Business
Tax Reform Bills: Reps retain 7.5% VAT, reject increase to 15% by 2030
The House also dismissed a proposal to reintroduce inheritance tax under the guise of taxing family income.

The House of Representatives has retained Value Added Tax (VAT) at 7.5 percent, rejecting a proposed gradual increase to 15% by 2030.
The House also dismissed a proposal to reintroduce inheritance tax under the guise of taxing family income.
The Chairman of the House Committee on Finance, Rep. James Faleke, during today’s plenary, stated that the submitted report represents a comprehensive review of the bills, incorporating extensive public input.
The report covers four key bills aimed at overhauling Nigeria’s tax framework: Nigeria Tax Bill Nigeria Tax Administration Bill Nigeria Revenue Service (Establishment) Bill Joint Revenue Board (Establishment) Bill Key Amendments in the Tax Reform Bills Nigeria Revenue Service (NRS) Bill .
The NRS will now focus on federal-level revenue collection, excluding individual taxpayers in states and the Federal Capital Territory (FCT). Board Composition: Section 7 now requires six executive directors, each appointed by the president from the six geopolitical zones on a rotational basis.
Each state and the FCT will also have a representative on the board.
Secretary Qualifications: Section 13 mandates that the Secretary to the Board must be a lawyer, chartered accountant, or chartered secretary at the level of Assistant Director or higher.
Fixed Funding Rate: The NRS will now receive a 4% cost-of-collection rate (excluding royalties), subject to National Assembly approval.
Borrowing Powers Restricted: Section 28 now requires Federal Executive Council (FEC) and National Assembly approval before the NRS can secure any loans.
Joint Revenue Board (JRB) Bill Tax Appeal Commissioners’ Criteria Revised: Section 25 removes the requirement that commissioners must have business management experience, as the Committee deemed it irrelevant.
Strengthened Tax Ombud’s Independence: Section 43 mandates that the Tax Ombud’s Office be funded directly from the Consolidated Revenue Fund, eliminating reliance on external donations.
Independent Funding for Tax Appeal Tribunal (TAT): The tribunal will now operate independently of the Federal Inland Revenue Service (FIRS) to prevent conflicts of interest.
Stricter Adherence to the Evidence Act: New rules ensure that tax appeal proceedings strictly follow the Evidence Act.
Taxpayer Identification Number (TIN) Processing:
The timeline for issuing TINs has been extended from two working days to five to accommodate administrative delays.
Faster Tax Returns for Ceased Operations: Companies ceasing operations must now file income tax returns within three months, down from six months, to prevent revenue loss.
VAT System Adjustments: Section 22 ensures that taxable supplies are attributed to their place of consumption, addressing regional imbalances.
VAT Fiscalisation System: Section 23 introduces a new regulatory framework to improve VAT collection.
Increased Reporting Thresholds for Banking Transactions:
Individuals: ₦25 million → ₦50 million Corporate Entities: ₦100 million → ₦250 million
Judicial Oversight on Asset Seizure: Section 60 mandates that tax authorities must obtain a court order before seizing movable assets.
Mandatory Electronic Taxpayer Records Access: Section 61 formalizes the government’s right to access electronically stored tax records in line with modern practices.
New VAT Revenue Distribution Formula: 70% distributed equally among local governments 30% based on population .
General Amendments Across Tax Bills VAT Rate Maintained at 7.5% –
The Committee rejected the proposal to gradually increase VAT to 15% by 2030. Petroleum Gains Tax Reduced to 30% – Section 78 revises the tax rate on petroleum gains from 85% to 30%.
Excise Duty Provisions Removed – Excise duty-related provisions were deleted due to concerns about their negative economic impact.
Higher Turnover Threshold for Small Companies:
A business will now be classified as a small company if its annual turnover is ₦100 million or less (asset cap remains at ₦250 million).
New Penalties for Virtual Assets Service Providers (VASPs):
Stricter fines and potential license suspensions for non-compliant crypto and digital asset businesses.
While submitting the report, Rep. Faleke highlighted the importance of the tax reform bills in modernizing Nigeria’s tax system, boosting revenue collection, and fostering economic growth.
“These Bills are critical to implementing a modern, transparent, and efficient tax system that will support economic growth and improve revenue collection,” he said.
He added that the review process was extensive, incorporating input from the public and key government agencies, including: Nigeria Export Processing Zones Authority (NEPZA) National Agency for Science and Engineering Infrastructure (NASENI) National Information Technology Development Agency (NITDA) Tertiary Education Trust Fund (TETFund)
“We carefully examined every submission to ensure that public opinion was reflected in our recommendations. This process involved a thorough review of existing laws proposed for repeal or amendment,” Faleke noted.
The amendments impact key laws, including: Companies Income Tax Act (CITA) Value Added Tax Act (VAT Act) Personal Income Tax Act (PITA) Federal Inland Revenue Service (Establishment) Act Petroleum Industry Act Nigeria Export Processing Zones Act Oil and Gas Free Trade Zone Act
The House of Representatives is expected to deliberate on the report in the coming weeks as part of its legislative process.
Business
Elumelu Abruptly Ends UNGA Visit Following Afriland Tower Fire

