Tag: 2021

Budget: Nigerians to pay more taxes in 2021
By Emman Ovuakporie

From all indications, 2021 is going to showcase another wave of increased taxes as President Muhamnadu Buhari proposes another 2020 Finance Bill to midwife the 2021 Budget.

Recall that while making the 2021 Budget presentation to a joint session of the National Assembly, last Thursday the President said an accompanying Finance Bill will soon be submitted to lawmakers through the Minister of Finance.

TheNewsGuru.com (TNG) reports that 2020 Finance Bill if finally passed into law by the National Assembly is expected to midwife the 2021 Budget via reforms that will help shape the heavily deficit budget.

Buhari in his budget speech said” I have directed the Minister of Finance, Budget and National Planning to finalise the Finance Bill 2020, which will be forwarded for your kind consideration and passage into law, shortly after today’s 2021 Budget presentation. The Finance Bill is to support the realization of our 2021 revenue projections, adopt appropriate counter-cyclical fiscal policies and enhance the efficiency of fiscal incentives.

To this end, TheNewsGuru.com, TNG in a probe into this development uncovered that the Bill definitely will be passed and assented by January 2021 to cushion the shortfalls in the budget.

The 2019 Finance Bill passed by the National Assembly gave birth to an increase in VAT from 5percent to 7.5percent and various taxes across board.

See Breakdown Below:

The Finance Act amends some key provisions of the Companies Income Tax Act (CITA), Value Added Tax Act (VATA), Personal Income Tax Act (PITA), Petroleum Profit Tax Act (PPT), Stamp Duties Act and the Customs, Excise Tariff Etc (Consolidation) Act. Some of the prominent amendments effected by the Act include:

the increase of the VAT rate from 5% to 7.5%;

the introduction of a N25 million VAT compliance threshold;

the exemption of companies with less than N25 million annual turnover from payment of CIT;

expansion of the scope of companies taxable in Nigeria to include companies that operate within the Nigeria digital space, among others;

requirement of a tax identification number for opening of bank accounts or continue operation of existing bank account;

provision of exceptions for the application of excess dividend tax under Section 19 of the CIT Act; and

imposition of excise on certain imported products.

The Act sets five strategic objectives, which include: raising government revenue through various fiscal measures, reforming domestic tax laws to align with global best practice, promoting fiscal equity by mitigating instances of regressive taxation, supporting small business entities in line with Ease of Business Reforms and introducing tax incentives for investments in infrastructure and capital market.

The budget which was largely condemned by some top Nigerian politicians was described as not being in alignment with Nigeria’s economic reality.

Some lawmakers who spoke to TNG under the condition of anonymity roundly condemned the move as it would lead to more taxes on the over burdened Nigerians.

A lawmaker from the South East geo-political zone described the budget as a recipe for corruption.

He said the Finance Bill is another method to impose more taxes on Nigerians.

Another Lawmaker from the North Central geo-political zone while reacting to whether the 2020 Finance Bill would not lead to fresh increase in the tarrifs of essential services in the country said:

“You don’t need a soothsayer to know what is coming. Once you are shying away from taking actions you need to take, mop up, reduce leakages. Let me quote the president at Chattam house 2014, he said what do I need presidential air fleet for, these are the leakages we need to plug, has he done that, no.

“I agree with the president that there are leakages we need to plug and as a nation if we do not do that we will continue to come with finance bill because you are already looking for where to get more money because of the pressure on you to do certain things and because there is pressure on you and you are blinded to one area so your focus will always be presenting finance bill.

Until holistically as a nation, we look at how resources are being managed and reduce the tendency to borrow.

I was sharing with my colleague, in Nigeria we have five aides and the Nigerian public believe it is too much but an average rep in America has nothing less than 50-60 aides, some have 100+.

All these bilateral funds that we are wasting into travels and what have you, if it is channeled towards such thing to provide the required support, it might not be finance by our national budget so as to be able to deal with this budget effectively our expertise from virtually every sector of the economy, because I am a legislator does not make me have all the knowledge.

Until we begin to streamline those things and cut cost where you need to cut cost these finance bills will be coming and because a man cannot give what he doesn’t have, you will be surprised too that some of them will pass.

I pray we will be able to provide the requisite knowledge and expertise and advice and I pray that they will take such advice. But as it is that finance bill is coming for such purpose.

