Countsystem

One of the most fundamental principles of sound decision-making is Cost-Benefit Analysis (CBA). That is weighing the costs of a decision against its expected benefits to determine whether it is truly worth pursuing.

Notice the order, cost comes before benefit. Why? Because when we become so fascinated by the potential gains that we ignore the price to be paid, we risk making costly mistakes. It is like trying to build a house from the roof down. No matter how attractive the roof may look, the structure will eventually collapse without a solid foundation.

This is why the recent recommendation by the International Monetary Fund (IMF) that Nigeria should increase its Value Added Tax (VAT), currently at 7.5%, deserves careful scrutiny. While the promise of higher government revenue sounds attractive, Nigerians are asking a critical question:

"More revenue for the government but at what cost to the people?"

Supporters of a VAT increase often point out that Nigeria has one of the lowest VAT rates in West Africa. But that comparison alone is not enough. Nigeria is not just another West African country. With a population exceeding 200 million people, our economic realities, social pressures, and consumption patterns are significantly different from those of our neighbours.

A policy should not be judged merely by how it compares with others. It should be judged by how it affects the people it is meant to serve.

The truth is that this is not the right time for a VAT increase. Millions of Nigerians are already battling a severe cost-of-living crisis. Food prices have skyrocketed. Transportation costs remain high. Rent, healthcare, and education expenses continue to stretch household budgets to their limits. Disposable income is shrinking by the day, and many families are struggling simply to survive.

Imagine a family that is barely able to put food on the table today with VAT at 7.5%. What happens if the rate is increased tomorrow? What becomes of the small business owner already struggling with rising operating costs? What is the fallback plan for the average Nigerian who has exhausted every backup strategy available? These are not theoretical questions. They are real-life concerns affecting real people.

We must also remember that VAT is an indirect tax. Businesses can transfer virtually all of its burden directly to consumers through higher prices. The moment VAT goes up, the cost of goods and services is likely to rise across the board. Even products that are exempted or zero-rated may not escape the ripple effect, because the prevailing narrative in the marketplace will simply be: "Government has increased VAT." The result? More pressure on households, reduced purchasing power, and increased hardship.

Nigeria already faces significant economic and social challenges. While every citizen has a role to play in nation-building, we must be careful not to adopt policies that could deepen existing struggles and widen the hardship many people already endure.

Yes, government urgently needs revenue to fund infrastructure, strengthen human capital development, improve public services, and address critical national priorities. No one disputes that reality. But revenue generation should never be pursued in isolation from its human consequences.

Before we celebrate the benefits of increased VAT collections, we must honestly count the cost. We must ask whether the expected gains outweigh the burden that ordinary Nigerians will be forced to carry. Good governance is not simply about finding new ways to raise money. It is about balancing fiscal needs with the welfare of the people.

At this moment, the economic and social costs of increasing VAT appear far greater than the projected benefits. And when the costs outweigh the benefits, wisdom demands caution not haste. Sometimes the best decision is not the one that promises the most revenue, but the one that protects the people.

SpaceX is reportedly raising $75 billion by selling 555.5 million shares priced at $135 per share in its Initial Public Offering (IPO), and many analysts are already calling it overvalued.

Maybe they’re right.

But there is one powerful factor that critics often underestimate, the Elon Musk factor.

Love him or hate him, Elon Musk has built a track record that captures the imagination of investors. From electric vehicles to reusable rockets, he has repeatedly turned ideas that sounded impossible into reality. That history creates something incredibly valuable in the investment world which is confidence.

So, are people investing based on hopes and dreams? Certainly!.

But they are also investing based on a founder whose past achievements have given many reasons to believe that today’s dream could become tomorrow’s breakthrough.

And before you rush to convert the share price into your local currency, pause for a moment. The IPO is not designed for the average retail investor. This is a game being played at a different level.

For context, SpaceX (Space Exploration Technologies Corp.) is an American aerospace, telecommunications, and artificial intelligence company founded by Elon Musk in 2002. What started as an ambitious vision to make space travel more affordable has grown into one of the most influential private companies in the world. The highest IPO ever in history!

In investing, numbers matter. But sometimes, belief in the person behind the numbers matters just as well.

At times, it may seem as though there is nothing to thank God for in Nigeria. The challenges are real. The hardships are visible. The headlines can be discouraging.

Yet, in the midst of it all, we must remember it is by the Lord's mercies that we are not consumed.

Every day we wake up, every life preserved, every victory recorded against those who seek to destabilise our nation is a reason for gratitude.

We need to continually pray for peace, our leaders, our military men and women, asking God to strengthen them, protect them, and make them ten times more effective in their operations.

Nigeria has won. May God bless Nigeria.

If you're one of those business owners waiting to see how the new tax law will play out before taking compliance seriously, it's time to pay attention.

30th April 2026, Rev360 went live, and it's already up and running 🚀
10th June 2026, the official physical launch takes place.

The new tax regime is no longer a future event, it's here. The transformational upgrade promised when FIRS transitioned to NRS.

Remember, the penalty for failing to file your tax return is ₦100,000 in the first month of failure and ₦50,000 for every additional month the failure continues.