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Oyedele unveils 50 tax reliefs, benefits for Nigerians

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Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has unveiled 50 tax exemptions and reliefs designed to ease the financial burden on low-income earners, average taxpayers, and small businesses under Nigeria’s new tax reform laws, which will take effect from January 1, 2026.

Oyedele on WhatsApp platform released a comprehensive package, which he said represents one of the most people-focused tax reforms in Nigeria’s recent history, targeting fairness, simplicity, and inclusiveness in the country’s fiscal system.

He said the reform framework is part of the government’s commitment to “ensure that the masses and small businesses can thrive under a more just and growth-friendly tax environment.”

Under the new laws, individuals earning the national minimum wage or less will be exempt from Personal Income Tax (PIT) while those earning up to N1.2 million annually will also enjoy full exemption.

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In addition, workers with an annual gross income up to N20 million will benefit from a reduced Pay As You Earn (PAYE) rate.

All gifts received by individuals are now tax-free, while several deductions will be allowable for personal tax computation.

These include contributions to pension funds, the National Health Insurance Scheme, and the National Housing Fund, as well as interest on loans for owner-occupied homes and life insurance or annuity premiums.

Renters will also receive a rent relief amounting to 20 percent of their annual rent, up to a ceiling of N500,000.

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To protect retirees, all pension funds and assets under the Pension Reform Act remain tax-exempt. Likewise, pension and gratuity payments, as well as retirement benefits, are tax-free. Compensation for loss of employment up to N50 million will also be exempt.

The new law exempts the sale of an owner-occupied house and personal effects worth up to N5 million from Capital Gains Tax (CGT). Similarly, individuals can sell up to two private vehicles per year without tax liability.

Gains from shares below N150 million per year or up to N10 million will be exempt, while higher gains will also qualify for exemption if the proceeds are reinvested. Pension funds, charities, and non-commercial religious institutions will not be subject to CGT.

For businesses, the reform grants small companies — those with annual turnover not exceeding N100 million and total fixed assets below N250 million — a zero percent Companies Income Tax (CIT) rate. Eligible startups under Nigeria’s labeled startup framework will also enjoy tax exemption.

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To encourage better worker welfare, companies offering salary increases, wage awards, or transport subsidies for low-income employees will receive a 50 percent additional deduction. Similarly, businesses hiring and retaining new staff for at least three years will get a 50 percent employment relief deduction.

Agricultural enterprises in crop production, livestock, and dairy farming will receive a five-year tax holiday, while investors in labeled startups — such as venture capitalists, accelerators, and private equity funds — will enjoy exemptions on qualifying investment gains.

Value Added Tax (VAT) exemptions and zero-rated items are among the most extensive in the new law.

Basic food items, educational services and materials, health and medical services, and pharmaceutical products will attract zero percent VAT. Rent, transport services, and humanitarian supplies are fully exempt.

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Small companies with turnover not exceeding N100 million will not be required to charge VAT, while VAT on diesel, petrol, solar equipment, and agricultural inputs such as fertilizers, seeds, and feeds has been suspended or exempted.

Other exempt categories include baby products, sanitary towels, disability aids such as hearing aids and wheelchairs, and electric vehicles and their parts. Land and buildings also remain exempt from VAT.

Small companies, manufacturers, and agricultural businesses will no longer face withholding tax deductions on their income or payments to suppliers. In addition, small businesses will be exempt from the four percent development levy previously applicable.

To ease electronic transactions, transfers below N10,000 will not attract stamp duty. Salary payments, intra-bank transfers, and transfers of government securities, shares, or stocks are also exempt. All documents related to share transfers are covered under this relief.

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Oyedele also announced a civic initiative tagged “Influencing for Good,” aimed at empowering content creators and influencers to educate the public on Nigeria’s new tax reforms.

“We are selecting 20 creators who have demonstrated commitment to public enlightenment for a special training session to help them share accurate and useful tax information,” he explained.

The 50 tax exemptions and reliefs mark a significant shift in Nigeria’s fiscal policy direction — one that prioritizes equity, productivity, and relief for households and businesses as the nation works toward a fairer and more efficient tax system.

