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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.

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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. 

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“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. 

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“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.

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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.

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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.

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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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Airforce deploys surveillance aircraft to track abducted Oyo school children, teachers

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The Nigerian Air Force (NAF) has continued to provide aerial surveillance support to ongoing efforts aimed at rescuing teachers and pupils abducted from Yawota and Ahoro-Esinele communities in Oriire Local Government Area of Oyo State.

In a statement by NAF’s spokesman, Air Commodore Ehimen Ejodame, Oyo State Governor Seyi Makinde disclosed this during a courtesy visit by the representative of the Chief of the Air Staff (CAS), Air Marshal Sunday Kelvin Aneke, and the Air Officer Commanding (AOC) Logistics Command, Air Vice Marshal Abubakar Suleh, on 5 June 2026.

According to the statement, Makinde revealed that the NAF promptly deployed an aerial surveillance platform immediately after the abduction was reported, providing critical intelligence to support search-and-rescue operations.

The governor said intelligence generated from the surveillance missions had continued to assist security agencies in tracking developments and coordinating efforts towards securing the safe release of the victims.

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NAF said Makinde appealed for patience and support from residents, assuring them that all necessary resources are being deployed to ensure the successful resolution of the situation.

He commended the CAS and the NAF for their swift response and sustained support, noting that the Air Force made the surveillance platform available while Oyo State’s newly acquired aerial assets are still being assembled at the NAF Base, Lagos.

“Makinde further explained that the state acquired the platforms following consultations with the NAF to ensure access to maintenance support, engineering expertise and pilot training.

“He expressed confidence that the assets would significantly enhance security operations across Oyo State and neighbouring states once fully operational,” the statement released on Sunday partly read.

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Speaking on behalf of the CAS, Air Vice Marshal Suleh conveyed the solidarity of the NAF with the government and people of Oyo State and reaffirmed the Service’s commitment to supporting ongoing efforts to secure the safe return of the abducted victims.

He also commended the government for its continued support towards NAF projects and infrastructure development within the state.

“The NAF remains committed to working closely with other security agencies and relevant stakeholders to safeguard lives and property while supporting efforts to address security challenges across the country,” it added.

The pupils and teachers of the Baptist Nursery and Primary School (Yawota), Community Grammar School (Esiele), and L.A. Primary School were kidnapped on May 15 during a fatal attack by bandits.

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One of the teachers was also killed in captivity by the terrorists.

The incident sparked protests by teachers nationwide and civil society groups in Ibadan, demanding urgent action to rescue the victims.

Last week, the House of Representatives called on the federal Government and security agencies to bring the abducted students and teachers back alive.

Following the abduction, President Bola Tinubu approved the appointment of 1,000 forest guards and the deployment of a special rescue team following the abduction of teachers and students in the state.

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12 Years On: Suswam’s ₦3.1bn Scam Trial Stalls as Defence Yet to Open Case

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The long-running trial of ex- Benue State Governor, Gabriel Suswam, over allegations of diverting ₦3.1 billion in public funds has entered its 12th year, with court proceedings yet to reach the defence stage despite the prosecution having concluded its case.

Suswam and his former Commissioner for Finance, Omodachi Oklobia, have been facing prosecution by the Economic and Financial Crimes Commission (EFCC) since November 2015 over allegations bordering on money laundering and the alleged diversion of proceeds from the sale of Benue State Government shares in Dangote Cement Plc.

According to the anti-corruption agency, the funds in question, amounting to approximately ₦3.1 billion, were realised from the sale of state-owned shares in the cement company but were allegedly diverted for personal purposes rather than being remitted to government coffers. Both defendants have consistently denied wrongdoing and pleaded not guilty to the charges.

Court Orders Defendants to Open Defence

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After years of legal arguments, procedural delays and changes in judicial handling of the matter, the case appeared to be approaching a decisive phase in July 2025 when Justice Peter Lifu of the Federal High Court in Abuja dismissed a no-case submission filed by the defendants.

In his ruling delivered on July 23, 2025, the judge held that the prosecution had presented sufficient evidence to establish a prima facie case against the defendants, requiring them to enter a defence.

The ruling was widely viewed as a significant milestone in a case that had already spent nearly a decade in the judicial system.

However, despite the court’s directive, defence proceedings have yet to commence almost one year later.

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Series of Adjournments Prolong Trial

The court initially scheduled September 25, 2025, for Suswam and Oklobia to begin presenting their defence. However, proceedings failed to move forward as expected.

The matter was subsequently adjourned to January 20, 2026, for the adoption of final written addresses before being shifted again to May 29, 2026.

When the matter came up in May, the hearing could not proceed because the court was not sitting, resulting in another postponement.

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Justice Lifu thereafter fixed July 17, 2026, as the new date for the continuation of proceedings.

The repeated adjournments have further extended a case that has already spent more than a decade within Nigeria’s criminal justice system.

Trial Marked by Judicial Changes

Since its commencement, the case has experienced several disruptions arising from judicial transfers, appeals and allegations affecting the presiding judges.

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Justice Ahmed Mohammed initially handled the matter after the defendants were arraigned in 2015. However, he stepped aside in 2016 following media reports that questioned his impartiality in the case.

Although he later resumed proceedings, he withdrew again in 2019 after another publication raised similar concerns regarding his continued handling of the trial.

Following his withdrawal, the matter was reassigned to Justice Okon Abang, who proceeded with parts of the prosecution’s case and heard testimonies from some witnesses.

However, the legal battle took another turn when the Court of Appeal ruled that the case file should be returned to Justice Mohammed after an appeal filed by Suswam.

