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Just in: Nigeria’s FX Inflows Threatened Over American Lawmakers Proposed US Tax On Remittances

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By Kayode Sanni-Arewa

Lawmakers in the United States are weighing new legislation that could have far-reaching implications for emerging markets, particularly those that rely heavily on remittance inflows to bolster foreign exchange reserves and support currency stability.

The proposed bill aims to impose a 5% tax on all remittances sent from US residents to recipients abroad, as part of efforts to improve fiscal revenues. We note that if passed, the legislation would require senders to pay the tax at the point of transfer, thereby increasing the cost of cross-border remittance transactions. Under the proposed framework, the 5% tax burden would fall on the sender in the US. However, there is a provision in the bill that allows verified US citizens to claim the remitted amount as a tax credit, potentially offsetting the financial impact for that group.

For Nigeria, the implications are particularly concerning, given the critical role remittances play in supporting the current account balance. In 2024, remittance inflows reached a five-year high of US$23.8bn, equivalent to approximately 12.7% of GDP, and accounted for about 17% of the growth in the current account. We highlight that these inflows have been crucial in easing external financing pressures, supporting the stability of the local currency, and enhancing the disposable income of Nigerian households amid a challenging macroeconomic environment. Given that the US is reported to be one of the largest sources of remittances to Nigeria, any increase in the cost of sending funds could dampen overall inflows and adversely impact the many households that depend on remittances to sustain their livelihoods. Our baseline projections indicate that remittance inflows could rise by 6.2% year-on-year (YoY) to reach US$25.3bn, 13.4% of GDP, in 2025. However, the introduction of the proposed levy may dampen this momentum, potentially resulting in slightly lower inflows than anticipated.

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Beyond the direct financial burden, the proposed tax may unintentionally encourage the growth of informal or black-market remittance channels. Migrants abroad ineligible for tax credits may seek alternative and unregulated methods to send money home. This could undermine financial transparency, reduce the traceability of cross-border flows, and complicate the government’s efforts to harness remittances for national development.

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Certified True Copy of court judgment ordering NDC deregistration emerges (Photos)

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The Certified True Copy (CTC) of the Federal High Court judgment ordering the deregistration of the Nigeria Democratic Congress (NDC) has emerged.

The ruling, delivered by Justice Isa H. Dashen of the Federal High Court, Lokoja Judicial Division, set aside the court’s earlier judgment of December 10, 2025, which had directed the Independent National Electoral Commission (INEC) to register the NDC as a political party.

According to the judgment, the earlier decision was nullified because it affected the legal rights of the Peace Movement Party (PMP), which claimed ownership of the logo used by the NDC but was not joined as a party in the original suit.

Following the ruling, INEC is expected to remove the NDC from its list of recognised political parties.

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However, the commission has maintained that it will act only after reviewing the Certified True Copy of the judgment.

INEC National Commissioner and Chairman of the Information and Voter Education Committee, Mohammed Kudu Haruna, said the commission had applied for the court document before taking any decision.

> “We have applied for the Certified True Copy of the judgment. Until we receive it, we cannot be in a position to comment on it. However, the position that existed before the December 10, 2025 judgment was that INEC rejected NDC’s letter of intent to be registered as a political party,” Haruna said.

The development comes as the NDC continues to face challenges ahead of the 2027 general elections.

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The party has alleged that it was denied the portal access code required to upload the names of its candidates to INEC’s nomination portal, a situation it says threatens the political aspirations of its presidential candidate, Peter Obi, vice-presidential candidate Rabiu Kwankwaso, and other party candidates.

INEC recently shifted the release of portal access codes from June 26 to Monday, June 29, to streamline submissions by eligible political parties.

Under the commission’s timetable, presidential and National Assembly candidates are expected to upload their nomination forms between June 27 and July 11, 2026, while governorship and state assembly candidates have from July 18 to August 8, 2026.

Confirming the denial of access, the NDC’s National Publicity Secretary, Osa Director, said the party’s request for the upload credentials was unsuccessful.

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“We approached INEC to collect the access code to upload the names of our candidates to the INEC portal. They told us that they will get back to us,” he said.

Director added that the party would return to the commission while pursuing legal action to halt the implementation of the court judgment.

“We will go back there by tomorrow. I believe by tomorrow we must have filed a stay of execution in court,” he said.

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Bandit kingpin’s leaked audio threatens attacks in Katsina unless demands are fulfilled

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A leaked audio recording allegedly featuring notorious bandit leader Kachalla Muhammadu (also known as Kachalla Maha or Muhammadu Kachalla), has sparked widespread alarm in Katsina State. In the Hausa-language recording circulating on social media, the bandit commander issues dire threats of coordinated mass attacks on civilians, infrastructure, and elites if his demands are not fulfilled.

According to summaries and excerpts shared widely on X and local media, Kachalla Muhammadu demands:

The immediate release of two of his arrested associates.
The return of seized cattle.

