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Nigerian Tax Acts 2025: Benefits Beyond The Rhetorics – Joseph Tegbe

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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

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CDHR, CAIDOV Ask SERAP to Respect Court Judgment in DSS Defamation Suit

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CDHR, CAIDOV Ask SERAP to Respect Court Judgment in DSS Defamation Suit

By: Michael Mike

The Committee for the Defence of Human Rights (CDHR) has urged the Socio-Economic Rights and Accountability Project (SERAP) to respect the judgment of the High Court of the Federal Capital Territory in the defamation suit instituted by two operatives of the Department of State Services (DSS).

In a statement issued on Thursday, the rights group said all individuals and organisations, including civil society bodies, must obey decisions of competent courts in line with the rule of law and democratic principles.

CDHR maintained that while advocacy organisations and citizens possess constitutional rights to freedom of expression and public criticism, such rights must be exercised responsibly and within the bounds of the law.

According to the organisation, the court, after reviewing evidence presented before it, found that the publication made against the DSS operatives was defamatory and injurious to their professional reputation.

The group consequently urged SERAP to comply with all lawful directives contained in the judgment pending any appeal and refrain from statements capable of escalating tensions or undermining judicial authority.

It also advised parties and public commentators to avoid inflammatory narratives that could deepen institutional distrust or portray the judiciary as partisan without credible evidence.

“The rule of law remains the foundation of every democratic society. Human rights advocacy must coexist with accountability, fairness, and respect for due process,” the statement said.

CDHR further stressed that no organisation is above the law, just as no security agency should be immune from lawful scrutiny.

The statement was jointly signed by CDHR President and Secretary of the Board of Trustees, Debo Adeniran, and the group’s National Publicity Secretary, Jeremiah Onyibe.

Meanwhile, the Centre Against Injustice and Domestic Violence (CAIDOV) also criticised SERAP over its reaction to the judgment, accusing the organisation of attempting to ridicule the court’s decision.

In a statement signed by its Executive Director, Comrade Gbenga Soloki, CAIDOV said SERAP had continued to pin on its X handle claims that DSS operatives invaded its Abuja office on September 9, 2024, despite what it described as a misrepresentation of facts.

“We in the human rights community should lead by example. We should not be seen as the very persons breaching human rights in the name of free speech. Human rights is universal. It is for everybody. We should not trample on the rights of others simply because they chose to be security agents,” the group stated.

CAIDOV argued that the N100 million damages awarded against SERAP for defamation should not be viewed as extraordinary, citing examples of global firms sanctioned over misconduct.

“Very big corporations around the world have at one time or the other been caught lying or cheating. Just last year, Deloitte, PwC and EY Netherlands were fined $8.5 million for cheating, while KPMG Netherlands was fined $25 million in 2024 for widespread cheating on training exams. What then is the big deal in a Nigerian court imposing a N100 million fine on SERAP for defamation?” the statement added.

The group also faulted Senior Advocate of Nigeria, Ebun-Olu Adegboruwa, for allegedly criticising the judgment instead of encouraging an appeal process.

“SERAP had nearly two years while the matter lasted in court to assemble the best lawyers in their arsenal. They failed to. All their legal luminaries waited until they lost the case, then turned to the media to wage propaganda against two DSS operatives,” CAIDOV said.

It added that it was ironic for SERAP, which had often relied on Nigerian courts to hold public institutions accountable, to now question the judiciary because the verdict did not favour it.

“If people like Ebun-Olu Adegboruwa feel they know more than our revered judges, it is not too late for him to transmute from a lawyer to a judge,” the group declared.

CDHR, CAIDOV Ask SERAP to Respect Court Judgment in DSS Defamation Suit

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Power Minister-Designate Clarifies Promise on Fixing Nigeria’s Grid in Three Months

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Power Minister-Designate Clarifies Promise on Fixing Nigeria’s Grid in Three Months

By: Michael Mike

The camp of Nigeria’s Minister-designate for Power, Olasunkanmi Tegbe, has dismissed media reports claiming he promised to fix the country’s troubled national power grid within three months, describing the reports as inaccurate and misleading.

In a statement issued on Thursday by his spokesperson, Adeola Adelabu, the minister-designate clarified that no such commitment was made during his Senate screening on May 6, 2026.

According to the statement, Tegbe had clearly explained that timelines for major reforms in the power sector were still being developed and would depend on technical diagnostics as well as consultations with key stakeholders.

The clarification followed widespread reports suggesting that the minister-designate pledged to completely resolve Nigeria’s persistent electricity grid problems within a three-month period.

The statement stressed that while Tegbe assured lawmakers that initial efforts aimed at stabilising the national grid would begin within his first 100 days in office, he also acknowledged that deeper structural reforms in the sector could take significantly longer.

It quoted the minister-designate as saying that reforms relating to sector credibility, gas supply, metering and operational efficiency may require about one year to achieve meaningful progress.

“My promise to this chamber and to Nigeria is that Nigerians will see visible improvement in the sector,” Tegbe reportedly told senators during the screening.

He further pledged to stabilise the national grid, modernise electricity infrastructure, strengthen commercial frameworks within the sector and enforce accountability across the entire power value chain.

On electricity tariff reforms, Tegbe reportedly assured that vulnerable households would be protected while government works to balance affordability, sector sustainability, investor confidence and operational efficiency.

The statement also emphasised that the minister-designate remains open to constructive engagement with the media and encouraged journalists to seek clarification where necessary in order to avoid misinformation.

