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  • Re: ‘Bola’s Tax’- When ‘simple logic’ becomes simple misdirection

    Re: ‘Bola’s Tax’- When ‘simple logic’ becomes simple misdirection

    The Emmanuel Orjih’s essay being circulated is rhetorically powerful, but its “simplicity” is achieved by subtracting the very provisions that determine the outcome. That is not clarity; it is selective accounting.

    Let’s dismantle the argument on its own terms—calmly, sequentially, and with arithmetic that actually follows the law.

    1) The core confusion: pension and health insurance are not taxes—they are deductible contributions

    A tax is a compulsory payment to government for general public purposes with no direct ownership claim by the payer.

    A pension contribution is a deferred wage placed in a worker’s Retirement Savings Account—owned by the worker, regulated by law, and paid out to the worker later. Under Nigeria’s contributory pension framework, the employee contribution is commonly 8% (with an employer minimum contribution alongside it).

    Likewise, national health insurance contributions/premiums are risk-pooling payments for defined health coverage, not a general revenue levy; and (crucially) they are among the items treated as deductions in personal income tax computations.

    So when someone frames pension/health insurance as “proof the poor are being taxed,” they are committing a category error:

    • A deduction is not a tax.

    • A contribution you own (pension) is not a levy you lose.

    • A premium that buys coverage is not a payment for “government enjoyment.”

    If anything, the presence of these deductions is evidence of an attempt—however imperfect—to avoid taxing the portion of income being set aside for welfare/insurance.

    2) The decisive arithmetic the essay avoids: the N800,000 tax-free threshold

    Under the new regime described in multiple reputable summaries, the first ₦800,000 of annual income is taxed at 0%.

    That is not a footnote. That is the hinge.

    Now apply it to “Joseph”:

    Monthly income: N75,000

    • Annual income: N75,000 × 12 = N900,000

    Under a system where the first N800,000 is taxed at 0%, Joseph is not “squarely inside” some punitive bracket. He is N100,000 above the zero band.

    Even before deductions, the portion potentially exposed to tax is N100,000 per year.

    If the next band is taxed at 15% (as these summaries indicate), then Joseph’s gross annual PIT exposure is:

    • N100,000 × 15% = N15,000 per year

    • N1,250 per month

    Now add pension:

    If Joseph contributes pension at 8% (even using the essay’s own assumption), that is:

    • 8% × N900,000 = N72,000 in pension contributions annually (simplified)

    That reduces the portion above N800,000 from N100,000 to N28,000. Tax becomes:

    • N28,000 × 15% = N4,200 per year

    • N350 per month

    And if Joseph also has any deductible health insurance contribution (which many formal arrangements do), he can easily fall below N800,000 taxable income, making his PIT zero.

    What this means

    The essay’s “public U-turn” story is not proof that “the poor will pay tax.”

    It is proof that the narrator’s demonstration did not apply the actual threshold structure that defines liability.

    That is not logic. That is stage-managed arithmetic.

    3) The poverty-line move: a PPP concept misused as a nominal naira salary cut-off

    The essay claims a World Bank “poverty line” of $4.20/day and then converts it into a naira monthly salary figure using a simple exchange conversion to get “N190,000 per month.”

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    But the World Bank’s $4.20 line is reported in PPP terms (international dollars), not a naira-at-market-exchange salary threshold you can convert with casual FX math.

    So the statement “everyone earning below N190,000/month is poor” is not an “irrefutable fact.” It is a conversion shortcut that swaps a technical welfare metric for a political talking point.

    Even more: the World Bank updated global poverty lines in 2025 (with new PPP bases), which reinforces that these lines are statistical constructs, not the kind of direct nominal wage threshold the essay pretends they are.

    4) “Widen the tax base” does not logically mean “tax the poor”

    The essay’s claim is:

    “The rich are already taxed, so widening must reach downward.”

    That is a false syllogism.

    “Widening the tax base” can mean (among other things):

    • moving non-compliant high earners into compliance

    • closing loopholes and leakages

    • capturing parts of the digital and informal-but-affluent economy

    • improving employer withholding integrity

    • reducing avoidance via better administration

    Nigeria’s revenue problem is not “the poor escaping.” Nigeria’s problem is a historically weak tax-to-GDP ratio and heavy reliance on borrowing; tax reforms have been publicly framed as part of reversing that.

    So “widening” does not necessarily mean “drag subsistence wages into the net.” It often means: make the system catch who already should be paying.

    5) The emotional overload: corruption lists are not an argument against the structure of a tax schedule

    The essay spends pages listing possible misuses of public funds (A–Z). Some may be legitimate governance concerns, but they do not prove the specific claim being sold: “This tax takes money from the poor.”

    If your target is accountability, the rational conclusion is not “therefore don’t tax.” The rational conclusion is:

    • ring-fence, publish, and audit collections;

    • improve transparency of allocation;

    • tighten procurement;

    • prosecute leakage;

    • strengthen citizen oversight—using the legitimacy that taxation creates.

    Historically, broad-based taxation has often strengthened demands for representation and accountability (“no taxation without representation” is not a slogan of lending institutions; it is a logic of citizen-state bargaining). The essay flips that logic on its head by implying that lenders fear Nigerians paying taxes because taxes would empower citizens. That is not an argument; it is a narrative device.

    Meanwhile, Nigeria’s borrowing constraints are real, and a reform agenda that reduces debt-dependence is not “indifference”; it is sovereignty through solvency.

    Proof-by-proof: what the essay is doing (and why it misleads)

    Deception 1: Re-labelling deductions as “taxes”

    • Pension/health insurance are framed as “proof of taxation.”

    • In reality, they are welfare-linked contributions and deductions that reduce taxable income.

    Deception 2: Ignoring the 0% band

    • The N800,000 annual tax-free threshold is the central fact.

    • Without it, the story can manufacture outrage at N75,000/month.

    Deception 3: PPP poverty line converted as if it were a salary threshold

    • $4.20/day is PPP-based and not meant for naïve FX-to-naira monthly wage claims.

    Deception 4: False dilemma

    • “Only three possibilities: the poor, livestock, or ghosts.”

    • Serious tax administration realities are ignored to force a punchline.

    Deception 5: Moral indictment substituted for computation

    • A–Z allegations create heat, not proof.

    • Even if every allegation were true, it still wouldn’t change the tax schedule math.

    The bottom line

    If you want to disagree “most vehemently and logically,” this is the clean core:

    1. The new structure explicitly shields low incomes via a large zero-rated band.

    2. Pension and health insurance deductions are welfare design features, not stealth taxation.

    3. The essay’s outrage depends on omitting the very thresholds and concepts (PPP) that make its conclusion collapse.

    • Yakubu is Director-General, Budget Office of the Federation
  • Will Nigeria breaks its mass metering jinx this year?

