Yemisi

Paul Ikonne, a prominent figure in the All Progressives Congress (APC), has raised serious concerns about the current tax regime in Abia State, urging Governor Alex Otti to reconsider levies imposed on traders. He described the tax burden as counterproductive, harmful to small and medium-scale enterprises (SMEs), and detrimental to the region’s economic vitality. In a public statement, Ikonne highlighted the sharp increase in shop taxes within Ariaria International Market, where annual fees have reportedly doubled—from ₦18,000 to over ₦36,000 per shop. This, he noted, is causing undue financial strain on local traders and threatening the sustainability of commerce in the area. Similar complaints have emerged from other commercial hubs such as Ekeoha Shopping Centre and the Timber Market, where businesses are reportedly overwhelmed by what Ikonne described as “multiple and suffocating” taxation. “With over 88,000 shops in Ariaria alone, this tax translates to an annual total of approximately ₦3.1 billion,” Ikonne stated. “Such a policy puts enormous pressure on traders who are the backbone of the state’s commercial ecosystem.” He criticized the state government for allegedly abandoning its pre-election commitments to support the business community, claiming that the administration has instead introduced policies that exploit small business owners. Of particular concern is the administration’s handling of shop reallocations following market remodelling projects. According to Ikonne, the previous government signed a Memorandum of Understanding (MoU) ensuring traders could reclaim their shops post-renovation—a commitment he says the current administration has failed to honor. Traders are now reportedly being asked to pay as much as ₦15 million to re-acquire their shops, a fee Ikonne condemned as punitive and anti-business. Furthermore, he questioned the justification for imposing such heavy levies despite the state receiving substantial federal allocations—over ₦30 billion monthly—arguing that these resources should be sufficient to fund modern markets with essential infrastructure without passing the cost to traders. “This level of taxation contradicts the economic relief and business support objectives of President Bola Ahmed Tinubu’s Renewed Hope Agenda,” Ikonne asserted. “Rather than enabling growth, the current policies are stifling enterprise in one of Nigeria’s most commercially active regions.” Ikonne concluded by calling on Governor Otti to urgently revise the state’s tax structure, respect existing agreements with the business community, and implement inclusive, development-driven governance that supports long-term economic growth. 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.

In a significant move toward improving Nigeria’s regulatory landscape, the Corporate Affairs Commission (CAC) and the Financial Reporting Council of Nigeria (FRC) have announced a strategic partnership aimed at deepening inter-agency collaboration. This alliance is positioned to play a vital role in fostering economic growth, streamlining compliance processes, and elevating corporate governance standards across the country. The partnership seeks to harmonise the regulatory functions of both agencies, with a particular focus on simplifying compliance requirements for businesses—especially micro, small, and medium enterprises (MSMEs). By aligning regulatory frameworks, the CAC and FRC aim to eliminate redundancies, enhance reporting efficiency, and increase transparency across business operations. This unified approach is expected to reduce the regulatory burden on companies, helping them better navigate the evolving compliance landscape. For SMEs, which constitute a significant portion of Nigeria’s private sector, this collaboration could mark a transformative shift. The harmonisation of reporting obligations and oversight mechanisms is intended to lower administrative costs and improve ease of doing business, allowing entrepreneurs and corporate entities to focus more on growth and innovation. Moreover, this partnership underscores a broader commitment to fostering a more investor-friendly environment. By promoting accountability, responsible corporate behaviour, and sound governance practices, the CAC–FRC initiative is poised to boost investor confidence and attract sustainable domestic and foreign investment into Nigeria’s business ecosystem. As a tax consulting firm, we recognize the importance of such regulatory developments in shaping the financial and operational landscape for our clients. We will continue to monitor the implementation of this partnership and provide tailored advisory services to help businesses take full advantage of the opportunities it presents. 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.

Nigeria’s equities market witnessed sustained bearish sentiment last week, with renewed sell pressure exacerbated by the reintroduction of Value Added Tax (VAT) on capital market transactions and the continued absence of strong fiscal incentives to attract long-term investments. This combination of regulatory burden and lack of investor stimulus led to a significant decline in market performance, driving the All-Share Index (ASI) below the psychological threshold of 27,000 basis points. Speaking with Business a.m. on Friday, stockbrokers attributed the decline to a mismatch between market fundamentals and recent corporate performance. Despite a number of positive corporate actions—such as dividend declarations and robust earnings reports—the equities market remained subdued, unable to mount a meaningful recovery. For the week ending Friday, the ASI of the Nigerian Exchange (NGX) depreciated by 1.40%, closing at 26,925.29 points, while the overall Market Capitalization fell to ₦13.121 trillion. This brought the year-to-date (YTD) performance to a wider loss of 14.33%. With the exception of the NSE Premium Index, which recorded a modest gain of 0.64%, all other sectoral indices closed in the red. This negative trend persisted even though the trading week was shortened to three days due to public holidays declared by the Federal Government for Eid-El-Kabir celebrations on Monday, August 12, and Tuesday, August 13. While traders had anticipated a potential rebound on Friday—fueled by Guaranty Trust Bank’s release of its audited financials showing a 4% increase in post-tax profit to ₦99 billion and an interim dividend payout of 30 kobo per share—market sentiment remained largely bearish. GTBank’s share price rose by 0.97% to close at ₦26, but this uptick was not enough to lift overall market performance. In terms of trading activity, the Exchange recorded a total turnover of 726.607 million shares worth ₦10.459 billion across 12,915 deals. This was a decline from the previous week’s total of 1.081 billion shares valued at ₦12.014 billion exchanged in 16,246 deals. The Financial Services sector once again dominated trading, accounting for 76.37% of the total volume and 62.14% of the value, with 554.910 million shares worth ₦6.499 billion traded across 8,376 deals. The Conglomerates sector followed, with 76.161 million shares worth ₦86.854 million, while the Consumer Goods sector recorded 29.783 million shares valued at ₦754.919 million. Top traded equities for the week were Guaranty Trust Bank Plc, Zenith Bank Plc, and Transnational Corporation of Nigeria Plc. These three stocks accounted for a combined total of 303.101 million shares valued at ₦5.404 billion, representing 41.71% of the total volume and 51.67% of the market’s total value for the week. 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.