The Chairman of Afriland Properties Plc, Mr. Tony Elumelu, has abruptly ended his trip to New York for the ongoing United Nations General Assembly (UNGA) following a devastating fire at Afriland Towers in Lagos that claimed the lives of several staff members.
In a statement released on Wednesday, Elumelu expressed profound sorrow over the incident, describing the loss as heartbreaking for the Afriland family.
He wrote, “I am shattered by yesterday’s devastating incident at Afriland Towers, that took the lives of our dear colleagues. No words can capture the magnitude of this loss – not for their families who loved them, not for the friends who valued them, and not for those of us who worked beside them.”
Elumelu revealed that he was en route to New York when he received news of the tragedy, prompting his immediate return to Lagos as a mark of respect to the departed staff.
“As we navigate this grief, I urge you all to reach out to those who are receiving care. In the coming days, we will convene colleagues in a memorial to honour the memories of the departed, as we provide support to their families,” he added.
He also thanked emergency responders, first aid workers, and members of the public for their swift and compassionate response to the disaster.
To honour the victims, a minute of silence will be observed at 12:00 noon on Wednesday across all companies within the Tony Elumelu Group.
Business
CBN Mandates Banks to Announce Successor MD Three Months Ahead
The CBN warned that leadership uncertainty at large banks could destabilise the entire financial sector and damage the wider economy.

The Central Bank of Nigeria (CBN) has issued a new directive mandating all Domestic Systemically Important Banks (DSIBs) to publicly announce the appointment of a new Managing Director/Chief Executive Officer (MD/CEO) at least three months before the scheduled exit of the incumbent.
In a circular signed by Dr Rita Sike, Director of Financial Policy and Regulation, and published on the CBN’s website, the bank stated that the new rules apply to Domestic Systemically Important Banks (DSIBs) – the largest lenders that are considered “too big to fail” because of their size and importance to Nigeria’s financial system.“
Consequently, and in line with good corporate governance practice, each DSIB is hereby required to: ensure it obtains regulatory approval for the appointment of a successor Managing Director not later than six months to the expiration of the tenor of the incumbent MD/CEO,” the circular stated.
Banks must also “publicly announce the appointment of the successor MD/CEO not later than three months to the planned exit of the incumbent MD/CEO.”
Whilst stating that the move is part of broader efforts to strengthen corporate governance and maintain confidence in the financial system, the CBN warned that leadership uncertainty at large banks could destabilise the entire financial sector and damage the wider economy.
Business
Nigeria is gradually regaining macroeconomic stability – CPPE
Dr Yusuf listed food and alcoholic beverages, restaurants and accommodation services, as well as transport and high energy costs, as key drivers of inflation in the country.

Dr Muda Yusuf, the Chief Executive Officer (CEO) ,Centre for the Promotion of Private Enterprise (CPPE), declared that Nigeria is gradually regaining macroeconomic stability.
He referenced the downward trend of headline inflation rate for the fifth consecutive month, reaching 20.12 percent in August 2025 from July’s 21.88 percent.
Dr Yusuf made the above comments in response to the data from the National Bureau of Statistics (NBS) for the period under review .
Dr Yusuf listed food and alcoholic beverages, restaurants and accommodation services, as well as transport and high energy costs, as key drivers of inflation in the country.
According to Yusuf the 20.12 percent recorded in August represents a notable 1.76 percentage point decline from July’s 21.88 per cent.
Month-on-month inflation also slowed sharply, with prices rising by just 0.74 percent in August compared to 1.99 per cent in July.
“However, consumer confidence remains fragile due to persistently high food prices and weak purchasing power. Despite this, consumer pessimism is gradually easing, suggesting that households are beginning to adjust their expectations as inflation slows.
“Several factors have contributed to the continued deceleration in inflation, including base effects from the unusually high inflation rates recorded in 2024, FX stabilisation and improved agricultural production from sub-national government interventions, which have helped boost food supply and contain price spikes,” he said.
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