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Things To Know About Nigeria’s New Tax Laws

Published

3 months ago

June 27, 2025

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 laws

Nigeria 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 reactions

Positive 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.
(PUNCH)

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VIDEO: Why I’ve Never Tried Convincing My Christian Wife To Convert To Islam — Tinubu

Published

9 hours ago

October 4, 2025

Editor

President Bola Ahmed Tinubu has explained why he has never attempted to convince his wife, First Lady Oluremi Tinubu, to convert to Islam, stressing his belief in love, religious freedom, and mutual respect among people of different faiths.

Speaking on Saturday at the funeral service of Nana Lydia Yilwatda, mother of the National Chairman of the All Progressives Congress (APC), Prof. Nentawe Yilwada, Tinubu said his marriage to a Christian pastor has never created any conflict in their home.

The president, who arrived in Jos, Plateau State around 2 p.m. for the ceremony at the COCIN headquarters church, said he inherited Islam from his family and has always upheld the principle of freedom of religion.

He noted that both he and the First Lady serve the same God and would ultimately be answerable to Him, adding that what matters most are people’s deeds, character, and love for others.

Tinubu urged Nigerians to embrace tolerance and peaceful coexistence, emphasising that hate should never have a place in the country.

He also prayed for the repose of the soul of the late Lydia Yilwada and asked God to grant comfort and blessings to those she left behind.

He said, “Hate is not an option for us. Love is what you preach, that we should love one another.

“Nobody, nobody determines what God has ordained. God’s ordained action and his promises are what matter. I inherited Islam from my family. I didn’t change. But my wife is a pastor. She prays for me.

“No conflict. And I never did at any single time try to convince her or convert her. I believe in the freedom of religion.

“We are praying to the same God. We are answerable to the same almighty God. We will answer to him. We will account to him. Our deeds, our character, our love for our fellow beings are what are important.

“May the almighty accept the soul of Lydia and give all that she left behind blessings and glory, so we say, may her soul rest in peace.”

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UK Police Quiz Six After Fatal Synagogue Attack

Published

13 hours ago

October 4, 2025

Editor

Six people arrested on suspicion of “terrorism”-linked offences after a fatal car-ramming and knife attack on a UK synagogue remained in police custody on Saturday, as Prime Minister Keir Starmer urged people not to take part in pro-Palestinian protests.

Two people were killed and three others seriously wounded in Thursday’s attack in northwestern Manchester on Yom Kippur, the holiest day of the Jewish calendar.

Police shot dead the assailant, Jihad Al-Shamie, a 35-year-old UK citizen of Syrian descent, within minutes of the alarm being raised.

Three men and three women are in custody.

The attack has heightened fear among Britain’s Jewish community.

Police said they were patrolling places of worship across the city “with a particular focus on providing a high-visibility presence within our Jewish communities”.

The attack on Heaton Park Hebrew Congregation Synagogue in north Manchester was one of the worst antisemitic incidents in Europe since the October 7, 2023, attack in Israel led by Palestinian Islamist group Hamas.

The Hamas attack resulted in the deaths of 1,219 people, mostly civilians, according to an AFP tally of Israeli official figures.

Israel’s retaliatory offensive on the Gaza Strip has killed at least 66,288 Palestinians, also mostly civilians, according to health ministry figures in the occupied territory that the United Nations considers reliable.

The Gaza conflict has inflamed passions in Britain, with frequent pro-Palestinian rallies in cities that some critics allege have stoked antisemitism.

A “global movement for Gaza UK” protest went ahead in London late on Thursday, with police making 40 arrests.

London’s Metropolitan Police asked organisers delay another planned demonstration backing the banned Palestine Action group later on Saturday.

However, organisers Defend Our Juries rejected the calls.

A spokesman said the group “stood in solidarity” with the Jewish community over the attack.

– Accidental shooting –

Starmer urged protesters not to join the pro-Palestinian rally.

“I urge anyone thinking about protesting this weekend to recognise and respect the grief of British Jews. This is a moment of mourning. It is not a time to stoke tension and cause further pain,” he said on X.

During the attack, Shamie was seen “with a big knife, banging his knife into the glass, trying to get through”, synagogue chairman of trustees Alan Levy, who helped barricade the doors, told ITV News.

“The heroes of the congregation who saw what was happening then came to the doors because he was trying to break the doors down to get in,” he added.

A UK police watchdog, meanwhile, said it would look at the police shooting of Shamie.

The probe would also look at the shooting of a second victim who suffered a fatal gunshot and a third person who was shot but survived.

The Independent Office for Police Conduct (IOPC) said there was no evidence anyone other than police used firearms at the scene.

“Our independent investigation will look at the circumstances surrounding the fatal police shooting of Jihad Al-Shamie,” it said in a statement.

“A post mortem has today (Friday) concluded another man who died at the scene suffered a fatal gunshot wound.”

IOPC investigations are standard practice in situations where the use of force by police may have resulted in the death of a member of the public.

News

Edo Inaugurates Committee On Drug Abuse, Healthy Living

Published

16 hours ago

October 4, 2025

Editor

L-R: ACGN, NDLEA, Fidelis Cocodia, Deputy Governor of Edo State, Hon. Dennis Idahosa and Coordinator, Office of the First Lady, Edo State, Mrs. Edesili Okpebholo Anani during the Inauguration

Edo State Government has inaugurated Drug Control Committee for the state and local governments, aimed at curbing the menace of drug abuse in the state.

Inaugurating the committee, Governor Monday Okpehbolo said the committee was not only saddled with the responsibility of curbing the menace of illicit substances, but to promote healthier living across communities in the state.

Represented by his deputy, Hon. Dennis Idahosa, Okpebholo described the initiative as “a vital step in our unwavering commitment to stopping the menace of drug trafficking and substance use among youths.”

The governor, who bemoaned the rising tide of drug dependency and its impact on society, pointed out that the committee’s creation aligns with the national drug master plan and represents a bold stride toward protecting Edo future generations.

On his part, Chairman of the National Drug Law Enforcement Agency (NDLEA), Brig. Gen. Buba Marwa, represented by ACGN, Fidelis Cocodia, Zonal Commander, Zone 13, emphasised grassroots interventions, awareness campaigns, and support systems as the backbone of the fight against drug abuse.

Edo State commander of the NDLEA, Mitchell Ofoyeju disclosed that while national drug use prevalence stands at 14.4 percent, Edo state surpasses the average at 15 percent.

He noted that the state is one of the hardest-hit states in the country, warning that the trend has fueled crime and heightened youth vulnerability.

The state’s Commissioner for Health, Dr. Cyril Oshiomhole pledged to make Edo a model in drug control through rehabilitation, youth enlightenment, and second-chance opportunities for recovering addicts.

Coordinator, Office of the First Lady, Edo State, Mrs. Edesili Okpebholo Anani, described drug abuse as a pandemic, noting that “you hardly see a crime without drugs being involved.”

She added that women’s empathy and influence must be harnessed in the campaign against drug abuse.