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EXPLAINED: Proposed tax bills, what they would mean for Nigerians

Published

1 year ago

December 4, 2024

EXPLAINED: Proposed tax bills, what they would mean for Nigerians

In August 2023, President Bola Ahmed Tinubu inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms in Abuja. As nominally suggested, the committee has been working on reforming how taxes are administered, charged and remitted in Nigeria.

This committee’s activities have culminated in the proposal of the Tax Reform Bills which have caused a stir within policy circles and public debates in Nigeria. The bills include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill.

In the following paragraphs, FIJ simplifies the key aspects of the bills that have become major talking points.

The topic of Value Added Tax (VAT) in the proposed Tax Reform Bills is a major talking point. VAT is an extra fee paid whenever one buys an item, a small slice added to the price that goes to the government to fund public services.

In Section 40 of the current VAT law in Nigeria, the government takes everything collected and splits it into three big pots. If N1,000,000 is collected in a year, N150,000 goes straight to the Federal Government (15%) and N350,000 (35%) is shared among the 774 local governments. The remaining N500,000 (50%) is shared among the states.

But here is where it gets interesting. The N500,000 is not split among states randomly. Half of it — N250,000 — is shared equally among all 36 states. So, every state gets about N6,944 regardless of how economically viable or large they are.

N150,000 (30%) is shared with the states based on their population. The states with larger populations get a larger cut of this N150,000. The last N100,000 goes to states based on derivation, a fancy word that means “Who brought in the money?” States that generate more VAT get a bigger portion of the amount.

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In the proposed tax reform bill, however, FG gets N100,000 (10%) and states have N550,000 (55%) to share. Most importantly, the derivation pot in the proposed reform is bigger. N330,000 (60%) out of the N550,000 will be shared with the 36 states based on how much VAT they generate.

On the more individual level, the current tax system only shares a 7.5% VAT on the goods and services Nigerians use. In the proposed bill, VAT charged on goods and services will go up from 7.5% to 10% first and then progressively to 15% by 2030.

In short, Nigerians will pay more VAT, and it will increase as the years go by.

However, core services such as rent, (public) transportation, health, food and education are exempted from VAT.

PERSONAL INCOME TAX CHANGES

Under the current tax system in Nigeria, people earning less than N300,000 annually don’t pay any tax. Those earning exactly N300,000 are taxed at 7% of their earnings, which amounts to N21,000. For individuals who earn between N300,000 and N600,000, the first N300,000 is taxed at 7% (N21,000), while the next N300,000 is taxed at 11% (N33,000), bringing the total tax to N54,000.

For incomes between N600,000 and N1.1 million, the first N600,000 is taxed as explained (N54,000), and the next N500,000 is taxed at 15%, adding another N75,000. This means you’ll pay a total of N129,000.

Those earning between N1.1 million and N2.7 million pay N129,000 on the first N1.1 million and 21% (N336,000) on the next N1.6 million, which brings their total tax to N465,000. For the people who earn more than N3.2 million, the first N3.2 million is taxed at N465,000, and anything above that is taxed at 24%.

Under the proposed reforms, the tax brackets change significantly. People earning up to N800,000 annually won’t pay any tax at all. For those earning between N800,000 and N3 million, the first N800,000 remains tax-free, while the next N2.2 million is taxed at 15%, amounting to N330,000.

For incomes between N3 million and N12 million, the first N3 million is taxed at N330,000, and the next N9 million is taxed at 18%, which adds N1,620,000, making the total tax N1,950,000.

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For those who earn between N12 million and N25 million, the first N12 million is taxed at N1,950,000, and the next N13 million is taxed at 21%, adding N2,730,000 and bringing the total tax to N4,680,000.

For those earning between N25 million and N50 million, the first N25 million is taxed at N4,680,000, and the next N25 million is taxed at 23%, adding N5,750,000 and bringing the total to N10,430,000. Finally, anyone earning above N50 million pays N10,430,000 on the first N50 million and 25% on anything above that.