    Will Nigeria breaks its mass metering jinx this year?

    • By Musa Ilallah

    Successive Nigerian governments have tried to close the country’s yawning electricity metering gap, rolling out a series of ambitious programmes with limited success. Today, Nigeria still has a deficit of more than six million meters, out of an estimated 12 million electricity consumers.

    Why does metering matter? Is it not simply another way to make Nigerians pay more at a time when wallets and purses are already under severe pressure? In reality, metering delivers benefits that many people do not fully appreciate.

    Beyond its direct cost-control advantages for individual consumers—particularly those who have suffered the arbitrariness of estimated billing—metering strengthens the entire electricity system and, by extension, the broader economy. It allows distribution companies (DisCos) to collect revenues more efficiently and transparently. Modern smart meters are sophisticated pieces of technology, capable of collecting, interpreting, and processing granular data.

    That data is invaluable. It enables better planning by providing a clearer picture of demand, allowing investments and infrastructure to be targeted more accurately. Crucially, it also makes targeted subsidies possible. With reliable consumption data, government can identify who needs support and where they are, ensuring assistance reaches those at the bottom of the economic ladder. This is standard practice around the world.

    For too long, Nigeria has relied on subsidies that are neither targeted nor supported by credible data, resulting in massive losses, fraud, and wastage. The petrol subsidy scandal that erupted in 2012 remains a vivid reminder of what happens when subsidies are applied indiscriminately: those who benefit most are often not those who need help the most.

    Read Also: Nigeria to host African Supporters Award

    Metering, therefore, is of immense importance. It is one of the most underrated pillars of a functioning economy.

    President Tinubu’s response to Nigeria’s metering challenge is the new Presidential Metering Initiative (PMI). For perhaps the first time, the issue is being driven by direct presidential intervention—an indication of how seriously the federal government views the problem.

    As always, the devil is in the detail. The PMI has mobilised substantial funding from both federal and state governments to finance the rollout of the millions of smart meters required to close the gap. This marks a notable departure from previous efforts, which treated metering almost exclusively as a federal responsibility.

    With state governments now involved, there is a broader sense of ownership—an important factor given that states hold equity stakes in the DisCos, who are ultimately responsible for deploying the meters.

    Another point to note: the PMI rollout is expected to involve a mix of imported and locally assembled smart meters. The case for local meters is straightforward: Nigeria must deepen local content across all sectors of the economy. This has become even more pressing following the launch of the Nigeria First policy.

    The argument for imported meters is equally compelling. The scale and urgency of the task mean that Nigeria cannot afford to rely on a single source. While local manufacturing capacity has grown in recent years, it is not yet sufficient to deliver millions of meters within a short timeframe. In short, patriotism must be balanced with pragmatism.

    Beyond local manufacturing, the PMI also promises benefits for local technical capacity. A successful mass rollout will require thousands of trained technicians, creating opportunities for young Nigerians willing to acquire new skills. The initiative plans to oversee such training programmes in collaboration with public and private sector partners.

    These skills will likely extend beyond meter installation, forming a foundation for broader electrical expertise applicable to construction, manufacturing, automobiles, and other sectors.

    On paper, the PMI appears well thought out and carries many of the hallmarks of a potential jinx breaker. But it must prove itself in practice. Its success will ultimately be judged by the quality and speed of implementation, and by whether it truly departs from past initiatives that stalled or progressed at a crawl.

    Public awareness will also be critical. This is where institutions such as the National Orientation Agency can play a supporting role, leveraging their national reach and renewed momentum. For the PMI to succeed, all hands must be on deck. This is not a task for government alone. Every stakeholder in the electricity value chain has a role to play in successful implementation—because when DisCos plug revenue leakages, they are better positioned to meet their obligations to generation companies, which in turn can pay their fuel suppliers. It is yet another example of the cascading benefits of effective metering.

    Will the PMI live up to the high expectations surrounding it, or will it follow the path of previous interventions? In 2026, Nigerians should have a clear answer to this all-important question.

    • Ilallah  is a public affairs analyst based in Abuja
  • Nigeria’s economy has improved but ordinary people still feel the pinch: Economist offers some solutions

    Nigeria’s economy has improved but ordinary people still feel the pinch: Economist offers some solutions

    By Stephen Onyeiwu

    Nigerians have been waiting anxiously for the economy to “turn a corner”, following economic reform initiatives undertaken by President Bola Tinubu in 2023. These included removing the country’s fuel subsidy and freeing up its foreign exchange market.

    There have been signs of improvement. Key among these are stronger economic growth, and a rise in capital inflows and diaspora remittances. Foreign reserves have risen to the highest level in seven years. Core inflation has declined and the foreign exchange market is less volatile.

    But ordinary Nigerians aren’t feeling the benefits. There’s anger and resentment, as evident in the nationwide protest in June 2025 against hunger and insecurity.

    How might one explain this mismatch?

    The answer lies in living conditions, which have not improved and may well have deteriorated since the economic reforms.

    Many Nigerians are still without jobs – the unemployment rate has been estimated at about 30%. But this is an underestimate, considering that millions of under-employed Nigerians in the informal sector are counted as employed.

    Because of the lack of jobs, about 93% are engaged in low-income informal sector activities. Public spaces and highways in the country have been taken over by roadside hawkers and other informal sector workers.

    Nigerians are also chronically poor and food insecure. According to the World Bank, the number of poor people in Nigeria rose from 81 million in 2019 to 139 million in October 2025. Most have no safety net or means of protection from unforeseen events like illness, natural disasters or loss of jobs.

    As an economist who has studied the Nigerian economy for over four decades, I argue that Nigeria needs a radical shift in its economic policy approach. Macroeconomic stability can’t be expected to automatically create jobs and alleviate poverty. Time and again, trickle-down economics has been shown to be a flawed economic philosophy.

    It is time for the Tinubu administration to take decisive and unprecedented steps to translate macroeconomic improvements into better living conditions for Nigerians.

    Why reforms aren’t feeding through

    Most Nigerians have not felt the impact of improvements in macroeconomic performance because of the following:

    Economic growth is not robust enough: Growth needs to be 6%-8% a year for at least five years, for most Nigerians to feel the impact of an improved economy. Much of that growth must come from labour-intensive sectors of the economy, particularly manufacturing and agro-processing.

    Jobless growth: Employment-intensive sectors of the economy haven’t been affected by the reforms. The manufacturing sector, for instance, remains weak due to the high cost of imported raw materials, poor infrastructure, competition from cheap imported goods, and the high cost of borrowing.

