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Tag: Taiwo Oyedele

  • New tax laws boosts workers’ January pay, says Oyedele

    New tax laws boosts workers’ January pay, says Oyedele

    Many Nigerian workers who received their January 2026 salaries are already seeing a difference in their pay, as deductions under the Pay As You Earn (PAYE) tax system have gone down, leaving them with more money to take home.

    This information was shared by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, in a statement he posted on his WhatsApp platform. According to him, feedback from employees across different sectors shows that the new tax laws are beginning to ease the tax burden on workers.

    “To make sure that the people responsible for applying these changes in their organisations fully understand what to do, the committee is organising an implementation session in partnership with the Joint Revenue Board,” Oyedele said.

    He explained that the meeting is aimed at senior staff who handle salaries and taxes in companies, including Human Resources directors, payroll managers, chief financial officers, tax managers and other top executives who oversee staff pay and tax compliance.

    Oyedele also addressed concerns that have been circulating among members of the public about possible new charges on electronic transfers and money kept in bank accounts. He said clearly that the tax reforms did not introduce any new tax or levy on bank transfers or funds in people’s accounts.

    “The new laws did not create any tax on electronic transfers or money in your bank account. In fact, many businesses can now claim back input VAT on bank charges,” he said.

    To ensure that banks and other financial institutions understand how to apply the new rules, Oyedele said a separate engagement session was recently held. The meeting brought together the Nigeria Revenue Service, the Joint Revenue Board, the Central Bank of Nigeria and the Presidential Fiscal Policy and Tax Reforms Committee.

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    He noted that the session included officials such as risk and compliance officers, legal advisers, chief financial officers and regulatory affairs executives from fintech companies, commercial and microfinance banks, pension fund operators, asset managers, investment and securities firms, and other financial institutions.

    During the discussions, participants focused on making sure customers are not wrongly charged, especially in the area of taxes linked to bank services. They also talked about the need for a Tax Identification Number for bank accounts used for business or income purposes, a rule that has been in place since January 13, 2020.

    Other areas covered included giving customers clear guidance on how to file their tax returns and claim lawful deductions, as well as the removal of Tax Clearance Certificates as a requirement for foreign exchange transactions to make it easier for people and businesses to operate.

    Oyedele added that the meeting also explained the proper process tax authorities must follow when using their powers to recover unpaid taxes, and the extra protections now available to taxpayers through the Office of the Tax Ombud.

    He said the overall goal of the tax reforms is to bring more people and businesses into the formal economy, reduce confusion caused by different tax rules, and improve access to financial services, while building trust and making the financial system work better for everyone.

  • How macro economic reforms turned around economy, by Oyedele

    How macro economic reforms turned around economy, by Oyedele

    Nigeria’s unmet FX demand would have grown from $7 billion in 2023 to $10 billion in 2025 had the Federal Government not embarked on FX and trade reforms, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele has said.

    The Federal Government recently embarked on critical reforms in FX, exchange rate, oil and gas, trade and taxation to reposition the economy for growth and development.

    In a report-Economic Overview and Highlights of Current Fiscal & Tax Reforms- released to the media, the tax expert, explained that the reforms have led to trade surplus, unified FX rate, clearance of FX backlog, rise in foreign reserves and use of naira cards for international transactions abroad.

    These developments, he said, meant that the painful but necessary reforms embarked by the Federal Government are beginning to yield positive macro results.

    He disclosed that trade deficit, multiple FX windows, unmet FX demand, and declining foreign reserves and zero FX in naira cards abroad dominated the pre-reforms era of 2023.

    Also, on the fiscal position (tax, budget and debt) before the reforms, he said tax-to-Gross Domestic Product (GDP) ratio was less than 10 per cent, debt service-to-revenue was around 97 per cent, there were high deficit, low capital expenditure and N30 trillion Ways & Means.

    The reforms, he said, have led to tax-to-GDP rising to 13.5 per cent, debt service-to-revenue less than 50 per cent, there is declining deficit, more infrastructure spend and moderation in Ways & Means.

    He disclosed that without the reforms, tax-to-GDP would have been less than 10 per cent, debt service-to-revenue would have hit 100 per cent, capital expenditure near-zero and N50 trillion Ways & Means.

    On subsidy, inflation and prices, Oyedele disclosed that pre-2023, there was unsustainable petrol subsidy which led to product scarcity, high inflation and rising interest rates.

    Then came the reforms, leading to petrol subsidy removal, product availability, moderating inflation and high but easing interest rates.

    Without the reforms, petrol subsidy would have collapsed by now, product scarcity would have persisted, leading to hyperinflation and very high interest rates.

    In the oil and gas sector, pre-2023 era was dominated by declining crude oil & gas production, oil theft, low investor confidence.

    Also, the reforms led to rising crude oil & gas production, reduced oil theft, investment returning. Without the reforms, there would have been encumbered oil & gas production, low investment and more divestment.

    Oyedele said although there was rising poverty, declining decent job opportunities in pre 2023 era, although with the reforms, high poverty still exists but prospect of improving job opportunities as firms recover remains high.

    Without the reforms, the country would have been facing more poverty and fewer decent jobs at present.

    Continuing, he said the pre-reforms era of 2023 was dominated by market-unfriendly policies, weak coordination, poor communication and inefficient financial management. The reforms, he said have brought about market-friendly policies (capital market reforms), stronger coordination and communication and improved fiscal management.

    Not embarking on the reforms would have led to policy inconsistency, market-unfriendly policies and inefficient fiscal management.

