News
Nigeria New Tax Laws: What You Need to Know
President Bola Tinubu on Thursday signed four new tax laws aimed at modernising and streamlining the country’s tax system.
In the new tax law, the Value Added Tax rate remains at 7.5 per cent despite initial proposals to increase to 12.5 per cent, but its scope is expanded.Essential items—such as food, education, healthcare, public transport, residential rent, and exports—are zero-rated to ease inflationary pressure.
For revenue allocation is restructured: now 30 per cent of VAT proceeds are distributed based on consumption (rather than contribution), 50 per cent equally among states, and 20 per cent to population-based allocation.
With the latest development, it is expected that state revenue streams will increase, and it will also discourage tax evasion.
Overview of the four new lawsNigeria Tax Act:
Consolidates various tax rules into a single, simplified code, eliminating over 50 small, overlapping taxes. This reduces complexity and duplication, making it easier for businesses to comply.
Tax Administration Act:
Establishes uniform rules for tax collection across federal, state, and local governments, ensuring consistency and reducing administrative conflicts.
Nigeria Revenue Service Act:
Replaces the Federal Inland Revenue Service with the independent Nigeria Revenue Service, aiming for greater efficiency and autonomy in tax administration.
Joint Revenue Board Act:
Enhances coordination between different government levels and introduces a Tax Ombudsman and Tax Appeal Tribunal to handle disputes fairly.
Key objectives of the new tax rules
Simplify Tax System:
Reduces bureaucratic hurdles and overlapping taxes to make compliance easier, especially for small businesses and informal traders.
Increase Revenue Efficiency:
Aims to boost Nigeria’s tax-to-GDP ratio from 10% (below the African average of 16–18%) to 18 per cent by 2026 without raising taxes on essential goods.
Reduce Financial Burden:
Provides relief for low-income households and small businesses while ensuring high-income earners and luxury consumers contribute more.
Fund Public Services: Increased revenue will support infrastructure, healthcare, and education, reducing reliance on borrowing.Who benefits and how
Low-Income Households:
Individuals earning up to ₦1 million ($650) annually receive a ₦200,000 rent relief, reducing taxable income to ₦800,000, exempting them from income tax.
VAT exemptions on essential goods and services (food, healthcare, education, rent, power, baby products) lower living costs.
Small businesses:
Businesses with an annual turnover below ₦50 million ($32,400) are exempt from company income tax.
Simplified tax filing without requiring audited accounts reduces compliance costs.
Large businesses:
Corporate tax rates drop from 30 per cent to 27.5 per cent in 2025 and 25 per cent thereafter.Tax credits for VAT paid on expenses and assets allow businesses to recover the 7.5 per cent VAT.
Charitable, educational, and religious organisations:
Tax incentives for non-commercial earnings, encouraging community-focused activities.
Impact on different groups
Low-Income Earners:
Benefit most from income tax exemptions and lower costs for essentials, increasing disposable income.
Small Businesses and informal traders:
Simplified rules and tax exemptions encourage compliance and reduce financial strain, potentially formalising more businesses.
High-income earners and luxury consumers face higher VAT on luxury goods and premium services, plus capital gains tax on large share sales.
Government: Expects increased revenue for public services without overburdening vulnerable citizens.
Why reforms were needed:
Nigeria’s tax system was outdated, inefficient, and disproportionately harsh on low-income groups.
The low tax-to-GDP ratio (10%) limited funding for critical services like healthcare and infrastructure.
Overlapping taxes and complex rules deterred compliance, especially among small businesses and informal traders.
Public and expert reactionsPositive sentiment:
Small business owners welcome tax exemptions but seek clarity on enforcement to avoid unexpected levies.
Low-income earners appreciate relief on essentials but remain cautious about implementation.
Taiwo Oyedele, head of the Presidential Fiscal Policy and Tax Reform Committee, claims 90% public support, emphasising that success depends on awareness and trust.
The reforms align with Tinubu’s administration’s goal to reduce economic inequality and boost fiscal capacity without overburdening citizens.
By encouraging voluntary compliance and reducing reliance on loans, Nigeria aims to strengthen its economy and fund development projects.
These reforms mark a significant step toward a fairer, more efficient tax system, with a focus on supporting vulnerable groups while fostering economic growth.
However, their success hinges on transparent enforcement and public trust.
For further details, you can refer to official statements from the Nigerian government or credible news sources covering the reforms.
…..All Control Tower Personnel Safely Rescued.