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List: FG endorses 33 more universities

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The Federal Government has endorsed 33 new universities across Nigeria, increasing the total number of universities in the country to 309.

The approvals include seven federal universities, six state-owned universities and 20 private universities.

The seven new federal universities are the Federal University of Environment and Technology, Tai, Rivers State; Federal University of Applied Sciences, Kachia, Kaduna State; Tai Solarin Federal University of Education, Ijagun, Ogun State; Federal University of Agriculture and Developmental Studies, Iragbiji, Osun State; Federal University of Technology and Environmental Studies, Iyin-Ekiti, Ekiti State; Federal University of Agriculture and Technology, Okeho, Oyo State; and the Federal University of Health Science and Technology, Tsafe, Zamfara State.

The six new state universities are Abdulsalam Abubakar University of Agriculture and Climate Action, Mokwa, Niger State; Ebonyi State University of ICT, Science and Technology, Oferekpe, Ebonyi State; University of Aeronautics and Aerospace Engineering, Ezza, Ebonyi State; Benue State University of Agriculture, Science and Technology, Ihugh; Cross River University of Education and Entrepreneurship, Akamkpa, Cross River State; and the University of Innovation, Science and Technology, Omuma, Imo State.

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The approvals also include 20 private universities.

Among them are Omega University in Delta State, Regnum Medical University in Lagos State, Transatlantic University of Medicine and Health Sciences in Anambra State, City University in Ogun State, University of Fortune in Ondo State, Eranova University in the Federal Capital Territory, Minaret University in Osun State, Abdulrasaq Abubakar Toyin University in Kwara State, Southern Atlantic University in Akwa Ibom State, Lens University in Kwara State, Monarch University in Ogun State, Tonnie Iredia University of Communication in Edo State, Isaac Balami University of Aeronautics and Management in Lagos State, Kevin Eze University in Enugu State, Bridget University in Imo State, Leadership University in Abuja, Jimoh Babalola University in Kwara State, Greenland University, JEFAP University in Niger State, Azione Verde University in Imo State and Unique Open University in Lagos State.

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FG bars MDAs from awarding contracts without warrants

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Disturbed by the manner Ministries, Departments and Agencies of Government, MDAs flagrantly spend money without adequately aligning with Revised Bottom-Up-Cash Management Policy Framework, to this end, the Federal Government welded the big stick by barring MDAs from awarding contracts without warrants.

Ministry of Finance in a circular has ordered that due process must be followed or heavy sanctions awaits such government bodies.

In a circular signed by the Minister of Finance, Taiwo Oyedele in a sighted by this medium, it was expressly stated that :”The revision of this policy will further ensure that MDAs comply with statutory and regulatory provisions governing public financial management”.

In the memo it was also stated that “It should be noted that Accounting Officers who contravene this policy shall be personally liable for any resultant commitments, in accordance with the provisions of • Financial Regulation 310 (Personal Responsibility for Expenditure • Public Service Rules 030402 (Serious Misconduct • Fiscal Responsibility Act Section 48 (Offences and Penalties – Independent Corrupt Practices and Other Related Offences Act (ICPC Section 22 Sub-sections 4.

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Under the new framework, no MDA is permitted to issue letters of award, sign contracts or enter into financial obligations unless the corresponding Warrant or Authority to Incur Expenditure covering the full or committed portion of the contract sum has been duly released by the Honourable Minister of Finance and Coordinating Minister of the Economy to the Accountant General of the Federation.

The circular also makes it clear that budgetary allocations alone do not constitute legal authority to spend public funds.

According to the directive, “Estimates in the Appropriation Act or budgetary provisions do not confer automatic spending authority. Only duly released Warrants/AIE issued by the Honourable Minister of Finance and Coordinating Minister of the Economy in line with Financial Regulation 301 confer legal authority to incur expenditure.”

The policy cites Financial Regulation 415, Section 22 of the Fiscal Responsibility Act, 2007, Section 16(1)(b) of the Public Procurement Act, 2007 and relevant provisions of the Independent Corrupt Practices and Other Related Offences Act as the legal basis for the revised framework.

