News
Nigeria defends new tax laws, says KPMG’s report is self opinionated
The Presidential Fiscal Policy and Tax Reforms Committee has addressed concerns raised by KPMG, the global advisory services firm, on Nigeria’s recently enacted tax laws, describing much of the firm’s commentary as based on misunderstandings and personal preferences rather than facts.
Recall KPMG had said there are “errors, inconsistencies, gaps, omissions, and lacunae” in the new tax laws that require urgent reconsideration to ensure the achievement of their stated objectives.
However, the committee, in a statement on Saturday, January 10, 2026, acknowledged some useful points on implementation risks but stressed that the majority of KPMG’s observations mischaracterised deliberate policy choices, repeated opinions as errors, and overlooked the broader objectives of the reforms.
The committee clarified key issues, including stock market taxes, saying share gains are not taxed at a flat 30%, adding that 99% of investors qualify for full exemptions, with the tax designed to strengthen corporate fundamentals.
On indirect share transfers, the committee said taxing indirect transfers aligns with global best practices to close loopholes and does not threaten competitiveness.
It noted that no Value Added Tax (VAT) applies to insurance premiums, saying exempting foreign insurance or allowing parallel market forex deductions would harm domestic industries and fiscal policy, adding that the new top marginal rate of 25% is competitive globally and ensures fairness without stifling growth.
The presidential committee also highlighted several factual errors in KPMG’s report, including outdated references to the Police Trust Fund and misinterpretations of small business tax thresholds.
It further emphasised that the reform introduces major benefits, such as simplification, tax harmonisation, reduced corporate tax rates, expanded input VAT credits, and incentives for small businesses and priority sectors.
The committee, therefore, called on stakeholders to engage constructively with the implementation process, noting that administrative guidance, clarifications, and regulations will ensure the laws meet their economic development objectives.
The presidential committee response states: “We welcome all perspectives that contribute to a shared understanding and successful implementation of the new tax laws. We acknowledge that a few points raised by KPMG are useful, particularly where they relate to implementation risks and clerical or cross-referencing issues. However, the majority of the publication reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices, and, in several instances, repetitions and presentation of opinion and preferences as facts.
A significant proportion of the issues described as “errors,” “gaps,” or “omissions” by KPMG are either:
– the firm’s own errors and invalid conclusions,
– issues not properly understood by the firm,
– missed context on broader reforms objectives,
– areas where KPMG prefer different outcomes than the choices deliberately made in the new tax laws, and
– obvious clerical and editorial matters already identified internally.
While it is legitimate to disagree with policy direction, disagreements should not be framed as errors or gaps. KPMG would have been more effective if the firm adopted a similar approach like other professional firms who engaged directly providing the opportunity for clarifications and mutual-learning.
It is equally important to distinguish between policy choices designed to achieve the reform objectives and proposals that merely represent a firm’s preference.
Taxation of Shares and the Stock Market
Contrary to the presumption that the new tax provisions on chargeable gains would trigger a sell-off on the stock market, the fact is that the applicable tax rate on share gains is not a flat 30%. The tax framework is structured from 0% to a maximum of 30%, which is set to reduce to 25%. Furthermore, a significant majority of investors (99%) are entitled to unconditional exemption, with others qualifying subject to reinvestment.
The market’s performance, which is at an all-time high with increased investment flow, demonstrates investors understanding that the tax changes will enhance the fundamentals of firms both in terms of profitability and cash flows. The sell-off narrative is unsubstantiated as any disposals in December 2025 would have benefited from the re-investment exemption or enhanced deductions under the new law.
Commencement Date and Transition
The suggestion to set the commencement date as the start of an accounting period (e.g., 1 January 2026) takes a narrow view of the complex transition issues. A wholesale reform affects myriad issues beyond the accounting period, spanning multiple periods, different bases of assessment (preceding year, actual year), as well as issues related to audit, deductions, credits, and penalties. Limiting the commencement to a single date for accounting periods would fail to address the intricacies of continuous transactions and other transition matters. KPMG’s proposal is therefore not a “gold standard” to be applied to all new laws as suggested.