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    Before the reforms, Nigeria faced weak sovereign credit standing, but the reforms led to sovereign credit rating upgrades, and stronger investor confidence. Without the reforms, there would have been no upgrades and investment climate would have worsened.

    According to the Central Bank of Nigeria (CBN) Governor, recent assessments by rating agencies have provided significant external validation of Nigeria’s reform trajectory.

    Fitch, Moody’s, and Standard & Poor’s have all acknowledged the positive impact of Nigeria’s reforms, from stronger reserves to improved fiscal discipline and greater FX transparency.

    Across all three agencies, the direction is consistent: fundamentals are strengthening, reform credibility is rising, and Nigeria’s risk profile is improving.

    Fitch upgraded Nigeria from B- to B (stable), recognising our commitment to orthodox policies including FX reform, monetary tightening, and ending deficit monetisation. Moody’s also raised its rating from Caa1 to B3 in May, citing improved fundamentals and a stronger outlook. And just this November, S&P affirmed B-/B and revised its outlook to positive, underscoring sustained reform momentum, rising reserves, and enhanced macroeconomic resilience.

    Moody’s has also concluded its periodic review and while headlines may highlight risks, as rating agencies are mandated to do, the substance of the report reaffirms ongoing improvements, including stronger fiscal metrics and deeper diversification.

    “These nuances matter and this is precisely why we must continue to tell our own story clearly, consistently, and confidently. Nigeria’s model-implied scores are trending upward, and as reforms deepen and data continues to validate progress, these legacy qualitative reservations will diminish paving a clearer path to future upgrades,” he said.

    “These endorsements of Nigeria’s policy direction have translated directly into improved borrowing terms, increased investment inflows, and enhanced credibility. Underscoring this progress, Nigeria last year, successfully raised US$2.35 billion through a Eurobond issuance, attracting US$13 billion in orders, the largest in the nation’s history,” he added.

  • ‘Tax Laws won’t push up air fares’

    ‘Tax Laws won’t push up air fares’

    • Oyedele debunks Onyema’s claim

    The Presidential Fiscal Policy and Tax Reforms Committee yesterday controverted claims that the new tax laws, which implementation begins on Thursday, would lead to steep increase in airfares.

    Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, said rather than being a burden, the new tax laws were deliberately designed to ease the tax burden on Nigerian airlines.

    Chairman of Air Peace, Allen Onyema, had raised the alarms that flight tickets could climb up dramatically once the new tax regime comes into effect.

    Oyedele said the new tax laws were products of extensive engagement with airline operators and as such provide contained several measures aimed at removing bottlenecks and improving the operating environment for the airlines.

    He said: “Contrary to the claim that the new tax laws will hurt the industry, the reform is part of the solution, not the source of the problem. Several long-standing tax issues driving costs in the sector have been resolved in the new tax laws or are being structurally addressed”.

    He pointed out that one of the central components of the tax reform was the removal of the 10 per cent withholding tax on aircraft leases, which was the biggest tax burden faced by operators.

     “The single biggest tax burden on airlines has been the 10 per cent withholding tax (WHT) on aircraft leases under the existing law. This has now been removed and replaced with a rate to be determined in a regulation, creating the legal basis for either a full exemption or a significantly lower rate.

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    “To put this in context, on a $50 million aircraft lease, an airline currently pays $5 million in WHT, which is non-recoverable and therefore directly increases operating costs and strains cash flow. Eliminating this burden is a major structural relief for the sector,” Oyedele said.

    He also explained that while the temporary suspension of Value Added Tax (VAT) in 2020 was attractive in principle, it came at a hidden cost to operators who could not claim input VAT on several operational expenses.

    He highlighted that under the new laws, airlines would become fully VAT-neutral, with the ability to claim VAT on imported and locally procured assets, consumables, and services.

    “Any VAT paid on imported or locally procured assets, consumables, and services will become fully claimable. Where an airline has excess input VAT, the law mandates a refund within 30 days, supported by a fully funded tax refund account and the option to offset VAT credits against other tax liabilities. This directly reduces cost pressure and improves liquidity,” Oyedele said.

    He further clarified that exemptions on commercial aircraft, engines and spare parts remain intact.

    He said: “Existing exemptions on commercial aircraft, engines, and spare parts remain fully in place. There is no reversal or new burden introduced under the tax reforms”.

    Addressing concerns over the impact of VAT on ticket prices, Oyedele said that airline operations operate on thin margins and that the effective impact of a 7.5 per cent VAT — within a VAT-recoverable system — is much lower than feared.

    “Even in a worst-case scenario where VAT were not claimable, the maximum impact would still be 7.5 per cent, not the price increases being suggested. That is, a N125,000 ticket becomes not more than N134,375 and a N350,000 ticket not more than N376,250,” Oyedele said.

    He pointed out that the new laws also introduce a pathway to reduce corporate income tax from 30 per cent to 25 per cent, a development expected to benefit airlines and other businesses.

    He added that several profit-based levies, including Tertiary Education Tax, NASENI, NITDA and Police levies, had been consolidated into a single Development Levy to simplify tax administration and improve certainty.

    Oyedele acknowledged the long-standing problem of multiple charges faced by airlines but insisted that these were not created by the new tax reforms, adding that government agencies were working with operators to address these concerns.

    He said: “The multiplicity of levies imposed on airlines and flight tickets is real, but these charges are not created by the new tax laws. It is therefore incorrect to attribute them to the reform.

