August 11, 2025

Domestic airline operators in Nigeria, under the Airline Operators of Nigeria (AON), have issued a strong warning regarding the Tax Reform Act signed into law by President Bola Tinubu on June 26, 2025. According to AON, if implemented as scheduled on January 1, 2026, the reforms could “cripple airline operations within 48 hours.” The sweeping legislative package includes: The potential impact of these reforms was a major point of discussion at the 29th Annual Conference of the League of Airport and Aviation Correspondents (LAAC), themed “Financing Aviation in Nigeria: Risks, Opportunities, and Prospects.” Concerns from Industry Leaders Allen Onyema, Vice Chairman of AON and Chairman of Air Peace, Nigeria’s largest airline, described the new tax measures as unsustainable for an already fragile industry. “Airlines in this country are taxed to death,” Onyema stated. “If implemented, these reforms will reintroduce customs duties on imported aircraft, spare parts, and tax airfares—all of which directly threaten the financial viability of carriers.” He argued that aviation operates on razor-thin profit margins—typically 3% to 5%, compared to much higher returns in sectors like agriculture or general importation. Imposing multiple levies, especially without corresponding value or infrastructure improvements, would render domestic airlines unprofitable. Onyema also criticized the 5% Ticket Sales Charge (TSC) collected by the Nigerian Civil Aviation Authority (NCAA), noting that most airlines don’t even realize 5% net margins, making the charge disproportionately burdensome. “We are not saying government shouldn’t earn revenue, but charges should be cost-recovery based, in line with ICAO standards,” he added. Macroeconomic Context and Policy Signals Bismarck Rewane, CEO of Financial Derivatives Company, added a macroeconomic perspective, citing the aviation sector’s 0.81% contraction in Q1 2025—its sixth consecutive quarterly decline. Rewane emphasized the need for policy consistency to rebuild investor trust and attract global aviation capital. “Without coherent and stable policies, investor confidence erodes. Regulatory clarity is essential for the survival and expansion of the sector,” Rewane noted. A Call for Immediate Government Intervention While the Federal Government aims to boost revenue through reforms, AON insists that a one-size-fits-all approach could jeopardize aviation’s strategic role in national development. The Minister of Aviation and Aerospace Development, Festus Keyamo, is reportedly engaging with stakeholders to address the concerns raised. Tax Consulting Insight: With the 2026 implementation of the Tax Reform Act approaching, industry stakeholders—particularly those in capital-intensive sectors like aviation—should urgently: This case highlights the critical importance of tax policy design aligned with industry realities. As advisors, our role is to help clients navigate reform uncertainty with strategic planning, risk mitigation, and engagement with tax authorities. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

The Chairman of the Enugu State Internal Revenue Service (ESIRS), Emmanuel Nnamani, has revealed that an estimated 99% of the state’s informal sector fails to remit taxes—posing a significant challenge to revenue mobilization efforts. Speaking at a media briefing in Enugu, Nnamani addressed circulating social media claims alleging the imposition of illegal taxes by the state. He dismissed these reports as “false and misleading,” reaffirming that all revenue collection activities are grounded in existing legal provisions. “Enugu’s tax policies are fully compliant with the Personal Income Tax Act (as amended). We operate within the law and are committed to transparency,” Nnamani stated. He explained that the ESIRS administers taxes through two main mechanisms: Key Challenges in the Informal Sector Nnamani highlighted that the core difficulty lies in bringing informal players—such as market traders and transport operators—into the formal tax net. He noted that interference by non-state actors has historically undermined official revenue collection. To address this, the state has implemented a consolidated levy structure: Failure to remit taxes by March 31 attracts enforcement measures, including legal action where necessary. Nnamani stressed that Enugu’s tax regime is not an outlier, but consistent with federal tax laws and frameworks adopted across other Nigerian states. “We’re not trying to outdo any other state. Our goal is to uphold the law fairly and create an environment where our people and businesses can thrive,” he added. Insight for Businesses:As Enugu State strengthens enforcement and formalizes revenue collection in the informal sector, businesses—especially SMEs, vendors, and transport operators—should proactively regularize their tax status. Proper documentation and timely remittance can prevent enforcement actions and build long-term business credibility. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

On August 1, 2025, the Federal Inland Revenue Service (FIRS) officially launched its electronic invoicing (e-invoicing) system, signaling a major advancement in Nigeria’s tax administration framework. This initiative aims to enhance transparency, reduce tax evasion, and align Nigeria’s tax processes with international best practices. Key Highlights: Our Take: The rollout of the FIRS e-invoicing system marks a pivotal moment in Nigeria’s journey toward a modern, tech-enabled tax infrastructure. For large taxpayers, timely integration will be crucial not only for compliance but also for maintaining operational continuity and managing reputational risk. Businesses are encouraged to assess their readiness, upgrade systems where necessary, and engage early with tax advisors to ensure a smooth transition. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.

Coca-Cola Hellenic Bottling Company (CCHBC) has published its fifth annual Tax Transparency Report, reinforcing its strong commitment to responsible tax practices, ethical governance, and sustainable value creation for all stakeholders. This latest report highlights CCHBC’s strategic approach to taxation—not merely as a compliance obligation, but as a key component of its broader ESG agenda. The company positions tax as a foundational element in its role as a responsible corporate citizen, contributing to economic and social development across its jurisdictions. Anastasios Stamoulis, Chief Financial Officer at CCHBC, emphasized that the report reflects the company’s ongoing dedication to open and transparent tax conduct. “Our tax contributions are a vital part of how we create shared value,” he noted, underscoring the importance of trust, transparency, and societal impact in corporate tax strategy. CCHBC’s tax approach is anchored in regulatory alignment and proactive governance. The company continues to strengthen its internal controls, monitor international tax developments, and uphold full compliance with both the spirit and letter of tax laws in all operational markets. The company’s Tax Policy outlines its structured risk management, accuracy in reporting, and engagement with independent tax professionals and auditors—ensuring that tax payments are both timely and appropriate in every jurisdiction where value is generated. In its 2025 report, CCHBC disclosed a total tax contribution of €2.5 billion for the 2024 financial year, with €1.02 billion representing taxes borne directly by the company. This includes corporate income tax, payroll and social security contributions, non-recoverable VAT, environmental and product-related taxes, and other jurisdiction-specific levies. Beyond financial figures, the report emphasizes the broader role of taxation in driving inclusive growth and financing essential public services such as healthcare, education, and infrastructure. CCHBC’s transparent and principled tax behavior reflects its commitment to building resilient economies and fostering public trust. Amid evolving global tax landscapes—including ongoing implications of the post-BEPS agenda—CCHBC demonstrates a forward-looking tax strategy that prioritizes fairness, governance, and social accountability. The company advocates for continuous stakeholder engagement and invites feedback to improve future disclosures. In a time of increasing geopolitical and regulatory complexity, Coca-Cola HBC reaffirms that transparency, value-based tax contributions, and support for clear regulatory frameworks are central to its continued license to operate. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.