According to the spokesperson, Tegbe views the media as critical partners in nation building and in helping Nigerians understand the scope and direction of the proposed reforms in the power sector.

Nigeria’s electricity sector has continued to face major challenges, including repeated national grid collapses, inadequate generation capacity, weak transmission infrastructure, gas supply constraints, poor metering and mounting debts across the value chain.

The minister-designate’s clarification comes amid heightened public expectations over the ability of the administration of President Bola Ahmed Tinubu to address the country’s longstanding electricity crisis and improve power supply to homes and businesses.

Power Minister-Designate Clarifies Promise on Fixing Nigeria’s Grid in Three Months

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Giwa detention facility completes 1,450 terrorism cases, moves 500 suspects for trial

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Giwa detention facility completes 1,450 terrorism cases, moves 500 suspects for trial

By: Zagazola Makama

The Joint Investigation Center located at Giwa Barracks, Maiduguri, says it has concluded investigations in about 1,450 terrorism-related cases, while over 500 suspects have recently been transferred for prosecution, many of whom were subsequently convicted.

The Commander of the facility, Brig.-Gen. Yusuf Audu, disclosed this on Wednesday in a detailed briefing delivered by Capt. Obinwale, where he outlined the structure, operations and reforms of the multi-agency detention and investigation centre supporting counter-terrorism efforts in the North-East.

Audu said the facility, established as a unified interrogation and screening hub for suspects arrested during counter-insurgency operations, remains central to Nigeria’s fight against Boko Haram and ISWAP insurgents.

He explained that all suspects processed through the centre undergo structured investigations, legal review, and eventual classification into prosecution, rehabilitation, or reintegration pathways, depending on findings.

“After investigation, a complex casework group reviews all reports and provides legal advice. Based on the outcome, detainees are categorised into three groups: prosecution, rehabilitation, and reintegration,” he said.

He disclosed that “recently, the centre moved over 500 suspects for trial, most of whom were convicted,” adding that the development reflects improved coordination among security and justice institutions handling terrorism cases.

Audu said the centre operates as a multi-agency platform comprising personnel from the Nigerian Army, Defence Intelligence Agency, Nigeria Police Force, Department of State Services, Nigerian Correctional Service, Nigeria Security and Civil Defence Corps, National Drug Law Enforcement Agency, and Nigeria Immigration Service, alongside legal experts from the Office of the Attorney-General of the Federation.

According to him, the arrangement ensures a holistic approach to terrorism investigations and strengthens the integrity of prosecution processes.

He noted that suspects are received with preliminary investigation reports from frontline units, formally documented, and assigned to investigators drawn from various security agencies.

The commander said detainees are kept in segregated facilities, with special provisions for women and children, while minors accompanied by mothers are provided with basic education and care within the centre.

He added that medical support is a key component of the facility’s operations, with isolation and treatment available for detainees suffering from illnesses such as tuberculosis, in collaboration with humanitarian partners.

Audu said the centre maintains structured feeding arrangements, with three meals daily provided to detainees, supported by improved water supply systems, including a 40,000-litre solar-powered borehole constructed with support from the International Committee of the Red Cross (ICRC).

He also disclosed that inmates are provided with clothing, toiletries, and hygiene materials upon admission, while periodic fumigation is carried out to maintain sanitation standards.

According to him, detainees also benefit from physical and psychological support programmes, including access to sports, indoor games, and supervised exercise periods aimed at improving mental and physical well-being.

Audu said the facility also operates a “restoration of family links” programme, through which detainees communicate with relatives with support from international humanitarian organisations, including the ICRC.

On legal processes, he explained that investigations are conducted under the Terrorism Prevention Act of 2011, as amended in 2013 and 2022, with judicial oversight through federal high court remand orders and adherence to human rights standards.

He noted that biometric data of all suspects is captured and stored in a national database to support intelligence gathering and future security operations.

The commander further highlighted collaboration with international partners, including the International Organization for Migration (IOM), United Nations Office on Drugs and Crime (UNODC), UNICEF, and other humanitarian agencies, which have supported infrastructure development, training, and detainee welfare programmes.

He said UNODC constructed an evidence storage facility, while IOM established a data management system to improve screening and classification of suspects.

Audu added that UNICEF has provided educational materials for juveniles, while the ICRC continues to support healthcare delivery and humanitarian interventions within the facility.

He said detainees are also engaged in skill acquisition programmes such as tailoring, farming, poultry, fish farming, cap making, and bakery operations, designed to equip them with vocational skills for reintegration.

According to him, the bakery project recently established within the centre was introduced to reduce operational costs and enhance vocational training opportunities.

“The idea is to keep detainees engaged productively while awaiting investigation outcomes,” he said.

He explained that officers posted to the centre are carefully selected based on professional backgrounds in psychology, criminology, sociology, and related fields to improve investigative efficiency.

Audu also noted that the facility has received commendations from local and international dignitaries, including former defence ministers, service chiefs, United Nations officials, and counter-terrorism experts who have visited the centre.

He said the centre’s operations align with global best practices, particularly the United Nations principle that “effective counter-terrorism measures and protection of human rights are mutually reinforcing.”

Despite the achievements, he acknowledged challenges, including difficulty in securing witnesses from affected communities due to insecurity and fear of reprisal, as well as delays in prosecution processes which often prolong detainees’ stay in custody.

Giwa detention facility completes 1,450 terrorism cases, moves 500 suspects for trial

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