    “The government is actively working with operators and relevant agencies to achieve a lasting solution. Importantly, the tax harmonisation provisions in the new laws mean the situation can only improve, not worsen, from 2026.

    “The new tax laws provide a strong legal and policy framework to resolve the long-standing tax challenges in the aviation sector, reduce operating costs for airlines, and ensure minimal impact on passengers”.

    Oyedele’s clarifications came as various groups canvassed divergent views on the impending implementation of the new tax laws.

    The Minority Caucus of the House of Representatives yesterday called for the suspension of the implementation of the new tax laws pending the outcome of investigations by the House.

    But a coalition of civil society organisations under the platform, The Patriots, also yesterday dismissed allegations that the Tax Reform Acts 2025 were altered after passage by the National Assembly, insisting that official parliamentary records remain intact and unchanged.

     In a statement issued in Abuja, the group said the claims of discrepancies between the Acts as passed and the versions published in the Official Gazette “do not hold water,” describing them as unsupported by facts and existing legislative records.

    Another group, Incorporated Trustees of African Initiative for Abuse Public Trust (AIAPT), yesterday urged the High Court of the Federal Capital Territory (FCT), Abuja to stop the Thursday’s implementation date.

    Listed as defendants in the suit were Federal Republic of Nigeria, President of the Federal Republic of Nigeria, Attorney General of the Federation, President of the Senate, Speaker of the House of Representatives and National Assembly.

    However, while the court granted the plaintiff’s request to be allowed to serve some of the defendants through substituted means, the court did not grant any injunctive reliefs including request for an order stopping the implementation of the new tax laws as scheduled.

    Justice Bello Kawu, who is sitting as a vacation judge, while ruling on an ex-parte motion filed by the plaintiff’s lawyer, Nnamdi Mba, ordered that court documents meant for the Federal Republic of Nigeria and the President be served on them through the office of the AGF.

    The judge also ordered that court documents meant for the Senate President, the House of Reps Speaker and the N/Assembly should be served on them through the Clerk of the N/Assembly.

    He however, declined to grant some injunctive reliefs sought by the plaintiff, but ordered it to put the defendants on notice.

    The plaintiff had, in the motion, marked: M/17240/2025 prayed for an order of interim injunction restraining the Federal Government, the Federal Inland Revenue Service (FIRS), the National Assembly, or any of its agencies from implementing any of the provisions of the gazetted Nigeria Tax Act (2025), Nigeria Tax Administration Act (2025), the Nigeria Revenue Service (Establishment) Act (2025) or the Joint Revenue Board of Nigeria (Establishment) Act (2025) for any reasons pending the hearing and determination of the motion on notice for interlocutory injunction.

    It equally sought for an order of interim injunction restraining the President, either by himself or through any agency of the Federal Government created under the gazette Nigeria Tax Act (2025), Nigeria Tax Administration Act (2025), the Nigeria Revenue Service (Establishment) Act (2025) or the Joint Revenue Board of Nigeria (Establishment) Act, 2025) from implementing the provisions of the Acts in any states of the federation where applicable, pending the hearing and determination of the motion on notice.

    Further proceedings in the case has been adjourned till December 31, 2025.

    An opposition lawmaker, Abdulsamad Dasuki of the Peoples Democratic Party (PDP, Sokoto), had alleged gazetted tax laws were different from the version passed by the National Assembly and signed by the President. The Speaker of the House of Representatives, Rt. Hon Abbas Tajudeen, then set up a committee to investigate the allegation.

    However, the Minister of Information and National Orientation, Alhaji Mohammed Idris, said that the Federal Government would proceed with the implementation of the new tax laws as passed by the national Assembly and signed into law by President Bola Tinubu with effect from January 01, 2026.

    He said the government has followed through due process of extensive consultations, legislative deliberations and approvals and final enactment by the President.

    According to him, the government has only one version of the new tax laws, which was duly processed by the National Assembly and signed by the President.

    In a statement by the Minority caucus signed by the Minority Leader, Kingsley  Chinda, Minority Whip, Ali Isa J.C, Deputy Minority Leader, Aliyu Sani Madaki and Deputy Minority Whip, George Ozodinobi, the opposition lawmakers said the government should suspend the implementation  of the tax laws until investigations are concluded and there is clarity and certainty of the law to be implemented.

    “As such, we want to assure Nigerians that the Minority Caucus of the House of Representatives, will stand with the entire House to see that the circumstances surrounding this illegality is exposed and the culprits brought to book in the interest of justice for all Nigerians.

    “We are aware of the legitimate procedures towards the gazetting of laws, and it starts with the Clerk to the National Assembly (CNA) transmitting the actual copies of the laws to the relevant federal agency that gazettes all government documents, which means, the National Assembly is always the custodian of the genuine documents of the laws of the federation that have been passed, and, therefore, we will always make sure that it is the truth that prevails in moments of controversy such as this,” the lawmakers stated.

    In a statement signed by Muhammad Dauda on behalf of The Patriots, the group said the allegation of alteration and the subsequent controversy were needless as the authoritative records of the National Assembly are the Votes and Proceedings of both the Senate and the House of Representatives dated May 28, 2025, which were published on May 29, 2025, and have been in circulation since then.

    According to the coalition, a careful review of the harmonised copies of the Tax Acts, the Votes and Proceedings, as well as the Conference Committee reports, showed no material discrepancies in the laws passed by both chambers.

    While acknowledging allegations that two versions of the Acts may have appeared in the Official Gazette, the group stressed that gazetting is an administrative and ministerial function that cannot amend or override laws validly enacted by the legislature.

