Lawson Lawson

Senator Bamidele announced that the primary agenda for lawmakers upon resumption of plenary would be the passage of the Tax Reform Bills. Once passed, the legislation will be forwarded to the presidency for assent, after which it will become law. “Our top priority is the continued deliberation and passage of the 2024 Tax Reform Bills,” he said. “This is a critical step in overhauling the nation’s tax system and boosting federal revenue. It will also empower governments at all levels to execute projects and fulfill democratic promises.” The bills were developed by the Presidential Committee on Fiscal Policy and Tax Reforms and include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These proposed laws seek to revise the Value-Added Tax (VAT) revenue-sharing formula and introduce tax exemptions for individuals earning the national minimum wage. Following their second reading in the Senate in November, the bills were referred to the Senate Committee on Finance for detailed review and stakeholder consultation. The House of Representatives passed the bills for a second reading on 12 January. Since being submitted to the National Assembly on 3 October 2024, the bills have sparked widespread discussion, especially over potential regional impacts. Some lawmakers from Northern Nigeria, backed by the Northern Governors Forum, raised concerns that the VAT component might favor certain regions. In response, the Forum instructed its representatives to oppose the bills. Nevertheless, the Nigeria Governors’ Forum (NGF) voiced strong support for the reforms after discussions with the president’s economic team. Senators from the South-east called for additional consultation with their regional governors and stakeholders, while South-south lawmakers cautioned against allowing regional or ethnic sentiments to influence the debate. Senate President Godswill Akpabio assured the public that the National Assembly would carry out a comprehensive review and ensure the passage of legislation that serves the national interest. A two-day public hearing was recently concluded, during which stakeholders expressed overwhelming support for the bills. 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 Chartered Institute of Taxation of Nigeria (CITN) has once again affirmed its commitment to advancing ongoing tax reforms and strengthening professionalism within Nigeria’s tax system. Speaking at the 52nd induction ceremony of the institute held in Abuja, CITN President, Mr. Samuel Agbeluyi, highlighted the institute’s enduring leadership in promoting excellence, ethics, and professional standards in taxation for over four decades. “As the leading professional taxation body in Nigeria, the Institute has consistently championed the pursuit of excellence, ethical practice, and professionalism for more than 43 years,” Agbeluyi stated. He urged members to familiarize themselves with the tax bills proposed by the Presidential Committee on Fiscal Policy and Tax Reforms, which have passed through the House of Representatives and are awaiting Senate approval. “The bill, among other provisions, recommends the introduction of tax agents who will act as intermediaries between taxpayers and revenue authorities,” he explained. “While this legislative move is commendable, tax professionals must play an active role in its effective implementation.” Agbeluyi noted that the CITN had carefully reviewed the proposed legislation and submitted recommendations aimed at refining its provisions to enhance tax administration and professionalism. “We are confident that the incorporation of our recommendations will further strengthen Nigeria’s tax framework,” he said. “CITN remains unwavering in its mission to provide technical support and professional guidance to the government as these reforms take shape.” He also reaffirmed the institute’s commitment to continuous professional development, pointing to its wide range of training programs designed to equip members with up-to-date knowledge and skills. Agbeluyi encouraged the new inductees to uphold the institute’s reputation by maintaining high ethical standards and consistently striving for excellence in their professional engagements. In her remarks, Dr. Titilayo Fowokan, Chairman of the Membership and Professional Conduct Committee, emphasized the essential role of taxation in national development, noting that CITN members are key contributors to economic growth. “As tax professionals, your role in ensuring compliance, promoting fiscal responsibility, and supporting national development cannot be overstated,” she said. She urged the new members to take full advantage of the institute’s learning and networking opportunities, emphasizing that “success in this profession is built on a foundation of integrity, lifelong learning, and best practices.” The ceremony saw the induction of 1,461 new members, with about 10 inductees recognized for exceptional performance in the professional examinations. Delivering the keynote address, the special guest of honour, Professor Yusuf Ali (SAN), stressed the crucial importance of taxation for national development. “In serious nations, tax evasion is treated with the utmost gravity, often equated with acts that endanger the lives of many,” he said. Professor Ali lamented Nigeria’s heavy dependence on oil revenue, arguing that it had eroded fiscal discipline and public accountability. “In the First Republic, every region contributed to the national purse, fostering a shared sense of responsibility and ownership. However, the discovery of oil shifted focus away from taxation,” he remarked. “When citizens pay taxes, they are more inclined to hold leaders accountable.” He concluded by calling for a renewed culture of tax consciousness in Nigeria as a foundation for sustainable national progress. 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.

