated the brand’s heritage and craftsmanship, with an after-party.

The party introduced four expressions of Fercullen Whiskey: Fercullen Falls, Single Malt, 15-Year and the 21-Year.

Trade reset: How Nigeria can win after AGOA

As the African Growth and Opportunity Act (AGOA) expired on September 30, 2025, and has not been renewed, the question confronting Nigeria is not whether the programme should be renewed or not, but why the country barely used it in the first place. Enacted in 2000, AGOA opened duty-free access to the vast U.S. market for over 6,500 products from eligible African countries.

It was meant to be a springboard for industrialisation, a ladder into global value chains, and a chance for Africa’s giants to trade their way into prosperity. Instead, Nigeria, Africa’s largest economy, exported mostly crude oil and missed the broader opportunity.

Two decades later, the numbers tell a sobering story. Under AGOA, African exports to the United States peaked at about $82 billion in 2008, driven mainly by petroleum. By 2023, that figure had fallen below $40 billion, with Nigeria’s non-oil exports to the U.S. contributing less than $150 million, a fraction of what smaller economies like Kenya, Lesotho, and Madagascar achieved through textiles and apparel. In contrast, Vietnam, not even part of AGOA, exported over $96 billion worth of goods to the U.S. that same year.

Why did Nigeria underperform? The reasons are structural, not sentimental.

First of all, the programme rewarded production, not extraction. Nigeria remained trapped in oil dependency. With refineries idle and manufacturing capacity below 10 percent of GDP, the economy simply did not produce the kind of goods AGOA was designed to favour: finished, traceable, high-value exports. The absence of stable power, modern ports, and efficient logistics kept Nigerian products uncompetitive.

Second, there was limited institutional coordination. While countries like Kenya established dedicated AGOA strategy units, export promotion agencies, and industrial parks tailored to meet U.S. compliance standards, Nigeria treated AGOA as a passing policy incentive, not a national export strategy. Few Nigerian exporters understood the documentation, labelling, or certification processes needed to access the U.S. market. Many had no idea which products even qualified.

Third, finance and trade infrastructure lagged. Most Nigerian small and medium exporters could not secure pre-shipment credit, export guarantees, or insurance. Without access to capital, they couldn’t meet large U.S. orders or maintain consistent quality. The African Trade Insurance Agency and NEXIM Bank offered tools, but awareness was minimal. AGOA opened the door, but Nigerian businesses never walked through.

And yet, the post-AGOA moment offers a reset, an opportunity for Nigeria to turn lost chances into lasting advantage. To begin, Nigeria must treat trade as a national strategy, not a by-product of oil policy. The United States remains a $30 trillion economy, with consumer spending exceeding $17 trillion a year. Capturing even one-tenth of one per cent of that market, roughly $17 billion, would exceed Nigeria’s current total non-oil export earnings. The U.S. market is vast, diverse, and increasingly receptive to African goods: organic foods, apparel, beauty products, digital services, and cultural exports. Nigeria has all these in abundance. What’s missing is organisation.

A new generation of Nigerian entrepreneurs is already showing what’s possible. In Georgia, Texas, and Maryland, Nigerian-American distributors are importing hibiscus, sesame, cassava flour, and shea butter – products once confined to local markets – and placing them on the shelves of Walmart, Whole Foods, and Amazon. Nollywood films now reach millions of U.S. viewers via Netflix and Amazon Prime, while Nigerian designers are carving out niches in America’s $500 billion fashion market. These are not isolated successes. They are blueprints for what a coordinated national export strategy could achieve.

To win after AGOA, Nigeria must start with five practical shifts.

First, build industrial capacity for value addition. Exporting raw materials is a 20th-century model. Processing sesame into oil, cashew into snacks, and cocoa into finished chocolate could multiply export earnings by five. Agro-processing parks, linked to ports and powered by reliable energy, would anchor these industries. The federal and state governments should co-invest with the private sector and the diaspora to create such clusters. Second, institutionalise export intelligence.

