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FG To Begin 2024 Tax Reforms In January, Exempting SMEs and Farmers from Withholding Tax

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The Federal Government of Nigeria has officially commenced the implementation of the 2024 Withholding Tax Regulations, a move that marks a significant step toward modernizing the country’s tax system. Approved by President Bola Tinubu in July 2024 and published in the Official Gazette in October, the new regulations became effective on January 1, 2025.

Formally known as the “Deduction of Tax at Source (Withholding) Regulations, 2024,” the updated tax regime aims to streamline compliance, reduce administrative burdens, and address inefficiencies in the system, especially for Small and Medium Enterprises (SMEs), manufacturers, producers, and farmers—sectors critical to Nigeria’s economic stability and growth.

In a statement posted on his official X (formerly Twitter) account on New Year’s Day, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, confirmed the new regulations’ effective date. He highlighted some of the key features of the reforms, such as exempting SMEs from withholding tax compliance. This measure is expected to alleviate financial and administrative pressures on these businesses, fostering growth and innovation in the sector.

The new regulations also include reduced withholding tax rates for businesses with low-profit margins to improve cash flow and reduce operational costs. Manufacturers, producers, and farmers are fully exempted from withholding tax obligations, a move intended to support these vital sectors and ensure their sustainability.

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Additionally, the reforms aim to simplify the process of crediting taxes deducted at source, making it easier for businesses to claim and utilize these deductions efficiently. The regulations also address long-standing issues, including ambiguities around the timing of deductions and unclear definitions of key terms, which had previously hindered tax compliance.

These changes are also part of the government’s broader effort to combat tax evasion, enhance transparency, and minimize opportunities for tax avoidance.

Earlier, the Federal Government had unveiled a broader set of tax reforms to reduce the tax burden on the manufacturing sector and small businesses. These reforms, part of the “Deduction of Tax at Source (Withholding) Regulations, 2024,” also seek to simplify the deduction of taxes at the source for taxable entities under multiple tax acts, including the Capital Gains Tax Act, Companies Income Tax Act, Petroleum Profits Tax Act, and the Personal Income Tax Act.

In addition to these reforms, Oyedele recently announced that high-income earners could face an increased monthly PAYE tax burden under new proposed tax laws. These changes aim to address fiscal inequities that have resulted in “fiscal drag” due to inflation, pushing lower-income earners into higher tax brackets.

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For instance, individuals earning N400,000 a month currently pay the same top marginal tax rate as those earning N20 million. Under the new tax framework, this discrepancy would be addressed, with high-income earners contributing more while providing relief to low- and middle-income earners.

Oyedele clarified that individuals earning N1.7 million or less per month would see reduced PAYE tax obligations under the proposed system, with more than 90% of workers in the public and private sectors benefiting from lower taxes. Meanwhile, top earners would face a slight increase in taxes, with rates reaching up to 25% for those earning over N50 million annually.

These reforms are designed to simplify the tax system, reduce the tax burden for most Nigerians, and address the disparity between personal and corporate tax regimes. Oyedele emphasized that while high-income earners would pay a greater share, the majority of Nigerians would benefit from tax reductions.

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Photos: We’re building infrastructure for a knowledge-driven economy – Tinubu

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President Bola Tinubu has said that his administration was building road infrastructure to lay the needed physical foundation for a knowledge-driven economy, stressing that education, justice, and innovation need roads to thrive.

Tinubu stated this in Abuja on Tuesday, while flagging off the construction of Collector Road CO1 in the Institutional Research District, from Nile University to Ring Road III.

Represented by the National Chairman of the All Progressives Congress, Prof Nentawe Yilwatda, the President said that the project included dualisation of the road from Baze University roundabout to Nile University, that is the Base University.

He noted that three years into his administration, the results were speaking out.

“From the Southern Parkway to the Institution and Research District, we are laying the physical foundation for a knowledge-driven economy.

“Today, we provide those roads that are needed to provide justice, education, and innovation to our people.

“To the university community, this road is more than a route. It is a connection between learning, law, and the future of our capital,” he said.

He pointed out that the Institution and Research District was designed to be the intellectual heart of Abuja, adding that universities, law chambers, research centers, and innovation hubs were growing in the area.

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He, however, stressed that ideas could not move if roads do not move and connect the heart and people together.

Tinubu further said: “Under the Renewed Hope Agenda, we made a choice to finish what was started and to start what we must finish.

“The first phase of this corridor connecting the Body of Benchers, Nile, and Base University is done and ready for commissioning. Today, we begin the next phase to Ring Road III to complete the loop.

“That is how we build a city—with a plan. Not a city of abandoned pieces. Infrastructure must be continuous, and it must also be useful to the people within the environment”.

He commended FCT Minister Nyesom Wike for turning FCT into a delivery agency, stressing that the transformation of Abuja under the minister’s watch is bold, visible and worthy of commendation.

