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Tax Expert Urges Nigerians To Brace Up For New Tax Regime
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…say low income earners will be on PAYE tax
By Gloria Ikibah
Tax Consultant and Past District Governor of Rotary International, Ayo Oyedokun, has called on Nigerians to fully comply with the incoming tax law set to take effect in January 2026, emphasising that no law will be applied retroactively.
Oyedokun made the remarks during the weekly fellowship of the Rotary Club of Abuja City, District 9127, which took place on Monday, 13 October 2025. He was delivering a presentation on The New Tax Bills as part of the Rotary International focus areas “Economic and Community Development for the month of October.
Oyedokun said: “I always said that we should always be compliant with whatever authorities that we have. And so to say, the first thing you should need to understand is that no law is done retroactively.
“You know, in the sense that from January 2026, when that tax law starts, anything that has happened in 2025 does not affect that law. So that means you still comply in the way the law was in 2025 to file your returns in January 2026. But from January 2026 going forward, that is when, you know, that law now applies.”
He stressed that the new tax law has both benefits and drawbacks, depending on income brackets and business categories. “That law is two-sided. It favours a lot of people and also it’s disadvantaged to some people as well,” he said.
Highlighting key provisions of the tax regime, Oyedokun noted that low-income earners will benefit from exemptions, while artisans and other self-employed individuals would still be assessed.
“First and foremost, if you are a worker that earns salary, your pay tax has helped a lot of relief, especially for the lower payer. In the sense that if your salary is less than the minimum wage, which is N70,000, you will not pay as you earn tax. That means it will be tax-free. In the sense that every year you can obtain a tax-free certificate without paying any tax.
“For those that are not working, they will be assessed based on their profession. Maybe you are an artisan, you are a bricklayer, you must pay tax no matter what. But your tax will not be determined based on your occupation. So it might not, if I say go and pay 1,500, you can say go and pay 10,000 Naira per annum, which is still fair enough,” he explained.
Oyedokun also addressed the tax implications for business owners and companies. “If you have what we call an ‘Enterprise’. An enterprise is when you are not a limited liability company. As an enterprise, you are still subject to still pay tax. In the sense that you now file and say, oh, this year my business did this amount. As long as your business exceeds that N800,000 per annum, you pay tax. If the business does not now exceed 800,000, then you don’t pay tax, even as a business owner,” he said.
For limited liability companies, there is an increase in the turnover threshold for company income tax.
“For those that have limited liability companies, they’ve helped us a little more. In time pass as of now, if your business turnover is not more than N25 million, you don’t pay company income tax. Now they have increased it to N50 million,” he stated.
He explained that companies below the threshold will also be exempted from Tertiary Education Tax, while VAT exemptions will apply to certain sectors.
“Pharmaceuticals, food items, agri-products, that are all on the list in that direction. Education is covered. School proprietors, owners, they don’t pay VAT. Because it’s exempted,” he said.
Oyedokun clarified taxation on loans and investments. “If you go and obtain loan from online business, N10,000, N20,000, N40,000, you will be subject to stamp duty on that transaction, but not taxed on it. And stamp duties, the highest you pay is 1%,” he explained.
He further noted, “Some people buy stocks. You ask yourself, if I trade on these stock markets, I make a gain. As long as it is not above N50 million gain, you will be tax exempted.
“So there’s a lot of exemptions that are coming. So it’s like we are saying that we now have to tax the rich class more than the low earners.”
Oyedokun emphasised that by 2026, tax identification will become mandatory for financial activities. “However, we will not escape tax because from January 2026, everybody must have a tax number. You must have it because you cannot open a bank account if you don’t have tax. Then you see all these old pay, money points and everything. You will soon see them starting to say, provide your NIN, provide your DIN, provide your tax number for you to continue operating that because the law would also accept the request for it,” he said.
He explained that the new system aims to simplify tax collection and prevent revenue leakages. “So all these that you pay to personal accounts, they are going to eliminate all those things so that everything falls in because it will now be administered by one body and will now distribute it to all of you, the local government, the state government in that direction,” he said.
The past District Governor also highlighted measures to improve compliance among business owners.
He said : “If you are a business owner that has been refusing to pay tax, you might not have to pay. In the sense that if you have a supermarket, your POS system, there will be what we call fiscalization. There’s a software that they will put that will automatically be linked to your tax number because everybody must have a tax. So it will be linked to your tax number. So there’s no way you can say that I did not make this money, I did not sell this one. So it will automatically show,” he said.
