National News
Nigerian Tax Acts 2025: Benefits Beyond The Rhetorics – Joseph Tegbe
Nigerian Tax Acts 2025: Benefits Beyond The Rhetorics – Joseph Tegbe
By: Michael Mike
Nigeria’s ongoing tax reforms have been widely mischaracterised as revenue tricks, mostly through epistemic closure and motivated reasoning, solely focusing on revenue figures, tax rates, and who pays what.
These debates often miss the larger and far more consequential point of the reforms which are primarily about fixing a broken fiscal architecture, and laying the foundations for a modern, well-oiled economy.
What is at stake transcends mere improvement of fiscal space. Rather, it is about whether Nigeria can finally operate like a serious state that is capable of planning, delivering public goods, enforcing rules fairly, and sustaining growth without perpetual crisis management.
As a former Senior Partner and Head of Advisory Services at KPMG in Africa who supported reforms across various levels of Government, both national and subnational levels across Africa, during my career and with benefit of hindsight, I can boldly say that Nigeria’s fiscal failure has never been the absence of wealth. It has been the absence of structure.
For decades, the country ran a structurally weak fiscal system that was over-dependent on volatile oil rents, administrativelyanemic and fragmented, detached from the productive economy and largely disconnected from citizens. This produced a paradoxical state: rich in resources, poor in capacity.
Specifically, taxes were not embedded as a civic obligation or economic stabiliser. Rather, they were episodic, selectivelyenforced, and concentrated on a monolithic formal sector. The informal economy which forms the critical mass of economic activity remained largely outside the system, not by design but by institutional failure.
The result was predictable: weak fiscal planning, chronic deficits, poor service delivery, and a state forced to govern by borrowing rather than by policy. This is the structural dysfunction that the current reforms seek to correct. Thus, the efforts of President Bola Ahmed Tinubu, GCFR; Mr. Wale Edun, the Honorable Minister of Finance and the NRS Chairman, Dr. Zach Adedeji must be commended. They are placing Nigeria on a strong pedestal for growth and development.
At their core, the new tax laws are about rebuilding fiscal order.
Firstly, they seek to reconnect the economy to the state. Nogovernment can plan effectively when it has no reliable map of economic activity. Broadening the tax net is therefore less about extraction and more about visibility and coordination.
Secondly, the reforms aim to standardise and modernise fiscal administration. A system built on manual processes, weak data, and discretionary enforcement cannot support a 21st-century economy that Nigeria desires to attain. Digital compliance, harmonised frameworks, and clearer rules are structural upgrades.
Thirdly, they are about predictability. Investors, businesses, and households do not fear taxes as much as they fear uncertainty. A transparent, rules-based tax system reduces discretion, rent-seeking, and arbitrariness which are long-standing deterrents to investment in Nigeria.
Finally, the reforms are designed to rebalance the fiscal social contract, becoming a tool for accountability. When everyone participates, albeit modestly, the relationship between citizens and the government improves.
Previous fiscal regimes suffered from conceptual ineptitude. They treated taxation as an afterthought, subordinate to oil receipts. When oil prices were high, discipline evaporated. When prices fell, emergency measures replaced strategy.
Prosperous nations have walked this reform road before.These are nations often referenced by “Selectively Empirical Commentators” who want Nigeria to get to their levels but suffer deliberate amnesia when reforms are mentioned. In their numerous rhetorics, the methodologically dishonest analysts often cherry-pick statistics to sustain an oppositional narrative while bypassing deeper and analytical realities of the referenced nations.
South Korea, emerging from war and poverty, deliberately built a strong fiscal state by formalising its economy and enforcing compliance before growth accelerated.
Singapore anchored its development on disciplined taxation, institutional integrity, and strict enforcement, long before it became wealthy.
Even closer to home, Rwanda’s post-conflict recovery was driven not by aid alone, but by a deliberate decision to build a credible tax and public finance system as the backbone of state rebuilding.
In every case, tax reform was not popular but it was foundational. Consistent with the experiences of the nations mentioned above, modern tax policy reforms are no longer blunt instrument for raising funds. Across these nations, other advanced and emerging economies alike, tax reforms are increasingly used to promote economic sustainability and improve fiscal architecture.