Banks have called on the government to introduce tax incentives and reliefs for financial institutions involved in infrastructure and mining financing—similar to policies implemented in countries like China and Brazil. Oliver Alawuba, Chairman of the Body of Banks’ Chief Executive Officers (CEOs), made this appeal during the 36th Seminar of the Finance Correspondents Association of Nigeria (FICAN), held in Abuja on Monday. The seminar was themed: “Banking Recapitalisation Towards a One-Trillion Dollar Economy: The Industry Perspective.” Alawuba, who is also the Group Managing Director of United Bank for Africa (UBA) Plc, emphasized that offering tax breaks for recapitalisation-related investments and providing partial refunds of the Cash Reserve Requirement (CRR) tied to infrastructure financing would significantly contribute to achieving Nigeria’s one trillion dollar economic vision. He also highlighted the importance of enabling legislation to support long-term capital mobilisation, as well as strategic communication, capacity building, and stakeholder engagement to drive economic growth. According to him, the Central Bank of Nigeria’s (CBN) recent directive on banking recapitalisation marks a significant policy move aimed at aligning the strength of Nigeria’s financial system with its ambitious economic goals. “It is a necessary and strategic step toward achieving the vision of a one trillion dollar economy,” he said. Alawuba noted that banks view recapitalisation not just as a compliance requirement, but as an opportunity to redefine their roles as key drivers of economic development. He stressed that Nigeria’s journey toward a trillion-dollar economy hinges on the financial sector’s ability to mobilise capital, fund critical infrastructure, bolster the real sector, and drive digital transformation. While commending the CBN’s recapitalisation initiative as timely and strategic, Alawuba also pointed out several challenges that must be addressed, including regulatory and policy inconsistencies, security issues, limited financial accessibility, and the need for deeper inclusion. “Banks today are expected to support both traditional sectors like oil and gas, agriculture, and manufacturing, as well as emerging industries such as fintech, green energy, and infrastructure,” he said. “Without adequate capital buffers, the sector cannot effectively meet these demands.” He described recapitalisation as more than a regulatory mandate, but rather a forward-thinking policy designed to equip the banking sector for the scale, complexity, and competitiveness required in a trillion-dollar economy. Alawuba urged banks to take the lead in compliance, innovation, and economic leadership, while calling on regulators to provide wise and adaptable guidance. “Let us reimagine banking as a catalyst for national development—and commit ourselves to building an economy that benefits every Nigerian,” he concluded. 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 Federal High Court in Abuja has admitted documents from the Federal Inland Revenue Service (FIRS) allegedly detailing its investigation into Binance’s financial operations in Nigeria. Justice Emeka Nwite admitted the documents as evidence during a hearing on Friday, following a request by FIRS counsel, Moses Idehu. According to an earlier report by Nairametrics, the FIRS amended its lawsuit on May 17, 2024, accusing Binance of failing to collect and remit key taxes—specifically Value Added Tax (VAT) and Company Income Tax (CIT)—as required by Section 40 of the FIRS Establishment Act (2007, as amended). Allegations Against Binance The FIRS claims Binance provided cryptocurrency services to Nigerians—such as the buying, selling, transferring, and remittance of crypto assets—without deducting or remitting the appropriate VAT. On June 14, 2024, the court discharged two individuals—Tigran Gambaryan, a 39-year-old American, and Nadeem Anjarwalla, who is currently on the run—from the FIRS tax evasion suit, after Binance appointed Ayodele Omotilewa as its Nigerian representative. Omotilewa, appearing on behalf of the company, denied the allegations, allowing the court to proceed with the trial. FIRS Investigation Details During the hearing, Muftau Abdukarim, Assistant Director at FIRS’ Government Business Task Office, testified that on March 12, 2024, his department received a memo from the Litigation and Prosecution Department instructing them to investigate Binance Holdings Ltd. Abdukarim stated that he immediately assigned the task to a subordinate, Omoshola Babafemi, who used the FIRS’s TaxPro Max platform to conduct the investigation. “On March 19, 2024, Babafemi submitted a memo with the investigation findings,” Abdukarim said, adding that he forwarded the report to the Litigation and Prosecution Department that same day. The internal memos—reviewed by Nairametrics—included directives for a detailed investigation into Binance’s financial transactions and compliance status in Nigeria. Excerpts from the memos read: “I have been assigned by the Head of the Criminal Prosecution Division (FIRS) to coordinate the investigation on this matter and also request your office to generate bank transaction records of Binance Holdings Ltd…” “Sequel to your memo dated March 12, 2024, our office has conducted a comprehensive search on the TaxPro Max platform regarding Binance Holdings Ltd… and we hereby forward the report of our findings.” FIRS counsel Moses Idehu urged the court to admit these documents as evidence. Binance’s lawyer, Chukwuka Ikwuazom (SAN), did not object or cross-examine the witness. The court admitted the documents and adjourned the case until May 20, 2025. Context and Background The Federal Government previously accused Binance of contributing to the instability of Nigeria’s foreign exchange market. Minister of Information, Idris Mohammed, claimed the platform recorded over $20 billion in transactions in Nigeria in 2023 alone. On February 28, 2024, two senior Binance executives were detained in Nigeria. While Anjarwalla later escaped, Gambaryan was released after several months due to health concerns and diplomatic intervention. In addition to the FIRS case, Binance also faces a separate lawsuit by the Economic and Financial Crimes Commission (EFCC) for alleged money laundering, tax evasion, and FX violations. FIRS is also demanding $79.5 billion in damages, ₦231 million in penalties, and $2 billion in income tax for the years 2022 and 2023. 