    “Gazetting merely gives public notice of laws already passed. It does not confer authority to alter, amend or rewrite Acts of the National Assembly,” the group stated.

    The group cited several court decisions to support its position, noting that Nigerian courts have consistently held that administrative publications cannot alter the substance or intent of legislation duly passed by parliament.

     The Patriots further noted that although allegations of alterations are serious and should be addressed through appropriate internal mechanisms, the burden of proof rests on those making such claims.

    The group commended the leadership of the National Assembly for its decision to re-gazette the Tax Acts in their correct form, as reflected in the harmonised clean copies, Votes and Proceedings, and Conference Reports.

    It described calls for suspension of implementation, repeal or re-enactment of the laws as unnecessary and constitutionally unsound, warning that such actions could create avoidable legal and fiscal uncertainty.

    The Patriots also praised the directive by the National Assembly leadership for the Clerk to issue Certified True Copies of the Acts to members of the public on request, describing it as a step that promotes transparency and public confidence.

    The coalition urged Nigerians to respect parliamentary records, support the prompt re-gazetting of the Tax Acts, and avoid narratives that could undermine democratic institutions.

  • POLICY OF THE YEAR: Tax reforms: Once the rejected stone

    POLICY OF THE YEAR: Tax reforms: Once the rejected stone

    For a legislation whose first public appearance in the nation’s fiscal governance space was drowned in the rancour of partisans, its eventual triumph, is not unlike the proverbial stone once rejected by the builder only to emerge as the chief pillar of the house. Indeed, the turnaround story of the four bills signed into law by President Bola Ahmed Tinubu on June 26 is more than a marvel; it’s akin to the eighth wonder of the world.

    Nigerians will recall that Tinubu, barely three months in office, precisely in August 2023, inaugurated the Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele, economist, accountant, and public policy expert. It was tasked with the broad mandate of enhancing revenue collection efficiency, transparent reporting of same, and the promotion of effective utilisation of tax and other revenues to boost citizens’ tax morale, and fostering a healthy tax culture, and drive voluntary compliance. The committee was given one year to deliver.

    The committee delivered – amidst strident opposition. It came up with four separate but intertwined bills: the Nigeria Tax Bill 2024, which sought to establish a comprehensive fiscal framework for tax regulation; the Tax Administration Bill which sought to provide a clear and concise legal structure for managing taxes in Nigeria to reduce disputes and enhance efficiency; the Nigeria Revenue Service Establishment Bill designed to repeal the Federal Inland Revenue Service Act and create the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill which proposed the creation of a tax tribunal and a tax ombudsman to address tax-related matters.

    Taken together, the bills are, arguably the most consequential of all the legislations enacted under the current presidency.

    Yet, if its introduction was meant to stimulate the long overdue conversation on how best to overhaul the national tax infrastructure, it turned out exactly the opposite. For some, it would become yet another item on the menu of division along Nigeria’s traditional fault-lines of religion and ethnicity, for others, it was yet another occasion to exhibit the wearisome ignorance by those known to thrust themselves into the front seats of public discourse even when they have nothing of substance to say.  

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    The first, perhaps the most unlikely blow on the bills would come from the National Economic Council, NEC, the conclave of 36 governors with Vice President Kashim Shettima, presiding. Rising from its 145th meeting in October 2024, NEC had ‘recommended’ that Tinubu withdraw the bill from the parliament – a rather strange if not entirely gratuitous advisory considering the level of work that had already gone into their making. This, the body justified on the need to “have wider consultations and also build consensus around these reforms”. 

    Ironically, NEC would not be explicit about the nature of the framework of consultation being sought at a time the National Assembly was already apprised of the bills. A more discerning, clear-headed President would admonish that the further consultations and engagement being sought by NEC and perhaps by others who shared their conviction, was better channelled to the National Assembly which had the authority to tinker with them as it pleased.

    Next to follow – and this came as no surprise – is the Northern Governors Forum (NGF) whose meeting, also in October 2024 had some notable northern traditional rulers such as the Sultan of Sokoto, Sa’ad Abubakar III; Shehu of Borno, Abubakar Amin El-Kanemi; Emir of Zazzau, Ahmad Bamalli; Ohinoyi of Ebira land, Ahmed Anaje; Etsu Nupe, Yahaya Abubakar; Emir of Kazaure, Najib Adamu and Emir of Bauchi, Rilwanu Sulaiman Adamu in attendance. The appearance of these leaders went beyond mere symbols; they sought to press the point about the bill being dead on arrival.

    In particular, the ‘conference’ claimed that the tax bills were against the interests of the North; lawmakers in their section of the country, who they reminded, had majority in parliament, were to reject the bills!

    A notable bone of contention was the proposed amendment to the distribution of Value Added Tax (VAT) to Derivation-based Model, which the forum contends would not only unfairly disadvantage the north but would negatively impact the region’s economic stability and potentially benefit southern states like Lagos.

    Even a leading northern cleric, Mansur Ibrahim, a professor from Sokoto State, couldn’t resist lending his voice to the reject-the-bills campaign. Alleging that the bill was shrouded in secrecy with its contents still unknown to many Nigerians, Sheik Ibrahim would go as far as to invoke God: “If they agree with the bill to be passed into law, we will pray to God to punish them”.

    He had earlier on praised Borno’s Senator Ali Ndume for standing firm in opposition to the bills; the same lawmaker who had publicly admitted that he had not read nor would be prepared to read the bills in question!