He said, “Wike, your energy is unmatched. You took over a capital with many stalled projects and turned the FCTA into a delivery agency. ‘Mr. Projects’ is not a slogan, it is a record. You have revived sleeping roads, built new interchanges, and brought development to satellite towns. You have domesticated the Renewed Hope Agenda; street by street, district by district. The transformation of Abuja under your watch is bold, visible, and worthy of commendation. Well done, Minister Wike.”

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In his remarks, Wike explained that the project was considered following a plea by the Body of Benchers to provide access roads to ease the movement of people in and out of the area.

He assured FCT residents that the Tinubu administration would fulfill all the promises made to the people of FCT, adding that the project would be completed by January 2027.

The minister said that he would continue to deliver life-impacting projects to FCT residents as directed by Tinubu, stressing that the delivery would not be affected by 2027 political activities.

Earlier, acting Executive Secretary, Federal Capital Development Authority, Mr Richard Dauda, said that the Institutional Research District of the FCT is located in Phase III of the city.

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Dauda said that the area was planned to accommodate educational institutions like universities, research institutions, and other government institutions as provided in the Abuja master plan.

He added that the district was being developed in stages, with this project being a major intervention in the opening of this district.

He explained that the scope of the current stage involved the construction of Collector Road CO1, from the Nile University to Ring Road III with a total length of about six kilometres.

He added that the project also included the dualisation of the section from the Base University Junction to Nile University.

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Just in: Kidnapped APC Chairman, Another Victim Die in Abductors hideout

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Tragedy struck in northern Nigeria following reports that two abducted victims, including a former chairman of the All Progressives Congress (APC) in Koko/Besse Local Government Area of Kebbi State, have died while in captivity.

The deceased, Alhaji Muhammadu Mai Barga Besse, who previously served as APC chairman in the local government area, was reportedly held hostage by armed kidnappers for an extended period before his death. Another victim who was abducted alongside him was also confirmed dead, although his identity had not been officially disclosed at the time of filing this report.

The sad development comes months after disturbing videos emerged online showing the victims in dire conditions while being held captive in the notorious Birnin Gwari forest.

The footage sparked widespread concern among family members, political associates and members of the public who called for urgent intervention to secure their release.

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Despite efforts made during their captivity, both men were reportedly never reunited with their families before their deaths.

The incident has once again drawn attention to the persistent security challenges facing communities across northern Nigeria.

The Birnin Gwari axis, located along the Kaduna-Niger corridor, has become one of the country’s most dangerous regions, with criminal gangs and armed bandits frequently carrying out kidnappings, attacks on villages and other violent crimes.

Residents and stakeholders have repeatedly called on security agencies to intensify operations in the area and dismantle criminal hideouts within the vast forest, which has long served as a sanctuary for armed groups.

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News of the deaths has generated an outpouring of grief on social media, with many Nigerians expressing sadness over the fate of the victims and urging authorities to strengthen efforts against kidnapping and banditry.

Popular social media personality Denglishalhajii also shared the development on Instagram, mourning the victims and drawing attention to the growing insecurity affecting many parts of the region.

The deaths of the former APC chairman and his fellow captive have further underscored the human cost of the country’s security crisis, leaving families, friends and political associates in mourning while raising renewed concerns about the safety of citizens in vulnerable communities.

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Tinubu Seeks Constitutional Backing For State Police, Writes Senate

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President Bola Tinubu has asked the senate to approve a constitutional amendment bill seeking to establish state police across Nigeria as part of efforts to strengthen the country’s security architecture.

The request was contained in a letter dated June 15, 2026, and read on the floor of the senate on Tuesday by Godswill Akpabio.

In the correspondence, Tinubu said the proposed Constitution of the Federal Republic of Nigeria (Alteration) State Police Bill, 2026, seeks to amend the 1999 constitution to provide a legal framework for the creation of state police services.

The president said the bill is designed to address Nigeria’s evolving security challenges by introducing a dual policing structure that would allow both federal and state policing systems to operate within a constitutional framework.

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According to him, the proposal builds on previous legislative efforts by both chambers of the national assembly and contains additional safeguards to ensure effective implementation.

“This bill builds on the significant work already done in this regard by the House of Representatives and the Senate, and incorporates additional safeguards to ensure that the creation of a dual policing structure to address our nation’s evolving national security challenges, will be achieved quickly and effectively to the benefit of all Nigerians,” Tinubu said.

The president described the proposed legislation as a key component of his administration’s broader plan to reform Nigeria’s security system and improve the protection of lives and property.

“The proposed legislation is a critical component of our administration’s strategy to reorganize Nigeria’s security architecture to better protect our citizens, and I’m confident that the Senate will act quickly to consider and pass this bill,” he added.

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Read Also: Amnesty International Demands Immediate Release of Omoyele Sowore, Condemns Detention

Tinubu urged lawmakers to give the proposal expeditious consideration.

Following the reading of the letter, Akpabio referred the bill to the senate committee on constitution review for further legislative action.

The committee was directed to report back to the chamber on the next legislative day.

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