He added that hospitality and retail businesses could benefit from VAT offsets. “As some business owners, hospitality business, restaurant business, supermarket business, you have the opportunity of input and output VATs. In the sense that you buy some products, you pay VATs there. When you sell it, you collect VATs so you can net it off. So that you don’t double pay tax in that direction,” he explained.
He also reassured Nigerians in the diaspora. “People want to send their money to their account. Some people are staying abroad and the payment of their salary is double-sided in Nigeria. As long as they are paying tax there, they don’t pay tax on that money every day,” he said.
Oyedokun concluded by encouraging business owners, employees and entrepreneurs to understand their obligations under the new law, even as he noted that NGOs would remain exempt from most taxes.
“It’s a long thing and it’s not something that we can ignore because there are so many aspects that we can talk about, but these are the ones I feel might interest us as small business owners, as salary earners, as entrepreneurs in that direction.
“And as you all know, NGOs don’t pay tax. Apart from withholding tax in your hand, if the employees start to pay for paying tax in that direction,” he added.
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Osun Poll: APC Heading for Crushing Defeat, Imole Campaign Council Fires Back at National Chairman
By Gloria Ikibah
The Imole Campaign Council (TICC) has dismissed claims by the National Chairman of the All Progressives Congress (APC), Prof. Nentawe Yilwatda, that the party’s array of governors, National Assembly members and other political heavyweights would guarantee victory in the August 15, 2026 Osun State governorship election.
Reacting to remarks likening the APC’s political strength to a trailer against a “Keke Napep”, the council described the analogy as a display of political arrogance and evidence that the ruling party had misread the mood of Osun voters.
In a statement signed by the Chairman of its Media and Publicity Committee, Rep. Bamidele Salam, the council argued that elections are determined by the electorate rather than by the number of influential politicians a party can mobilise.
According to the statement, “The people of Osun State are not waiting for political heavyweights from outside the state to decide their future, the electorate are capable of making their own independent choice based on the performance of the government in power.
“The APC National Chairman may have assembled what he calls a political trailer, but he should understand that the people of Osun State are not political cargo to be moved around by outsiders. They are the owners of the mandate, and they alone will determine who governs them.”
The council maintained that the forthcoming governorship election would be decided by the performance of the incumbent administration rather than political rhetoric.
“The August 15 election will not be a contest between a trailer and a Keke Napep. It will be a contest between a performing Governor who has earned the confidence of his people and an APC candidate who is struggling to gain acceptance among the electorate.
“The reality on the ground is that Governor Ademola Adeleke enjoys tremendous goodwill among the people of Osun State because of the visible achievements of his administration. His record in road infrastructure, healthcare, education, workers’ welfare, water supply, agriculture, youth empowerment and other critical sectors speaks directly to the people”, he said.
The campaign council also questioned the popularity of the APC governorship candidate, Munirudeen Bola Oyebamiji, arguing that the party’s dependence on external political figures reflected an inability to build grassroots support within the state.
The council further challenged the APC to focus on presenting policies and programmes instead of relying on political symbolism.
“The APC governorship candidate, Munirudeen Bola Oyebamiji is obviously weak and unpopular, the decision of the APC to rely heavily on political figures from outside Osun is an indication of its candidate’s inability to independently mobilise the people.
“Rather than boasting about the number of governors and National Assembly members being deployed to Osun, the APC should tell the people what its candidate has to offer. The people are interested in issues, performance and credible leadership, not political metaphors”, he said.
The Imole Campaign Council urged the opposition party to respect the intelligence of Osun voters by running an issue-based campaign and offering what it described as credible alternatives ahead of the governorship election.
News
ECOWAS Seeks Sanctions for Member States Ignoring MSME Policies
By Gloria Ikibah
The ECOWAS Commission has called for tougher measures against member states that fail to implement agreed policies designed to support the growth of Micro, Small and Medium-sized Enterprises (MSMEs), warning that the region’s economic ambitions will remain out of reach without effective implementation.
The position was presented on Monday during the ongoing delocalised meeting of the ECOWAS Parliament’s Joint Committee on Industry and Private Sector, Macroeconomic Policy and Economic Research, Administration, Finance and Budget, and Public Accounts in Cotonou, Republic of Benin.