Essentially, anyone earning below a million naira a year would not pay taxes under this structure. Also, those who earn a higher income will pay more.

CORPORATE INCOME TAXES CHANGES IN THE BILL

Under the current tax system, companies in Nigeria pay different rates of Corporate Income Tax (CIT) based on their size. Small companies with a total revenue of N25 million or less don’t pay any taxes.

Medium companies, earning between N25 million and N100 million, pay 20% (between N5 million and N20 million). Large companies, making over N100 million, pay the highest rate of 30%. For example, if a company makes N200 million in profits, it owes N60 million in taxes under the current rules.

The proposed reforms simplify this system and reduce rates for many companies. Small companies still won’t pay any taxes, but medium and large companies will pay the same rate.

In 2025, the rate will be 27.5% for both medium companies and larger ones. This will drop to 25% from 2026 onward. That same company making N200 million would pay N55 million in 2025 and N50 million in 2026.

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There’s also a new rule in the proposal to make sure big companies don’t get away with paying too little tax. If a company’s effective tax rate (what it actually pays after deductions) is less than 15%, it will have to pay extra to meet that minimum.

For instance, if such a company earns N20 billion and calculates its taxes at 12%, it would owe N2.4 billion. Under the new rule, it must add N600 million to meet the 15% minimum, bringing its total tax to N3 billion.

SCRAPPING FIRS AND UNIFYING TAXATION

The Nigeria Revenue Service Bill, proposed by the Presidential Tax Reform Committee, proposes replacing the Federal Inland Revenue Service (FIRS) with a new body called the Nigeria Revenue Service (NRS). In simple terms, the NRS will take over from FIRS but with more responsibilities.

One major change is the plan to centralise tax collection. Currently, some taxes are paid to state and local government agencies, but the NRS will handle all tax collection. It will also assist states and local governments in collecting their taxes and ensuring the funds are properly sent to them.

The bill also aims to simplify Nigeria’s complex tax laws. At the moment, taxes are governed by multiple acts, such as the Company Income Tax Act, VAT Act, and Petroleum Profits Tax Act. The proposed law will merge these into a single act, making taxes easier to understand and manage.

Businesses will no longer have to deal with different agencies for different taxes. Instead, the NRS will handle everything in one place, reducing any existing confusion for taxpayers.

The reforms also promise to introduce new tools to make the tax system fairer and more efficient. A Tax Appeal Tribunal will be set up to resolve disputes quickly and without the need for regular courts.

Meanwhile, a Tax Ombudsman will step in when taxpayers face issues like delays, errors or poor service. This office will investigate complaints and recommend solutions to ensure everyone is treated fairly.

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If the bill becomes law, the Joint Revenue Board will also be established to coordinate tax matters across all levels of government. Altogether, these changes promise a simpler, more streamlined tax system for businesses and individuals alike.

WHAT ARE DEVELOPMENT LEVIES AND WHAT HAPPENS TO THEM

The remittance of development levies is one of the major talking points in the Tax reform bill.

Critics like Borno State Governor Babagana Zulum have called the Federal Government out, for ‘planning to merge or scrap’ agencies like the National Information Technology Development Agency (NITDA), the National Agency for Science and Engineering Infrastructure (NASENI), and the Tertiary Education Trust Fund (TET Fund).

Under the current system, Nigerian companies are mandated to pay certain levies to these agencies. Legislations like the NITDA Act, the Finance Act and the TETFUND Act, enforce these levies.

In that system, firms 3% of the assessable profit for each year of assessment to fund education in Nigeria through TEFUND. Companies earning N100 million or more annually also contribute 1% of their pre-tax profits to the National Information Technology Development Fund to boost IT innovation.
Additionally, some industries, such as banking and telecommunications, would pay a newer 0.25% levy to fund science and engineering projects through NASENI.