The Nigerian Tax Acts 2025 follow this well-tested global direction. By simplifying rules, improving administration, and broadening participation in a measured way, the Tax Acts seek to create a more predictable fiscal environment. This predictability is essential for businesses making long-term investment decisions and for households planning their economic futures.
A defining feature of a credible tax reform is the protection of those least able to absorb economic shocks. In many jurisdictions, tax systems are deliberately structured to shield low-income earners and small businesses, recognizing their central role in employment, innovation, and social stability.
Globally, this is achieved through higher tax-free thresholds, simplified compliance regimes, and targeted reliefs for small enterprises. These measures ensure that taxation does not discourage entrepreneurship or push informal activity further into the shadows.
The Nigerian Tax Acts 2025 reflect these principles. By taking away the tax burden on small income earners and small businesses, the reforms aim to preserve livelihoods, encourage formal participation, and allow enterprises to grow organically. Economies grow when small businesses are given the space to survive, adapt, and scale. For example, those who earned N300,000 in 2024 paid taxes at 7% while the new Acts provide for 0% tax rate for those earning up to N800,000.
As the saying goes in tax policy, one does not tax the seed, one nurtures it to blossom. This maxim lies at the heart of the Tax Reform Acts.
Another clear signal of the intent behind the reforms is the deliberate protection of critical sectors such as healthcare, education, and agriculture through the expansion of zerorated VAT items.
Around the world, governments recognize that these sectors are foundational to longterm development. Healthcare and education underpin human capital, while agriculture supports food security, rural employment, and price stability. As a result, many jurisdictions either exempt or zero-rate essential goods and services within these sectors to keep them affordable.
By extending the list of zerorated VAT items to include the critical sectors listed above, the Nigeria tax reforms aim to reduce cost pressures on businesses operating within these critical sectors as well as support access to essential materialsneeded for the wellbeing of Nigerians.
Perhaps, the most forward-looking aspect of the Tax Reform Acts is the emphasis on digitalization and technologydriven tax administration. Across the globe, tax authorities are embracing digital tools to improve compliance, enhance transparency, and reduce administrative burdens for taxpayers.
Innovative solutions such as einvoicing have become standard features of efficient tax systems globally. Einvoicing, has helped many countries improve VAT compliance, reduce fraud, and generate reliable, realtime data for fiscal planning.
Nigeria’s move in this direction signals a commitment to modern governance. A digital tax system is not only more efficient; it is fairer and more transparent. It lowers the cost of compliance, improves accuracy, and builds trust between taxpayers and the government. Over time, it also strengthens the quality of economic data available to policymakers, supporting more effective fiscal and monetary decisionmaking.
Conclusion: A Reform for the Long Term
The Tax Reform Acts are best understood as part of Nigeria’s longterm economic strategy. They are designed to stabilize the fiscal environment, support production, protect critical sectors, and modernize tax administration in line with global standards.
As with all meaningful reforms, their success will depend on careful, transparent, consultative and collaborative implementation. Government remains committed to ongoing engagement with stakeholders to ensure that the transition is orderly and that the objectives of the reforms are fully realized. This requirement sits at the core of the responsibilities of the National Tax Policy Implementation Committee (NTPIC). As earlier stated by President Nola Tinubu, these tax reforms will be implemented with human face and full consideration of the Nigerian citizenry.
Ultimately, strong tax systems are not built overnight, nor are their benefits immediately visible. But over time, they form the backbone of stable economies, credible institutions, and shared prosperity.
Joseph Tegbe, FCA, FCIT is the Chairman of the National Tax Policy Implementation Committee (NTPIC), and the Director-General and Global Liaison, Nigeria-China Strategic Partnership (NCSP).
Nigerian Tax Acts 2025: Benefits Beyond The Rhetorics – Joseph Tegbe
El-Rufai Puts Ribadu on Trial
By Frank Tietie
A man who is neither drunk nor high on drugs, but in his clear and sane mind, goes on a prime-time show on a continental television network like the Arise News Channel and proclaims that he got information from someone who tapped the phone line of the National Security Adviser (NSA) of the Federal Republic of Nigeria. How should the Nigerian government react?