And these are things that drive economy and this is where the CBN has come below expectations. You do not drive a mercantile economy and expect production. Mercantile economy is where you’re just looking for quick grasps.
October 13, 2020
TNG Sunday Interview: 2021 Budget not in alignment with Nigeria’s economic reality – Hon. Teejay Yusuf

Hon. Tajudeen Yusuf is an Economist, a third timer in the House of Representatives, represents Kabba/Bunu/Ijumu Federal Constituency of Kogi State, former Chairman Reps Committee on Capital Market in the 8th Assembly, a former executive, National Association of Nigerian Students, NANS, a vibrant member of the Peoples Democratic Party, PDP, in this chat with TheNewsGuru.com, TNG Regional Editor Emman Ovuakporie, spoke extensively on the 2021 Budget, the mechanics of legislative business and other sundry issues, excerpt.

Hear Him:

How will you assess the 2021 budget the president has laid before you.
Of a truth I have not seen anything different from the trajectory we have been observing. It is so unfortunate that this is the condition we’ve found ourselves, it’s another false narrative that is now unfortunately becoming the real life we are living. When Hitler, it is very wrong to quote such person, he said when a lie is continuously told it becomes true to the hearer because that is what you hear all the time.

There is no difference between this budget than when it was N5bn, 6billion under Jonathan. When you hear 13trillion but in reality our budget has not gone beyond those normal 5, 6billion naira budget. We are servicing debts of over 3trillion, these are debts incurred by this administration.

People will tell you that 16years of the former leadership in Nigeria was waste because they had money. Nigeria earning from crude, benchmark of crude rose to a hundred and something only between 2013 and 2015 but the impression they give the whole world is that throughout the 16years, in Obasanjo’s time it was 28 dollar at a time. So this government is even earning more.

But unfortunately because the foundation ab initio has been built on lies, that we found ourselves in this quagmire now in an attempt to be internationally correct, World Bank is forcing down the throat of the government policies that are anti people.

Anybody who is following world economy will know that World Bank history has never been good with third world countries. World Bank and IMF were set up after the second world war, their major mandate was the recovery of the economy of developing countries and the major principle of World Bank operation in third world countries is this economic principle of law of comparative advantage. That a country specialised in producing goods could be where he is better equipped, so they allocate to Africa as third world countries production of raw materials and SAP is a practical example.

When the intellectuals in Nigeria proffer a contrary opinion to SAP but because of our slavery intellectual mentality the leadership followed SAP.

SAP is the beginning of our crisis economically. IMF and World Bank came to apologize after they had killed our economy. IMF and World Bank is telling this government to increase fuel pump, to increase tariff on electricity, government has hands off certain aspects of electricity by giving it to DISCO’S, by giving government 700million dollars loan for what.

You are not the one directly in charge of the company you are taking loan for it. So they are making challenges deliberately to make us rely on their economy. It is very unfortunate that we have not had people, because you can be zealous without knowledge. So it is possible that people are zealous but people with sound knowledge, you have the capacity to look people in the eyes and tell them this is wrong. 3trillion plus to service debt in a budget of 13trillion.

Capital is about 3trillion, you are going to borrow about 5trillion naira so by implication you don’t have but you say you want to spend. Your projection was initially about 7trillion from revenue but now it has gone down to about 5trillion.

So if you have this servicing and local contractors and what have you, so your revenue projection is not even enough to meet your debt payment schedule. So we will be relying on speculation to fund the budget.

If I listened to the President he sounded patriotic but your intention should match your reality. Intention that is not matched with solid economic principle will fail. They have given to the president an idea but the tools to work the idea is not available.

The bilateral expectations of revenue is about 700billion, borrowing is 4.2trillion, deficit is 5.2trillion, revenue is about 3trillion plus. So these are not in any way aligning.

However I am of the opinion that if the National Assembly sits and do its own part because this idea has always been the executive except we are agreeing to the fact that we don’t have the requisite knowledge to do the right thing.

The intentions of the crafters of democracy is that if the executive miss it, you plug those holes and that is why in America there is what is called the 1974 Appropriation Act that says that if the executive present a budget to the National Assembly of America and they do not feel it meets the yearning of the American people, the Aational Assembly can produce a budget, so you are not a rubber stamp legislature, you are supposed to look at those things and rejig it.

