TikTok has announced its readiness to shut down for U.S. users on January 19, but there may be a last-minute reprieve for the embattled app. A Biden administration official told ABC News that it does not plan to enforce the law that would require TikTok to cease operations one day before President Joe Biden leaves office.

TikTok could still choose to shut down voluntarily on Sunday, a move aimed at highlighting the potentially wide-ranging impact of the ban on its 170 million U.S. monthly users. However, Biden’s team is signaling that the issue will likely be passed on to the incoming Trump administration to address.

“Our position on this has been clear: TikTok should continue to operate under American ownership. Given the timing of when [the ban] goes into effect over a holiday weekend a day before inauguration, it will be up to the next administration to implement,” a White House official said in a statement.

The law does not explicitly mandate TikTok to go dark on January 19. Instead, app stores and internet hosting services providing support to TikTok could face fines of up to $5,000 per user. With the app’s massive user base, this could amount to billions of dollars in liability for companies like Apple, Google, and Oracle.

So far, these tech giants have either declined to comment or remained silent on how they plan to handle the looming deadline.

Even if the president-elect or outgoing president wanted to delay the ban, their options are limited. The law allows for a one-time, 90-day extension under stringent conditions: TikTok must demonstrate it is on a clear path toward divesting from ByteDance, there must be evidence of significant progress, and legally binding agreements must seal that progress. There is no indication that these conditions have been met.

Congress Divided Over Extension

Efforts to delay the ban through legislative action have stalled. A group of Senate Democrats introduced a bill this week to give TikTok’s parent company ByteDance an additional 270 days to divest, but it was blocked by Republican Senator Tom Cotton, who cited national security concerns.

“It’s clear that more time is needed,” Senate Minority Leader Chuck Schumer said on the Senate floor. He emphasized the need for a solution that protects TikTok’s users and safeguards against potential Chinese surveillance. Schumer also revealed that he had directly appealed to Biden to grant an extension.

Despite bipartisan calls for a delay, the path forward remains murky. Cotton’s opposition underscores a growing divide between lawmakers, with some prioritizing national security over the app’s cultural and economic impact.

Reprieve From Trump’s Soft Stance?

As the deadline approaches, President-elect Donald Trump has softened his position on TikTok, raising the possibility of a reprieve. Once a staunch advocate of banning the app during his first term, Trump has shifted his tone, crediting TikTok for helping him connect with younger voters during the 2024 presidential campaign.

In a December news conference, Trump acknowledged having a “warm spot” for TikTok and hinted at a negotiated resolution to keep the app operational. He even met with TikTok CEO Shou Chew at his Mar-a-Lago resort in Florida last month to explore potential solutions.

Florida Representative Mike Waltz, Trump’s pick for national security adviser, revealed in a Fox News interview that the president-elect is considering options to preserve the app while addressing security concerns. These options reportedly include an executive order to delay enforcement of the ban, allowing time for negotiations with ByteDance.

“President Trump has been very clear: Number one, TikTok is a great platform that many Americans use and has been great for his campaign and getting his message out. But number two, he’s going to protect their data,” Waltz said.

Meanwhile, the Supreme Court appears poised to uphold the law that targets TikTok. During oral arguments last week, justices expressed concerns over national security threats posed by ByteDance’s alleged ties to the Chinese government.

Chief Justice John Roberts questioned TikTok’s legal team, asking, “Are we supposed to ignore the fact that the ultimate parent of TikTok is doing intelligence work?” While some justices raised concerns about free speech, the potential risks of the app seemed to take precedence.

If Biden chooses to defer enforcement of the ban, TikTok’s fate will rest in Trump’s hands. Given Trump’s recent softened stance and efforts to explore options for preserving the app, there is a chance the incoming administration could seek a solution to keep TikTok operational.

On Friday, Trump posted on Truth Social that he had a “very good” phone call with China’s President Xi Jinping, which included discussion of TikTok. In addition, the president-elect said that he would make a decision on TikTok in the “not too distant” future, but did not say what he would do.

“We discussed balancing trade, fentanyl, TikTok, and many other subjects,” Trump wrote on his social platform. “President Xi and I will do everything possible to make the world more peaceful and safe!”

The World Bank has projected an average economic growth rate of 3.6% for Nigeria between 2025 and 2026, citing the Federal Government’s ongoing reforms as a key driver of this positive outlook.