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Government said the new measures are designed to align financial commitments with actual funds availability, strengthen expenditure controls and halt the growing accumulation of unfunded contractual liabilities arising from contracts awarded without the necessary financial backing.

The circular also introduces changes to the cash management process by abolishing the requirement for MDAs to submit monthly cash needs before the issuance of Warrants. Instead, Warrants will be issued based on approved budget implementation priorities and available Capital Development Fund balances.

In addition, all MDAs are required to prepare quarterly cash plans in line with their ministerial priorities and procurement plans for submission to the Office of the Accountant General of the Federation to improve cash flow forecasting and budget execution.

The Federal Government warned that Accounting Officers who disregard the directive would bear personal responsibility for any commitments arising from contracts awarded in violation of the policy.

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It stated that such officers would be held liable in accordance with the Financial Regulations, the Public Service Rules, the Fiscal Responsibility Act and other applicable laws governing public financial management.

The directive takes immediate effect and supersedes all previous instructions inconsistent with the revised framework. It also provides that all 2026 capital projects across Federal Ministries, Departments and Agencies shall be implemented in accordance with the new policy.

The government directed all Accounting Officers, Directors and Heads of Finance and Accounts, as well as Internal Audit Departments and Units across MDAs and other arms of government, to ensure strict compliance with the circular.

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Posterity will judge you well for devt of FCT -First Lady Remi Tinubu

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…Commends Wike’s Green Transformation of Abuja, Urges States to Engage Youth in Environmental Protection

First Lady of Nigeria, Senator Oluremi Tinubu has commended the Minister of the Federal Capital Territory (FCT), Nyesom Wike, for transforming Abuja’s City Gate into a major recreational and environmental landmark.

She was speaking during a ceremony to honour the FCT Administration for its environmental efforts which she said is in line with the just concluded category of the ongoing Green Nigeria Challenge of the Renewed Hope Initiative.

Senator Oluremi Tinubu said she was impressed by the transformation of the City Gate, describing it as “unbelievable.”

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She stated that despite a ₦50 million prize set aside under the Green Challenge to encourage states to reclaim abandoned spaces and dumpsites, no state entered for that category of the competition.

“It was a ₦50 million prize money and they didn’t enter. This was supposed to get our youth involved,” she said.

The First Lady explained that the initiative was designed to encourage states to convert neglected public spaces into clean and attractive environments.

“The transformation reflects the vision behind the just concluded Community Category of the Challenge which was designed to encourage youth groups to transform degraded public spaces, including dumpsites and abandoned areas, into green parks, gardens and other eco-friendly spaces. Our goal is to compliment government’s effort in beautifying our environment and promoting healthier communities towards improving the quality of life of our people.”

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“The remodeled Abuja City Gate is an excellent example of what abandoned public areas can become: a transformed key national landmark that warmly welcomes all Nigerians and visitors to our nation’s capital.”

“When I saw what he did with the City Gate, my God, unbelievable, unbelievable. I want to thank him. He’s done very well.”

“This was to turn around abandoned spaces, dumpsites, and we see a lot of it around the states.”

Senator Oluremi Tinubu also appealed to Wives of State Governors to mobilise the youth to participate in environmental clubs and sustainability initiatives in schools and tertiary institutions.

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“I’m using this opportunity to appeal to our First Ladies: Get our young children into the environmental clubs and environmental societies for our youth in tertiary institutions.”

“I remember when I was in the College of Education, I was a member of the Youth Environmental Programme for West Africa. We travelled from Nigeria throughout West Africa by road. It was a memorable experience for us.”

According to the First Lady Senator Oluremi Tinubu, young people must be encouraged to contribute to national development through environmental stewardship.

“We have to engage our young people and make sure that they can help build. Everybody has something to contribute to this country. It’s a great country and that’s why we are doing all we can.”

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In his remarks, the FCT Minister, Nyesom Wike revealed that the First Lady personally inspired the transformation of Abuja’s City Gate.

“The First Lady has to be commended for the FCT keying into the Renewed Hope Green Initiative because she has always said we have to change our environment and create opportunities where people can gather and relax.”

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