Indirect Transfer of Shares
The new provision to tax indirect transfer of shares is a policy choice aligned with global best practices and BEPS initiatives. Its objective is to block a long-exploited tax loophole by multinationals and other investors, not to affect competitiveness. This is a common provision in international tax, and the assertion that it may affect the country’s economic stability is disingenuous.
VAT Exemption on Insurance Premium
KPMG’s point regarding a specific VAT exemption on insurance premium is technically unnecessary, as an insurance premium is not a “taxable supply” defined under the Nigeria Tax Act. Insurance relates to risk transfer, not the supply of goods or services subject to VAT. As this has always been the administrative and legal position, a specific amendment for exemption is academic. If it is not broken, don’t fix it.
Inclusion of ‘Community’ in Definition
The concern about the inclusion of “community” in the definition of a ‘person’ but its omission from the charging section does not constitute a gap or ambiguity. In statutory interpretation, definitions provided in the law apply wherever the defined term appears, unless the context requires otherwise. Hence, ‘person’ and ‘taxable person’ are used in the charging section, and both definitions include ‘community.’ This approach is consistent with modern legislative drafting principles, which use comprehensive definitions to streamline operative provisions and avoid redundancy. This is similar to the inclusion of partnerships and executors in the definition but not under the charging section. The use of the word “includes” further signifies that the list of taxable persons is not exhaustive.
Joint Revenue Board (JRB) Composition
The composition and mandate of the Joint Revenue Board (JRB) are intentional. Its policy advisory role is specifically to provide a subnational tax and revenue perspective that complements the fiscal policy mandate of the Ministry of Finance. Its membership is appropriately limited to revenue-focused agencies, which is why it is called the Joint Revenue Board. This is a similar composition under which the former JTB operated effectively, and its functions remain consistent with the need for inter-agency coordination.
Distinction in Dividend Treatment
KPMG’s analysis appears to mix the distinction between a foreign-controlled company and a foreign operation of a Nigerian company. Dividends distributed by a foreign company cannot be “franked” since no Nigerian Withholding Tax (WHT) would have been deducted. Section 162(1)(s) confers exemption on dividend, interest, rent, or royalty derived from outside Nigeria and brought into Nigeria through approved channels. The choice to treat dividends distributed by Nigerian companies differently from foreign companies is a deliberate policy choice, as they are fundamentally different for tax purposes.
Non-Resident Registration and Final Tax
The view that a payment subject to deduction as final tax should automatically exempt the non-resident recipient from tax registration misses a critical distinction. While the law conditionally exempts passive income from registration, the deduction of tax on non-passive income is not synonymous with an exemption from registration or filing of returns. The same way that residents are required to file returns on income such as interest (in the case of individuals) and dividend where WHT is final. Returns serve a broader purpose beyond solely generating tax revenue.
Tax on Foreign Insurance Premiums
The proposal to exempt foreign insurance companies from tax on premiums from insurance written in Nigeria to deepen penetration, while local insurance companies continue to pay tax, would be detrimental to the domestic insurance sector. This would create an unfair and harmful competitive disadvantage for local firms in their own market. The current policy is designed to protect and promote local industry and ensure a level playing field.
Parallel Market Forex Deduction
The new law disallows tax deduction for the difference where a business buys foreign exchange in the parallel market at a premium over the official rate. This is a critical fiscal policy choice designed to complement monetary policy, strengthen, and stabilise the Naira. By removing the tax subsidy for patronage of the parallel market, the policy aims to reduce incentives for round-tripping and redirect legitimate FX demands to the official market. This is policy congruence, not an error.
VAT Compliance-Linked Deductibility
The non-tax deduction for taxable transactions on which VAT has not been charged is a necessary anti-avoidance measure. It removes the advantage that some taxpayers previously enjoyed by patronising suppliers who evade VAT. This is a matter of fairness and is squarely within the control of a business to manage, especially given the provision for the self-charge of VAT. It also ensures that responsible businesses play their part in promoting voluntary tax compliance across the ecosystem.
