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.
News
Abiodun Mourns Passing of Mama Lucia Onabanjo
Ogun State Governor, Prince Dapo Abiodun, has expressed deep condolences to the family of former Governor of Ogun State, Chief Victor Olabisi Onabanjo, over the passing of their matriarch, Chief (Mrs.) Lucia Onabowale Onabanjo, who died at the age of 100.
In a statement issued in Abeokuta on Tuesday, Governor Abiodun described the demise of Mama Onabanjo as the end of a glorious era, noting that she lived a highly exemplary, fulfilled, and distinguished life devoted to God, family, and humanity.
The Governor said that although the loss of a mother is always painful, regardless of age, Mama Lucia’s transition at 100 is also worthy of celebration, given her impactful life and enduring legacy.
According to him, Mama Onabanjo stood firmly by her husband, the late Chief Olabisi Onabanjo, through his historic struggles for democracy, human rights, and social justice in Nigeria.
He said:“After a glorious epoch in which she joined her husband, our Papa, Chief Olabisi Onabanjo, in the fight for democracy, the delivery of its dividends on a massive scale, and the advancement of human rights and social justice, Mama has now been reunited with Papa in glory.
“Mama was a treasure and a source of joy to all who knew her. She consistently supported us with her prayers and goodwill, spreading joy, comfort, and hope to everyone around her.
“I commiserate with the Onabanjo family, even as I celebrate them for the great gift that Mama was to all of us.
“She stood by her husband through thick and thin and raised children and grandchildren who are today highly distinguished in diverse fields of human endeavour, breaking records and contributing meaningfully to society.
“We bless the Lord for her long and fulfilled life, her legacy of love, strength, deep faith, and commitment to development.
“We will miss her warmth, her wise counsel, her passion for progress, and her prayers. May the Good Lord grant her eternal rest in His bosom.
”Governor Abiodun prayed that God would grant the Onabanjo family, friends, and associates the fortitude to bear the irreparable loss.
News
EKPOMA PROTEST: Detained AAU Students Likely to be Released Tomorrow
The Fifty-two suspects, including students from Ambrose Alli University (AAU), Ekpoma, arrested following Saturday’s violent protest against rising kidnappings and insecurity, are expected to regain their freedom as early as tomorrow.
The detainees are currently held at the Ubiaja Correctional Centre in Esan South-East Local Government Area. Parents of the affected students gathered at the facility, appealing to authorities for the immediate release of their children.
The protest, initially sparked by concerns over frequent abductions in Ekpoma and surrounding communities, reportedly escalated into violence when hoodlums hijacked the demonstration. Incidents included looting, property destruction, attacks on traders, and vandalism at the palace of the Onojie of Ekpoma.
Osadebamen Ehozogie, President of the AAU Students’ Union Government (SUG), who visited the correctional facility, stated that the protest was not organized by genuine students.
He emphasized that it was hijacked by hoodlums and external elements, including groups like the “Ambrose Alli Comrade Community” (comprising former students or non-students), who exploited the situation for criminal activities.
The Edo State Government, under Governor Monday Okpebholo, has initiated processes to verify and release bona fide AAU students, with Commissioner for Education Dr. Paddy Iyamu deployed to the Ubiaja facility to oversee the effort.
Authorities maintain that the violence was orchestrated by non-students, and the university was not in session at the time.
Amid widespread calls from groups like the PDP, NANS, SERAP, and figures including former Vice President Atiku Abubakar for unconditional release, the development signals a potential resolution focused on distinguishing innocent students from those involved in the unrest.
The case, involving charges such as malicious damage and armed robbery, was adjourned to February 26, 2026, but efforts continue to facilitate releases through due process.
Parents and student leaders expressed relief at the prospect of freedom, while urging sustained action against the root cause: persistent insecurity in the region.
News
Widow of Ogun State’s First Civilian Governor, Chief Lucia Onabanjo, Passes Away at 100
Chief (Mrs.) Lucia Onabowale Onabanjo, the widow of Chief Victor Olabisi Onabanjo, Ogun State’s first civilian governor during Nigeria’s Second Republic, has died at the age of 100.
The family announced her peaceful passing on Monday, January 11, 2026, in a statement released on Tuesday by her daughter, Olubukunola Onabanjo, Chairperson of the Ogun State Local Government Service Commission.
“The family of Chief Victor Olabisi Onabanjo, former Governor of Ogun State, announces with deep sorrow, yet with gratitude to Almighty God, the passing of our beloved mother, grandmother, and great-grandmother,” the statement read. “Chief (Mrs.) Lucia Onabowale Onabanjo (1925–2026) was called to glory on Monday, January 11.
We thank God for her long and fulfilled life, and for the enduring legacy of love, strength, and faith she leaves behind. May her soul rest in perfect peace.
“Born in 1925 in Ijebu-Ode, Ogun State, Madam Onabanjo moved to Lagos at around age 10 to complete her education. She trained at the Teachers’ Training College in Yaba, Lagos, and built a career in teaching spanning over two decades.
She was married to the late Chief Olabisi Onabanjo, who served as governor from October 1979 to December 1983 under the Unity Party of Nigeria (UPN). Their union produced four children—two sons and two daughters—though their first daughter predeceased them.
As the state’s maiden First Lady, she provided steadfast support to her husband during his tenure, which was noted for establishing key institutions like Ogun Television and Ogun State University (now Olabisi Onabanjo University).
She was also actively involved in community service, with a keen interest in children’s welfare, women’s empowerment, and humanitarian causes. She served as Iya Ijo of St. Sebastian Catholic Cathedral in Ijebu-Ode.
Tributes have poured in from prominent figures. Ogun State Governor Dapo Abiodun described her demise as “the end of a glorious era,” praising her exemplary life devoted to God, family, and humanity, and noting her role in supporting her husband’s fight for democracy and social justice.
President Bola Tinubu condoled with the family, highlighting her compassionate investments in lives across the community, state, and nation, and urging the preservation of her legacy of love for the poor and vulnerable.
Funeral arrangements are yet to be announced. Madam Onabanjo’s passing marks the end of an era for one of Ogun State’s foundational political families, leaving behind a profound legacy of grace, resilience, and service.
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