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.

President of the International Centre for Tax Research and Development, Mrs. Morenike Babington-Ashaye, has called for greater accountability and transparency in the management of Nigeria’s tax revenues. She emphasized that public officials responsible for managing the nation’s commonwealth must ensure that tax proceeds are accounted for and used in accordance with the law. Speaking at a lecture titled “The Political Economy of the Nigerian Tax Reform and its Social Implications” during the 20th anniversary celebration of the Tax Club, University of Lagos, Babington-Ashaye urged the National and State Assemblies to distinguish tax revenues from other sources of income and to clearly communicate their utilization—particularly in areas such as infrastructure development, social services, and direct benefits to citizens. She recommended that State Houses of Assembly enact legislation to define how public revenues are distributed between government and citizens, noting that poverty should not be a persistent issue in a resource-rich country like Nigeria. A past president of the Chartered Institute of Taxation of Nigeria (CITN), Babington-Ashaye further stressed the need for a more balanced allocation of tax revenues, one that prioritizes critical infrastructure and social services over mere administrative budgets for Ministries, Departments, and Agencies (MDAs). Highlighting the impact of current budgetary priorities, she cited the rise in school fees and the growing number of out-of-school children. She advocated for education funding models—such as vouchers or grants—that empower schools to function effectively without placing the financial burden on families. According to her, governments are obligated to provide citizens with clear, accessible information on how their tax contributions are being used. She also critiqued the centralised approach to tax administration and revenue sharing, describing it as regressive in a diverse nation like Nigeria. Concentrating fiscal power at the federal level, she warned, could lead to deeper economic instability. On the broader economic implications of tax reform, Babington-Ashaye supported the elimination of multiple taxes to encourage growth and improve efficiency in tax administration. However, she identified several structural challenges—including exchange rate volatility, widespread insecurity, corruption, economic disparity, deteriorating education standards, and a lack of skilled workforce—as significant impediments to economic progress. 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 Federal Inland Revenue Service (FIRS) has officially rolled out a Real-Time Transaction Monitoring System (RTMS) aimed at enhancing the transparency and efficiency of VAT compliance across Nigeria’s digital economy. This initiative mandates banks, card schemes, fintech companies, and payment service providers to integrate their systems with the FIRS platform to provide real-time data on all VAT-eligible electronic transactions. According to TechCabal, this move is part of FIRS’s broader strategy to curb revenue leakages and improve oversight within the country’s expanding digital and financial services ecosystem. Commenting on the development, FIRS Executive Chairman, Dr. Zacch Adedeji, stated: “This system represents a transformative leap in transaction visibility. By monitoring VAT-eligible activities in real time, we are fostering a fair and transparent digital marketplace for all stakeholders.” Under the new framework, financial institutions are now required to route eligible transactions through the FIRS monitoring portal, thereby granting the agency immediate visibility into taxable activities. While tax collection will not occur directly through the portal, the system will enable automated invoice reconciliation and taxpayer threshold assessments via a centralized dashboard. FIRS has highlighted that the traditional tax monitoring infrastructure has struggled to keep pace with the scale and speed of digital transactions. The new system leverages real-time data capture, AI-driven validation, and end-to-end encryption to ensure accuracy and security of reported information. This directive follows President Bola Tinubu’s assent on June 26, 2025, to four key tax reform bills—now enacted as the: These legislative reforms reflect the ongoing efforts of the Presidential Fiscal Policy and Tax Reforms Committee to modernize Nigeria’s tax system, enhance revenue administration, and align fiscal governance with global best practices. Following a stakeholder conference hosted by FIRS on July 22–23, 2025, the Executive Chairman reaffirmed the agency’s commitment to curbing Illicit Financial Flows (IFFs) by strengthening enforcement mechanisms, improving transparency in beneficial ownership structures, and deploying technology to detect tax evasion and trade mispricing. Notably, most financial institutions currently report only transactions above ₦5 million (~$3,200), leaving a significant volume of micro-transactions untaxed and undocumented. The integration requirement aims to plug this gap in VAT collection and standardize the reporting of smaller taxable transactions. Although the new tax laws will formally take effect in January 2026, the FIRS is relying on its existing powers under Section 25(4) of the FIRS Act to issue a 30-day compliance notice, requiring early integration with the RTMS. It is important to note that while transaction data provides visibility into taxable activities, FIRS has clarified that financial data alone will not determine tax liabilities. Reported transactions will be reconciled against taxpayers’ self-assessments, and legitimate deductions will still apply in calculating final tax obligations. Key Takeaways for Taxpayers and Financial Institutions: Our firm remains available to support clients in interpreting the directive, assessing integration readiness, and navigating compliance implications in a cost-effective and strategic manner. 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 Corporate Affairs Commission (CAC) is taking steps to clean up its register by removing companies that aren’t complying with the law. According to a public notice, these companies have 90 days to file their Annual Returns and update their details on Persons with Significant Control or Beneficial Ownership. If they don’t comply, they’ll be permanently removed from the register and can’t do business anymore. The list of companies to be removed is already on the CAC website, and the public and company owners are advised to check it out and take necessary actions. This move is in line with the Companies and Allied Matters Act 2020, specifically Section 692 (3) and (4). Companies that get struck off will lose their rights and can’t operate. 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.