    Income stagnation and declines in real purchasing power: The few Nigerians with jobs have found that their income lags behind the rate of inflation. The fact that Nigeria’s inflation rate has fallen does not mean that prices have decreased. It simply means that prices are rising more slowly than they did before. And the minimum wage in Nigeria is one of the lowest in the world.

    Non-inclusivity of growth: The gains from macroeconomic stability in Nigeria have not been broadly shared. There are two reasons. First, the main drivers of growth are sectors that are not labour-intensive: oil and gas, financial services, digital services, hospitality, music, art and design. Second, many Nigerians don’t have the skills and competencies to be employed in these sectors.

    Perverse sectoral distribution of capital inflows: Although foreign capital has increased, much of it is portfolio investment in bonds, government treasury bills, and the stocks of financial institutions. The opportunities for employment generation are therefore very limited.

    Economic challenges that need to be addressed

    To translate recent policy reforms into better living standards, more needs to be done.

    Job creation: The government should work with the private sector to resuscitate the manufacturing sector and agro-processing. Incentives should be given to foreign and domestic investors to invest in manufacturing and agro-processing. A rejuvenated manufacturing sector will integrate the Nigerian economy into global value chains.

    Read Also: Nigeria can earn $10bn yearly from cashew industry, says NCAN

    Only about 2% of capital inflows this year is foreign direct investment. The rest is portfolio investment in government bonds and securities, as well as corporate stocks – especially in banking. Portfolio investment does not create jobs. Equity investment in manufacturing, agro-processing and even agriculture is preferable for job creation.

    Cash transfers: Reduce the huge cost of running the country and use the savings for cash transfers for vulnerable Nigerians. Only about 8.4 million households (out of a population of 238 million) have received cash transfers of between N25,000 and N75,000. This is grossly inadequate. Giving more people cash would represent a big change for many Nigerians, no matter how small the transfer. Cash transfers that are paid for by a reduction in governance cost will not create inflation but enable Nigerians to invest in economic activities and be productive.

    Public works: The government should accelerate the rate of job creation by using direct labour for targeted public works projects. Nigeria has many bad roads and dilapidated public buildings.

    Streamline the foreign exchange market: There is still a gap between the official and parallel rates of exchange. There are many black-market foreign currency traders. In a well-functioning foreign exchange market, a sprawling black market should not exist.

    Reduce the size of the informal sector: This can be done through the development of the manufacturing sector, which will draw surplus labour from the informal sector.

    Economic development should be about people, their well-being and their economic dignity. While stabilising the economy, the government should intentionally put in place mechanisms to ensure that macroeconomic improvements result in better living conditions.

    Onyeiwu is professor of Economics & Business, Allegheny College, Pennsylvania, United States. This article is republished from The Conversation under a Creative Commons license. Read the “https://theconversation.com/nigerias-economy-has-improved-but-ordinary-people-still-feel-the-pinch-economist-offers-some-solutions-271496”

  • Still on Nigeria’s re-designation as ‘country of particular concern’

    Still on Nigeria’s re-designation as ‘country of particular concern’

    By Hafiz Bakare

    In October 2025, the re-designation of Nigeria as a Country of Particular Concern (CPC) by the Trump administration sparked significant debate regarding its tone and intent.

    Nigeria and the United States subsequently found common ground to collaborate on the airstrike which took place on Christmas Day 2025. This collaboration was a direct result of diplomatic engagement that followed significant Nigerian and international reservations about President Donald Trump’s initial communication, which many saw as threatening and misinformed.

    The primary reservations regarding President Trump’s communication re-designating Nigeria as a “Country of Particular Concern” (CPC) on October 31, 2025, focused on its *inappropriate tone, selective framing of the security crisis as purely religious persecution, and a perceived threat to Nigerian sovereignty.

    The Nigerian government, led by President Bola Tinubu, strongly refuted the U.S. characterization that Christianity faced an “existential threat,” stating it did not reflect the country’s reality or values. Officials stressed that violence affected citizens of all faiths, including Muslims, and was tied to broader issues like terrorism, resource conflicts, and governance challenges.

    Many Nigerians, including ethnic organizations and diplomats, viewed Trump’s subsequent threat of potential U.S. military intervention (“guns-a-blazing”) as an insult to national sovereignty and a dangerous oversimplification that could exacerbate sectarian tensions.

    Nigeria’s initial, more assertive diplomatic response was soon replaced with a toned-down version to de-escalate tensions, highlighting internal government deliberation on how to manage the diplomatic friction.

    Analysts and some U.S. lawmakers argued that framing Nigeria’s complex security landscape in narrow religious terms was counterproductive and detracted from the wider problem of tackling jihadist violence and widespread insecurity affecting everyone.

    Trump’s rhetoric, including threats to enter the country “guns-a-blazing” and instructions to the “Department of War” to prepare for action, was seen as inflammatory and a violation of diplomatic decorum.

    Some observers viewed the move as an attempt to appeal to Trump’s domestic religious base in the U.S. rather than a nuanced foreign policy effort.

    A visiting bipartisan delegation of U.S. Congress members later clarified that the CPC designation was intended to foster reforms through dialogue and partnership, not military force, dismissing any plans for U.S. troops on the ground.

    Experts urged the U.S. to use its leverage to pursue a broader, more nuanced approach to religious freedom that acknowledged Nigeria’s complex, multi-layered crises rather than a single-issue focus.

    The two countries did find common ground, leading to a collaborative operation. The U.S. airstrikes on December 25, 2025, targeting ISIS in Sokoto State, were conducted in coordination with and with the approval of Nigerian authorities.

    Nigerian Foreign Minister Yusuf Tuggar confirmed that President Tinubu gave the “go ahead” for the operation after discussions with U.S. Secretary of State Marco Rubio. U.S. Africa Command (AFRICOM) and the Nigerian government officially described it as a “collaborative effort” and “precision strike operation”. Nigeria provided intelligence and strategic coordination, while U.S. Africa Command (AFRICOM) carried out the kinetic action at the request of the Nigerian government.

    While collaboration was confirmed, a slight divergence remained in the public framing. President Trump’s statements emphasized targeting those “persecuting Christians”, while Nigerian officials stressed the operation was about general counterterrorism and ensuring the safety of all innocent civilians, irrespective of religion.

    Yes, the initial reservations have been addressed to a reasonable extent through ongoing dialogue and practical security cooperation. The shift from Trump’s initial threats of unilateral military action to a coordinated operation with Nigerian consent indicates successful diplomatic de-escalation.

    Following a high-level meeting in Washington, D.C., in November 2025, both nations agreed to a non-binding cooperation framework and the creation of a Joint Working Group to unify their approach to counter-terrorism and civilian protection.

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    Since late November 2025, the U.S. has conducted daily intelligence-gathering flights over Nigeria using contractor-operated aircraft to monitor militant movements and support Nigerian tactical operations.