    By contrast, the south was generally more receptive to the tax bills.

    And so with this armada of forces arrayed against it, it was perhaps given that the bills stood no chance.

    A lot has certainly happened in the last five to seven months. The president on his part left nothing to chance with behind the scene consultations to address those grey areas that came up. So has the painstaking labour of engagement and public education undertaken by Oyedele and his team to get the lawmakers and other relevant stakeholders to understand the provisions of the laws and to appreciate its imperative at this time. As for the leadership of the two chambers of parliament, the Senate and the House of Representatives, they deserve no less commendation for rising above the din and for adroitly guiding the process through and this despite the orchestrated blackmail.

    In the end, Nigeria won – so to speak! The results – as they say – are there to show. On March 18, the House of Representatives took the first significant step when it passed its own version of the bills; this was closely followed by the senate on May 7-8 and finally the harmonised bills by both chambers on June 18 with President Tinubu signing them into law on June 26. Although caution is still very much the word given the challenges of implementation, there is, above all, a new sense that the country will ultimately be better for it.

    Surely, if managing to forge the new tax compact out of the mass of chaos exemplifies uncommon presidential leadership, its coming at this time and in spite of the odds makes it truly historic. Talk of the stone, nearly rejected becoming the central pillar of the Tinubu administration’s economic reform agenda.

  • New Tax Law: Banks to file reports on accounts with N25m quarterly turnover

    New Tax Law: Banks to file reports on accounts with N25m quarterly turnover

    • Govt rules out tax-related debit on bank customers’ accounts
    • Banks to demand TIN from taxable Nigerians

    Commercial banks are now required to file reports on bank accounts with N25 million quarterly turnover and above to the Federal Inland Revenue Service (FIRS) or other related agencies for effective tax monitoring.

    This is in alignment with the federal government’s new tax administration framework which comes into effect on  January 1, 2026, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, said yesterday in Lagos.

    Oyedele ,speaking    during a media workshop on the new consolidated tax law, explained that  the new dispensation has raised the threshold for mandatory reporting from N10 million to N25 million, which he said translates to “almost N100 million a year before any report is triggered.”

    Addressing the misconception that banks will begin reporting all transactions, Oyedele said the 2020 Finance Act already requires   accounts used for business to have a Tax Identification Number (TIN).

     Oyedele said only accounts that meet the turnover threshold would be identified and monitored for proper tax payment.

    Besides,he said  that banks request Tax Identification Number (TIN) from all taxable Nigerians in line with the new tax regime.

     According to him, Section 4 of the Nigerian Tax Administration Act, makes the possession of a tax ID mandatory for all taxable individuals.

    But  the requirement does not apply to students or dependents who, according to him,  will be exempted from tendering  TIN  to maintain a bank account.

    He also said there was no need for anxiety over possibility of banks directly debiting customers’ accounts over tax matters.

     “Nobody will debit your bank accounts in banks. Banks will not debit customers’ accounts for tax default,” he said.

    He dismissed fears that government plans to deduct money directly from bank accounts of taxpayers, insisting that such claims are “false, dangerous and capable of destabilising the economy.”

     He said the speculations on social media were based on ignorance and deliberate misinformation.

    “Let me say this clearly: nobody — not FIRS, not Central Bank of Nigeria, not any government agency — has the power to debit your bank account,” he declared.

      “Whether you have N50,000 or N50 million, nobody is taking any money from your account. It is simply not true.”

     Oyedele explained that the allegation arose from the consolidation of major tax statutes into a single code, which led many to assume that the government has introduced new enforcement powers.

    He said that the only existing mechanism that allows recovery of unpaid taxes is a court-ordered garnishee, which he described as “a long legal process that is almost never used.”

     “Even in extreme cases where someone owes hundreds of millions and refuses to pay, the government cannot just wake up and remove money,” he said.

      “They must assess you, notify you, allow objections, conclude the process, go to court, and get a judge’s order. Without that, nobody can touch your account.”

     According to him, in nearly three decades of tax administration work, he has “never seen a single instance where money was removed from an account without due judicial process.”

     He recalled the attempt under the former FIRS Chairman,  Babatunde Fowler  to impose post-no-debit orders on accounts suspected of tax evasion — a move that failed without recovering a single naira.

    His words:“that process didn’t succeed, and it created unnecessary panic.Nobody is repeating that mistake.”

     The tax reform chair warned that rumours could cause harmful panic withdrawals.

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     “One thing that can damage the economy very quickly is people rushing to withdraw their money out of fear,” he cautioned.

     “Nothing in the law authorises the government to debit accounts. Please help us educate others so we don’t create a problem where none exists.”

     Oyedele maintained that the goal of the reform is to simplify compliance, expand the tax net, and reduce the burden on households and small businesses.

     The Tax Reform Bills were signed into law on June 26,2025 by  President Bola Tinubu.

     They are the Nigeria Tax Act (NTA), The Nigeria Tax Administration Act (NTAA), The Nigeria Revenue Service Act (NRSA) and the Joint Revenue Board Act (JRBA), collectively referred to as “the Acts” hereafter).

     The Acts comprehensively overhaul the Nigerian tax landscape to drive economic growth, increase revenue generation, improve the business environment and enhance effective tax administration across the different levels of government.

     Highlights of the law include exemption of individuals earning NGN800,000 or less per annum from tax on their income and gains, while higher income earners will be taxed at a higher rate up to 25%.

