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
Wike, FCT workers end industrial squabbles
Following the resolution, all JUAC members and affiliates of the NLC and TUC working in the Ministry of the Federal Capital Territory (MFCT) have been directed to resume work immediately in the interest of industrial peace.
The industrial action embarked upon by workers in the Federal Capital Territory (FCT) has been officially called off following a breakthrough agreement reached between the FCT Administration and organised labour after an overnight reconciliatory meeting with the Minister of the FCT, Barrister Nyesom Wike.
Organised Labour, under the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), announced the decision in a joint circular dated February 3, 2026.
The meeting, convened at the instance of the Chairman, Senate Committee on the FCT, Senator Mohammed Bomoi, began at about 11:45 p.m. on Monday and ended at 3:51 a.m. on Tuesday, with labour leaders describing the discussions as extensive and frank, leading to the amicable resolution of all grievances raised by members of the Joint Union Action Committee (JUAC).
Following the resolution, all JUAC members and affiliates of the NLC and TUC working in the Ministry of the Federal Capital Territory (MFCT) have been directed to resume work immediately in the interest of industrial peace.
The minister also assured workers of mutual respect and continued engagement, while both parties agreed that no worker would be victimised for participating in the strike, and that all pending cases at the National Industrial Court (NIC) relating to the dispute would be withdrawn.
News
Commercial Bus Engulfed in Flames on Third Mainland Bridge
A commercial bus burst into flames on the Third Mainland Bridge in Lagos on Monday, February 2, 2026, triggering heavy traffic gridlock and prompting a swift response from emergency services.
The incident occurred near the University of Lagos (UNILAG) Waterfront area, on the section heading inward toward Iyana Oworo.
According to the Lagos State Traffic Management Authority (LASTMA), the fire engulfed the vehicle, leading to significant congestion with tailbacks extending as far as Adekunle.
Fire service officials rushed to the scene to extinguish the blaze, while LASTMA officers managed traffic flow and ensured safety in the area. Motorists were advised to exercise patience as responders worked to clear the obstruction.
Reports from witnesses and social media described chaotic scenes, with videos circulating online showing the bus ablaze.
Some accounts noted the vehicle was a commercial “danfo” bus, though initial details on the cause such as a possible mechanical failure remain under investigation.
The Third Mainland Bridge, one of Lagos’ busiest and most critical roadways, has seen similar vehicle fire incidents in the past, often exacerbating commuter woes in the megacity.
Authorities have since begun clearing the remnants of the bus to restore normal movement, but commuters should anticipate delays in the vicinity until full clearance.
No fatalities were immediately reported, though further updates on injuries or the exact cause are awaited.
News
Anambra Govt: Ignore Fake Old Videos on Monday Sit-at-Home
The Anambra State Government under the leadership of Governor Chukwuma Charles Soludo, CFR, wishes to address with utmost concern the deliberate and malicious circulation of old, graphic videos depicting violent incidents from the dark period of unknown gunmen activities in our State.
These disturbing images and videos are being recycled by criminal elements and economic saboteurs to instill fear in the hearts of Ndi Anambra, particularly our enterprising traders and business owners.
THE TRUTH ABOUT THESE VIDEOS: The Anambra State Government categorically states that the horrific videos currently circulating on social media platforms, including those showing victims of brutal attacks from years past, are OLD FOOTAGE being deliberately recirculated to create panic and aid economic sabotage with perpetuation of the retrogressive, outlawed Monday sit-at-home order.
These videos date back to the troubled period between 2021 and 2023 when criminal gangs terrorised our State under the guise of enforcing illegal sit-at-home orders.
We are particularly disturbed by the circulation of images relating to past tragic incidents, including those involving respected members of our society who fell victim to senseless violence during that dark chapter.
The circulation of such graphic content is not only insensitive to the families of victims but represents a calculated attempt to psychologically manipulate Ndi Anambra at this time.
THE CURRENT REALITY: The Indigenous People of Biafra (IPOB) has publicly denied issuing any sit-at-home order for Monday, February 2, 2026 or any other day in the future.
The recent one-week closure of Onitsha Main Market by Governor Soludo was a necessary measure to break the cycle of economic losses caused by the continued, unauthorised observance of Monday sit-at-home.
This action was taken in the best interest of our economy and the livelihoods of our people.Anambra State today is significantly more secure than it was during the period when those old videos were recorded.
Our security architecture has been substantially strengthened through collaborative efforts with joint security agencies, including the effective state vigilante network codenamed Agunechemba.
WHO BENEFITS FROM YOUR FEAR? Ask yourself: Who profits when Anambra’s economy is paralysed? Who gains when our markets remain closed and our people live in perpetual fear?
The answer is clear: criminal elements, economic saboteurs, and enemies of progress who wish to keep Ndi Anambra in bondage through psychological manipulation.
These merchants of fear have no genuine concern for the welfare of Ndi Anambra. Their aim is to: Cripple our economy
Undermine the authority of legitimate government
Create an atmosphere of chaos that allows criminality to thrive
Prevent the hardworking people of Anambra from earning their daily bread
GOVERNMENT’S COMMITMENT TO SECURITY :
The Anambra State Government, under the leadership of Governor Chukwuma Charles Soludo, CFR, wishes to assure all residents and business owners of the following:
Enhanced Security Deployment : Robust security arrangements have been put in place across the State, with particular attention to commercial centres, markets, and major highways.
Intelligence-Driven Operations : Our security agencies are actively monitoring and will deal decisively with any individuals or groups attempting to disrupt public peace or engage in violent activities.
Zero Tolerance for Criminality : Anyone found spreading false information, creating panic, or engaging in acts of violence will face the full wrath of the law.
Protection of Economic Activities : The State Government is committed to protecting the rights of every citizen to engage in legitimate economic activities without fear or intimidation.
OUR APPEAL TO NDI ANAMBRA: We urge all residents of Anambra State, particularly our traders, artisans, transporters, and business owners to:
– Disregard the trending malicious old videos and refuse to be manipulated by fear-mongers
– Resume normal business activities with confidence that your safety is guaranteed
– Report suspicious individuals circulating panic
-inducing materials to security agencies
– Verify information from official government sources before acting on social media rumours
– Stand united against those who seek to hold our State hostage through psychological warfare
THE CHOICE IS IN OUR HANDS: Ndi Anambra, our destiny is in our hands. We can either allow faceless criminals to continue dictating how we live our lives, or we can reclaim our State and our economic destiny.
The recycled videos being circulated are from a past we are moving away from, a past that only returns if we allow fear to paralyse us.
The government has done its part by ensuring robust security. Now, we call on you to do your part by refusing to be intimidated, opening your shops, going to work, going to school, and living your lives normally.
ANAMBRA IS ON THE RISE! We have come too far and sacrificed too much to allow criminals and saboteurs to drag us back into darkness.
Today, marks a new beginning, a day when Ndi Anambra say NO to fear and YES to progress, prosperity, and peace.
Let us show the world that Anambra State is open for business, and that no amount of psychological manipulation will deter us from building the prosperous homeland we all desire.
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