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Flutterwave Empowers Digital Tax Payments for Nigeria’s Federal Inland Revenue Service Payments technology company, Flutterwave, has begun enabling digital tax collections for Nigeria’s Federal Inland Revenue Service (FIRS), positioning itself as one of the few fintech companies aiding the government in modernizing tax payment systems. This collaboration allows the FIRS to utilize Flutterwave’s robust and secure payment infrastructure to collect taxes, levies, and various payments from businesses and individuals nationwide. Flutterwave’s payment platform streamlines the tax payment process for individuals, small and medium enterprises (SMEs), and large corporations, offering a fast, transparent, and accessible experience. By integrating with the FIRS, Flutterwave offers a wide range of digital payment options, real-time reporting and tracking features, offline payment capabilities, and a secure system for Nigerians, both within the country and abroad. Olugbenga ‘GB’ Agboola, CEO of Flutterwave, remarked: “At Flutterwave, we are committed to leveraging technology to enhance efficiency and foster economic growth. By simplifying and increasing transparency in tax payments, we are contributing to the digitization of government collections and supporting national development, in line with our mission.” This integration brings several key benefits, including real-time payment tracking, various digital and mobile payment options, offline payment capabilities, improved transparency for taxpayers and the FIRS, and an easy way for Nigerians in the diaspora to pay their taxes. These innovations align with the FIRS’s goal of modernizing government collections and enhancing the user experience. Olufunmilayo Olaniyi, Senior Vice President of Business Development at Flutterwave, emphasized the company’s focus on supporting Nigerians: “Collaborating with the public sector is essential in shaping the future of digital payments in Nigeria. This partnership highlights our commitment to delivering solutions that better serve Nigerians, build trust, and drive innovation through strategic collaboration.” With its extensive experience across Africa, Flutterwave continues to play a pivotal role in Nigeria’s public sector digitization efforts. In 2024, Flutterwave also partnered with the Economic and Financial Crimes Commission (EFCC) to establish a cybercrime research center, further solidifying its commitment to financial security and innovation. As a key player in facilitating government tax collections, Flutterwave remains at the forefront of fintech solutions that enhance business operations and foster growth in Nigeria and beyond. 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.

Nigeria’s commercial hub, Lagos, is setting an ambitious target to reach a $1 trillion economy by 2052. With over 20 million residents, this city-state has long been a key driver of the nation’s economic engine, contributing significantly to Nigeria’s Gross Domestic Product (GDP). Under the leadership of Governor Babajide Sanwo-Olu, Lagos is positioning itself for significant transformation through a combination of policy reforms, infrastructure growth, and investment-driven strategies. With a current GDP of $259 billion, based on Purchasing Power Parity, Lagos ranks as the second-largest economy in Africa, behind Cairo. The Lagos government recently released the Lagos Economic Development Update 2025, which highlights key strategies for long-term growth. These strategies include attracting foreign direct investment, reforming fiscal policies, and focusing on large-scale infrastructure projects. Analysts believe Lagos can achieve its bold goal if it continues on its current developmental path. In 2023, Lagos contributed N43.06 trillion, or 18.38 percent, to Nigeria’s total GDP, according to the National Bureau of Statistics and Lagos Bureau of Statistics. By mid-2024, its share had increased to 22.36 percent, signaling its growing economic influence. Governor Sanwo-Olu, at the unveiling of the report, stated that Lagos is not just growing, but leading, with a GDP of $259 billion, cementing its position as Africa’s second-largest city economy. For the governor, this milestone is more than a statistic; it represents the strength of Lagos’ economy, the resilience of its people, and the city’s role as a hub for trade, investment, and opportunities. He emphasized that economic indicators such as PPP are crucial in reflecting true economic strength, competitiveness, and cost-of-living advantages. From infrastructure to technology, tourism to manufacturing, Lagos is driving sustainable growth and remains at the forefront of Africa’s economic transformation. Development economist Illias Aliyu suggested that Lagos should tap into its coastal economy, expand trade partnerships, and improve infrastructure to achieve its $1 trillion economy goal by 2052. He pointed to the state’s maritime sector, which benefits from the newly created Ministry of Marine and Blue Economy, as a significant area for growth. Aliyu believes the new Minister of Marine and Blue Economy, Adegboyega Oyetola, has a vital role in attracting investment into ports and inland waterways, which could enhance trade, create jobs, and boost economic development. Ope George, Commissioner for Economic Planning and Budget, reiterated the government’s focus on diversifying the economy, increasing revenue mobilization, and advancing infrastructure development. George emphasized that Lagos remains the economic core of Nigeria and a hub for innovation, investment, and opportunity in Africa. He noted that in a rapidly changing global economy, maintaining Lagos’ leadership requires forward-thinking policies and the ability to adapt to emerging trends and risks. Foreign Investments Foreign investment is a crucial driver of Lagos’ economic growth. In Q3 2024, Lagos saw a 110.59 percent increase in capital importation, a major boost amidst Nigeria’s broader economic challenges. The Lekki Free Zone and the recently opened Lekki Deep Seaport are key assets in attracting foreign capital and positioning Lagos as a critical