I pray that we have the balls and the required knowledge to do the right thing.

I am of the opinion that you must not have a huge budget if you don’t have the resources. Truth is you saying I have one naira and I will budget with one naira, so that we know where we can help you.

The President made mention of presenting another finance bill before the national assembly soon. This finance bill came in 2019 and we saw the aftermath of the increase in VAT and electricity tariff. Are we going to see another upward review of such taxes because the President said it is going to serve as support towards raising finance for the budget.
You don’t need a soothsayer to know what is coming. Once you are shying away from taking actions you need to take, mop up, reduce leakages. Let me quote the president at Chattam house 2014, he said what do I need presidential air fleet for, these are the leakages we need to plug, has he done that, no.

I agree with the president that there are leakages we need to plug and as a nation if we do not do that we will continue to come with finance bill because you are already looking for where to get more money because of the pressure on you to do certain things and because there is pressure on you and you are blinded to one area so your focus will always be presenting finance bill.

Until holistically as a nation, we look at how resources are being managed and reduce the tendency to borrow.
I was sharing with my colleague, in Nigeria we have five aides and the Nigerian public believe it is too much but an average rep in America has nothing less than 50-60 aides, some have 100+.

All these bilateral funds that we are wasting into travels and what have you, if it is channeled towards such thing to provide the required support, it might not be finance by our national budget so as to be able to deal with this budget effectively our expertise from virtually every sector of the economy, because I am a legislator does not make me have all the knowledge.

Until we begin to streamline those things and cut cost where you need to cut cost these finance bills will be coming and because a man cannot give what he doesn’t have, you will be surprised too that some of them will pass.

I pray we will be able to provide the requisite knowledge and expertise and advice and I pray that they will take such advice. But as it is that finance bill is coming for such purpose.

And these are things that drive economy and this is where the CBN has come below expectations. You do not drive a mercantile economy and expect production. Mercantile economy is where you’re just looking for quick grasps.

October 11, 2020
Real Famine Imminent in 2020 and early 2021, By Dele Sobowale

“0803-577-0940

Good day Uncle Dele. We’re back to the stark realities of one of your forecasts. We’ld embark once more into maize importation. Since the farmers cannot farm again because of Fulani herdsmen, here we are back to the dark ages.,,”

The message arrived on September 4, 2020. I kept it till now because last week was devoted to pointing out why the statement credited to Buhari, after another incestuous retreat by the Federal Government was an exercise in grand illusions. An economic programme based on VISION 20: 2020 and Economic Recovery Growth Plan, ERGP, both massive failures, amounted to anchoring your ship of state to two ship wrecks. I was the first in to pronounce VISION 2020 a fraud and we are in 2020 and the hoax has been exposed. ERGP was a hasty response to the recession of 2016. Again the prediction of failure was made immediately it was released. ERGP promised seven per cent GDP growth by 2020. We are in September 2020 and the year will most likely end with minus growth.

Nigerians should be deeply worried by how often the F’G fails to achieve the targets announced. Government is becoming a joke; and they won’t learn. Policy on maize importation is another example of government deceiving itself and Nigerians. A few important facts about maize, as well as other crops, should reveal why it was stupid to categorically prohibit maize importation. Nigeria’s food supply, in the aggregate, rests on shaky foundations.

“The largest maize producing areas – North-East, North-West and North-Central regions that contribute 25.43 per cent, 22.9 per cent and 25.88 per cent respectively – are under siege from terrorists, bandits, kidnappers and Fulani militants.” PUNCH EDITORIAL, September 15, 2020.

It is bad enough that over 74 per cent of Nigeria’s maize harvest is at risk in those three Northern zones; the situation is made worse by two facts. Even the 26 per cent from the South is not assured. Meanwhile the Central Bank of Nigeria, CBN, in a bewildering reversal of a policy announced only in July, suddenly granted duty waiver to four companies which will be allocated foreign exchange to import maize. Then, a few days ago, the President ordered the CBN not to grant any food importer foreign exchange. “Chop-I-chop” is here again.

“Confusion is a word we have invented for an order not understood.”

Henry Miller. US Writer.