    It also  increases the tax exemption threshold for compensation for loss of employment or injury from NGN10million to NGN50million.

    There is also provision for the establishment of Tax Ombuds office to liaise with the tax authorities on behalf of taxpayers, and serve as an independent arbiter to review and resolve complaints relating to taxes, levies, duties or similar regulatory charges.

  • Oyedele: Nigerians to pay less tax from next year

    Oyedele: Nigerians to pay less tax from next year

    The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has stated that the new tax reform laws taking effect from January 2026 will drastically reduce the tax burden on the vast majority of Nigerians, contrary to widespread misinformation circulating on social media.

    Oyedele on his WhatsApp platform explained that under the new system, low- and middle-income earners, small businesses, and even large companies will experience significant relief.

     “You will pay less or no tax if you are in the bottom 98 per cent of income earners,” he said, adding that essential goods and services would become cheaper because “food will cost less because VAT on food, education and healthcare will be removed.”

    The reforms also target business growth and competitiveness. Oyedele noted that “small companies will pay zero per cent corporate tax and will be exempt from VAT,” while large companies “will pay lower corporate tax and will enjoy VAT credits on their costs.”

    He described the combined effect as a situation in which “everyone – individuals, SMEs, and large companies – benefits from a reduced tax burden.”

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    In addressing growing rumours about the reforms, Oyedele faulted what he described as a wave of misleading commentary. He warned that “some individuals and media are spreading misleading claims about the new tax reform laws taking effect from next year,” adding that these claims have created unnecessary fear among citizens.

    He questioned the motives behind arguments that the timing was not right for tax reform. “So you wonder why some say ‘this is not the right time for tax reform.’ But why should we delay a reform that reduces the taxes Nigerians currently pay?” he asked.

    Oyedele listed several examples of misinformation currently in circulation, including claims that the government intends to introduce new taxes, forcibly debit bank accounts, tax remittances and gifts, target online earners, or worsen inflation. He dismissed these narratives by stating that none of them reflect the provisions of the new law.

    According to him, the spread of false tax information has had real financial consequences for ordinary citizens. He recounted a recent encounter: “I recently met someone who refused to buy rights issues from his bank because he believed he would be charged 30 percent Capital Gains Tax. In reality, he will be completely exempt – now he has lost money due to misinformation.”

    Oyedele attributed the situation in part to Nigeria’s low level of tax literacy, which leaves many people vulnerable to deceptive commentary. He stressed that “Nigeria’s tax awareness is low, and that makes people vulnerable to misleading analysis.” He insisted that “the new laws did not introduce any new tax. Don’t let anyone scare you into believing otherwise.”

    He urged Nigerians to question those spreading fear. “When they say new taxes are coming, ask them to mention one. If they say taxes will go up, ask them which tax and for who?” he said.

    Oyedele maintained that the 2026 reforms are designed to support economic growth, ease pressure on households, and encourage formal business activity. He reaffirmed that the new regime offers broad-based relief and gives Nigerians a clearer and fairer tax environment.

  • Capital gains tax to make market more competitive, says Oyedele

    Capital gains tax to make market more competitive, says Oyedele

    Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said the new Capital Gains Tax (CGT) would make the capital market more competitive and investors’ friendly.

    Oyedele spoke during a virtual public lecture organised by the Capital Market Academics of Nigeria (CMAN) yesterday.

    According to him, contrary to some negative perceptions about the CGT, it was one of the lowest relative to Companies Income Tax (CIT) and Value Added Tax (VAT).

    He said that many countries across different regions, developed or developing, including resource rich countries tax capital gains at normal income tax rate. According to him, based on 2024 tax collection by the Federal Inland Revenue Service (FIRS), CGT accounted for less than one per cent of CIT and VAT (2014 to 2024) with CIT amounting to N26 trillion, VAT N22 trillion and CGT N276 billion.

    The chairman said that combined with the reduction of CIT from 30 per cent to 25 per cent, companies would be more profitable leading to higher valuation (expected to far exceed the incremental CGT).

    Analysing the benefits of the new tax reform policy, he said that by granting input VAT credits on assets and overheads not previously applicable, the new tax reform would lower business costs and enhance cash flows.

    Oyedele said the policy would ensure CGT exemption for retail investors, re-investment, pension funds, Real Estate Investment Trust (REITs), security lending, and re-organisation among others.

    ”The policy will ensure deduction for capital losses and other incidental costs, eliminate Withholding Tax (WHT) on bonus shares, create a level playing field for listed vs unlisted entities such as free zone tax regime.

    ”It will also ensure stamp duty exemption for all documents relating to the transfer of stocks and shares, harmonisation of earmarked taxes such as TET, NITDA levy, and NASENI, ” he said.

    The chairman said that the tax policy would help to moderate excessive fees and levies by government agencies.

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    Chairman, Nigerian Exchange Group (NGX), Dr Umaru Kwairanga, said that CGT was not a new concept in the capital market.

    He said that there were perceptions that the new tax act would increase the rate of CGT to a level that would have a negative impact on most investors.

    According to him, perception matters a lot in financial markets and can move markets long before any real action takes place.

    ”We have seen that in the recent volatility in our market. It is therefore very important to manage information very well so that it does not lead to wrong or flawed perceptions that can have very real effects on markets and the economy, ” Kwairanga said.

    President, Chartered Institute of Taxation of Nigeria (CITN), Innocent Ohagwu, said the CGT would not negatively impact the capital market rather, it would profit the market.

    According to him, a lot of work has gone into the reform.