    High-level engagement and bipartisan congressional visits have helped clarify the U.S. intent as partnership and capacity-building rather than “punishment” or “invasion”.

    The incident has spurred more concrete actions from the Nigerian government, including a declaration of a nationwide security emergency and planned recruitment of more police officers, demonstrating a commitment to addressing security concerns internally.

    In November 2025, Nigeria unveiled its National Counter Terrorism Centre (NCTC) Strategic Plan 2025–2030, which prioritizes bilateral cooperation with the U.S. to enhance intelligence analysis and modernize Nigeria’s security architecture.

    However, a few Nigerians still have sovereignty concerns despite the collaboration while the fundamental disagreement over whether the violence constitutes “religious persecution” or “regional insecurity” persists, with the U.S. administration and Nigerian government continuing to use different language to describe the same conflict.

    Overall, both nations ultimately chose pragmatism, leveraging the moment of diplomatic tension to reinforce their shared interest in counterterrorism, ensuring the bilateral relationship remains a strong, albeit complicated, partnership.

    •Bakare is a consultant and a former bank chief executive.

  • Impact of the new CBN cash policy

    Impact of the new CBN cash policy

    By Kelvin Gilberts

    In a major policy shift, the nation’s apex bank, Central Bank of Nigeria (CBN), introduced a new set of cash management rules. The policy took effect on January 1. 

    By the provisions of the policy, the old deposit limits and the frustrating deposit fees have been abolished in a move that makes it possible for bank customers to now deposit any amount of cash at no charge. This is actually a positive change that makes banking more convenient.

    In the same direction, the new policy sets a new cumulative weekly cash withdrawal limit of ₦500,000 for individuals and ₦5 million for businesses. Similarly, it demands that withdrawals above those limits would require the payment of excess withdrawal fees (three per cent for individuals, five per cent for businesses)

    The policy also places automated teller machine (ATM) withdrawals at ₦100,000 per day and ₦500,000 per week. In the same vein, third-party cheques above ₦100,000 can no longer be cashed over the counter though they can still be deposited into accounts. The CBN, in this new policy, requires banks to report all large withdrawals to it monthly

    Other provisions of the policy permit banks to keep 60 per cent of excess withdrawal fees, while CBN takes 40 per cent. The implication is that banks garner profit when customers exceed withdrawal limits.

    Also, only government accounts and microfinance institutions are exempt as previous exemptions for embassies, diplomatic missions, and aid donor agencies have been removed

    What this entails is that cash withdrawals are now more restricted, and withdrawing above the limits will cost more. However, deposits are now completely free.

    It must be understood that this is not the CBN’s first attempt to manage cash usage. The process has been on since 2011 as the apex bank continues to push for a cashless economy through various policies. This new circular, however, supersedes other previous policies and represents its most comprehensive effort yet.

    The intention of the policy according to experts, are to reduce the cost of cash management (printing, transporting, and securing physical currency; address security concerns around large cash movements; reduce opportunities for money laundering and encourage adoption of digital payment systems.

    It is pertinent to stress that the CBN is not trying to eliminate cash, but it is deliberately making large cash transactions more expensive so as to shift behaviour toward digital alternatives.

    For those thinking of playing smart, the limit is cumulative. It doesn’t matter if one withdraws from multiple banks or multiple accounts. The CBN tracks withdrawals per individual across the banking system. The same goes for businesses (corporate accounts).

    By the provisions of the policy, ATM withdrawals have their own daily limit (₦100,000 per day), but these withdrawals count toward one’s weekly ₦500,000 total.

    What this means is that if one withdraws ₦100,000 from an ATM every day for five days, one may have used one’s entire weekly limit. Any additional cash withdrawal that week, whether from an ATM, POS, or over the counter, will trigger the three per cent excess fee.

    The impact of this policy on bank service consumers is dependent on how much one relies on cash.

    What is obvious, however, going by the provisions of this policy, is that more people will depend on transfers and digital payments; ATM availability may feel tighter; charges can add up quickly if one relied on frequent cash withdrawals; small businesses that operate mostly in cash will need to adjust; planning becomes more important and large one-time expenses require planning.

    So far, the focus has been on restrictions even as a lot remains the same or actually may have improved: Among them include the reality that deposits are now completely free (previously there were deposit limits and fees); bank transfers remain free and unlimited – no restrictions on digital transfers; POS payments remain unaffected – paying merchants via POS doesn’t count toward withdrawal limits; online/mobile banking remains the same – bill payments, subscriptions, and digital transactions are unchanged and cash is still legal tender – you can use it for any transaction; you just face limits on withdrawing large amounts.

    Experts are positive that excess withdrawal fees of 3–5 per cent are avoidable if bank customers reduce reliance on physical cash while using bank transfers, POS, or online payments wherever possible; spread their cash withdrawals across weeks; use digital wallets or bank transfers for recurring expenses such as school fees, rent, subscriptions, utility bills, pay these digitally instead of withdrawing cash to pay them. Most schools, landlords, and service providers now accept transfers and keep emergency fund digital. Emergencies often force large, sudden withdrawals, which now attract fees. If your emergency fund is in a savings account or investment that allows quick transfers, you can move money digitally without hitting withdrawal limits.

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    They also advise that suppliers and vendors be paid via transfer; consider splitting payment method. If one needs ₦1 million for a transaction, you might withdraw ₦500,000 (avoiding fees) and arrange a bank transfer for the remaining ₦500,000 just as they must understand that splitting across accounts doesn’t help. The CBN tracks withdrawals per individual across all banks. Withdrawing ₦300,000 from Bank A and ₦300,000 from Bank B in the same week still totals ₦600,000, triggering fees on the ₦100,000 excess.

    In the prevailing circumstance, it is advisable to deploy digital financial tools. It helps if one organised spending money digitally: Hold daily funds in digital wallets or savings accounts; plan big expenses; automate cash flow: schedule regular savings to avoid last-minute withdrawals; rely less on ATMs: Keep money accessible digitally without hitting withdrawal caps; build better habits: Nigeria is shifting toward digital finance; adapting early helps avoid inconveniencing charges.

    With this new policy, Nigerians have a lot to expect and hope for. For certain, CBN is not trying to ban cash. Cash remains legal tender and will continue to be available. However, the CBN is deliberately making large cash transactions more expensive to encourage digital payments, which are cheaper to manage, more transparent, and harder to use for money laundering. This is part of a global trend toward cashless economies

    Furthermore, cash will continue to be available, but controlled: Digital payments will keep growing: They’re the cheaper, easier alternative for most transactions; businesses and individuals who adjust early will avoid unnecessary fees: Those who resist change will pay thousands or even millions in excess withdrawal fees; financial planning will matter more than ever: Tools that help you manage money digitally will become essential: Whether it’s your bank’s mobile app, a digital wallet, or investment platforms, comfort with digital money management is no longer optional.