The Nigeria Export Promotion Council (NEPC) must evolve into a true trade-intelligence hub. Exporters should have access to real-time data on U.S. demand, pricing, and regulatory updates. A centralised export advisory portal could guide labelling, logistics, FDA certification, and customs procedures. Success in the U.S. market requires information as much as production.

Third, finance trade at scale. Nigeria must strengthen the pipeline between NEXIM Bank, the Bank of Industry, and commercial lenders to provide export credit guarantees, pre-shipment finance, and trade insurance. Exporting to the U.S. should not require collateral in Abuja; it should require a business plan and a purchase order. Diaspora investors could also be mobilised through a Nigeria-U.S. Export Fund that pools capital for export-oriented SMEs.

Fourth, leverage digital trade. American consumers now buy more online than in physical stores. Nigeria’s artisans, designers, and agro-producers can sell directly through e-commerce platforms like Amazon, Shopify, and Etsy. But this requires digital literacy, logistics networks, and payment integration. The fintech revolution that made Nigeria Africa’s digital banking leader must now extend into cross-border trade.

Why Nigerians die decades earlier than global peers

In 2024, Chioma Odu, a woman in her mid-50s from Imo State, woke up with a sharp pain in her joints. Concerned, she visited a nearby clinic where she was diagnosed with arthritis. But that diagnosis was later proven to be wrong.

While recounting her ordeal, she told BusinessDay how that the singular event took a toll on her, leaving her emotionally traumatised.

For Faustina Onyenwe, January 2025 nearly ended in tragedy. Her three-year-old daughter had been vomiting uncontrollably, and in desperation, she rushed her to the nearest primary healthcare centre (PHC) in Bwari, Abuja.

By the time they arrived, the child had been weak and barely responsive. The only nurse on duty assessed the child but delayed treatment for nearly 20 minutes. The facility didn’t have intravenous fluid, which was urgently needed.

‘The health centre did not have all they needed to administer care and I was asked to wait. I wanted to rush her to a general hospital but it was a bit far. I was afraid as I watched my child get weaker and weaker,’ she said.

Despite years of health sector reforms, Nigerians die earlier than global peers. Life expectancy in Nigeria remains alarmingly low, trailing behind peers and raising concerns among experts who point to deep-rooted poverty, a broken emergency care system, and weak universal health coverage as key drivers of the crisis.

Recent reports by the United Nations (2025) show that Nigeria’s average life expectancy as of 2024 was 54.6 years-far below the global average of 73.7 years, Africa’s average of 64.2 years, and the lowest worldwide. By comparison, Monaco tops the chart at 86.5 years, while other African countries such as Tunisia (76.5) and Algeria (76.2) outperform Nigeria by more than 21 years.

The wide gap between Monaco’s life expectancy and Nigeria’s position at the bottom highlights a deepening crisis. In Nigeria, rising poverty has fuelled widespread malnutrition, driving up death rates among children and young adults, according to reports. Major drivers

Adeniji Adeoluwa, chief medical director at Mecure Cancer Center, said a number of issues lower a nation’s life expectancy.

‘Poverty, insecurity, environmental pollution, poor emergency healthcare infrastructure and low universal health coverage deeply affect Nigeria’s life expectancy,’ he stated.

‘Low insurance coverage makes most poor citizens resort to local remedies for treatments, as high out-of-pocket payments for medical bills continue to limit their chances of survival, making it difficult to access quality medical care,’ he added.

‘Whenever there is an accident or a traffic incident, for instance, emergency response becomes exceedingly difficult due to the absence of a dedicated route for ambulances and a lack of proper infrastructure and facilities to manage urgent cases effectively,’ he explained. Paul Abba, director of Medical Laboratory Services at Benue State University Teaching Hospital, also highlighted critical factors contributing to Nigeria’s low life expectancy, pointing to gaps in healthcare access, food insecurity, and widespread misuse of antimicrobials.

‘Many Nigerians lack access to quality healthcare and so resort to self-medication, overuse and misuse of drugs, leading to preventable deaths,’ Abba stated. He emphasised that the low coverage of universal health services continues to drive this troubling trend.