It becomes a Catch-22 for the Nigerian government whether to respond to El-Rufai’s latest tirade. But to react hastily would fail to see the damning point Nasir El-Rufai is trying to make, which is to show the ineptitude of Nuhu Ribadu as NSA. The government should have seen through the former Kaduna State governor’s bravado.
Of course, El-Rufai knows the possibility that Ribadu would fall for the trick and might actually order his detention, either for statements made on live international television or for the bared waiting fangs of the EFCC. Sonit appears he had prepared for the worst, but probably not for death in the hands of his sworn enemies through poisoning. Hence, he immediately alerted the world to the Gestapo treatment that is usually given to some government enemies when they are in detention. So he quickly accuses the same Nuhu Ribadu of importing thallium sulphate, a lethal poison suitable for eliminating political enemies quietly. This he has done, in case he, himself or any other opposition politicians die in detention as 2027 approaches. What a way to shift the burden?
The choice of the government to charge El-Rufai for cybercrimes over the claims he made on live on Arise News Prime Time show about tapping the NSA’s phone is a tacit yet loud acknowledgement that any NSA whose phone can be tapped so easily is not only incompetent, but highly undisciplined and lackadaisical on national security matters. Tell me, which serious country, like the United States of America, the United Kingdom, France, Germany, Russia, or Saudi Arabia, would take the National Security Adviser of Nigeria seriously if they knew that an ordinary citizen could easily tap his phone?
What Malam Nasir El-Rufai has done is not to present technical evidence of interception. Rather, he has thrown a political gauntlet designed to provoke a reaction. The trap is simple: once the state moves against him, the conversation shifts from the accuracy of his claim to the conduct and capability of those charged with safeguarding national security.
A hurried resort to criminal prosecution risks missing the wider implication that public officers, particularly those occupying sensitive security positions, are expected to inspire confidence, not anxiety.
Therefore, if the state frames a prosecution around a claim that the NSA’s line could be tapped, the unintended consequence is that the allegation receives international circulation, renewed media life and diplomatic attention. In effect, the courtroom becomes a megaphone for the NSA’s failures.
Consequently, if the charge against El-Rufai is driven by reputational discomfort or the political embarrassment that he has caused Ribadu or the Tinubu government. It risks being counterproductive, especially in a democratic setting that has a high tolerance for speech directed at public officials.
Statements that are provocative, speculative or even reckless are often part of political contestation, especially as 2027 approaches. They should not be the basis for criminal charges. Such statements are best answered by clarification, transparency, and institutional reassurance, rather than the coercive weight of arrest, arraignment, and trial.
To prosecute El-Rufai in circumstances such as this may therefore produce the exact opposite of deterrence. It can elevate and transform him into a cause, especially among Northern Nigeria elements, and suggest that the government is more eager to punish criticism than to disprove it.
The other dimension is the possibility that such a trial would invite scrutiny, arguments, cross-examinations, and global reporting, further exposing Ribadu or the government. Meanwhile, silence would have buried it faster.
Instead of dismissing El-Rufai as someone probably chasing political clout, the choice to charge him would validate his point and expose Nuhu Ribadu as unfit to be NSA.
El-Rufai is no ordinary politician. He combines the arts of casuistry, statecraft, populism and activism for political relevance, and he is yet on another journey to reinvent himself politically to the detriment of his foes like Ribadu. But he also wants to come out alive. And even if he dies in the process, he seems not to care much, as long as such would deal the maximum blow to the political careers of his traducers.
If anyone thinks El-Rufai is being diminished by his latest travails, they should think again. In fact, it is he who is putting some persons on trial in the court of reason.
Frank Tietie
Lawyer and Public Affairs Commentator,
Writes from Abuja
El-Rufai Puts Ribadu on Trial
National News
Civil Society Escalates Pressure on Senate Over ‘Conditional’ Electronic Transmission Clause
Civil Society Escalates Pressure on Senate Over ‘Conditional’ Electronic Transmission Clause
By: Michael Mike
Tension over proposed changes to Nigeria’s electoral framework deepened on Monday as the Nigeria Civil Society Situation Room demanded the immediate adoption of unconditional electronic transmission of results in the amendment to the Electoral Act, warning that any dilution of the reform could erode public trust ahead of the 2027 general elections.