Progressive Personal Income Tax
While KPMG acknowledges the reform objective of fairness and progressivity, the firm disagrees with a top marginal tax rate of 25% for the highest earners. In reality, the effective tax rate can be as low as 22% for an individual earning billions a year simply by contributing 10% to pension. This rate is competitive when compared to many other countries, including Angola 25%, Egypt 27.5%, Ghana 35%, Kenya 35%, the U.S. (Federal) 37%, South Africa 45%, and the U.K. 45%. So, the rate is not “oppressive” or one that will negatively affect economic growth as claimed, rather it ensures progressivity without compromising competitiveness. From a broader policy objective perspective, the increase in top marginal rate for high income earners and the reduction in corporate tax rate is designed to address the existing higher tax burden associated with business formalisation.
Police Trust Fund
The Police Trust Fund was signed into law on May 24, 2019, with a six-year lifespan under section 2(2) of the Act, which ended in June 2025. Therefore, KPMG’s point that the new tax law should be amended to repeal the taxing section of the Police Trust Fund Act is needless, as the provision no longer exists.
Small Company Verification
The analysis concerning the tax exemptions for small companies affecting large companies’ obligations is not a new issue or an inconsistency in the new law. The small business threshold was introduced via the Finance Act 2021. This issue pre-dates the current tax laws and should not be presented as an error or omission simply by virtue of a higher tax exemption threshold under the new law.
While acknowledging the objectives of the reform, KPMG could have highlighted the major structural improvements under the new laws, including:
– simplification and tax harmonisation,
– the scope for reduction in corporate tax rate from 30% to 25%,
– expanded input VAT credits for businesses,
– tax exemption for low-income earners and small businesses,
– elimination of minimum tax on turnover and capital, and
– improved investment incentives for priority sectors.
A balanced assessment would have recognised these transformative elements, among others.
The tax reform is the result of an extensive consultation with various stakeholder groups in addition to the legislative process that included widely publicised public hearings, avenues intended for all stakeholders including international firms to provide technical expertise at the formative stage.
In any comprehensive overhaul of a nation’s tax framework, clerical inconsistencies or cross-referencing gaps may occur, and these are already being identified within the government. The tax reform represents a bold step toward a self-sustaining and competitive Nigeria.
An effective review needs to connect identified gaps to clear policy intents and the reality of modern-day tax systems within the context of economic development and global competitiveness.
At this stage, the effectiveness of the tax law depends on administrative guidance, clarifications from the tax authority, and regulations to complement precise statutory provisions where necessary pending future amendments.
We urge all stakeholders to pivot from a static critique to a dynamic engagement model, which allows for clarifications and a productive partnership in the implementation of the new tax laws.
News
NDLEA intercepts terror drug ‘captagon’ in Kwara as bizman excretes 45 cocaine wraps(Photos)
. Captagon ‘ll never find foothold in Nigeria, Marwa assures as operatives destroy 20,000kg skunk in Cross River forest; recover 1.1million pills of opioids in Edo; 394 IED materials in Niger state
Barely five years after the National Drug Law Enforcement Agency (NDLEA) recorded the first seizure of the deadly terror drug, Captagon, in Africa at the Apapa seaport in Lagos, operatives of the Agency have again intercepted a consignment of the amphetamine substance in Kwara state.

Captagon, a tiny, highly addictive pill, widely available across the Middle East, produces a euphoric intensity in users, allowing them to stay awake for days, making them fearless, and predisposes them to reckless action that puts the lives of people around them in jeopardy.
Its production and sale are controlled by militias and large criminal groups linked to the Islamic State in Iraq and Syria (ISIS) as a means of generating funds for weapons and combatants, and for use as a stimulant to keep them fighting.
