Connect with us

News

Just in: Tinubu Alters 1977 Nigeria Tax System, Approves New Tax Policy

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

By Kayode Sanni-Arewa

President Bola Tinubu has altered the 1977 Nigeria Tax System and approved a new withholding tax policy for the country. This major change was disclosed by Taiwo Ayodele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, on Tuesday.

*1977 Nigeria Tax System.*

The 1977 Nigeria Tax System, which introduced withholding tax as an advance payment of income tax on specified transactions, aimed to provide regular revenue flow for the government and curb tax evasion. However, this system posed several challenges, particularly for farmers and Small and Medium Enterprises (SMEs).

Advertisement

*New Withholding Tax Policy.*

Ayodele highlighted that the new withholding tax policy addresses the heavy burden imposed by the previous system on these groups. Key issues of the old regime included ambiguities about compliance requirements, eligible transactions, applicable rates, timing of remittance obligations, and difficulties in obtaining refunds for excess withholding tax. The structure of the old regime promoted tax inequity and added to the cost of doing business.

*Key Changes in the New Policy.*

The new withholding tax policy, approved by President Tinubu, will be published in the official gazette in the coming days. The key changes include:

Advertisement

*Exemption of Small Businesses* : Small businesses are now exempt from Withholding Tax compliance.

*Reduced Rates:* Businesses with low margins will benefit from reduced withholding tax rates.

*Exemptions for Manufacturers and Producers* : Farmers and other manufacturers are exempt from withholding tax.

*Measures to Curb Evasion:* Enhanced measures to minimize tax avoidance and streamline the process of obtaining credit and utilizing tax deducted at source.

Advertisement

*Reflecting Emerging Issues* : The policy adopts global best practices, addresses emerging issues, and provides clarity on the timing of deductions and definitions of key terms.

These reforms aim to ease the cost of compliance for taxpayers, improve the business environment, and promote tax equity.

The approval of the new withholding tax policy marks a significant step towards a more equitable and efficient tax system in Nigeria. By addressing the shortcomings of the 1977 Nigeria Tax System, the new policy aims to create a more favorable environment for businesses, particularly SMEs and manufacturers.

Advertisement
Continue Reading
Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

News

Wike waives C-of-O fees for Nigerian Law School, orders emergency staff housing(Photos)

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

​The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has granted an immediate waiver of fees for the Certificate of Occupancy (C of O) for the Nigerian Law School’s Abuja campus in Bwari.

​Speaking during a meeting with the school’s management in Abuja, Wike also declared an “emergency” on the construction of staff quarters and other critical infrastructure to enhance the institution’s learning environment.

​Responding to an appeal from the Director-General of the Nigerian Law School, Dr. Olugbemisola Titilayo Odusote, Wike expressed surprise that the institution had operated without a C of O since moving to Bwari.

He described the lack of official documentation for government institutions as a trend that his administration is actively correcting.

The Minister directed the Director of Lands to waive all processing fees for the school’s C of O, and issued a firm directive to ensure the document is processed and ready within one week.

​ He noted that regularizing the land is essential to move the school from what he colloquially termed an “illegal session” to rightful ownership.

​Beyond land matters, the Minister committed the FCT Administration (FCTA) to several high-priority projects aimed at resolving overcrowding and improving staff efficiency.

​Wike announced that 10 staff quarters have already been completed and will be commissioned as part of the President’s third anniversary.

He further pledged to construct an additional 10 units using existing prototypes to save on design costs.

According to him, work is progressing on two new hostels—one for male students and one for female students—to alleviate overcrowding.

​The Minister confirmed he has approved the budget for a new auditorium and questioned why the contractor had not yet moved to the site.

Advertisement

​ To modernize administrative functions, Wike directed the school to liaise with the FCTA General Counsel, to explore digitization solutions similar to ongoing efforts at the FCT High Court.

​ Wike emphasized that these interventions are part of President Bola Ahmed Tinubu’s broader agenda to support legal education and the judiciary.

He noted that the President is currently constructing “presidential apartments” for judges to ensure their security, welfare, and autonomy.

​”Anything we can do to help our children, we are willing to do that,” Wike stated, adding that the staff quarters must be treated as an emergency project to ensure rapid delivery.

Advertisement

​Earlier, Dr. Odusote congratulated the Minister on his appointment and praised the visible infrastructure developments across the FCT, while highlighting the specific challenges of disrepair and infrastructure deficits facing the Law School.

Continue Reading

News

We’re not going to reverse reforms, Finance Minister, Oyedele tells investors

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has assured investors that the government will stay the course on economic reforms, declaring that policy reversals will not define the current phase of the country’s economic management.

The Minister stated this while speaking at the launch of the Nigerian Economic Summit Group Private Sector Outlook 2026 in Lagos on Thursday.

Oyedele said the administration is shifting from stabilisation to measurable growth, where reforms will be judged by outcomes rather than intent.

His comments came barely 48 hours after he assumed office, following the exit of Wale Edun from the Federal Executive Council.

Advertisement

“We are not looking back,” Oyedele said, stressing that consistency in policy direction remains critical to investor confidence.

He warned that mixed signals or abrupt reversals could stall progress, noting that “businesses need to know that today’s decisions will still hold tomorrow.”

While pointing to early signs of macroeconomic stabilisation, including a more aligned exchange rate and improved revenue performance, the minister said these gains must translate into tangible outcomes such as job creation, productivity growth and better living standards.

He identified four priorities for driving investment in the next phase which includes, policy consistency, predictability across fiscal and regulatory frameworks, reduction in the cost of doing business, and improved access to capital.

Advertisement

On financing, Oyedele said the government is working to expand credit across the economy, from consumer lending to industrial financing, with support from institutions such as the Bank of Industry, to stimulate growth and unlock private sector participation.

He added that Nigeria must target stronger real GDP per capita growth to make a meaningful impact on poverty, noting that modest growth figures would not be sufficient given the country’s population dynamics.

The minister further described the current stage of reforms as decisive, where success will depend on execution. “Reforms on their own do not create growth. We need investment at scale,” he said, adding that investors respond to stable and predictable environments, not policy announcements.

On the area of productivity, Oyedele said Nigeria must move beyond consumption-driven expansion and focus on improving output and competitiveness in key sectors, including agriculture, manufacturing, energy and the digital economy.

Advertisement

He also called for deeper collaboration between government and the private sector, maintaining that economic growth cannot be delivered by public policy alone.

As the country enters what he termed a consolidation phase, Oyedele said the government would continue to deepen reforms, strengthen public financial management and improve coordination across all tiers of government.

He, however, acknowledged risks, including reform fatigue, inflationary pressures from global uncertainties, and political tensions ahead of the election cycle, but maintained that these challenges are surmountable with discipline and cooperation.

“Our task now is execution,” Oyedele said.

Advertisement

“This phase demands focus, consistency and accountability. That is the direction we are pursuing he added

Continue Reading

News

FCT minister Wike engages teachers over strike(Video)

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

The Federal Capital Territory FCT minister Nyesom Wike is presently holding a meeting with primary school teachers in the Territory over ongoing strike.

Watch:

Continue Reading

Trending

Copyright © 2024 Naija Blitz News