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 Federal Inland Revenue Service (FIRS) has announced plans to educate business owners, farmers, and entrepreneurs on the range of tax incentives available, particularly those designed to ease the burden on growing businesses. FIRS Chairman, Mr. Zack Adedeji, made this announcement on Saturday during the 12th Benue National Trade Fair held at IBB Square, Makurdi. Representing him at the event was the Director of Taxpayer Services, Mrs. Lovette Onanuga. Adedeji highlighted that various incentives, from pioneer status benefits to tax reliefs for agriculture-related investments, are available to support nearly every sector represented at the trade fair. “This year’s trade fair theme, ‘Industrialisation and Commercialisation of Benue Agriculture and Solid Minerals as Panacea for Growth,’ aligns strongly with our work at FIRS,” he said. He stressed Benue State’s vast potential not only in agriculture but also in its untapped solid mineral resources, noting that building sustainable businesses is key to unlocking these opportunities. “When properly harnessed, taxes become catalysts for national growth, enabling the government to invest in critical infrastructure, public services, and policies that support agriculture, mining, trade, and enterprise,” Adedeji added. He acknowledged that many small and medium-sized businesses often view taxation as a burden. To change this perception, FIRS has adopted the departmental theme for the month: “Breaking Down Tax Incentives and Reliefs”, aiming to help businesses see taxation as an opportunity rather than an obligation. Adedeji encouraged participants to visit the FIRS help desk at the trade fair for assistance with registration, tax clearance, and information on available incentives. He also introduced the self-service code *829#, enabling users to access services without internet connectivity. Also speaking at the event, the Tax Controller and Emerging Tax Officer, Mrs. Rose Ugoh, said FIRS had introduced several initiatives to make tax processes easier. She mentioned TaxPro Max, an online platform simplifying tax filing and payment, especially for small business owners. Ugoh further introduced the Taxpayers Education Programme, a national initiative offering campaigns and workshops aimed at improving tax awareness and compliance among micro and small enterprises. She emphasized that FIRS is committed not only to enhancing revenue collection but also to building a culture of voluntary tax compliance and economic formalization. Meanwhile, the President of the Benue Chamber of Commerce, Industry, Mines and Agriculture (BECCIMA), Mr. Mhir Iyenge, noted that the trade fair had previously been suspended due to security challenges in some local government areas. 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.

We’ve been following the journey closely — you, me, and Nigerians everywhere. We’ve moved beyond conversations and consultations. Now, the House of Representatives has passed the Tax Reform Bills, marking a pivotal shift in Nigeria’s tax system. When you hear the word “reform,” what comes to mind? And when you think of the “Tax Reform Bill,” who do you envision? For many Nigerians, there’s one clear answer: Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS). When President Bola Ahmed Tinubu assumed office in May 2023, he inherited an economy in urgent need of revival. Our tax system was riddled with inefficiencies, low compliance, limited coverage, and a lack of transparency. Coordination between federal and state tax authorities was weak, and the tax framework itself was outdated, incapable of supporting long-term growth. President Tinubu, fully aware of these challenges, made a decisive move: he appointed the right man for the job — Dr. Zacch Adedeji. Tax reform became a cornerstone of the government’s broader economic strategy, and under Dr. Zacch’s leadership, real change began. Understanding that reforms must work beyond paper, Dr. Zacch launched an aggressive modernization drive. FIRS accelerated internal reforms, digitised processes, automated over 80% of returns processing, and upgraded the TaxProMax system with new modules that made tax compliance smarter and easier. Nigerians weren’t waiting for change — we were making it happen. By late 2024, four draft bills were introduced: the Nigeria Revenue Service Bill, the Nigeria Tax Administration Bill, the Nigeria Taxation (Consolidation) Bill, and the Joint Tax Board Bill. These bills were crafted to streamline tax laws, harmonise administration, and expand the tax base — all without putting undue pressure on taxpayers. Through public hearings and rigorous consultations, the National Assembly ensured that every voice was heard. Some proposals were revised, such as the decision to maintain the current VAT rate. On March 13, 2025, the House of Representatives passed the Tax Reform Bills. After the Senate returns from recess on April 29, 2025, it is expected to debate and pass them, after which the bills will move to the President’s desk for assent. We are now in the final stretch. But it’s important to remember how we got here: it took presidential resolve, expert contributions, and above all, the steadfast leadership of Dr. Zacch. He didn’t just oversee the process — he owned it, driving it forward with clarity, purpose, and tangible results. With sustained execution and the right structures in place, these reforms will lay the foundation for a stronger, more resilient Nigerian economy — one that benefits both the government and the people. The Tax Reform Bills are not just another trend. They represent the change we demanded — and most importantly, the change that’s here to stay. 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.