On the face of it, most Nigerians will assume that the rapid policy shifts represent confusion on the part of the FG and CBN. That will be a cardinal error. I strongly believe it is under-pinned by corruption. The covert selection of four favoured importers takes us back to the period in our history when one person had sole import rights for rice and sugar. He became immensely rich overnight. The waiver and import rights granted to the four will not solve the problem of maize shortage. It will only make a few people extremely rich while most Nigerians are being steadily impoverished. It is a swindle; not a policy.

At any rate, the quantity allowed for maize imports will not avert the prospect of looming massive famine. Maize harvest is not the only food item suffering a setback from the combination of terrorism, defective government food policies and CBN confusion. Flood, which has devastated a great deal of rice producing areas is affecting other crops as well. We will certainly harvest far less rice than anticipated on account of flooding all over Nigeria. For instance, Kebbi state, one of the major rice producing states has experienced unprecedented flood. The water will not soon recede, and when it does, rice and other crops under it will be totally wasted. It was while visiting Kebbi and observing the devastation of the farmlands that President Buhari stopped foreign exchange allocation for all food importers. It cannot be otherwise. The FG is broke.

“Nigeria’s revenue dropped by 65 %, says finance minister.”

PUNCH, September 15, 2020.

The Finance Minister sent out a chilling warning as she made this startling revelation about FG’s inability to discharge its responsibilities to the people. “We cannot do what we used to do anymore.” The repercussions will be catastrophic in many ways. But, before touching on some of the consequences of revenue shortfall, one must interrogate the Minister’s implied admission of helplessness. It is instructive to note that while only 35 per cent of revenue is currently collected, FG workers are fully paid. One must wonder why government cannot reduce its expenditure on personnel. Specifically, why is Nigeria having 42 Ministers when the USA, China, India, Brazil – states bigger and richer operate with less than 15 each? Apart from flood, which might not last beyond December, famine is imminent and will last longer. The reasons are clear to most Nigerians now except their leaders. Let me explain.

“Why are you killing Christians?” US President Donald Trump asked the Nigerian President. According to Buhari, he answered by saying that when cattle are on the move they inadvertently enter peoples’ farms and destroy crops. There is nothing ethnic or religious about the invasion — words to that effect. Everybody who has ever marked examination papers can easily see why many candidates fail examinations. Trump must have had to restrain himself a great deal to avoid saying “Mr President, you have not answered my question.”

Even if it was a good answer, it was the wrong answer to the question asked. As it turned out, it was revealing of how Buhari’s mind works. There was no sympathy for the farmer in his entire response. For him, only the herdsmen and their cattle deserve understanding. Furthermore, his defence of herdsmen atrocities failed to address why the herdsmen who had operated from time immemorial never became gun-totting terrorists, acting with impunity and openly boasting of their powers until after 2015.

I want to give President Buhari the benefit of doubt that he could not think of all the possible consequences of his open support for herdsmen-terrorists. He must have found it difficult to understand that the cattle which, according to him, wander from forests to farms and devastate them, were undermining his quest for sustainable food security. He was building a legacy of food self-sufficiency with one hand; and demolishing his monument to himself with the other.

Today, millions of farmers have deserted their farms. Buhari might not know, women and girls are responsible for the majority of the food grown on small scale and subsistence farms. When bestial herdsmen added kidnapping, murder and rapes to the age-log crimes of arson and destruction, they drove millions of women off the farms. The men cannot fill the gap; because they are targets of murderers and kidnappers.

In that regard, President Buhari’s remark when he recently imposed prohibition on foreign exchange for food import is instructive. The Nigerian President announced that there are millions of unemployed youth and abundant land to cultivate. He therefore thinks that forcing the young to farm is a good idea.

I totally agree about youth unemployment and its potential security risks. I also accept that the country still has abundant land for cultivation. But, I have a question to ask. If he is not President and his daughter is jobless, will he ask her to go and farm in Borno, Zamfara, Katsina or Kaduna state? His honest answer to that question should prove to him how impractical his idea is and why serious hunger is here to stay.

September 21, 2020
Tokyo confirms venues, schedule for Olympic Games

The Tokyo 2020 Organising Committee announced that all the venues intended for the Games in 2021 have been secured and the sports competition schedule confirmed.

A statement on the International Olympic Committee (IOC) website said that the decision was taken at the IOC virtual session held on Friday.

”This marks a significant step for the organisers, with only one year to go until the postponed Olympic Games Tokyo 2020 open on July 23, 2021.