    He urged stakeholders to support the reform policy by allowing it to operate before the criticisms.

    Prof. Sheriffdeen Tella, an economist, raised concerns on the tax imposed on private bonds by the new tax policy.

    Tella said the move would make investors to subscribe more to government bonds.

    Former Chairman of FIRS, Muhammad Nami called for more stakeholders’ engagement to address problems facing investment decisions in the country.

    According to him, analysing the policy in local languages would help citizens to understand it better with a view to making informed decisions.

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  • New capital gains tax will boost investor confidence, says Oyedele

    New capital gains tax will boost investor confidence, says Oyedele

    The chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has stated that the new Capital Gains Tax (CGT) is designed to make investments in the capital market more attractive, reduce risks for investors, and promote equity and confidence in the system.

    Speaking on the reform, Oyedele said the new framework “makes investment in the Nigerian capital market more attractive, reduces investment risk, and ensures fair treatment of legitimate costs incurred by investors.”

    He explained that the overarching goal of the reform “is to promote equity and confidence in the market—not the reverse.”

    According to him, the revised framework introduces a number of progressive changes aimed at reducing investment risks, protecting small and institutional investors, and simplifying tax administration.

    “This reform reduces investment risk by allowing deductions for capital losses and other investment-related costs,” he said. “It also protects small and institutional investors by providing exemptions for retail investors and tax-exempt institutions such as Pension Funds (PFAs) and Real Estate Investment Trusts (REITs).”

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    Under the new regime, the former flat 10 percent CGT rate has been replaced with progressive income tax rates ranging from 0 to 30 percent, depending on the investor’s overall income or profit level. Oyedele disclosed that the top rate of 30 percent, which applies to large corporate investors, is expected to be reduced to 25 percent under the broader corporate tax reform.

    He added that investors would now be able to deduct certain costs that were previously disallowed under the old regime, ensuring that “they are not taxed on a net loss position.”

    On exemptions, Oyedele explained that the new framework provides relief for small and institutional investors. Transactions with total sales proceeds not exceeding N150 million and total gains not exceeding N10 million within 12 months are exempt.

    Also exempted are reinvestments of proceeds into Nigerian company shares within 12 months, capital gains from foreign share disposals repatriated through CBN-authorised channels, and gains made by PFAs, REITs, and NGOs that are already income-tax exempt.

    He said, “Small companies with turnover not exceeding N100 million and total fixed assets not more than N250 million will pay zero percent CGT. Also, gains from investments in labelled startups by venture capitalists, private equity funds, accelerators, or incubators qualify for exemption.”

    To ensure fairness in implementation, Oyedele noted that for CGT effective from January 1, 2026, the cost base for existing investments will be reset to the higher of the actual acquisition cost or the closing market price as of December 31, 2025. “This ensures fairness and prevents the application of the new rule to gains accrued before the new law takes effect,” he said.

    He also disclosed that the range of allowable deductions has been expanded to include realised capital losses on share disposals, transaction charges such as brokerage fees and regulatory levies, as well as margin interest and realised foreign exchange losses proven to be incidental to the investment.

    On compliance, the Committee Chairman stated that resident investors will be required to register for tax and obtain a Tax Identification Number (TIN), while non-resident investors earning only passive income will not need a TIN. He noted that “self-assessment will be the default compliance model,” although regulations may be introduced for withholding or presumptive deductions at source through brokers or exchanges.

    Oyedele explained that all applicable taxes are to be paid in Naira, with filing and payment deadlines set for individuals on or before March 31 of the following year, and for companies within six months after their financial year-end. Non-resident investors are expected to pay upon disposal of shares, except where reinvestment within the same year is anticipated.

    He added that resident individuals are to pay CGT to their state of residence, resident companies will remit to the Nigeria Revenue Service (NRS), while non-resident investors will pay directly or through appointed tax withholding agents.

    Providing further clarity, Oyedele said corporate reorganisations such as mergers, acquisitions, or internal restructurings, as stipulated under the Nigeria Tax Act 2025, are exempt from CGT. He also stated that “gains earned on shares up to 31 December 2025 will be grandfathered and only taxed upon disposal, based on the law applicable at that date.”

    He urged investors to maintain proper documentation of acquisition costs, sales proceeds, and related expenses for audit and verification purposes.

    According to him, “the intent of this reform is not revenue-driven but aimed at achieving harmonisation, promoting fairness, competitiveness, long-term interest, and investor confidence in Nigeria’s capital markets.”

    Oyedele noted that the new CGT framework “makes the tax system fairer, more aligned with global practice, and friendlier to long-term investors. It reduces investment risks, protects small investors, encourages reinvestment, and simplifies compliance while ensuring that large and high-income investors who wish to exit the market contribute their fair share on realised gains that are not re-invested.”

  • New tax regime to end multiple levies, boost profitability in haulage industry, says Oyedele

    New tax regime to end multiple levies, boost profitability in haulage industry, says Oyedele

    By Olamide Akintunde

    The Federal Government’s new tax regime, scheduled to take effect in January 2026, is expected to improve efficiency and profitability in Nigeria’s haulage and logistics industry by eliminating multiple taxation and curbing extortion on the nation’s roads.

     Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the reforms were part of a deliberate effort to stabilise the economy and translate macroeconomic gains into tangible relief for businesses and citizens.

     Speaking at the Haulage & Logistics Magazine Annual Conference and Exhibition held in Lagos, with the theme “Tax Reforms From Policy to Practice: Challenges and Opportunities for the Nigerian Haulage Industry,” Oyedele said the sector stands to be among the biggest beneficiaries of the sweeping changes.