The proposed bill simplifies this structure with just one development levy. Medium and large companies will contribute, but small businesses and foreign companies are exempt. From 2025 to 2026, the companies pay 4% of profits. This covers remittances to education, science and research, and innovation funds.

The levy drops to 3% between 2027 and 2029, and stays at 2% from 2030 onward. The collected funds will be split among key agencies if the new bill becomes law.

In the first year post-signing (2025-2026), The TET Fund gets the lion’s share — 50%. This share of the development levy will increase to nearly 67% by 2027. But after 2029, the TETFUND will phase out.

A new Student Education Loan Fund starts smaller at 25% in 2025–2026, grows to 33% in 2027, and takes over the entire levy by 2030. After 2026, funding for tech, innovation and engineering will stop.

EXPLAINED: Proposed tax bills, what they would mean for Nigerians

FIJ

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Tinubu Launches 145 Tricycle Ambulances, Six Boat Ambulances to Save Mothers, Newborns Across Nigeria

Published

7 hours ago

May 29, 2026

Trends Admin

Tinubu Launches 145 Tricycle Ambulances, Six Boat Ambulances to Save Mothers, Newborns Across Nigeria

ABUJA, Nigeria – President Bola Ahmed Tinubu on Friday launched the National Emergency Medical Service and Ambulance System (NEMSAS), deploying 145 tricycle ambulances, six boat ambulances, and emergency dispatch equipment to tackle Nigeria’s alarming maternal mortality crisis—where, according to UNICEF, one woman dies every seven minutes from pregnancy or childbirth-related complications. The launch, conducted virtually as part of the Federal Ministry of Health and Social Welfare’s third-anniversary projects, signals the administration’s most ambitious attempt yet to bridge the emergency healthcare gap in rural, riverine, and hard-to-reach communities across Nigeria.

Nigeria records an estimated 75,000 maternal deaths annually—one of the highest figures globally. Additionally, about 280,000 newborns die each year, many from preventable causes. The United Nations Children’s Fund (UNICEF) has consistently attributed these deaths to weak healthcare infrastructure, shortage of trained health workers, poverty, poor emergency response systems, and critically, lack of transportation to access quality maternal care. Speaking during the virtual presidential launch, the Minister of State for Health and Social Welfare, Iziak Adekunle Salako, described the NEMSAS initiative as a direct response to this crisis. He said the investments reflected “a bold national vision where no Nigerian should lose their life because structured medical help could not reach them in time.”

Tinubu Launches 145 Tricycle Ambulances and Six Boat Ambulances to Save Mother

According to the minister, the NEMSAS assets include 145 tricycle ambulances (commonly known as “keke ambulances”) designed to navigate narrow roads and rough terrain in rural communities, six boat ambulances specifically deployed to riverine and coastal areas where road access is impossible, and emergency communication and dispatch equipment to coordinate rapid response. “This landmark occasion features the official launch of the National Emergency Medical Service and Ambulance System assets including 145 tricycle ambulances, six boat ambulances, emergency communication and dispatch equipment to strengthen pre-hospital care across the nation,” Salako said.

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Permanent Secretary of the Federal Ministry of Health and Social Welfare, Daju Kachallom, explained the deployment strategy. “These ambulances are going down to the rural areas, and they will be stationed at the primary healthcare centres where there are trained drivers, while nurses will accompany the ambulances anytime they need to be moved,” she said. She added that emergency contact numbers would be made available at primary healthcare centres to support emergency referrals and rapid response. The six boat ambulances have been deployed specifically to riverine communities, while the vehicle ambulances powered by compressed natural gas will serve federal tertiary facilities. Kachallom expressed optimism that Nigerians would witness better health outcomes before the end of 2027, noting that the health sector had “greatly improved under the Renewed Hope Agenda.”