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Fresh delays emerged in 2023 when Justice Mohammed was elevated to the Court of Appeal, making it impossible for him to continue handling the matter. The case was subsequently reassigned to Justice Peter Lifu.

EFCC Calls Nine Witnesses

The EFCC eventually closed its case after presenting nine witnesses before the court.

Among those who testified were investigators, officials from the Benue State Ministry of Finance, representatives of stockbroking firms involved in the share transaction and a bureau de change operator.

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The prosecution relied on documentary and oral evidence in an effort to establish its allegations that proceeds from the sale of government-owned shares were unlawfully diverted.

Following the close of the prosecution’s case, the defendants sought to have the charges dismissed through a no-case submission. However, the court ruled that sufficient evidence existed to warrant a defence.

Queries Over Delayed Justice

The prolonged nature of the proceedings has continued to attract public attention, particularly because the case remains unresolved more than 11 years after it was first filed.

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Legal observers have pointed to the repeated adjournments, judicial reassignments and procedural setbacks as factors contributing to the slow pace of the trial.

Meanwhile, Suswam, who governed Benue State between 2007 and 2015 and later served as a senator, has remained active in Nigeria’s political landscape and is reportedly considering another electoral contest while the criminal case remains pending.Politics

With the next hearing scheduled for July 17, 2026, attention will once again focus on whether the defence will finally begin presenting its case in one of Nigeria’s longest-running high-profile corruption trials.

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Faleke Urges Civil Servants to Uphold Integrity, Hails Retiring National Assembly Clerk

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By Gloria Ikibah

The Chairman House of Representatives Committee on Finance, Rep. James Faleke, has called on civil servants across the country to uphold integrity, professionalism and due process in the discharge of their duties, describing the public service as a critical pillar of national development.

Faleke made the call in Abuja during the launch of a book titled “The Nigerian Legislature: A Practical Guide for Lawmakers”, written by the retiring Clerk of the House Committee on Finance, Mr Oscar Okoro, as part of activities marking his 60th birthday and retirement from service.

The lawmaker praised Okoro’s dedication, commitment and work ethic, describing him as a model civil servant whose career should serve as an inspiration to younger generations entering public service.

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According to Faleke, civil servants occupy a strategic position in governance and have a responsibility to ensure that government processes are carried out in accordance with established rules and procedures.

He said: “The civil service mainly, they build the country. They are the technocrats. They are the people that we, politicians rely on.
“And if the civil servant decide to get this done properly, I think the country will better off. Even when the politician says let us do it the other way and he says no, let us follow the rules. I think Nigeria will better off.

“It is about dedication to the development of Nigeria, when you trust and believe in the country, you will want to see the success of the country.

“Okoro is a very, very hardworking guy, unlike others, he is not money conscious, he just wants to see things accordingly and appreciably.

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“And for every time I push him hard, he works harder; I believe he’ is going to succeed very well in his retirement, so I wish him luck, and I pray that the family would not get the better of him”.

Faleke noted that Nigeria will benefit greatly if public servants remained committed to professionalism and resisted pressures to circumvent established procedures.

Also speaking at the event, Deputy Chairman of the House Committee on Finance, Rep. Abubakar Saidu, said his relationship with Okoro had grown beyond official duties and evolved into a family bond over the years.

He described the retiring clerk as a consummate professional whose conduct and dedication to service should serve as a guide for younger public servants.
According to him:

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“He is very dedicated, very patient, he is a professional, excellent and committed as well as exemplary when it comes to the job,” he said.

Saidu added that future generations of civil servants will have much to learn from Okoro’s approach to public service and his commitment to excellence.

In his remarks, House Spokesman, Rep. Akin Rotimi, described Okoro as an outstanding public servant whose contributions to the National Assembly and the country would not be forgotten.

Rotimi commended him for what he described as years of meritorious service and dedication to legislative administration.

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“My encouragement to people in service is that, this is the kind of person to model and pattern their careers after, people that have integrity and diligence their watch word,” he said.

Rotimi said that though the system has inbuilt mentorship and leadership recruitment processes, Okoro’ wealth of experience and expertise will be greatly missed.

Responding, Okoro attributed his success in life to God Almighty saying that life itself is very difficult and cautious journey.

“You have to know your onions, be hardworking, be patient, humble and respectful; if these are lacking, you are bound to fail either in the National Assembly or anywhere in life,” he said.

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Okoro said that he would return to legal practice, consultancy and dedicate the rest of his life to mentorship of younger generations and service to God.

Earlier, the book reviewer, Prof. Kabir Danladi of the Department of Public Law, Ahmadu Bello University (ABU) said that the book is a demonstration of hardwork and dedication to service exhibited by the author in the 27 years service to the nation.

He said that the book provides a practical and institutional guide for the Nigerians legislature with focus on the National Assembly.

The professor said that the books covers the constitutional foundation of National Assembly, internal structure, legislative procedure, oversight functions and its relationship with other arms of government.

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Danladi said that the 335 pages book is structured acrossed nine chapters, each addressing a distinct legislative life from historical foundation, constitutional law to practical step-by-step guidance on legislative procedure.

He said that there is alternative to reading especially for those who want to grasp the knowledge therein saying that reading is a command for human development and progress.

The professor recommended the book for all lawmakers, politicians and for all Nigerians to read and enhance the understanding of the legislature.

The event drew lawmakers, parliamentary staff, family members and associates who gathered to celebrate Okoro’s retirement and the launch of his book, which offers practical insights into legislative procedures and the workings of Nigeria’s parliament.

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Many of the speakers described the book as a valuable resource for lawmakers, legislative aides and students seeking a deeper understanding of parliamentary practice in Nigeria.

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