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
Nigeria Issues Safety Advisory to Citizens in South Africa over attacks on foreigners
Nigerian business owners were specifically cautioned to take preventive measures, including shutting down operations on Freedom Day, April 27, and possibly extending closures through April 28 and 29, noting that foreign-owned businesses are often targets during such unrest.
• Anti – immigrant groups in South Africa protest
The Nigerians in Diaspora Commission (NiDCOM) has urged Nigerian citizens residing in South Africa to exercise caution and strictly adhere to safety advisories amid rising anti-foreigner protests in parts of the country.
According to the advisory, intelligence reports indicate that additional protests are scheduled to take place in Gauteng Province between April 27 and April 29, with demonstrators reportedly seeking to pressure the South African government over the presence of foreign nationals.
NiDCOM in a press release signed by its Head, Media, a public Relations and Protocols Unit, Abdur-Rahman Balogun advised Nigerians to avoid engaging with protest groups, steer clear of confrontation, and closely monitor local media for updates on the security situation.
The commission also stressed the importance of remaining law-abiding at all times.
Nigerian business owners were specifically cautioned to take preventive measures, including shutting down operations on Freedom Day, April 27, and possibly extending closures through April 28 and 29, noting that foreign-owned businesses are often targets during such unrest.
NiDCOM reaffirmed its support for the position of the Consul-General in Johannesburg, Ambassador Ninikanwa O. Okey-Uche, stating that the consulate remains operational and is working closely with South African security agencies to safeguard Nigerian nationals.
South Africa is home to about 2.4 million migrants, just less than 4% of the population, according to official figures. However, many more are thought to be in the country unofficially.Most come from neighbouring countries such as Lesotho, Zimbabwe and Mozambique, which have a history of providing migrant labour to their wealthy neighbour. A smaller number come from Nigeria.
News
Kenyan President mocks Nigerians’ spoken English
As former British colonies, both Kenya and Nigeria share English as an official language, but each country has developed distinct spoken varieties with different phonetic structures.
“If you listen to a Nigerian speaking, you don’t know what they are saying – you need a translator; Kenyans spoke “some of the best English in the world”, boast Kenyan President William Ruto, while addressing Kenyans in Italy this week.
Earlier this month, Nigerian President Bola Tinubu faced a backlash from Kenyans online after stating that Nigerians were “better off than those in Kenya and other African countries” despite rising fuel prices at home.
Ruto’s remarks drew fierce condemnation from Nigerians and other Africans online who accused the Kenyan leader of demeaning a fellow African nation.”
English is a colonial language, not a measure of intelligence, capability, or national progress,” wrote Hopewell Chin’ono, a Zimbabwean journalist.
These differences reflect the influence of indigenous languages – Nigeria has more than 500 languages which shape its cadence and intonation, while Kenya’s Bantu, Nilotic and Cushitic mix give rise to its own accents.
But in his address to the diaspora gathering, Ruto said Kenya’s education system produced strong English proficiency and that it was difficult to understand Nigerians when they spoke English.
“Our education is good. Our English is good. We speak some of the best English in the world. If you listen to a Nigerian speaking, you don’t know what they are saying. You need a translator even when they are speaking English,” he said, sparking laughter in the room.
“We have some of the best human capital anywhere in the world. We just need to sharpen it with more training,” Ruto added.
His remarks have led to widespread reactions on social media, with many users criticising the Kenyan leader for showcasing a “deep inferiority complex rooted in colonial conditioning”.
“Ruto is mocking the English of the country with a Nobel Prize for literature winner.The Nation of Achebe and Chimamanda,” former Nigerian senator Shehu Sani posted on X, referring to Wole Soyinka – the country’s only Nobel Prize winner – along with acclaimed authors Chinua Achebe and Chimamanda Ngozi Adichie.
Other social media users urged Ruto to focus on addressing pressing issues facing his citizens – such as the cost of living and unemployment – rather than engaging in what they described as distractions.
News
Jonathan visits Tinubu in Aso Rock
Jonathan’s latest visit comes months after his last known appearance at the State House in November 2025, shortly after his evacuation from Guinea-Bissau amid a political crisis.
PRESIDENT Bola Tinubu on Wednesday received former President Goodluck Jonathan at the Presidential Villa, Abuja, in what officials described as part of ongoing high-level consultations on regional and continental issues.
The meeting, which was held behind closed doors at the State House, began at about 4 pm.
Sources familiar with the engagement indicated that the interaction aligns with a pattern of periodic consultations between both leaders, particularly on political developments in West Africa and Nigeria’s broader diplomatic and continental engagements..
Images from the meeting showed both leaders in a relaxed setting, engaged in conversation inside the President’s office.
Jonathan’s latest visit comes months after his last known appearance at the State House in November 2025, shortly after his evacuation from Guinea-Bissau amid a political crisis.
The former president had been leading a West African Elders Forum election observation mission when soldiers loyal to Brigadier-General Dinis Incanha reportedly staged a coup, detaining incumbent President Umaro Sissoco Embaló ahead of the official announcement of the November 23 presidential election results.
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