    Nigeria isn’t eliminating cash, but the direction is clear: using large amounts of cash will now come with limits and, often, extra costs.

    •Gilberts is a management consultant.

  • Celebrating Hassan Sunmonu @ 85

    Celebrating Hassan Sunmonu @ 85

    • By Issa Aremu

    Yesterday, January 7, comrades, progressive forces and well-wishers converged in Abuja for the 85th birthday celebration of Comrade Hassan Adebayo (HA) Sunmonu OON. Comrade HA was the pioneer founding president of Nigeria Labour Congress (NLC), twice elected NLC President (1978 to 1984). He was   the longest elected secretary-general of Organization of African Trade Union Unity (OATUU) based in Accra (October 1986 to December 2012, some 26 years and two months). He was a regular delegate at conferences International Labour Organization spanning decades. The high point of the 85th birthday celebration was the formal presentation of his memoirs titled “Organize, Don’t Agonize”.

    Born with his identical twin brother, Engr Hussein Sunmonu on January 7, 1941 at Osogbo, in Osun State, the Sunmonus are the most spectacular identical twins to see any day! It seems age sharpens their similarities in mannerism and outlook. I recall in  2010, HA was honoured by Micheal Imoudu Institute for Labour Studies ( MINILS), Ilorin with a fellowship in recognition of his consistent promotion of labour education. His twin brother Hussein represented him. As a privileged reciter of the profile of the recipient, only myself and the then Director General of the Institute, John Olanrewaju knew it was Hussein Sunmonu who took the centre-stage and NOT Comrade HA! Many were in disbelief when Engr Hussein disclosed he was receiving the award on behalf of his twin brother who could not come in person! The difference was not clear in their voices, gesticulation and jokes.

    HA is an acknowledged, tested, committed trade unionist, a patriot, a pan Africanist and a global citizen of profound integrity. He was raised and mentored in a developmentalist Nigeria; a product of the then functional public schools.

    He started his education career at Ansar-Ud-Deen School in Osogbo from 1948 – 1950. He attended All Saints School, Osogbo from 1950 – 1954, where he got his First School Leaving Certificate in December 1954; and then in 1955, Osogbo Grammar School and from there to Yaba Technical Institute in September 1957. He obtained General Certificate in Education (GCE) Ordinary Level in 1961, later bagged the Secondary Technical Certificate, moved to Yaba College of Technology from 1961 to 1964 and obtained the Ordinary National Diploma (OND) in Civil Engineering and the Higher National Diploma (HND) in Civil Engineering. HA proceeded to Italy for a post-graduate diploma course in Highway Engineering. His educational grounding shows that contrary to the false class assumption of the ruling (ruining!) elite, the labour movement is indeed knowledge led.

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    One essential imprint of HA is cultivating a knowledge-based movement. As the founding president of the NLC, he consciously attracted first class, conscious graduate activists to the NLC as full time officers. On graduating in the late 80s, he single-handedly pulled me out of an equally fulfilling media job to the NLC to swell the ranks of the NLC Secretariat ably led by late Dr Lasisi Osunde, supported by tested comrades like Lawson Osagie, Dr Yahaya Hashim, Salisu Muhammed, Femi Aborishade and a number of others. He pioneered the inclusion of labour candidates on the participants list of NIPSS, Kuru Jos.

    A witty wag and a “mobile library”, trade unionists and comrades alike globally cannot wait for his compelling memoir! As the president of the NLC, he was a resource fellow at the seminar series of Senior Executive course (SEC 2) of 1980. After the usual question and answer sessions, he demanded for labour participation at the executive course initiated by Obasanjo military regime meant to build capacity for executives drawn from the tripod of government, business and labour communities with the objective of working towards a better society. Since then, NLC/TUC had sent scores of participants who are now members of the National Institute (mnis).

    HA was almost an activist by birth. And he is still organizing at 85 (a national trustee of Academic Staff Union of Universities ASUU!). He was a star veteran speaker at the 2025 May Day rally at Eagle Square in Abuja. Once an organizational man, always one! Comrade Hassan Sunmonu was once an active students’ union leader; secretary, Muslim Students’ Society (MSS), Yaba Technical Institute Branch from 1958 – 1961, national auditor, Muslim Students’ Union Society of Nigeria between 1962 -1967, President, Yaba College of Technology Students’ Union between September 1966 – June, 1967. He was president, National Association of Technological Students (NATS) between September 1966 – June, 1967 and second vice president, National Union of Nigerian Students (NUNS) between September 1966 – June 1967.

    His unblemished trade union career has spanned well over five decades! He was once the second assistant secretary (international), Public Works Aerodrome Technical and General Works’ Union of Nigeria between August 1974 – November 1977; president, Civil Service Technical Workers Union of Nigeria between November, 1977 – February, 1981; president, Nigeria Labour Congress between February 1978 – February, 1984;, Director of Industrial Relations, Civil Service Technical Workers Union of Nigeria between march 1984 – October, 1986. Until recently he was the Secretary-General, Organisation of African Trade Union Unity (OATUU) from October 1986. HA’s trade union career was both by popular elections through workers’ votes and also full appointment.

    Following the recommendations of the Justice Adebiyi Tribunal of Inquiry into the Activities of the Trade Unions in 1977, under the military, some unionists including number one labour leader, Chief Micheal Imoudu were “banned” from trade union activities. Under the controversial policy of “guided democracy” and “limited government intervention”, the military regime of Olusegun Obasanjo had aimed at cultivating a tamed and subservient labour centre. However, the workers reaffirmed their preference for independent organization by electing Hassan Sunmonu as the first president of the restructured congress in 1978 with others like D.C. Ojeli, P.O. Ero-Philips, late M. E. Mpamungo, deputy president, treasurer and deputy treasurer respectively. HA’s leadership of NLC from 1978 to 1984 is a compulsory read for today’s trade unionists on how to operate under a new democratic dispensation. NLC under HA fought and won the battle to make May 1 a public holiday, fought and won the struggle for a new minimum wage of N125 ($240) in 1981 after a successful nation-wide strike under President Shehu Shagari’s administration. Given the current poverty of knowledge on the imperatives of national minimum wage among most state governors, legislators, I recommend Comrade Hassan Adebayo and his memoirs for beginners in minimum wage determination through collective bargaining and collective actions.

    Notwithstanding the divisive strategy of the Second Republic politicians aimed at splitting the NLC, into “democrats” and “Marxists”, HA sustained the unity of the trade movement through all-inclusive ideologically-driven movement. He championed similar unity efforts within NLC in 2015 under his respected chairmanship.