National Programme Manager of NEMSAS, Demuren Doubra, revealed that the tricycle ambulances were specifically designed to transport pregnant women and newborns during emergencies in hard-to-reach communities. Doubra disclosed that even before the official launch, more than 58,000 women and over 2,000 newborns had already benefited from emergency transport interventions under the programme. He cited a powerful example: a pregnant woman transported over 180 kilometres from Dukku Local Government Area in Gombe State, who later delivered triplets safely. “This is a woman that would have died because of a gap in transportation,” he said. “As NEMSAS, with these facilities and equipment, we are trying to address the delay in reaching care for women and newborns,” Doubra added. He confirmed that the ambulances are being deployed across 15 states under a World Bank-supported IMPACT project, serving local government areas with the highest maternal and child mortality rates.

Beyond the ambulance launch, Minister Salako announced the commissioning of several major health infrastructure projects across the country, including Emergency Operations Centres in Kano, Sokoto, and Katsina states; the Lagos Vaccine Hub; primary healthcare infrastructure in Delta State; the Trauma Centre at Ahmadu Bello University Teaching Hospital, Zaria; the Mental Health Complex at the University of Maiduguri Teaching Hospital; the Infertility and Assisted Reproductive Technology Centre in Bauchi; the Laboratory Complex at the University of Uyo Teaching Hospital; and the President Bola Ahmed Tinubu Complex at the Federal Medical Centre, Abuja. Salako disclosed that the ministry had lined up more than 100 projects to mark the third anniversary of the Tinubu administration, with selected projects across the six geopolitical zones chosen for presidential commissioning. He said the projects represented strategic investments in emergency preparedness, maternal and child healthcare, trauma care, mental health, and diagnostic services.

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Highlighting the administration’s track record, Salako said the Federal Government had expanded health insurance coverage by over 33 per cent, revitalised more than 4,000 primary healthcare centres, established 15 new federal tertiary health institutions, and provided over 500 specialist health infrastructure projects, including cancer centres and diagnostic facilities, to reduce medical tourism. President Tinubu had earlier announced that his administration injected over N98 billion into Nigeria’s primary healthcare sector via the Basic Health Care Provision Fund (BHCPF) , disbursed to over 8,300 primary healthcare centres nationwide—marking one of the largest single-year investments in grassroots health services.

National Coordinator of the National Malaria Elimination Programme, Nnena Ogbulafor, linked the emergency transport system to ongoing efforts to reduce malaria prevalence in Nigeria. She said the 2025 Malaria Indicator Survey showed malaria prevalence had declined to 15 per cent from 21 per cent recorded in 2021. “Between three years of Mr President’s agenda, especially as regards the health sector, we’ve been able to reduce the burden of malaria significantly,” she said. The Federal Government’s Strategic Adviser on Malaria Elimination, Prof. Olugbenga Mokuolu, confirmed that no state in Nigeria is currently classified under high transmission, with Lagos recording just 2.6 per cent prevalence and Plateau 2.8 per cent. Ogbulafor disclosed that 428 health workers had been trained across the 15 participating states, while awareness campaigns and emergency health communication strategies had also been developed.

World Bank Task Team Leader, Onoride Ezire, described the launch as a major milestone in Nigeria’s pursuit of universal health coverage. Ezire explained that the specially equipped tricycle ambulances are fitted with communication gadgets and emergency medical support systems to monitor patients during transportation. “They are not just vehicles, they are not just ambulances; they are life-saving machines,” he said. He noted that poor terrain and lack of transportation often turn basic emergencies into life-threatening situations in rural communities. According to him, the ambulances would help reduce maternal and newborn mortality by ensuring quicker access to healthcare facilities. Ezire urged states benefiting from the initiative to ensure proper maintenance and sustainable management of the ambulances to guarantee long-term impact.

Director of Community Health Services at the National Primary Health Care Development Agency, Nana Abubakar, said the initiative would improve emergency transportation, referral systems, and rapid access to lifesaving care. “It will help reduce preventable deaths, especially amongst mothers, newborn children and other vulnerable groups,” she said. Abubakar stated that emergency response begins within communities, adding that the initiative aligned with the agency’s mandate to strengthen primary healthcare as the foundation for universal health coverage.