He also drew attention to the broader systemic issues undermining public health, noting that ‘food insecurity and national security are factors that must be addressed.’

Universal health coverage means that all persons have access to the full range of quality health services they need, when and where they need them, without financial hardship according to the World Health Organisation(WHO)

‘Nigeria lags far behind its peers in terms of universal health coverage (UHC), which further reduces the quality of life,’ said Nkata Chuku, founding partner at Health Systems Consult Limited.

The World Health Organization (WHO) defines life expectancy as the average number of years a newborn is expected to live if current mortality rates remain constant. In Nigeria’s case, those rates continue to reflect systemic weaknesses. Lessons for Nigeria

Once grappling with low life expectancy, African sister nations such as Algeria and Tunisia have made remarkable strides, offering valuable lessons for Nigeria.

For instance, Algeria’s life expectancy stood at a mere 40.8 years in 1960. By 2023, it had risen dramatically to 76.3 years. Tunisia followed a similar trajectory, moving from 44 years in 1960 to 76.5 years in 2023. These are not accidental gains but reflect decades of deliberate investment and reform.

At the heart of this transformation were three core pillars. Robust investments in health infrastructure and social services, large-scale disease control and immunisation campaigns as well as significant improvements in literacy and education

The results have been profound. According to UNICEF, Algeria’s infant mortality rate has plummeted-from 147 deaths per 1,000 live births in 1965 to just 24 per 1,000 in 2024. On the other hand, Nigeria still records 60 infant deaths per 1,000 live births-a figure that signals persistent systemic failures.

Tunisia has also prioritised healthcare financing, doubling its health spending to approximately seven percent of the national budget. Nigeria, while making modest progress, allocates just 5.1 percent-a figure way below global standards of 15 percent and equally inadequate for its massive and growing population

The contrast deepens when considering disease elimination. Algeria has successfully eradicated polio, neonatal tetanus, and malaria through sustained vaccination drives and aggressive public health interventions. Meanwhile, Nigeria continues to carry the heaviest malaria burden globally, accounting for 27 percent of all global cases and over 200,000 malaria-related deaths in 2021. This burden, coupled with high rates of malnutrition, drives persistently high infant and maternal mortality.

Where do we go from here?

The experiences of countries such as Algeria and Tunisia show that transforming national health outcomes is not only possible but achievable through consistent investments, strong political will, and a deliberate focus on equity in healthcare delivery. These lessons hold crucial relevance for Nigeria as it grapples with poor life expectancy and fragile health infrastructure.

‘If we must improve on our life expectancy as a country, we must start with policies,’ said Adeoluwa, emphasising that reforms must go beyond surface-level interventions. ‘Nigeria’s reforms must be centered on policies that ameliorate poverty, ensure inclusive healthcare access, reduce environmental pollution, and promote public-private partnerships, as the government cannot do it alone,’ he added.

Central to this transformation is the need for a robust health insurance scheme that eliminates economic barriers to care. ‘An inclusive healthcare access through a robust insurance scheme will enable both the poor and the rich access to medical care without social or economic disparity,’ Adeoluwa explained.

The Philippines’ long journey to Australian banana markets amid trade imbalance

The Philippines had aspired for access to the Australian market for bananas in 1995-the same year it joined the World Trade Organization, which was created by the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). The creation of the WTO signaled the willingness of most nations to open up their markets by cutting tariffs and implementing more enforceable trade rules. A book published by the International Monetary Fund pointed out that agriculture has been integrated into the multilateral trading system through new rules of general application to market access, export subsidies and domestic support.

Three decades after it first sought market access, the Philippines has not given up hope based on the request it filed with Canberra. Last March, Manila requested the consideration of an additional Cavendish cultivar and an additional export province that were not considered in its 2008 assessment. The Department of Agriculture, Fisheries and Forestry (DAFF) of Australia said it will consider this request at the same time as the assessment of the Philippines’s alternative measures to manage Moko, black Sigatoka and banana freckle, which Manila submitted in 2018.