    Very few unionists courageously talked straight to power. The historic Charter of Demands under HA leadership remains the first agenda-setting document for decent work by Nigeria’s working class. As a worker, Comrade Hassan Sunmonu had added value to developmentalist Nigeria. As an engineer with Federal Ministry of works, he worked on so many offices and road projects that included Zaria – Kano Road reconstruction; Igolo – Porto Novo Road (Benin Republic); dualization of Denton Causeway (Oyingbo – Iddo, Lagos) by direct labour; construction of the National Arts Theatre, Lagos; and construction of the Third Mainland Bridge, Lagos, among others.  A multi-linguist; he is fluent in Yoruba, English, French, Italian and Twi (Ghanaian language). HA has been honoured nationally and internationally. Recipient of Officer of the Order of the Niger (OON) on December 18, 2001, he was also honoured with the National Order of Burkina Faso in December, 2009.

    Happy 85th  birthday to both HA, twin brother, Hussein Sunmonu, and providentially his wife, Alhaja Wasilat Titilayo Sunmonu, who shares birthday with him and turns 76 today! Happy birthday to a legendary veteran comrade.

    •Comrade Aremu mni is Director General Micheal Imoudu National Institute for Labour studies, Ilorin, Kwara State

  • Nigeria’s dilemma in fight against insecurity

    Nigeria’s dilemma in fight against insecurity

    • By Mike Kebonkwu

    Nigeria cannot defeat insecurity for as long as we continue to call criminals freedom fighters!  We cannot defeat criminality and insurgency if we continue to defend anarchists and terrorists as religious martyrs persecuted for faith. To defeat insecurity we must all see the criminals for who they are; a scourge and enemies of the state to be decisively dealt with. 

    Advocating for negotiation, rehabilitation, compensation and political engagement with bare-faced criminals and terrorists makes crime attractive. Insecurity in Nigeria has become like Octopus, cut one appendage, it continues with other legs; it is migratory and communities are sometimes complicit, and unwilling to give information about their presence. 

    How does the nation tackle the scourge of insecurity in a complex and divided country like ours? While some politicians and elites prefer appeasement and negotiation, others feel that it should be confronted with necessary lethal force which will force them to surrender. We got to a point that many Nigerians felt that the government should engage private security contractors and mercenaries to fight the insurgency in the Northeast that was fast spreading to other parts of the country.  I know from personal experience that the Nigerian military has the capacity to rein in the criminals and terrorists if the necessary leadership and political will are made available. 

    The entire country has become theatre of operation and the criminals have become more daring and reckless. The bandits are operating in the Northwest with ferocious force and bloody campaign.  Every other day, there is a splinter group with equal violence like the Lakurawa.  Whether the insurgents and bandits tormenting the country are zealots driven by religious ideology or not, they are criminals and enemies of the state; their tribes notwithstanding.  We should stop reducing the argument to labelling and stereotyping of tribes and focus on dealing with the scourge. 

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    Insecurity is a complex industry and a huge business with equally complex networks.  We are also contending with killer herdsmen and kidnappers in the Middle Belt down to the South.   It has been agonizing for the Southeast who are under the yoke of bloody campaign by unknown gunmen and militant agitation for self determination.  Some analysts have been loud, demanding that the government should engage friendly countries for defence and intelligence supplies and support. 

    It has taken the threat of the maverick narcissist, Donald Trump the president of the United States of America who promised to come gun-a-blazing to attack the “ISIS” (The Islamic State of Irag and Syria) backed terrorists in Nigeria after designating Nigeria a country of particular concern (CPC) on account of perceived persecution and genocide of Christians to rekindle the fire on the government on the urgency to act. 

    By the way, President Donald Trump is not a Christian religious crusader. He is an uncontrollable power drunk and  the scourge of the 21st Century civilization like the Biblical Nebuchadnezzar.   He is an impulsive tyrant who does not recognize any rule of engagement.  He unleashes America’s military might on countries and organizations he suspects to be supporting global terrorism and political dictatorship in Third World countries. He may have bowed to the pressures of some evangelicals to intervene in Nigeria to halt the haemorrhage which has become common place in the country.  At last, Donald Trump made good his threat and on December 25, 2025 the United States military launched missiles from their platform warship off the coast of Guinea into Jabo, an obscure town in Sokoto State. We are told that it was a joint operation with the Nigerian government supplying the intelligence. Nobody appears to know the extent of the casualty suffered by the insurgents and terrorists.  However, the missile attack has sent real jilters and has recalibrated the fight against insecurity with the Nigerian military becoming more offensive.  However, some elites and religious fanatics are up in arms that the missile launch  on the terrorists is targeted against  Muslim north, while some errant activists see it as a violation of our sovereignty. 

    It is intellectual dishonesty to argue that the American strike is a violation of our sovereignty after the government as openly explained it was at its approval in joint operation.   In any case, one wonders what is actually left of our sovereignty when terrorists and non state actors collect taxes in the ungovernable spaces and some local councils in the north, while militant agitators for self determination impose and enforce restrictions in states in the Southeast. 

    In saner climes, the spy agencies should have full dossiers of every person in public space especially the political elite and religious clerics spreading incendiary and inciting discontent in a secular state.  They are to be picked up for questioning where it is clearly they have become complicit and acting as mouthpiece for the criminals. The security agencies should also have the profile of all those driving the criminal underworld instead of chasing protesters, critics and political witch-hunt.  We do not want bandits to be killed because they are our bandits; we do not want terrorists to be killed because they are our terrorists, martyrs of faith.  We do not want kidnappers and marauding killer herdsmen to be killed because they are our kinsmen.   Yet we offer the poor masses as sacrificial lambs and ransom to the deities of these criminal cartels daily on the roads.  

    We cannot defeat insecurity and criminality by arming tribal militias with military grade weapons. We cannot defeat terrorism with proliferation of firearms and light weapons in the hands of non state actors. The country is awash with weapons. We are creating and arming every paramilitary organization and agencies.  Very soon we will ask that the Boys Scout should be armed.  We have militarized the entire political space of Nigeria without safety and protection.

    The role and responsibility of the National Security Adviser (NSA) in relation to the coordination of operational issues and arming of paramilitary organizations and tribal militias should be interrogated.  We are inadvertently drifting towards arming tribal armies and militias without command and control which in no distant time will plunge the nation in another phase of security crisis.

    To make the country peaceful and engage in socio-economic activities again, the criminals terrorizing the country should be eliminated by all means possible. How do we achieve this?  Leave that to the military and equip them with clear marching order.  Nigeria should not be allowed to become the nest and haven or operational base and headquarters for global violent terrorists’ organizations.  We either agree and deal with the scourge of insecurity collectively as Nigerians and stop the divisive rhetoric and protection of criminals, or risk the inevitable historical solution of dissolution of the republic, God forbid!