The projection, contained in the World Bank’s “Global Economic Prospects” report for January 2025, credits reforms such as the removal of fuel subsidies, unification of the foreign exchange rate, and controversial tax policies for boosting business confidence and driving economic recovery.

The report highlighted that Nigeria’s Gross Domestic Product (GDP) growth climbed to an estimated 3.3% in 2024, primarily fueled by the services sector, which saw significant activity in financial and telecommunication services. This marks a steady improvement in economic performance compared to the previous year.

The World Bank stated: “Macroeconomic and fiscal reforms helped improve business confidence. In response to rising inflation and a weak naira, the central bank tightened monetary policy. Meanwhile, the fiscal deficit narrowed due to a surge in revenues driven by the elimination of the implicit foreign exchange subsidy, following the unification of the exchange rate and improved revenue administration.”

Inflation and Monetary Policy

The report underscored that inflation, a long-standing challenge in Nigeria, is expected to decline gradually following the Central Bank of Nigeria’s (CBN) tightening monetary policy in 2024. This decline is anticipated to boost consumption, which, alongside the robust services sector, will remain a significant driver of growth over the forecast period.

The World Bank further noted: “Following monetary policy tightening in 2024, inflation is projected to gradually decline, boosting consumption and supporting growth in the services sector, which continues to be the main driver of growth.”

Regional Context: Sub-Saharan Africa Growth Projections

On a broader scale, the World Bank projected that growth in Sub-Saharan Africa (SSA) will firm to 4.1% in 2025 and 4.3% in 2026. The revision reflects improved economic conditions across various subgroups in the region, as financial conditions ease and inflationary pressures subside. Nearly half of the economies in SSA are expected to witness upgraded growth projections for 2025 and 2026.

Oil Production and Its Role in Economic Growth

While Nigeria’s economy is diversifying, oil production continues to play a critical role. The World Bank forecasted a marginal increase in oil production over the forecast period, although output is expected to remain below the Organization of the Petroleum Exporting Countries (OPEC) quota.

Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that daily average oil production rose to 1.486 million barrels per day (mbpd) in November 2024, marking an increase of 152,000 barrels compared to the previous month. However, production slightly declined to 1.667mbpd in December 2024, reflecting a 1.35% month-on-month decrease.

Cumulatively, oil output in December 2024 reached 51.69 million barrels, a marginal 1.9% increase compared to November’s 50.71 million barrels. Despite these gains, the World Bank emphasized that per capita income growth in Nigeria is expected to remain weak over the forecast horizon.

The World Bank attributed the improved economic outlook to several reforms introduced by the Federal Government, including:

• Removal of Fuel Subsidies: The elimination of subsidies reduced fiscal pressure, redirecting funds toward critical sectors of the economy.
• Tax Reforms: While some of the proposed tax bills have been controversial, they have contributed to a more structured revenue system.
• Exchange Rate Unification: This move eliminated the implicit foreign exchange subsidy, resulting in improved revenue collection and narrowing of the fiscal deficit.

The reforms have reportedly bolstered business confidence, with investors and industry players responding positively to the government’s efforts to create a more predictable economic environment.

However, the World Bank warned that Nigeria’s per capita income growth will likely remain weak, indicating that economic gains may not translate into significant improvements in living standards for a large portion of the population.

Additionally, the persistence of high inflation and ongoing structural challenges in key sectors such as energy and infrastructure could limit the full potential of these reforms.

My salute to Walmart investors for challenging this emerging madness where companies are pulling away from initiatives people have built over years to balance issues the current systems cannot do automatically: “In a letter to Walmart CEO Doug McMillon, shareholders representing $266 billion in assets expressed “deep disappointment” and demanded to know the business case behind the retailer’s decision to scrap its diversity initiatives. Following boycott threats from conservative activists, Walmart announced back in November that it would no longer consider race and gender for supplier contracts, joining a growing number of companies that have made similar policy changes.”

Yes, if you want to remove gender and race in your supply chain contracting, you have to provide hard evidence that it helps your business. Good People, I am not sure that I have benefitted from any special consideration, and my small voice on it is based on hard evidence that most current US systems are not fair to minorities and women. It is not about giving opportunities to the unqualified, it is simply giving “ACCESS” to the excluded.