”As preparations continue to advance, these decisions highlight the progress made amidst the current unprecedented circumstances, with strong unity amongst all stakeholders driving the planning and delivery of next year’s Games.

”This was emphasised by the Organising Committee’s President, Yoshiro Mori, and its CEO, Toshiro Muto.

”In their report to the IOC Session, they confirmed that all 43 competition venues, the Olympic Village, and the International Broadcast Centre and Main Press Centre would be used for the Olympic Games in 2021,”the statement read.

It however noted that the Tokyo organisers also announced that the competition schedule will remain the same, with some minor timing adjustments for operational reasons.

“The Olympic Village is the beating heart of the Olympic Games, while the venues are its soul.

”I am delighted that the Village and the venues have been confirmed for next year, this means that the athletes will have this once-in-a-lifetime experience.

”Athletes from all around the world will live together under one roof in the Olympic Village, sharing meals together, celebrating together, discussing together and forming these unique Olympic communities.

”That Tokyo 2020 has been able to achieve this and confirm the competition schedule despite the extraordinary circumstances is testament to the work of the Joint Steering Committee led by John Coates and Yoshiro Mori,” the statement quoted IOC President Thomas Bach as saying.

Bach was quoted further as saying that with only one year to go, a mammoth task still lies ahead of the committee.

”With our Japanese partners and friends, we agree that we have to adapt the planning of the Olympic Games Tokyo 2020 to the requirements of the global crisis, while maintaining the unique spirit and message that defines our mission.

”We are working to optimise the operations and services without touching on sports and athletes. In this way we can, together with the Organising Committee, turn these postponed Olympic Games Tokyo 2020 into an unprecedented celebration of unity and solidarity of humankind, making them a symbol of resilience and hope. Showing that we are stronger together,” Bach said.

July 17, 2020
Pst. Adeboye: God told me only those whose time had come will die of Coronavirus [Video]

Pastor Enoch Adeboye, General Overseer of the Redeemed Christian Church of God (RCCG), on Sunday said God revealed to him that only those whose time have come will be killed by Covid-19, he added that great things will come out of the lockdown imposed due to the deadly coronavirus.

Adeboye in a sermon during a live broadcast to his members on Sunday, predicted that many babies will be birthed in early 2021.

The cleric, who informed Christians to rejoice during the lockdown, identified David and Elijah and Joseph in the Bible, as persons who became great as a result of lockdown in their lives.

He said, “let me warn pastors, now I’m busy you are resting. Early next year you will be very busy.

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Pst. Adeboye: God told me only those whose time had come will die of Coronavirus

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“As a result of the lockdown you will have a lot of baby naming ceremonies.

“David, Elijah, Joseph, and some others became great during a lockdown.”

He, therefore, added that the best thing to do during a lockdown is rejoice, praise God, study the Bible and pray.

“Visions usually come during lockdown. Plan towards actualizing the vision and when you finish planing you need to hand it over to God.”

He also said God told him not to worry about persons who died due to coronavirus.

According to him, God allowed it because he wants to prove that he is the Almighty, hence the low COVID-19 deaths recorded globally.

The cleric said, “God said I should not worry about those who will die due to coronavirus.

“Ain’t you amazed at the number of people who have been recovered compared to the number of those who died? All over the world the number of those who died is less than 10 percent.

“If you research, you will know that the number of people who have died due to coronavirus is lesser than those who have died because of accident or other means.

“This is because God just wanted to prove himself that he is the almighty that he can lockdown the whole world.

“I’m appealing to those who haven’t give their life to Christ love your self by seeking him.If you find him you will fine life and if you hate him.

“To those who think they are big and mighty where is it now. The almighty God says sit down at home.”

May 31, 2020
COVID-19: Afro Nation postpones festival to 2021

Afro Nation, an annual event celebrating Africans in the diaspora, has deferred its 2020 festival, initially billed to hold in Portugal, due to the COVID-19 pandemic.

Coordinators of the music event broke the news in a statement via the festival’s blog on Monday, with the change in its schedule being without refund on tickets purchased for 2020.

According to the festival brand, its festival is now billed for July 1 to 3, 2021 — with tickets purchased for the already canceled year to be either validated for use in 2021 or listed for resale.

