May 14, 2025

President Bola Tinubu has reaffirmed that the federal government’s ongoing tax reforms aim to boost revenue generation and eliminate inefficiencies within Nigeria’s tax system. Represented by the Minister of State for Finance, Doris Uzoka-Anite, at the 27th Annual Tax Conference in Abuja, Tinubu stated that these reforms are central to the administration’s broader economic agenda. He noted that the conference theme, “Taxation for Development, Policies, Law, and Implementation,” aligns with the government’s current efforts to build a more robust and transparent tax framework. A fair and efficient tax system, he emphasized, is vital not only for funding public services but also for ensuring economic stability and long-term development. President Tinubu highlighted the creation of the Presidential Committee on Fiscal Policy and Tax Reforms, which is tasked with simplifying the tax structure, minimizing revenue leakages, and improving coordination across all levels of government. He also referenced the recent passage of the Economy Stabilisation Bill and four tax-related legislations aimed at reinforcing Nigeria’s domestic revenue base. He stressed the administration’s growing reliance on technology and data analytics to enhance tax compliance and operational efficiency, noting that digital solutions are already yielding results through increased transparency in tax collection. Vice President Kashim Shettima, represented by Dr. Tope Fasua, echoed the importance of tax reform in advancing national development. He commended the Chartered Institute of Taxation of Nigeria (CITN) for its vital contributions and emphasized the need for collaboration between citizens and tax administrators to ensure the reforms’ success. Shettima also outlined other key reforms that have drawn global attention, such as adjustments to the foreign exchange system, removal of fuel subsidies, and a 130% increase in the minimum wage. While acknowledging the disruptive impact of these changes, he maintained they are starting to produce tangible benefits. He praised state governments for their efforts in cutting debt and increasing internally generated revenue. Additionally, he lauded the President’s “Buy Nigeria” initiative, which he said is bolstering local businesses and creating jobs, particularly in rural communities. Highlighting the pro-poor orientation of current tax policies, Shettima stressed that the reforms aim to ensure fairness and reduce poverty. He called for continued collaboration and pragmatic approaches to strengthen tax institutions, uphold fiscal discipline, and foster sustainable economic growth. In his opening remarks, CITN President Samuel Agbeluyi emphasized that taxation is not just a means of raising revenue—it plays a critical role in promoting equity and supporting essential public services. He urged for stronger alignment between policy, legislation, and implementation, and called on the government to build public trust to enhance compliance and shared prosperity. Agbeluyi also acknowledged the Tinubu administration’s reform efforts, affirming that tax professionals have a pivotal role to play in driving the agenda forward. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

In today’s evolving economic landscape, Value Added Tax (VAT) has become a central topic in Nigeria’s fiscal policy discussions. With the federal government actively pursuing tax reforms to boost revenue and reduce reliance on oil, VAT is increasingly recognized as a powerful tool for sustainable development. What is VAT? VAT is a consumption tax levied on goods and services at each stage of the supply chain—from production to the point of sale. Ultimately, the end consumer bears the cost, while businesses act as tax collectors, remitting the tax to the government. In Nigeria, VAT is currently set at 7.5%, following its increase from 5% in 2020. This rate applies to most goods and services, although some items such as basic foodstuffs, educational materials, and medical products are exempt. Why is VAT Important? President Bola Tinubu’s administration has emphasized VAT reform as part of broader fiscal policy shifts. With the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms, there’s renewed focus on simplifying tax processes, closing loopholes, and improving collaboration between federal and state tax authorities. The government is also promoting harmonization of VAT administration, aiming to avoid duplication and confusion, especially for businesses operating across multiple states. While VAT has great potential, challenges remain: What’s Next for VAT in Nigeria? Looking ahead, VAT will play a crucial role in building a self-reliant and equitable economy. Citizens and businesses must engage proactively, while the government ensures that the system is fair, inclusive, and effectively implemented. With the right policies, digital tools, and a commitment to transparency, VAT can become not just a tax—but a lever for national development. How has VAT affected your business or household? Are you aware of what’s taxable and what’s exempt? Share your thoughts in the comments below. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

The Lagos State Government on Monday announced plans to convert more than ₦3 trillion worth of idle assets into liquidity through securitisation, in a bid to finance ongoing infrastructure development. This was revealed by the Commissioner for Finance, Mr. Abayomi Oluyomi, during a press briefing held as part of the events marking the second anniversary of Governor Babajide Sanwo-Olu’s second term in office. Oluyomi also disclosed that the state would soon launch the Lagos Economic Summit Group and establish the Lagos State Sovereign Wealth Fund. According to him, the fund will serve as a reserve for surplus revenues and will contribute to strengthening the state’s economy. He noted a significant rise in tax revenue, with ₦333 billion generated in the first quarter of 2025, compared to ₦232 billion during the same period in 2024. Highlighting the state’s economic strength, the commissioner said Lagos’ Gross Domestic Product (GDP) stands at $259 billion, maintaining its position as Nigeria’s economic powerhouse and the largest sub-national economy in Africa. The state’s Internally Generated Revenue (IGR) in 2024 reached ₦1.3 trillion—an impressive 45% increase from the ₦895 billion recorded in 2023. Oluyomi attributed the revenue boost to the efforts of the Lagos State Internal Revenue Service (LIRS), which has been instrumental in expanding the tax base, sealing leakages, and promoting sustainable revenue growth to meet the city’s expanding infrastructure demands. “The LIRS has remained proactive in expanding the tax net, plugging revenue leakages, and ensuring sustainable growth—all crucial for meeting the state’s growing urban and infrastructure needs,” he stated. Regarding the state’s financial health, the commissioner affirmed that Lagos currently has the lowest debt profile in the country and maintains a top-tier credit rating of triple-A. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.