    •Kebonkwu Esq is an Abuja-based attorney. He writes via mikekebonkwu@yahoo.com

  • Taming land grabbers in Ogun

    Taming land grabbers in Ogun

    By Passover Adeshina

    Land, the foundation of shelter, business, and investment has become one of Ogun State’s most contested assets, as cities like Abeokuta, Ifo, Ota, Obafemi Owode, Sagamu and Ijebu axis continue to grow and attract real estate developers from neighbouring Lagos. However, the surge in land demand has brought with it a dark underbelly: land grabbing, illegal sales, and violent encroachments.

    For years, these activities not only robbed individuals of their properties but also undermined investor confidence and threatened peace in communities. In response, the Ogun State government decided enough was enough and set up the Ogun State Land Task Force to restore sanity to the system.

    Governor Dapo Abiodun inaugurated the Special Land Task Force to address a problem that had festered for decades. The 10-member team, drawn from the Bureau of Lands and Survey, Ministry of Justice, security agencies, and other stakeholders, was mandated to investigate complaints, recover encroached lands, and prosecute offenders.

    Speaking at the inauguration, Governor Abiodun said the initiative was “a response to the cries of citizens who have suffered from intimidation, illegal acquisition, and the activities of unscrupulous land speculators.”

    The task force’s work is backed by the Prohibition of Forcible Occupation of Landed Properties and Other Related Offences Law of 2016, popularly known as the Anti-Land Grabbing Law. The law makes it a criminal offence to forcibly occupy land, sell the same plot to multiple buyers, or use threats to dispossess lawful land owners. To criminalise all aspects of land grabbing the Ogun State House of assembly is reviewing the law.

    At its core, the task force’s mandate is to ensure that every parcel of land in Ogun State is governed by law, not by might. Its responsibilities include: Investigating land fraud, encroachments, and unauthorized sales, recovering lands acquired through fraudulent means, enforcing court judgments on land disputes and arresting, prosecuting land grabbers and their accomplices.

    According to the Director-General of the Bureau of Lands and Survey, Segun Fowora, “We have recorded several successes since the task force began operations. We’ve recovered illegally occupied lands, dismantled criminal rings, and restored confidence in property ownership.”

    The task force has not hesitated to go after powerful offenders, a move that has both earned it praise and criticism.

    In April 2025, the government arraigned the suspended Olu of Obafemi Owode, Oba Taofeek Owolabi, for allegedly selling more than 500 acres of land without authority. The charges included conspiracy, fraudulent sale, and forceful takeover. The case sent a clear message: even the influential are not above the law.

    Similarly, in September 2025, the task force operatives made arrests in Ilaro, following reports of land grabbing by armed groups. Communities in Ado-Odo/Ota and Sagamu have also witnessed coordinated enforcement operations, leading to recovery of government and private lands.

    Ogun State government also filed charges of forceful takeover of land against other monarchs and notable chiefs such as, Oba Fatai Matanmi, the Onijoko of Ijoko- Ota, Oba, Yusuf Olasunkanmi, the Olu of Orile- Igbon, a town in Igbesa and Chief Lekan Agbogun and Chief Akinbowale Beckley in Mosafejo area of Abeokuta.

    These actions have been widely reported in national dailies and have strengthened the perception that Ogun State is serious about ending impunity in land dealings.

    Beyond enforcement, the government is adopting a proactive strategy, which is public sensitization and enlightenment to educate the mases. In collaboration with the National Orientation Agency (NOA), the Bureau of Lands and Survey has launched a state-wide campaign to educate citizens on proper land documentation, title registration, and verification processes.

    “Most victims of land fraud are those who fail to verify ownership at the Land Registry,” noted Fowora. “We want to prevent crime before it happens by empowering people with knowledge.”

    Billboards, radio programs, and community outreaches are being used to spread awareness, especially in rural and peri-urban communities where fraudulent sales are rampant.

    While the land task force has made commendable progress, the path is not without obstacles. Many land grabbing cases linger in courts for months or even years and legal experts suggest that special land courts could help speed up trials and ensure timely justice. Also, some suspects are well-connected traditional rulers, politicians, or businessmen making enforcement politically sensitive. The government’s prosecution of a monarch, however, has shown political will.

    Covering the entire state requires logistics, manpower, and modern surveillance tools. Analysts believe additional funding and training are vital to sustain operations and ensure professionalism.

    Reactions from the public remain largely positive, as. Morenike Adebajo, a landowner in Ota, described the task force as “a relief to those of us who have been terrorized by omo onile (land thugs) for years.”

    However, others urge caution. “We support the initiative, but the government must ensure no innocent person is harassed in the process. Due process must always be followed” said community leader Chief Adewale Oduro of Obafemi Owode area.

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    These perspectives highlight a central tension: balancing enforcement with fairness.

    Urban development experts view Ogun’s model as a template for other states. Tunde Olofin, a policy analyst at Ibadan, noted, “Ogun State’s approach combines law enforcement, awareness, and institutional coordination. If sustained, it could drastically reduce land-related violence not only in Ogun but across the Southwest.”

    He added that public access to land information through digitized registries and transparent documentation would further strengthen the system.

    For the Ogun State Land Task Force to maintain credibility and long-term impact, there should be a regular public reporting on cases handled and convictions secured, transparent complaint channels for citizens alleging misconduct, stronger inter-agency collaboration among the principal stakeholders Bureau of Lands and Survey, Ministry of Justice, Ministry of Physical Planning and Urban Development and the Nigerian Police Force.

    In addition, there should also be adequate funding for equipment and personnel training and improved digitization of land records to prevent manipulation and duplication.

    As Ogun State continues to urbanize, the importance of a transparent and secure land system cannot be overstated. The land task force’s bold interventions from prosecuting influential figures to educating ordinary citizens have begun to shift the culture from lawlessness to accountability.

    In the words of Governor Abiodun “ Our commitment is to ensure that no person, no matter how highly placed, will use power or privilege to dispossess another of what is rightfully belongs to them. Ogun State will remain a place of peace, justice, and opportunity for all.”

    To walk the talk, the governor has ensured the digitalisation of land administration processes for reliable land information Systems through the implementation of the Ogun State Land Revenue and Management System enhancement project (OLARMS enhancement project).

  • Nigerian Tax Acts: Benefits beyond the rhetoric

    Nigerian Tax Acts: Benefits beyond the rhetoric

    By Joseph Tegbe

    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, administratively anaemic 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, selectively enforced, 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, Minister of Finance Wale Edun, and the NRS chairman, 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. No government 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 rhetoric, 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.