Careers are about access. Some people will be fine to exclude and keep the status quo as it is. But if there is a small policy that demands at least 2% for the others, how is that bad? Some people posit that Obama got into Harvard Law via affirmative action (not sure how they could know), and I have a question for them: if he needed help to get in , do you think that the system is FAIR and blind since he finished close to top of the class (being the president of Harvard Law Review). In other words, a system that REJECTS a student who ended up among leaders in a class cannot be trusted to be balanced.

And that is why this abolition of DEI (diversity, equity and inclusion) is unfortunate? Companies like Walmart must understand that the stable state system is not fair to all, and asking companies to make space for those not on the table is not bad. The same goes for gender, asking for 2% of women-led companies does not mean they are not qualified; it is simply providing access to the excluded.

Many years ago while a student in Johns Hopkins, a student alluded that one could have entered via affirmative action. Quickly, I fired back explaining that my CGPA was 4/4 Masters and GRE Quantitative was 800/800, and those must possibly be better than hers. She froze! That student spent 9 years there and did not graduate.

Sure, the fact that people can get in via affirmative action diminishes the accomplishments of minorities who do not need one. But that is a smaller price to pay than removing that “fudge factor” which adjusts for an imperfect system. Companies should not take down DEI; I write this as an employer of labour who does not need any job from any!

In a meeting held on January 16, 2025, the Nigeria Governors’ Forum (NGF), in collaboration with the Presidential Tax Reform Committee, appeared to have reached a consensus on the controversial tax reform bills.

The meeting was necessitated by the critical need to overhaul Nigeria’s tax framework to ensure equitable resource allocation, enhance fiscal stability, and align with global best practices.

The Nigeria Governors’ Forum reaffirmed its unwavering support for comprehensive reforms of Nigeria’s outdated tax laws. Governors and committee members acknowledged the urgent need to restructure the tax system, which many described as archaic and inefficient.

The Chairman of the NGF, Governor AbdulRahman AbdulRazaq of Kwara State, noted: “We, members of the Nigeria Governors’ Forum (NGF) and Presidential Tax Reform Committee, convened on the 16th of January, 2025, to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and arrived at the following resolutions.

“The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws.

“Members acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.”

A significant outcome of the meeting was the endorsement of a revised VAT-sharing formula aimed at promoting fairness in resource distribution among states. The new structure allocates 50% of VAT proceeds based on equality, 30% based on derivation, and 20% based on population. This formula, the governors noted, strikes a balance between equity and the recognition of states’ contributions to VAT revenue.

The Chairman of NGF also said: “The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: 50% based on equality, 30% based on derivation, and 20% based on population.

“Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability.”

This change is seen as a response to long-standing concerns about the inequitable distribution of VAT revenues, which some states argued disproportionately favored others.

In the interest of economic stability, the Forum agreed to maintain the current VAT rate and Corporate Income Tax (CIT) levels. There was a collective acknowledgment that raising VAT or reducing CIT in the current economic climate could exacerbate inflationary pressures and hinder business activities. The Forum further emphasized the importance of protecting citizens’ welfare by continuing to exempt essential goods and agricultural produce from VAT.

The communiqué noted: “The Forum advocated the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.

“The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.”

The governors and the committee unanimously supported the continuation of development levies allocated to key institutions such as the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA). They recommended that these levies should not have terminal clauses in the proposed bills.

The Forum reiterated its support for the ongoing legislative process in the National Assembly aimed at passing the Tax Reform Bills. Members highlighted the need for comprehensive stakeholder engagement to ensure that the bills address both national and subnational concerns. This process, they argued, would create a robust framework for tax administration and revenue generation.

COMMUNIQUE ISSUED AT THE END OF THE SUBNATIONAL CONSULTATIONS AND ENGAGEMENT WITH THE PRESIDENTIAL TAX REFORM COMMITTEE

We, members of the Nigeria Governors’ Forum (NGF) and presidential tax reform committee, convened on the 16th of January 2025 to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and arrived at the following resolutions:

1. The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernizing the tax system to enhance fiscal stability and align with global best practices.

2. The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: – 50% based on equality, – 30% based on derivation, and – 20% based on population.

3. Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time to maintain economic stability. The Forum advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.

4. The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.

5. The meeting supports the continuation of the legislative process at the National Assembly that will culminate in. the eventual passage of the Tax Reform Bills.

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H.E. AbdulRahman AbdulRazaq
Chairman, Nigeria Governors’ Forum & Governor of Kwara State.