player in West Africa’s trade and transshipment networks. Aliyu also highlighted the importance of Lagos’ manufacturing sector and export potential in driving growth. He suggested that expanding the city’s airport cargo capacity—similar to that of Chicago’s O’Hare International Airport—would facilitate the export of agricultural and petroleum products, helping to boost trade. Strengthening trade relations with other states could further expand exports and economic cooperation. Aliyu also mentioned that Lagos, as Africa’s second-largest economy, could enhance its position with targeted investments in the blue economy. Revenue Generation Lagos continues to be Nigeria’s highest revenue-generating state, but its revenue collection potential remains underutilized. In 2023, the state generated N651 billion in internally generated revenue, the highest in the country. However, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, pointed out that Lagos’ revenue collection is still below two percent of its GDP despite its large economic size. Oyedele suggested that optimizing property taxation could generate at least N1 trillion annually, given that many high-value properties remain undervalued or untaxed. He proposed reforms like streamlining land titling, incentivizing compliance, and ensuring transparent property valuation systems to help increase revenue. Oyedele also recommended expanding personal income tax, particularly by leveraging technology to capture high-income earners, and formalizing the informal sector, especially in Lagos’ digital and creative industries. Entrepreneurs, content creators, and event planners should contribute fairly to the tax system without facing heavy burdens. Moreover, improving the ease of payment through digital platforms would encourage greater participation in the tax system. Infrastructure Infrastructure development is vital to achieving Lagos’ $1 trillion economy target. The Lagos Economic Development Unit (LEDU) report projects the city’s economy will grow from N43.06 trillion in 2023 to N54.77 trillion in 2024 and N66.47 trillion in 2025, driven by services, trade, transport, IT, and finance. The expansion of transport infrastructure, such as the Blue and Red Rail Lines, is expected to alleviate traffic congestion, reduce commuting times, and improve business efficiency. Lagos’ notorious traffic congestion has long been a challenge, costing businesses billions in lost productivity. Analysts believe expanding the rail system and upgrading the road network will help mitigate these losses, improve mobility, and enhance overall economic activity. The manufacturing sector is also expected to expand, supported by industrial hubs and export-processing zones. However, unreliable electricity remains a major obstacle, with Lagos receiving only about 1,000 megawatts from the national grid, far below the city’s estimated demand of 9,000 to 12,000 MW. This electricity shortfall forces businesses and residents to rely on costly and polluting generators, adding N5.3 trillion annually to business and household costs. To address this, analysts have called for greater investment in energy security, including renewable energy and decentralized power solutions, to provide a more sustainable and cost-effective electricity supply. Policy, Innovation, and Job Creation Achieving a $1 trillion economy will require more than infrastructure investment. Experts agree that policy consistency, economic stability, and targeted industrialization are essential to sustaining long-term growth. Analysts stress that Lagos should leverage technology and innovation to enhance productivity across key

Nigeria’s Tax Reform: A Lifeline or Another Economic Misstep? The Nigerian House of Representatives has recently passed four major tax reform bills, signaling a potential shift in the country’s revenue system. While the government presents these reforms as crucial for economic stability and long-term growth, the amendments introduced by the House have sparked debate over their actual impact. With the Senate set to review the bills, Nigerians are left wondering if these measures will provide real economic relief or merely serve as another temporary fix that fails to address deeper structural challenges. The Senate’s Next Step: Compromise or Confrontation? As the bills await Senate review, lawmakers face an important decision: approve them as passed by the House or introduce further revisions. One of the key points of debate is the decision to retain the current 7.5 percent Value Added Tax (VAT) rate, instead of the initially proposed increase to 12.5 percent by 2026. While this decision offers some short-term relief to consumers and businesses already struggling with inflation, it raises concerns about the government’s ability to meet its revenue goals without relying on excessive borrowing. Another significant issue is the reallocation of VAT revenue among states. The original proposal suggested allocating 60 percent of VAT proceeds to high-revenue states like Lagos, where economic activity is concentrated. However, the House modified this distribution, reducing the allocation to 30 percent and opting for a more even redistribution. This change, likely made to address concerns from states with lower VAT contributions, revives the longstanding North-South revenue allocation debate. The Senate now faces the challenge of balancing regional interests while ensuring a fair and effective tax system. The Broader Economic Impact Beyond the immediate tax adjustments, the broader economic consequences of these reforms must be considered. Nigeria has long struggled with generating sufficient revenue, relying heavily on crude oil exports, which are subject to price fluctuations. The push for tax reform aligns with global best practices aimed at expanding non-oil revenue sources, but concerns remain about whether these proposed measures will be enough to foster sustainable economic growth. A major concern is the potential impact on businesses and investments. The uncertainty surrounding tax policy changes can deter both local and international investors. While a stable tax environment is necessary