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    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 zero rated VAT items.

    Around the world, governments recognize that these sectors are foundational to long term 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 zero rated 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 materials needed for the wellbeing of Nigerians.

    Perhaps, the most forward-looking aspect of the Tax Reform Acts is the emphasis on digitalization and technology driven 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 e invoicing have become standard features of efficient tax systems globally. E invoicing has helped many countries improve VAT compliance, reduce fraud, and generate reliable, real time 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 decision making.

    A reform for the long term

    The Tax Reform Acts are best understood as part of Nigeria’s long term 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 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.

    • Tegbe, FCA, FCIT is the chairman of the National Tax Policy Implementation Committee (NTPIC)

  • Reading Nigeria’s governance signals

    Reading Nigeria’s governance signals

    By Lekan Olayiwola

    A year of reforms, security operations and civic pressure has left Nigeria with a clearer picture of its strengths and its blind spots as the country enters a decisive political cycle. As institutions move and reforms multiply, Nigerians are sending signals about dignity, trust and recognition that will shape the country’s path in 2026 and beyond.

    Nigeria rarely announces its turning points. They surface instead through patterns of repeated decisions, familiar silences, and the slow accumulation of consequences. In 2025, a year thick with reform rhetoric, institutional motion and civic agitation, several realities became newly legible, not because they were unprecedented, but because they could no longer be ignored.

    Across security, elections, labour, education, welfare, borders, gender, youth and diplomacy, Nigeria in 2025 did not resemble a state frozen by indecision. Institutions moved. Policies were issued. Operations were launched. Reforms were pursued with visible energy. Yet this motion often lacked alignment between agencies, policy intent and lived outcome; and between action and understanding.

    The defining question was therefore not whether the state was acting, but what it was able to hear, absorb and adjust to while acting. What follows is not an indictment, nor a catalogue of failure. It is a careful reading of signals and responses, of convergences and disconnects, and of the widening space between institutional effort and public experience, alongside a cautious projection of what these patterns suggest as Nigeria moves on in 2026.

    Governance is working, listening is uneven

    One of the clearest lessons of 2025 is that Nigeria’s challenge can no longer be reduced to incapacity. Across sectors, institutions demonstrated technical competence. Elections were organised. Security operations were executed. Revenues tracked. Reforms designed. Data generated. Yet alongside this activity, a quieter pattern emerged.

    Institutions processed figures more readily than feelings, systems more easily than suffering. Votes were counted, but many voters felt unseen. Security operations disrupted threats, but communities often felt unheard. Welfare transfers moved resources, yet dignity did not always survive the process. Education spending expanded, even as anxieties around safety and learning outcomes lingered. What became legible was not failure, but a partial vision of governance where lived experience is treated as anecdote rather than evidence.

    Policy language drifts from everyday life

    Policy language in 2025 grew increasingly sophisticated. Nigerians were offered strategies, frameworks, roadmaps and architectures. Yet everyday life continued to be narrated in terms of checkpoints, unsafe classrooms, porous borders, unexplained hunger, youth without voice. This was not merely a communication problem. It was structural, a widening gap between how power explains reality and how citizens inhabit it.

    Where institutions speak in abstraction, citizens respond through emotion: frustration, withdrawal, migration, protest or quiet disengagement. None of these responses are irrational. They are the predictable outcomes of being unseen. The lesson of 2025 is that when governance language floats above lived experience, legitimacy thins quietly even as formal authority remains intact.

    Truth is abundant, hearing is selective

    Nigeria in 2025 was not short of truth-tellers. Workers raised alarms early. Communities spoke repeatedly. Journalists documented persistently. Analysts warned. Faith leaders reflected. Young people signalled distress, sometimes politely, sometimes disruptively. What emerged was not silence, but selective hearing.

    Institutions absorbed truths aligned with stability management and risk containment, while postponing those that demanded deeper moral reckoning. Data travelled faster than testimony. Metrics moved more easily than meaning. This was rarely driven by malice. It was the product of systems designed to prioritise control over comprehension. The effect, however, was familiar: truth circulated widely, but seldom reshaped decisions.

    Perhaps the most unavoidable signal of 2025 was that Nigeria’s challenges no longer arrive neatly packaged. Security bleeds into education. Hunger intersects with climate stress. Border failures feed domestic insecurity. Electoral credibility touches youth trust and civic space. Treating these as separate files sustains the appearance of action while preserving fragmentation. Lived experience, however, is cumulative. Citizens feel the full weight at once, not in policy compartments. By the close of 2025, this reality had become increasingly difficult to deny.

    Civil society, labour groups and communities were often diagnosing problems earlier than institutions responded to them. Warnings preceded escalation. Signals arrived before crises. Yet formal responses frequently came only when costs rose, and intervention became unavoidable. This lag is not unique to Nigeria, but in a strained governance environment, it carries particular consequences.

    If 2025 revealed patterns, 2026 is likely to extend them. Institutions will remain active. Security will stay central. Reforms will continue. Preparations for the next electoral cycle will intensify. What may lag is trust. Unless lived experience is more deliberately integrated into decision-making, action alone may not restore confidence.

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    The risk is not collapse, but legitimacy fatigue, a slow erosion of belief that institutions understand the human consequences of their choices. Security responses may stabilise territory while leaving relationships fragile. Electoral systems may function while public faith remains conditional. Youth voices may grow louder or more inventive if recognition continues to be deferred.

    Even as formal systems persist, another vocabulary is gaining ground. It speaks of dignity, empathy, care and restoration not as soft ideals, but as governance assets. It insists that experience is evidence, that trust is infrastructure, and that legitimacy cannot be engineered by process alone. This language is not yet dominant. But it is acquiring moral authority precisely because it names what many Nigerians feel is missing.

    The question 2025 leaves behind

    Nigeria’s central challenge is no longer best framed by asking whether the state can act. A more urgent question is whether the state can listen and learn while acting. Empathy, in this sense, is not sentimentality. It is institutional intelligence: the capacity to treat human experience as data, dignity as a metric, and trust as infrastructure. Where this intelligence is absent, reforms struggle to land. Where it is present, even limited capacity can generate legitimacy.

    Nigeria entered 2026 with options still open. The country can continue refining systems while leaving lived experience to chance or it can begin weaving human reality into the centre of governance. This does not require abandoning authority or order. It requires widening the circle of what counts as evidence.

    The most enduring legacy of 2025 is that Nigerians did not withdraw. They spoke, warned and imagined better alignment between authority and care. As the country moves forward in 2026, the decisive question is whether institutions will continue to respond after the fact or learn to recognise the signals before trust thins further.

    •Olayiwola is a peace & conflict researcher and policy analyst. He can be reached at lekanolayiwola@gmail.com