A fire outbreak at Terminal 1 (also referred to as the old international terminal) of the Murtala Muhammed International Airport (MMIA) in Lagos has been successfully contained, according to officials from the Lagos State Fire and Rescue Service.
The blaze, which originated from the IT server room on the third floor of a five-storey building near the E-wing of the departure lounge, prompted a swift multi-agency response involving the Lagos State Fire and Rescue Service, the Federal Airports Authority of Nigeria (FAAN), and other emergency teams.
Controller General Margaret Adeseye of the Lagos State Fire and Rescue Service confirmed in an official update that the fire is now under control. Critically, all 12 personnel in the control tower were rescued alive and uninjured, with no one left trapped in the incident.
“Further updates will be made available in due course,” Adeseye stated.
Related reports from FAAN indicate that a crane was deployed to aid in the rescue efforts at the control tower, where up to 14 individuals were initially reported as trapped in some accounts. All have since been safely evacuated. While some sources mention minor injuries (such as six individuals in stable condition), the primary update from the fire service emphasizes no serious harm to the control tower staff and no fatalities.
The incident led to temporary disruptions, including the closure of the Lagos airspace and suspension of flights at the airfield, as a precautionary measure. Authorities are working to restore operations, potentially through a temporary control tower setup.
The cause of the fire remains under investigation, with preliminary indications pointing to the server room as the origin. The affected terminal, which has been undergoing renovations, saw emergency evacuations and containment efforts to prevent spread to other sections.
No lives were lost in the incident, and emergency operations continue to monitor the site for full safety. Airport authorities and emergency services have commended the coordinated response that minimized risks to personnel and infrastructure.
Travelers are advised to check with airlines for updates on flight statuses amid the ongoing recovery efforts.
News
Lagos increases BRT fares by 13%
In a statement by LAMATA’s Head of Corporate Communication, Kolawole Ojelabi, the revised fare structure will take effect from Monday, March 2, 2026.
The Lagos State Government has approved a 13 percent increase in fares across all services under the Bus Reform Initiative, which includes the Bus Rapid Transit system and standard bus routes throughout the state.
Governor Babajide Sanwo-Olu granted the approval after receiving a passionate appeal from regulated public transport operators.
He highlighted the mounting challenges facing the long-term viability of their operations in Nigeria’s current economic climate.
In a statement by LAMATA’s Head of Corporate Communication, Kolawole Ojelabi, the revised fare structure will take effect from Monday, March 2, 2026.
“The adjustment is designed to help offset the severe impact of ongoing economic pressures on public transport providers.
It also aligns with the state’s previously established annual fare review mechanism. The urgency of the measure is driven by persistent inflationary trends.
The statement added that bus operating companies have been contending with sharply rising expenses in several key areas, including vehicle maintenance and repairs, imported spare parts, and staff salaries, particularly following the rollout of the new national minimum wage.“
In addition, operators are committing significant resources to fleet renewal, procuring newer, cleaner, and more fuel-efficient buses to boost passenger comfort, maintain high service standards, and advance environmental sustainability goals in Lagos.
It also aligns with the state’s previously established annual fare review mechanism. The urgency of the measure is driven by persistent inflationary trends.
News
Fire Engulfs MMIA Terminal One, but no casualties
Eyewitnesses said that the blaze started on one of the affected floors before spreading to adjoining sections of the terminal.
Photo credit: Lagos State Fire Service
A fire has broken out on parts of the fourth and fifth floors of Terminal One at Murtala Muhammed International Airport in Lagos, triggering an emergency response and temporary disruption of flight operations.
Eyewitnesses said that the blaze started on one of the affected floors before spreading to adjoining sections of the terminal.
The impacted areas have since been evacuated as a precautionary measure.
Air Traffic Controllers stationed in the control tower were alerted to the incident and are reported to be safe, though closely monitoring the situation as emergency teams work to bring the fire under control.
As a result of the development, inbound flights to Lagos from other airports have been instructed to delay departure until the situation stabilises.
Aircraft already approaching Lagos may be required to remain airborne until clearance is given to land.
Fire and rescue officials of the Federal Airports Authority of Nigeria (FAAN) are currently battling the blaze and intensifying efforts to contain it.
FAAN has confirmed that no casualties have been recorded at this time. Authorities say further updates will be provided as more details emerge.
Fire at Lagos’ Murtala Muhammed International Airport Terminal 1 Brought Under Control
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