At a protest held at the entrance of the National Assembly in Abuja, the coalition accused the Senate of weakening critical safeguards in the Electoral Act Amendment Bill 2025 by introducing what it described as “conditional transmission” of results.
Addressing demonstrators, Co-Convener of the Situation Room and Country Director of ActionAid Nigeria, Andrew Mamedu, said Nigerians were demanding a clear, mandatory provision that compels real-time electronic transmission of results from polling units without exceptions.
“Our future is in our hands because we voted for these representatives. On behalf of Nigerians, we are stating unequivocally that electronic transmission of results must be mandatory and without conditions,” Mamedu declared.
The coalition argued that the Senate’s version departs from earlier understandings reached during consultations between stakeholders and the Joint National Assembly Committee on Electoral Matters. It warned that inserting discretionary clauses could create legal ambiguities capable of being exploited during elections.
Specifically, the group urged the conference committee reconciling the Senate and House versions of the bill to adopt the House of Representatives’ position making real-time electronic transmission from polling units to the INEC Result Viewing Portal compulsory.
According to the protesters, anything short of mandatory transmission risks reopening controversies that trailed previous elections and could undermine voter confidence in the electoral system.
They also called for the retention of the 360-day election notice timeline contained in earlier drafts of the amendment, stressing that predictable timelines are essential for planning, voter education and logistics.
In a letter presented to lawmakers, the coalition stated: “Instead of strengthening Nigeria’s electoral framework, the Senate amendment weakens key safeguards necessary for credibility and public trust.”
On concerns about network coverage and technical feasibility, the group insisted that real-time transmission is achievable. It cited previous off-cycle governorship elections in states such as Imo, Kogi and Bayelsa, where high transmission rates were recorded.
The coalition dismissed claims that connectivity gaps would cripple the system, noting that telecommunications data show that areas without network access constitute only a small fraction of polling units nationwide. It explained that results are first collated at polling units before being uploaded, and where connectivity is unavailable, the system can securely store data and automatically transmit once network access is restored.
Civil society organisations also faulted remarks attributed to the Senate President questioning the practicality of real-time transmission, maintaining that the infrastructure and technology required are already in place.
At the rally, women’s advocacy groups broadened the protest, calling for the expedited passage of the special seats bill for women as part of ongoing constitutional amendments. They argued that electoral integrity must go hand in hand with inclusive representation.
Responding on behalf of the House of Representatives, spokesperson Akin Rotimi assured protesters that their concerns would be conveyed to the leadership of the chamber. He said the Speaker supports the amendment, while the Deputy Speaker is among its sponsors.
Rotimi acknowledged the low representation of women in the legislature as a “serious injustice” and pledged that constitutional amendment proposals, including provisions for reserved seats for women, would be subjected to electronic voting.
Despite the assurances, the Situation Room vowed to sustain advocacy until a final version of the bill guarantees compulsory, real-time electronic transmission of results and restores what it described as the “spirit of reform” demanded by Nigerians.
“This is about protecting the people’s mandate,” the protesters said. “We will not relent until the law reflects the will of the citizens.”
Civil Society Escalates Pressure on Senate Over ‘Conditional’ Electronic Transmission Clause
VP Shettima Attends AU Heads of State Plenary Session
By: Our Reporter
Vice President Kashim Shettima is attending the plenary of the 39th Ordinary Session of the Assembly of Heads of State and Government of the African Union in Addis Ababa, Ethiopia.
The opening session has drawn leaders from across the continent and beyond, as delegates convene to address critical issues under this year’s theme: “Assuring Sustainable Water Availability and Safe Sanitation Systems to Achieve the Goals of Agenda 2063.”
The Vice President is representing President Bola Ahmed Tinubu at the high-level gathering.
VP Shettima Attends AU Heads of State Plenary Session
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