The latest seizure of captagon, which street value costs as much as $25 a pill, was made on Tuesday 21st April 2026 when NDLEA operatives on patrol along Bode Saadu road, Kwara state intercepted a trailer conveying passengers. A search conducted on one of the passengers, 33-year-old Nasiru Mu’azu led to the recovery of 10 packs of captagon consisting of 10,000 pills and nine packets of Tapentadol 250mg.

In another interdiction operation at the Bode Saadu patrol point, NDLEA officers on Friday 24th April intercepted a trailer marked RMY-70XA. A search of the truck led to the recovery of 155,900 capsules of tramadol; 6,000 ampuoles of tramadol injection; 3,000 tablets of Co- Codamol and 9,000 tablets of Bromazepam, concealed in a false compartment constructed under the trailer. A 24-year-old suspect Aminu Isah has been taken into custody in connection with the seizure.
Meanwhile, NDLEA operatives in Oyo state on Tuesday 21st April intercepted a commercial bus with registration number MNA 963 ZY, at Akinyele along Ibadan/Oyo expressway, while en route Sokoto. A 33-year-old passenger Eze Prince Emeka was brought down from the vehicle and taken for body scan, which result confirmed ingestion of illicit drug.

The suspect who claims to be a businessman in Sokoto was subsequently placed under close excretion observation during which he excreted a total of forty-five (45) pellets of cocaine with a total weight of 1.043 kilograms in three excretions. The decision to travel by road to Sokoto with the illicit drug in his stomach was to evade detection by NDLEA at the airport while further investigation reveals that upon arrival in Sokoto, the suspect was to excrete the pellets, rest for a few days, and subsequently re-ingest the substances to continue the journey through the trans-Saharan routes, with Algeria as a transit point and possible final destination in Europe.
In Edo state, NDLEA officers on patrol along Benin/Lagos expressway on Saturday 25th April intercepted a truck marked NLC 146 FC conveying 1, 196,000 pills of pharmaceutical opioids, among others. Two suspects: Osagie Igbinibo, 43, and Omijie Malik, 44, were apprehended in connection with the seizure of the consignments heading to Onitsha, Anambra state.
While a suspect Rasheed Ibuowo, 40, was arrested at Mile 2 expressway in Lagos on Saturday 25th April conveying 810 kilograms of Arizona, a strain of cannabis, another suspect Muktar Bello, 35, was nabbed by NDLEA operatives on Wednesday 22nd April at Misau road, Azare/Katagun LGA, Bauchi state with 288 blocks of skunk weighing 154.5kg.
In Ekiti state, a total of 466.8 kilograms of skunk were recovered from the house of a suspect Layit John Matthew, 56, at Ilaro street, Isinbode-Ekiti, from where he planned to transport them to Yola, Adamawa state while 20,000 kilograms of the same psychoactive substance were destroyed on eight hectares of farmland in Uyanga community, Akamkpa LGA, Cross River state on Saturday 25th April when NDLEA officers supported by soldiers raided the community and recovered 170kg of processed cannabis.

Three Hundred and Ninety-Four (394) pieces of IED components were seized from a suspect Mohammed Aliyu, 26, by NDLEA operatives on patrol along Kontagora/Zuru road, Niger state on Wednesday 22nd April. He was conveying the IED materials in a red Toyota car with registration number KNT 617 AE to Shadadi, Mariga LGA. The suspect and exhibit are to be transferred to the relevant security Agency for further investigation.
With the same zeal, Commands and formations of the Agency across the country continued their War Against Drug Abuse, WADA, sensitization activities in schools, worship centres, work places and communities among others in the past week. These include: WADA enlightenment lecture for students and staff of Mallam Salisu Islamic School, Paiko, Niger state; Madarasatul Abdulrahman Bin Auf Litahafizul Quran, Durusul Islamiyah Badawa, Nasarawa LGA, Kano; Sani Zango Daura Model Primary School, Zango, Katsina; and members of community development associations, Badagry LGA Lagos while the Zonal Commander, Zone 4 Command of NDLEA, ACGN Bridget Viashiama led other senior officers of the Zone on a WADA advocacy visit to Nasarawa state governor, Engr. Abdullahi Sule, among others.