“Afro Nation has been closely monitoring this situation and working in tandem with partners, local authorities, and the Portuguese Government,” Afro Nation wrote.

“The safety of our fans, artists, staff, and the local community remains paramount.

“In light of the recent Portuguese Government directive regarding large gatherings, Afro Nation Portugal will be postponed to July 1st – 3rd 2021, and all tickets will remain valid.

“On a more positive note, we have been working hard behind the scenes for every eventuality.

“We have expanded our line-up, and can now confirm the biggest Afrobeats line-up of all time for Afro Nation Portugal 2021.

“As an independent festival, we are committed to putting on the biggest and best Afrobeats events to take place anywhere in the world for you.

“According to the new Portuguese law provided by the Decree-Law DL 10I/2020, your ticket will be automatically transferred to the new date.

“Should you wish not to transfer to 2021, you will have the opportunity to sell your ticket via our primary ticket provider Festicket.”

Among those listed to perform in Portugal on the newly announced dates include Burna Boy, Davido, Fireboy, Flavour, Wizkid, Yemi Alade, Teni, Olamide, 2baba, Wande Coal, and Kizz Daniel.

Other artistes also incorporated in the lineup are Tory Lanez, Diamond Platnumz, Machel Montano, Mavado, Skepta, Maitre Gims, Beenie Man, Sauti Sol, Reekado Banks, and Niniola.

May 12, 2020
Tokyo Olympic games set for July 2021

Tokyo Olympics organisers are eyeing next July as a start date for the postponed Games, Japanese media reported yesterday, following the historic decision to delay the event due to the coronavirus.

Given the on-going pandemic and need for preparation time, the most likely plan would be for the Games to begin on July 23, 2021, public broadcaster NHK said, citing sources within the organising panel.

It came after Tokyo Governor Yuriko Koike raised the idea on Friday of moving the event to a less hot and humid time of year.

She argued that this would make marathons and other races easier to endure, meaning they could be held in the capital instead of in northern Sapporo city, where the International Olympic Committee (IOC) had decided to move them.

The Tokyo 2020 team led by Yoshiro Mori is currently discussing possible dates with the IOC, according to the Asahi Shimbun newspaper.

Mori told a Japanese TV station over the weekend that “some kind of conclusion” would be reached within a week.

The Olympics were scheduled to open on July 24 this year with the Paralympics on August 25, but Japan announced last week it had secured agreement from the IOC to postpone the Games – a decision unprecedented in peacetime.

Prime Minister Shinzo Abe said they would be held in around a year instead as a testament to humanity’s victory over the pandemic.

March 30, 2020
Cameroon accepts to host 2021 AFCON – CAF

Cameroon have “officially accepted” to host the 2021 Africa Cup of Nations (AFCON) tournament, CAF have revealed in a statement.

This comes after Cameroon were stripped of the right to host the 2019 tournament. Without stating how Cameroon were invited to stage the 2021 edition, CAF said the Central Africans had accepted to organise the tournament.

“CAF recalls that Cameroon has officially accepted to host the AFCON 2021 through an official letter addressed to CAF and signed by the Cameroonian Head of State, His Excellency Paul Biya,” a statement by CAF read.

“The Caf President thus expresses his gratitude to President Biya for his profound understanding. Caf therefore, rejects all the unfair and totally unfounded different interpretations.”

Earlier this month, CAF President Ahmad was quoted by a French radio station saying that the Executive Committee has decided to transfer the 2021 AFCON hosting mandate to Cameroon.

Ivory Coast were the initial 2021 hosts and the CAF President was reported as saying the Ivorians will now host the 2023 tournament.

The developments led to Ivory Coast approaching the Court of Arbitration for Sport seeking security for their right to organise the edition they were originally mandated to.

But CAF have refuted reports that the Executive Committee decided to let Cameroon host the 2021 tournament.

“CAF reaffirms that on 30 November 2018; the Executive Committee met in a peaceful atmosphere and took decisions in a free and independent manner, respectful of the statutes and regulations.”

“CAF does not accept the misinterpretation of its decisions circulated and still circulating on digital and social media platforms, and regrets attempts to discredit its structures and functions of the Executive Committee.”

Hosts for the 2019 AFCON are expected to be announced on January 9 at an Executive Committee meeting in Senegal with South Africa and Egypt having submitted bids.

December 24, 2018