Australia’s import risk analysis (IRA) in 2008, which became law the following year, allowed the Philippines to export bananas under stringent conditions. The recommended quarantine measures contained in the IRA report include allowing exports only from areas that demonstrate low pest prevalence; stringent measures that involve Australian Quarantine and Inspection Service inspectors being present even in the field and packing houses here in the Philippines; and detailed data and documentation to be provided by the Philippines for consideration by Australia prior to any exports to verify and validate quarantine measures underpinned by laboratory and field experiments and commercial trials.

In a statement it issued in February 2009, the Bureau of Plant Industry (BPI) under the Department of Agriculture said these measures are trade restrictive and expensive. The agency also noted that Australia has continuously postponed the issuance of an IRA for Philippine bananas ‘on the flimsiest of reasons.’

Prior to the IRA issued in 2009, Manila filed a dispute case against Canberra before the WTO’s Dispute Settlement Body in October 2002 in the hope of finally getting a resolution. The DSB has agreed to create a panel in 2003 but the panelists have not yet been chosen and the case remains pending. It is, however, doubtful that this WTO case would still see a final resolution as its Appellate Body, considered the supreme court of global trade, is inactive since 2019.

It is therefore no longer surprising if local banana growers are no longer optimistic about gaining access to the Australian market. This despite the fact that rich nations, such as Japan and South Korea, have been buying local bananas in huge quantities. Agricultural trade relationship between the two nations is also far from balanced based on data from the Philippine Statistics Authority (PSA), which showed that Australia enjoyed a trade surplus of $1.06 billion with the Philippines last year.

PSA figures showed that the value of Australian food exports to the Philippines reached $1.153 billion in 2024. In contrast, Philippine food items shipped to Australia amounted to only $89.27 million. It is the hope of Filipino farmers and their families that this latest move of DAFF will finally open Australia’s doors to more produce from the Philippines and reduce the huge agricultural trade gap between the two nations.

Avoiding input taxes for exporters

IF you are an export-oriented enterprise, are you aware that you can avoid input taxes on your local purchases and importations? Yes, this value-added tax (VAT) treatment is not limited to entities enjoying tax incentives granted by investment promotion agencies. This is also available to qualified exporters.

Among the amendments introduced by the CREATE MORE Act (Republic Act 12066) relates to the VAT treatment of purchases made by or sales made to export-oriented enterprises, as well as importations made by said EOEs.

VAT treatment: Sales of goods and services to EOEs are subject to VAT at zero percent (0 percent). This VAT treatment is not new, but prior to the change, the zero-rating was limited only to few transactions. For goods, this was available only for sales of raw materials or packaging materials. And for services, the zero-rating treatment was limited to services performed by subcontractors and/or contractors in processing, converting or manufacturing goods. The modification introduced by CREATE MORE expanded the coverage to include all sales of goods and services.

A new provision added by CREATE MORE is the VAT treatment of importations made by EOEs. Prior to the change, importations by EOEs were subject to the usual VAT. These are now exempted from the coverage of the VAT system.

With these changes, effectively, transactions of EOEs are accorded the same VAT treatment as the registered business enterprises granted tax incentives by investment promotions agencies-even without them actually qualifying and registering for tax incentives.

Conditions for VAT zero-rating and VAT exemption: The VAT zero-rating of sale of goods and services to EOEs and the VAT exemption of importations by EOEs, however, are not without conditions. One important consideration is that the EOE must meet the export sales threshold -at least 70 percent of total annual production of the preceding taxable year. Based on the implementing regulations, total annual production for goods refers to the volume or sales value of production, manufactured and sold, including mark-up while the total annual production for services refers to the value of services rendered by the EOE.

Aside from meeting the export threshold, the subject (goods or services) of the transaction should be directly attributable-meaning, the goods and services should be incidental to and reasonably necessary-to the export activity of the EOE. For services, these include janitorial, security, financial, consultancy, marketing and promotion services, and services rendered for administrative operations such as human resources, legal and accounting. The enumeration of these types of services in the law implies an inclusive coverage-that is, all types of services, including those consumed for administrative purposes, can be considered incidental and necessary.