Tinubu Launches 145 Tricycle Ambulances, Six Boat Ambulances to Save Mothers, Newborns Across Nigeria

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Lagos Tenancy Reform 2026: What Tenants, Landlords Must Know

Published

8 hours ago

May 29, 2026

Trends Admin

Lagos Tenancy Reform 2026: What Tenants and Landlords Must Know

LAGOS, Nigeria – The Lagos State government has officially unveiled plans to introduce a new tenancy law aimed at curbing arbitrary rent increases, illegal charges, and exploitative practices by estate agents across the state. The proposed legislation, currently before the State House of Assembly, is expected to bring major reforms to the real estate sector, including a cap on agency fees, mandatory registration for agents, and faster dispute resolution. Commissioner for Housing, Moruf Akinderu-Fatai, disclosed the details during the 2026 Ministerial Press Briefing held in Alausa, Ikeja. He described the bill as a direct response to growing complaints from tenants over excessive rent hikes, fraudulent fees, and unethical conduct by unregistered operators. Once passed, the law will apply to all parts of Lagos State without exception.

One of the most significant provisions of the bill is the regulation of estate agency fees. According to the commissioner, the Lagos State government has consistently maintained that agency fees should not exceed 10% of the total annual rent payable by tenants. However, earlier legislative discussions from August 2025 indicated that the Assembly was considering an even stricter cap of 5%. The final figure remains under debate at the committee stage. Currently, it is common practice for agents in Lagos to charge 10% agency fee plus 10% legal or agreement fee, a model the new bill seeks to eliminate.

Under the proposed law, all estate agents operating in Lagos will be required to register with the Lagos State Real Estate Regulatory Authority (LASRERA) . Operating without registration will become a criminal offense once the bill is passed. The move targets unregistered agents accused of charging excessive fees, fraudulent sales of properties (such as selling one property to multiple buyers), and withholding tenant rents. Penalties for violations could include fines of up to ₦1 million and two years imprisonment.

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The bill also seeks to curb arbitrary rent increases, which have become a major pain point for tenants in Lagos. While the full details on rent hike limits are still being finalized, early drafts of the bill also proposed banning landlords from demanding more than one year’s rent in advance from new tenants. This would replace the common practice of demanding two or more years upfront.

To address the slow pace of justice in housing matters, the proposed law introduces special court sittings for tenancy-related disputes. Courts will now sit on weekends and public holidays specifically to fast-track landlord-tenant cases. This is designed to prevent prolonged evictions or unfair lockouts. However, the commissioner added one important condition: tenants who wish to take legal action against their landlords must first provide proof of rent payment and updated utility bills before initiating court proceedings.

Even before the bill becomes law, Akinderu-Fatai revealed that LASRERA has intensified enforcement against fraudulent estate agents. Between 2025 and 2026, the agency recovered over ₦270 million from fraudulent operators. This demonstrates the government’s readiness to enforce transparency in the sector. “The Sanwo-Olu administration is determined to restore sanity, transparency, and accountability in the real estate sector while protecting residents from exploitation,” the commissioner said.

It is important to note that the proposed tenancy bill is not yet law. The current stage is the committee stage at the Lagos State House of Assembly. The next steps require the bill to pass committee review, then be passed by the Assembly, and finally receive the governor’s assent. Until then, the Lagos State Tenancy Law of 2011 remains the legally binding framework. Residents, landlords, and agents are advised to follow updates from LASRERA and the Ministry of Housing for official announcements.

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Tinubu Marks Third Anniversary, Says Nigeria’s Economy Recovering

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May 29, 2026

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President Bola Ahmed Tinubu

Tinubu Marks Third Anniversary, Says Nigeria’s Economy Recovering

President Bola Tinubu on Friday declared that Nigeria’s economy is gradually recovering, insisting that his administration’s bold reforms are beginning to deliver visible results in infrastructure development, investment inflows, job creation and improved national security.