He warns that failure to meet these conditions by a reported deadline (as recent as June 29 in some accounts) will trigger:

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Deadly attacks on civilians and farms in Matazu and surrounding areas.
Strikes on Jikamshi town.
Attacks on villages in Kano State.
Destruction of the strategic Karaduwa Bridge.
Broader disruption of farming activities and potential targeting of prominent individuals (elites).

The bandit leader also boasts of having informants within the security forces who allegedly tip him off about impending operations, including high-level strategies. He claims involvement in recent incidents and disputes official accounts surrounding the death of retired Major General Rabe Abubakar (also referred to as General Rabe), who was abducted along with his wife. Kachalla allegedly links the general’s death to a snake bite in captivity rather than other reported causes and accuses locals of betrayal.

Kachalla Muhammadu has been linked to a series of violent activities in the Matazu-Musawa axis of Katsina State, including cattle rustling, kidnappings, and attacks on communities. He was reportedly once part of a government-backed peace initiative but has since resumed operations amid disputes over arrests and seizures during military actions.

The abduction of retired Maj. Gen. Rabe Abubakar and his wife drew significant attention, with the general later dying in captivity. Security forces have conducted operations in the area, rescuing some hostages and arresting alleged associates of the bandit leader, but Kachalla Maha remains at large.

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https://x.com/abdool_moh/status/2071175115010654540?ref_src=twsrc%5Etfw

The audio has fueled outrage and fear among residents, with many expressing concerns over alleged infiltration of security networks and the boldness of bandit groups. Local officials, including the Matazu Local Government Chairman, have reportedly engaged in negotiations with the bandit leader in previous leaked communications.

Authorities have not yet issued an official response to the latest audio as of the latest reports. Security operations continue in the region, with troops targeting bandit hideouts.Note: Details stem from unverified circulating audio and social media reports. Official confirmation and independent verification are ongoing. Residents in affected areas are advised to remain vigilant.

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Don’t Speak For Victims, We Need Help’ – Christians Reject Trump’s Claim Of Ending Killings In Nigeria.

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The Christian Association of Nigeria in the 19 northern states and the Federal Capital Territory, alongside the Ecumenical Synods of Bishops, Archbishops, Apostles and Senior Clergy, has flatly rejected United States President Donald Trump’s assertion that American military intervention has ended the killing of Christians in Nigeria, describing the claim as dangerously misleading and detached from reality.

Trump had declared during a Washington event on Friday that recent US military action in Nigeria largely halted attacks on Christian communities and significantly weakened those responsible for the violence.

“As you know, we recently struck Nigeria and largely ended the slaughter of great Christian populations,” the US President told his audience.

But responding with palpable frustration, Chairman of CAN in the 19 northern states and the FCT, Rev. Joseph Hayab, insisted that only victims of insecurity—not the American president—could assess whether any meaningful improvement had occurred.

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“The right people who should tell whether Trump has succeeded should be Nigerian Christians or Northern Christians, not Trump himself. But probably he is getting his information from the wrong source,” Hayab told Sunday PUNCH.

“Trump should allow the victims to make that confession, not him. The victims are the right people who can tell whether whatever he has done has yielded any success.”

While acknowledging that the United States had carried out operations against terrorist elements, Hayab maintained that the intervention had not stopped the daily bloodshed.

“The strategy Trump’s America is adopting is not good enough because after the US forces struck in Sokoto last December, they went on a long recess. They came recently again and killed some ISIS commanders, but people are still being killed here every day,” he stated.

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The CAN chairman issued a direct appeal: “We want help, but the help shouldn’t be propaganda. It should be genuine help, not propaganda or misinformation.”

He challenged the White House narrative by pointing to ongoing abductions across multiple states.

“All those people who are still in bandits’ captivity in Oyo, Kwara and Kogi, what has happened? People are still in Kwara, Katsina, Borno and other states. Trump and his men can find a better story.”

In a separate reaction, the Ecumenical Synods of Bishops, Archbishops, Apostles and Senior Clergy said there was no convincing evidence that the reported US intervention had achieved the results Trump claimed.

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International Secretary of the body, Archbishop Osazee William, did not mince words.

“I don’t seem to agree with him because, in the first place, I have yet to see evidence of that claim. I think there was a kind of warning strike in Sokoto, but I didn’t see any visible killing. This is not the kind of intervention we were hoping and looking forward to. We are looking at a good intervention,” he said.

William also expressed deep concern over reports of possible behind-the-scenes negotiations that may be shaping the US position on Nigeria’s security challenges.

While acknowledging that a symbolic message may have been sent through the reported operation, the bishops insisted it had not addressed the country’s escalating security crisis.

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The Christian leaders jointly called for sustained, transparent collaboration between Nigerian authorities and international partners to tackle insecurity, protect vulnerable communities, and restore lasting peace—not score political points through “propaganda.”

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