While commending the officers and men of Kwara, Oyo, Edo, Cross River, Bauchi, Ekiti, Niger and Lagos Commands of the Agency for the arrests and seizures, Chairman/Chief Executive Officer of NDLEA, Brig. Gen. Mohamed Buba Marwa (Rtd) noted their drug supply reduction efforts balanced with WADA sensitization activities while he charged them and their compatriots across the country to maintain the current tempo.
He commended the tactical precision of NDLEA operatives following the interception of 10,000 pills of Captagon in Kwara State, noting that the bust is a major blow to drug syndicates attempting to revive a pipeline that has been largely dormant since the landmark seizure at the Apapa Seaport in Lagos five years ago.
Marwa described the seizure as a wake-up call, noting that Captagon, a potent amphetamine often linked to insurgent groups for its ability to inhibit fear and fatigue, remains a target for traffickers looking to fuel insecurity.
“We are not just seizing pills; we are disrupting the fuel that powers violence in our communities. Our operatives remain on high alert across all frontiers to ensure this illicit trade finds no foothold”, he stated.
News
APC to Makinde: “Your ‘operation wetie’ remark at Ibadan opposition summit is reckless and inciting”
The All Progressives Congress (APC) has strongly hammered Oyo State Governor Seyi Makinde over his reference to the historic “Operation Wetie” crisis during a recent opposition political summit held in Ibadan, describing the comment as provocative, inappropriate, and capable of inciting tension.
The reaction comes after Governor Makinde, while hosting an opposition gathering themed “That We May Work Together for a United Opposition to Sustain Our Democracy,” warned against what he described as political moves aimed at concentrating legislative power under a single party.
In his remarks, Makinde referenced the violent political unrest of Nigeria’s First Republic, noting that the infamous “Operation Wetie” began in Ibadan before spreading across the old Western Region.
“Those that are carrying on as if there’s no tomorrow… should remember that Operation Wetie started from here. This is the same Wild Wild West,” the governor said.
The phrase “Operation Wetie,” a Yoruba expression meaning “soak him,” refers to a period of intense political violence in the early 1960s marked by arson attacks, electoral crises, and widespread unrest that ultimately contributed to the collapse of Nigeria’s First Republic in 1966.
However, the APC leadership has faulted the governor for invoking the historical episode in what they described as a politically sensitive setting.
Speaking on behalf of the party, APC National Secretary Ajibola Basiru dismissed Makinde’s comments as irresponsible and lacking proper historical context.
“It is irresponsible for a governor to make inciting statements without context,” Basiru was quoted as saying.
He argued that the “Operation Wetie” era was a product of electoral disputes and political tension at the time, insisting that the current opposition’s claims of marginalisation were exaggerated.
According to him, the ruling party remains well-structured and focused, while the opposition is struggling with internal divisions.
“Today, the opposition is simply belly-aching because the APC is organised while they are in streams,” he added.
Basiru also urged Nigerians to condemn what he described as the governor’s “reckless political language,” accusing him of indirectly promoting violence through historical references.
Similarly, APC South-West Vice Chairman Isaacs Kekemeke said Makinde’s statement could be misinterpreted as a warning that future elections may be decided through violence.
He dismissed allegations that Nigeria is drifting toward a one-party state under President Bola Tinubu, insisting that the country’s democratic space remains open and competitive.
Kekemeke noted that over 20 political parties are currently registered with the electoral body, arguing that such diversity contradicts claims of political domination.
“It is a figment of hyperactive imagination for any member of the opposition to insinuate a one-party state in a country where over 20 political parties are on the register of the Independent National Electoral Commission,” he said.
He also blamed the opposition for its internal crises, leadership disputes, and lack of coordination, saying these challenges not APC actions are responsible for their political setbacks.
“Is the APC or Federal Government responsible for the inability of opposition leaders to resolve their intra-party leadership crises?” he queried.