for economic planning, inconsistent policies risk undermining investor confidence. The decision to reject the VAT hike may offer temporary relief, but without alternative sources of revenue, the government could be forced to increase borrowing, further exacerbating Nigeria’s debt burden. Additionally, the success of tax reforms depends not just on revenue generation but also on fiscal transparency and efficient public spending. Many Nigerians are skeptical about whether increased tax revenue will translate into improved infrastructure, healthcare, and education. Without corresponding efforts to curb government waste and corruption, higher taxes may only fuel public frustration. A Path Forward As the Senate prepares to deliberate, a balanced approach is critical. The tax reforms should aim to broaden the tax base, ensuring sustainable revenue generation without burdening businesses and consumers. Rather than focusing solely on VAT adjustments, the government should explore innovative strategies, such as improving tax compliance, reducing leakages, and leveraging technology to enhance tax collection. Moreover, fiscal discipline and transparency must accompany any tax reforms. Nigerians need assurances that increased revenue will be used effectively for development rather than lost to inefficiencies. Strengthened accountability measures, along with clear communication from the government, can help build public trust and encourage compliance. In the coming weeks, the Senate’s position on these tax reforms will play a significant role in shaping Nigeria’s economic future. Whether these reforms prove to be a lifeline for economic stability, or another policy misstep will depend on policymakers’ willingness to address the root causes of revenue shortfalls while creating an environment conducive to growth. The real challenge now is not just passing the reforms, but ensuring they act as a catalyst for true economic transformation. 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 Kogi State Government has reinforced its commitment to sustainable development through strategic revenue reforms and healthcare investments aimed at improving public services and infrastructure. At the unveiling of the implementation of the Land Use Charge Law 2024, the Executive Chairman of the Kogi State Internal Revenue Service, Alhaji Salihu Enehe, emphasised that taxation is more than a levy—it is an investment in the state’s future. He noted that streamlining revenue collection would enhance transparency and ensure sustainable economic growth. “The ongoing tax reforms aim to streamline revenue collection, promote transparency, and ensure that all stakeholders contribute their fair share towards the state’s development,” Enehe stated at the event held at the KGIRS head office in Lokoja. He described the Land Use Charge as a crucial step toward boosting revenue for local governments, fostering data-driven decision-making, and paving the way for smart city development and job creation in the state. “Today marks a pivotal step in strengthening our revenue base for infrastructure development. The Land Use Charge is not just a levy; it is an investment in better infrastructure, improved public services, and a greater future for all Kogi residents,” he added. Enehe called on stakeholders to collaborate with the KGIRS to ensure the success of the initiative, adding, “A well-structured revenue system is the foundation of good governance. By embracing the Land Use Charge, you are helping to empower the government to deliver more impactful projects that will benefit businesses, communities, and future generations.” In a parallel effort to improve healthcare, the Kogi State Government has commissioned a 60KVA solar-powered cold room and distributed Solar Direct Drive refrigerators and cooking utensils to selected primary healthcare centers across the state. Speaking at the flag-off of the distribution of the refrigerators, the Commissioner for Health, Dr. Adeiza Abdullazeez, described the initiative as a “significant leap forward” in the state’s efforts to enhance routine immunization and maternal-child nutrition. “The deployment of solar refrigerators and cooking utensils marks a significant leap forward in our quest to improve immunization coverage and promote maternal and child nutrition,” he said, urging stakeholders to remain committed to the shared vision of a healthier and more resilient Kogi. Executive Director of the Kogi State Primary Health Care Development Agency, Dr. Musa Mu’azu, explained that the initiative aims to strengthen immunisation services and ensure equitable access to life-saving vaccines for children. He noted that recipient PHCs were selected based on critical needs, particularly in remote and hard-to-reach areas with low routine immunization coverage. “We are proud to announce that a total of 246 SDD refrigerators have been installed across the state, replacing outdated units as needed,” Mu’azu stated. “Today, we deploy an additional 20 units to further strengthen vaccine storage capacity and ensure uninterrupted immunization services.” Additionally, the state government, through the Accelerating Nutrition Results in Nigeria project, is distributing cooking utensils to 19 local government areas, with five PHCs in each, totaling 95 PHCs. “These utensils will aid food demonstrations during antenatal care services, which are crucial in promoting maternal, infant, and young child nutrition,” Mu’azu explained. The Vaccine Security and Logistics Consultant for the United Nations Children’s Fund, Olumide Adeyeye, commended the Kogi State Government for its commitment to healthcare improvement, stating that the initiative would have a lasting impact on residents’ well-being. “Kogi has made history by installing a 60KVA solar inverter at its cold store, a pioneering achievement in Nigeria. UNICEF is proud to support this initiative,” Adeyeye said. These combined efforts underscore Kogi State’s dedication to fiscal responsibility, public health enhancement, and sustainable development, positioning the state as a model for effective governance 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.