     He said: ” There is no doubt that the haulage and logistics industry in Nigeria stands to be one of the biggest beneficiaries of this tax reform in view of the fact that the reform intends to tackle headlong the issue of multiple taxation.

     “Officially, there are over 60 taxes and levies that businesses pay in Nigeria. Officially, even that does not make sense. By the time you add unofficial to it, it is more than 200 taxes in a country where they want to create employment. Some of those nuisance levies and taxes are even in our constitution.”

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     He pointed out that the tax reforms have outlawed road extortion.

     “The other thing we have done with this tax harmonisation is to outlaw physical barriers for tax collection. Why do we have to put wood on the road with nails?  We are now saying under these reforms nobody should have to physically provide any hindrance, roadblock, impediment because they want to collect tax.

     “No one should collect taxes in cash because that cash is not even getting to the government,” Oyedele said.

     He added that government will deploy technology  as a substitute for tax collection.

     He said: “If the government decides that you are a big transport company, your vehicle should pay N100,000. We ask you to pay and say Madame Transporter or Mr Transporter you have up until the end of March for example, I’m not saying that’s what is in the law, to pay for the year, if by March you have not and you can even pay in installment the day you find N5,000 go and pay you find N10,000, pay if you have not finished paying by the end of March, you know I can collect that money without showing up.

     “I’m trying to demonstrate to you that we are in 2025. It’s called the age of technology. It is embarrassing as a country to go and put wood with nails on the road and be fighting people.”

     The convener of the conference, Alfred Okugbeni, in his opening remarks, reiterated that the haulage sector was one impacted by the tax reforms.

     He said: “A critical aspect of the reform is the elimination of several taxes, multiple taxation, and illegal levies which continue to inflate the cost of transporting goods in our country.”

  • CGT reforms: 99% of individual investors exempted under new rules

    CGT reforms: 99% of individual investors exempted under new rules

    The new tax reforms will effectively exempt about 99 per cent of individual investors from paying Capital Gains Tax (CGT), according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.

    Oyedele, on his WhatsApp platform, provided a breakdown of the CGT provisions under the new tax act, set to take effect from January 1, 2026.

    Taiwo Oyedele noted that the reform is not about increasing tax revenue but about promoting fairness and efficiency in the system.

    “The new rules are specifically designed to protect small investors while ensuring that higher-income earners contribute a fairer share,” he said.

    He pointed out that proceeds from sales not exceeding N150 million annually, where the resulting gains are not more than N10 million, are exempt from the tax, a provision that effectively ensures the exemption of most individual investors.

    Furthermore, where the sale proceeds exceed this exemption threshold, CGT is still not due if such proceeds are reinvested into the shares of a Nigerian company, a rule intended to encourage domestic investment.

    Institutional investors such as pension funds are exempt from CGT, consistent with their exemption from corporate income tax, and companies undergoing reorganizations, mergers, or restructurings are not subject to CGT on those specific transactions.

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    The Chairman also confirmed that CGT only applies to net gains, as capital losses can be offset against capital gains.

    Oyedele directly addressed the widespread misunderstanding that the CGT rate has been raised to 30 per cent, clarifying that CGT has instead been integrated into personal and corporate income tax, which makes the system progressive.

    “The CGT rate has not been increased to 30 percent,” he said. “Instead, CGT has been integrated into personal and corporate income tax. This means the tax you pay on capital gains depends on your overall income level or company profits, making the system more progressive.”

    He explained that this means the effective CGT rate under the new laws will range from 0 per cent to 30 per cent. This reform, he added, will ensure that low-income earners either pay no CGT or pay less, while higher-income earners contribute a fairer share, and it helps reduce distortions where income could previously be misclassified as capital to enjoy a lower, flat CGT rate.

    Oyedele noted that CGT has historically contributed a very small fraction of the nation’s total tax revenue, collecting less than two per cent of what is sourced from Companies Income Tax (CIT) and Value Added Tax (VAT). He provided data to support this, stating that the Federal Inland Revenue Service (FIRS) collected only N52 billion from CGT in 2024, compared to over N15 trillion from CIT and VAT.

    He argued that the new reforms are designed to provide a wider tax benefit to businesses. “The reduced CIT rate and broader VAT input credits will benefit businesses in the region of N4.5 trillion,” he stated, adding that this broader tax relief for businesses will improve the profitability of companies, equity valuations, and enhance overall investor returns.

    Most foreign investors, he further explained, can claim tax credits in their home country for taxes paid in Nigeria under double taxation agreements or unilateral tax relief, meaning CGT paid in Nigeria will often not represent an additional cost.

    The Chairman maintained that the new rules are consistent with international best practice, noting that many countries already apply progressive tax treatment to capital gains, and that exemptions for small investors and reinvestment make Nigeria’s regime competitive.

    Mr. Oyedele confirmed that the CGT reform applies to all chargeable assets unless specifically exempt. In addition to the shares threshold, examples of exemptions include individuals selling up to two personal vehicles per year and the sale of an owner-occupied residential property.

    He confirmed that the changes will come into effect from January 1, 2026. Details regarding application to existing investments, historical cost, and compliance requirements will be covered under implementation guidelines with inputs from stakeholders.

    The Chairman concluded that the key takeaway is that the reforms make CGT fairer, protect small investors, align Nigeria with global best practice, and provide wider tax reliefs that benefit businesses more than the limited CGT collections.