Kekemeke further expressed confidence that the APC would maintain dominance in the South-West and across the country, citing what he described as strong grassroots support and governance performance.
He also described Makinde’s comment as a sign of desperation and political frustration.
“The difference is clear: it is leadership, vision, focus and performance. Opposition lacks all of the above,” he said.
In a separate reaction, APC National Secretary Basiru dismissed the Ibadan summit itself, describing it as an informal gathering lacking official party backing.
“The so-called Ibadan summit is a ruse. It was an assemblage of individuals, not 10 political parties,” he said.
He also questioned the legitimacy of claims that multiple parties were involved, arguing that internal divisions within opposition parties undermine their credibility.
Meanwhile, the Presidency also weighed in on the matter through the Special Adviser to the President on Media and Public Communication, Sunday Dare, who dismissed the opposition coalition as politically weak and unlikely to succeed.
He expressed confidence that President Tinubu would secure re-election, citing what he called ongoing economic and governance reforms.
“President Tinubu stands on solid ground… He will secure a second term because he has earned it,” Dare said.
Despite the backlash, opposition leaders at the Ibadan summit reportedly agreed to work toward fielding a single presidential candidate in the 2027 general elections, describing the move as necessary to strengthen their electoral chances.
The political exchange has further intensified early campaign tensions ahead of 2027, with both ruling and opposition parties hardening their positions as the election cycle gradually builds momentum.
News
Trump, wife escape as gunman opens fire during dinner with press men
A man armed with guns and knives stormed the lobby outside a high-profile journalists’ dinner attended by President Donald Trump, his wife Melania and multiple senior U.S. leaders on Saturday night, April 25, 2026, rushing toward the ballroom before Secret Service agents swarmed him and took him into custody. The president and his wife were uninjured and were hustled away.
Guests went diving under tables as the scene unfolded and some reported hearing shots outside the vast subterranean ballroom in the Washington Hilton where the event was being held.
One law enforcement official said a gunman had opened fire. A law enforcement officer was shot in the bullet-resistant vest but is expected to be OK, several sources told The Associated Press.
The shooting suspect — described by Trump as a “sick person” — was identified as Cole Tomas Allen, 31, of Torrance, California, two law enforcement officials told the AP.
“When you’re impactful, they go after you. When you’re not impactful, they leave you alone,” Trump, safe and uninjured and still in his tuxedo, said at the White House two hours later. “They seem to think he was a lone wolf.”
There was no immediate indication of any other involvement, and Washington Mayor Muriel Bowser said she had ”no reason” to believe anyone else was involved. Video posted by Trump showed the suspect running past security barricades as Secret Service agents ran toward him.
“There does not appear to be any sort of danger to the public at this time,” Bowser said at a separate news conference.
All officials protected by the Secret Service were evacuated. Those in attendance included Trump, Vice President JD Vance, Defense Secretary Pete Hegseth and Secretary of State Marco Rubio — and many other leaders of the Trump administration on a night when the nation is at war with Iran.
It was the third time since 2024 that the president had been under threat by an attacker in his immediate vicinity — including the assassination attempt in Butler, Pennsylvania, that injured him and killed a local firefighter.
“Today we need levels of security that probably nobody has ever seen before,” the president said. But he also said, “We’re not going to let anybody take over our society.”
-
News17 hours agoBring Your Children Back To Nigeria To Lead Your “Operation Wetie,” South-West PDP Tells Makinde
-
News24 hours agoDelta PDP threatens Court action against APC defectors over alleged forgery
-
News18 hours agoADC South West reveals new leaders, rallies support
-
News7 hours agoSAD! Millionaire big game hunter crushed to d@ath by herd of 5 elephants
-
News7 hours agoCondoms users to pay extra 30% as top producer increases price as Iran-US war continues
-
News18 hours agoSad: Fire razes Police station, three residential buildings in Ibadan
-
News7 hours agoEkiti guber: APC gives Uba Sani election war assignment
-
News7 hours agoPlateau Poly Student Sh@t In Herdsmen Attack D!es