Below is a categorized list of books not exempt from Value Added Tax (VAT) according to Nigeria’s Modification Order 2021. These books do not qualify for VAT exemption unless they are specifically used for formal education purposes. 1. Fiction Books 📖 2. Business & Finance Books 💼 3. Self-Help & Motivational Books 🚀 4. Religious Books (Not Used for Formal Education) ✝️🕌 (Note: Religious books used in formal theological studies may still be VAT-exempt.) 5. Entertainment & Celebrity Books 🎭 6. Lifestyle & Hobby Books 🎨 7. Sports, Fitness & Wellness Books 🏋️‍♂️ 8. Astrology, Mysticism & Occult Books 🔮 9. Art, Design & Photography Books 🎭📷 10. Humor & Satire Books 😂 Implications for Book Sellers and Buyers Bookstores must properly categorize their inventory to ensure correct VAT application. Example: A bookstore selling school textbooks should not charge VAT, but if they also sell fiction novels, those must include 7.5% VAT. In summary; Clarifications on VAT-Exempt Books: 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 Nigeria Economic Summit Group (NESG) has cautioned that the Federal Government risks revenue shortfalls if it does not raise the value-added tax (VAT) rate as part of the ongoing tax reform efforts. NESG’s Chief Executive Officer, Dr. Tayo Aduloju, made this statement during an interactive media session over the weekend in Abuja. He stressed that while VAT system reforms are necessary, keeping the current VAT rate unchanged could result in substantial revenue losses for the government. “Without those rate hikes, the government could lose significant revenue,” Aduloju warned. He explained that the ongoing fiscal and tax reforms aim to simplify the tax system while ensuring the government generates enough revenue to support its ambitious budgetary plans. However, he cautioned that merely reducing the number of taxes without adjusting the VAT rate could weaken the government’s revenue base. “If we successfully reform the VAT system, even if we delay a rate hike for three years, it would still be a win. Efficiency gains could attract more companies to invest in Nigeria,” he added. Aduloju emphasized the need to strike a balance between tax simplification and revenue sustainability, noting that reforms must not compromise the government’s financial stability. He also highlighted the importance of unlocking investment opportunities by addressing legal, regulatory, and policy obstacles that hinder foreign direct investment. Additionally, he called for better coordination between monetary and fiscal policies to curb inflation, particularly those driven by high energy costs. He argued that inefficiencies in the downstream petroleum sector contribute to persistent price hikes and that energy security remains a crucial factor affecting inflation. Meanwhile, the Trade Union Congress of Nigeria and the Nigeria Governors’ Forum have opposed the proposed VAT rate increase outlined in the Federal Government’s Tax Reform Bills, warning that it could exacerbate economic hardship for Nigerians. 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 Federal Inland Revenue Service (FIRS) collected N2.52 billion in withholding tax during the fourth quarter of 2024, according to data from BudgIT’s GovSpend platform. Withholding tax is an advance tax deducted at the source from certain payments made to individuals or companies. It applies to transactions such as construction contracts, professional services, dividends, interest, royalties, and rent. Tax rates vary depending on the type of payment, with rents, dividends, and interest taxed at 10%, while royalties are taxed at 5%. Notable Withholding Tax Remittances Government ministries, departments, and agencies across various sectors—power, healthcare, works, and security—made significant remittances, including: 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.

List of VAT-Exempt Books Under Nigeria’s 2021 Modification Order The following categories of books are exempt from Value Added Tax (VAT) in Nigeria under the 2021 Modification Order: 1. School Textbooks (Primary, Secondary & Tertiary Education) 2. Academic Reference Materials 3. Instructional & Educational Guides 4. Scientific & Technical Learning Materials 5. Children’s Educational Books 6. Dictionaries, Encyclopedias & Atlases 7. Religious Books for Academic Purposes 8. Special Needs Educational Books 9. Legal & Government Publications (For Academic Study) 10. Professional & Vocational Training Books 11. Scientific Research & Development Publications 12. Government-Approved Curriculum Books 13. Open Educational Resources & Publicly Funded Books This list ensures that essential learning materials remain tax-free, promoting accessible and affordable education in Nigeria. 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.