In his third anniversary message to Nigerians, Tinubu acknowledged the economic hardship caused by major policy decisions since assuming office on May 29, 2023, but maintained that the difficult choices were necessary to rescue the country from deeper fiscal and structural crisis.

The President said his administration inherited an economy weighed down by unsustainable fuel subsidy payments, multiple exchange-rate distortions, mounting debt-servicing costs, declining revenues and worsening insecurity.

According to him, Nigeria was spending as much as ₦18.4 billion daily on petrol subsidy, amounting to over ₦4 trillion in 2022 alone, while the country also lost more than ₦8 trillion over three years to foreign exchange arbitrage and speculative distortions.

Tinubu said his government’s decision to remove fuel subsidy and unify the foreign exchange market was painful but unavoidable.

“The situation demanded urgent and courageous action. Difficult but necessary decisions had to be taken to stabilise the economy and prevent a deeper national crisis,” he said.

He noted that while the reforms triggered an increase in the cost of living and placed enormous pressure on households and businesses, they have laid the foundation for sustainable recovery.

Economic recovery and investment confidence

The President said Nigeria’s economy is now more competitive and better positioned for long-term growth than it was in 2023.

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He pointed to improving public finances, increased allocations to state and local governments, and renewed investor confidence as signs of economic recovery.

Tinubu highlighted the strong performance of the Nigerian stock market, revealing that the All Share Index rose from 53,000 in 2023 to 250,000 in 2026, while market capitalisation climbed from ₦30 trillion to ₦160 trillion.

He added that companies are now posting record profits and dividend payouts.

Infrastructure expansion across Nigeria

Tinubu disclosed that over 2,700 kilometres of highways and major roads are currently under construction, reconstruction or rehabilitation nationwide.

Key projects listed include the Lagos-Calabar Coastal Highway, Sokoto-Badagry Super Highway, Abuja-Kaduna-Zaria-Kano Road, East-West Road, and multiple rural access roads.

He said rail modernisation projects are also progressing to improve national connectivity, logistics and economic integration.

Oil, gas and power sector reforms

The President said reforms in the oil and gas sector have attracted billions of dollars in fresh investment from international oil companies.

He disclosed that the $5 billion NLNG Train 7 project is nearing completion and will significantly boost Nigeria’s LNG export capacity.

Tinubu also said expanded domestic refining capacity and operational modular refineries are reducing dependence on imported petroleum products and conserving foreign exchange.

On electricity, he said the administration is addressing long-standing structural challenges by clearing legacy debts, expanding transmission infrastructure, investing in renewable energy and strengthening the national grid.

Education, housing and agriculture interventions

The President said the Nigerian Education Loan Fund (NELFUND) has provided access to higher education for more than 1.5 million students, with over ₦282 billion disbursed.

He also said the Renewed Hope Housing Programme is delivering over 10,000 housing units across 14 states and the FCT, creating more than 300,000 jobs.

Tinubu added that agricultural interventions are supporting millions of farmers through improved seedlings, fertilisers, mechanisation and expanded access to finance.

Security improvements

On security, Tinubu said his administration has intensified operations against terrorists, bandits, kidnappers, oil thieves and criminal networks.

He stated that many communities and highways are becoming safer as a result of improved intelligence gathering, surveillance technology and stronger inter-agency coordination.

“I want to assure you that this government will not relent until every Nigerian can live, work, travel and dream in safety,” he said.

Call for patience and unity

While admitting that the country is not yet where it wants to be, Tinubu said the foundation for national recovery has been firmly laid.

He urged Nigerians to remain patient, united and hopeful.

“We must choose hope over despair, unity over division, and nation-building over narrow interests,” the President said.

Tinubu assured citizens that the benefits of the reforms would become more visible in daily life through lower food prices, reduced transport costs, increased job opportunities and improved living standards.

He concluded by expressing confidence that Nigeria would emerge stronger, more united and more prosperous.