Speaking during a presentation on “Trade Facilitation, Regulatory Reforms and Formalisation,” Dr Tony Luka Elumelu of the ECOWAS Business Council Secretariat argued that the region already has sufficient policies, protocols and legal instruments to drive private sector growth, stressing that the real challenge lies in implementation rather than policy formulation.
He urged member states to shift their attention from producing new frameworks to creating a business-friendly environment that allows enterprises to flourish.
According to him, “We have very good policies, protocols, legal instruments in terms of the private sector development. We also have the MSME Charter. We have created an enabling environment in this particular document for development and growth of the MSMEs but, in summary, my recommendation is that we should implement what we adopt.
“We should make sure that we create an enabling environment for these businesses to thrive and not keep adopting policies. What we need to do is enforce those policies that we have adopted and remove every bottleneck that impedes MSMEs from thriving.”
Elumelu noted that West Africa must become more competitive, especially as the African Continental Free Trade Area (AfCFTA) opens new opportunities across the continent.
He said governments should prioritise investments in transport infrastructure and eliminate unnecessary barriers that continue to frustrate legitimate businesses operating across borders.
He also identified the proliferation of roadblocks and multiple checkpoints across the region as major obstacles to trade and economic integration.
“We need to make sure that we have the necessary infrastructure that our goods will use in terms of moving from one country to another. We also need to look at the vision that we have signed under the AfCFTA protocol.
“In fact, we already know that we are going to compete with other regions, which means that we need to make sure that we do not disturb our people who are trading legitimately, so that at the end, our region will benefit from the economic development and the benefits inherent in the AfCFTA trade.
“The multiple checkpoints, roadblocks, and also the practicality of what we are doing in the region… every legal instrument will always pass through the ECOWAS Parliament before adoption, which means that there should be strategy to put in timelines in terms of implementation. There should also be strategy to be conscious about implementation”, said.
Also speaking, the Principal Programme Officer in charge of Enterprise and Business Promotion at the ECOWAS Commission, Dr Olalekan Afolabi, stressed the importance of moving more businesses from the informal economy into the formal sector.
He said many enterprises across the region remain unregistered, limiting their ability to access finance, markets and government support, and urged parliamentarians to champion policies that encourage formalisation.
Afolabi also called for the effective implementation of the European Union-funded African Trade Competitiveness and Market Access Programme, valued at €50 million.
“How do we implement the African Trade Competitive and Market Access Program of the European Union, which is a 50 million euro project? Some of the responses we give to them include: one, going at the national level and seeing that these policies are properly domesticated. These policies are legislated at the national level and also coming to hold us accountable at the regional level, because we need to report periodically to the Parliamentarians.
“They need to monitor the implementation of some of those projects and this forum, of course, presents an opportunity for things like this”, he noted.
Discussions at the meeting centred on the need for stronger political commitment to implementing existing ECOWAS policies, with participants maintaining that sustained reforms, improved infrastructure and the removal of trade barriers are essential if MSMEs are to become key drivers of economic growth, regional integration and job creation across West Africa.
News
Just in: Dangote gives ₦18.7 trn of his ₦56.2trn wealth to help the needy
Africa’s richest man, Aliko Dangote, plans to donate one-third of his wealth to charity as part of his succession plan, his daughter, Halima Dangote, has revealed.
Halima, a trustee of the Aliko Dangote Foundation, revealed the arrangement in an interview with Bloomberg published on Tuesday, saying the billionaire had secured his family’s support to dedicate 33 per cent of his estate to philanthropy.
According to the Bloomberg Billionaires Index, Dangote’s net worth is estimated at $35.1 billion, meaning one-third of his current fortune would amount to about $11.7 billion if maintained at that level.
Explaining the decision, Halima said her father considers philanthropy central to his legacy and has embedded it into the family’s long-term succession plans.
“He sort of put all the structure in place whereby we focus a lot on health and education. He actually donated 25 per cent to the foundation. If you look at it, it is what we call in Sharia Code in Islam; it means he has donated 33 per cent of his whole inheritance to his foundation,” she said.
“That is how important it is to him because philanthropy needs to be in existence generation after generation.
“So giving back is part and parcel of what we do. We believe we’re here, that our business is successful because of the giving back and because of the philanthropic aspect. That is why the 33 per cent is important.
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