Determination of compliance with the export threshold: Compliance by the EOEs with the 70 percent export sales is mandatory. An EOE that fails to meet this export sales requirement in a year shall not be entitled to VAT zero-rating on local purchases and VAT exemption on importations for the immediately succeeding year.

The Export Marketing Bureau of the Department of Trade and Industry (DTI-EMB) is tasked with the obligation to determine compliance with this export sales threshold-with the mandate to issue certification to qualified EOEs. This certification shall be presented by the EOE to its local suppliers. In fact, local suppliers are not required to separately apply for VAT zero-rating. The certification issued by the DTI-EMB and presented by the EOE to its local suppliers should suffice for purposes of treating the sales by these local suppliers as VAT zero-rated.

Understandably, there are some local suppliers who refuse or are adamant to acknowledge the VAT zero-rating certification issued by the DTI-EMB. This prompted the BIR to issue an advisory on June 11, 2025, reminding local suppliers of EOEs to recognize and honor VAT zero-rating certifications issued by DTI-EMB. If there are concerns, local suppliers may verify or inquire with the DTI-EMB.

EOEs are generally subject to VAT at zero percent, precisely because most, if not all, of their sales are for export (direct and indirect). As a result, there are no output taxes against which input taxes incurred on importations and local purchases are utilized. This results in the accumulation of input taxes, with no option for their recovery-except to apply for refund. Apparently, refund process entails costs and the risk of denial.

Thanks to CREATE MORE, taxpayers which may not be qualified and registered for tax incentives may enjoy the same VAT treatment as the VAT incentives for registered business enterprises, provided they qualify as EOEs. The inclusion of sales by local suppliers to EOEs and importations by EOEs in the list of transactions treated as zero-rated or exempted from VAT provides venue for EOEs to avoid incurring input taxes. That eliminates also the risks and costs associated with the application process for the recovery-through refund-of unutilized input taxes. If you are a taxpayer qualified as an export-oriented enterprise, this option is available to you.

The author is a managing partner of Du-Baladad and Associates Law Offices (BDB Law) (www.bdblaw.com.ph).

The article is for general information only and is not intended, nor should be construed as a substitute for tax, legal, or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at fulvio.dawilan@bdblaw.com.ph or call 8403-2001 loc 310.

’Wind of Culture’ project launched in Garabagh region [PHOTOS]

The project “Wind of Culture” has been launched in Azerbaijan’s Garabagh region, Azernews reports.

The event was organised by the Culture Ministry’s Scientific, Methodological, and Qualification Centre for Culture (MEMIM), with the support of the Garabagh Regional Department of Culture.

MEMIM held a meeting with the Honoured Artist, performer, and educator Aqil Malikov, held at the Faculty of Arts of the Garabagh University in the city of Khankandi, as part of the “Master’s Friend” project.

The Dean of the Faculty, composer Turkar Gasimzade, thanked the organisers of the project, stressing the importance of such events for students.

In his speech, MEMIM Acting Director, Doctor of Philosophy in Art Studies, Associate Professor Vugar Humbatov, highlighted the revival and development of cultural life in Garabagh, thanking the guest of the project, Aqil Malikov, for his participation.

The meeting was moderated by MEMIM staff member Laman Ayyubova. Aqil Malikov discussed topics such as classical schools of Azerbaijani musical art, the proper selection of ghazals for performance in various mughams and dastgahs, and professional training for the youth.

During the interactive meeting, students of the Faculty of Arts, Khadija Ismayilova performed “Mahur-Khindi,” while Ismayil Ismayilov performed the mugham “Rakhab.” They were accompanied by faculty teachers Bahruz Zeynalov on the tar, Farid Babayev on the kamancha, and student Ilgar Suleymanli on the naghara.

Honoured Artists Sabuhi Ibayev, Fehruz Mammadov (Sakhavat), and Ehtiram Huseynov, along with singer Sabina Arabli, added colour to the event with their engaging performances.

At the end, Aqil Malikov answered questions that were of interest to the audience. The meeting, which included the teaching staff and students of the Garabagh University, was a great success.

Media partners of the event are Azernews.Az, Trend.Az, Day.Az, and Milli.Az.