TAX SERVICES

Taxation is a fundamental pillar of economic development. It provides governments with the revenue needed to fund public services, build infrastructure, and support social programs. In Nigeria, the 2017 National Tax Policy (NTP) was introduced as a strategic framework to reform and guide the country’s tax system, aligning it with national economic goals. The policy envisions a system that encourages voluntary compliance, guarantees consistent revenue, and drives sustainable development. However, the lofty ambitions of the NTP have not translated into reality. There remains a troubling disconnect between policy formulation and its actual implementation, undermining the role taxation should play in Nigeria’s development journey. Without addressing this gap, the potential of the tax system to significantly contribute to national progress will remain largely untapped. One of the primary challenges is the fragmented distribution of taxing powers across different levels of government. While some are clearly outlined in the constitution, others remain vague, leading to conflicts and legal battles—most notably over the administration of Value Added Tax (VAT). This confusion, combined with a proliferation of taxes across states, has made the system inefficient and burdensome. The proliferation of taxes stems from states grappling with an imbalance between their fiscal responsibilities and taxing authority. To make up for this, many introduce overlapping taxes, especially on property and income, further complicating compliance. As a result, taxpayers often seek ways to legally minimize (avoidance) or completely evade taxes—shifting the burden onto more compliant citizens and weakening the tax base. Compounding the issue is the absence of reliable demographic data. How can the government tax people it cannot identify? Despite over a century of organized taxation in Nigeria, there’s still a major gap in citizen data collection, analysis, and management. This lack of accurate information makes effective tax planning and implementation nearly impossible. Political interference only worsens the situation. Many public officials and lawmakers lack a deep understanding of the tax system and often prioritize political interests over technical efficiency. This, coupled with entrenched corruption, weakens enforcement and erodes public trust. A system riddled with political favoritism and vested interests can never function at its full potential. Another major barrier is the complexity of the tax laws themselves. Many are outdated, ambiguous, or too technical for the average citizen to understand. This not only creates confusion but also fuels resistance and non-compliance. The lack of public awareness campaigns and tax education further alienates taxpayers, leading to widespread reliance on arbitrary assessments rather than structured compliance. There’s also little incentive for subnational governments to improve tax collection. The formula for revenue allocation in Nigeria places minimal emphasis on internal revenue generation, instead focusing on criteria like landmass, population, and social needs. This discourages innovation and effort in improving local tax systems and leaves governments dependent on unstable oil revenues. To move forward, Nigeria must implement real and lasting reforms. A constitutional amendment to clearly delineate taxing powers and grant more fiscal autonomy to states and local governments is essential. This will not only reduce friction but also foster accountability at all levels. Updating and simplifying tax laws is another crucial step. The recent establishment of the Fiscal Policy and Tax Reforms Committee by President Tinubu, under the leadership of Taiwo Oyedele, is a commendable move. The committee’s mandate to propose reforms aimed at streamlining tax administration and aligning it with current realities is a necessary intervention. The modernization of the tax system is long overdue. Leveraging technology, training tax officials, and adopting global best practices will significantly improve efficiency. Initiatives like the Integrated Tax Administration System (ITAS), which digitizes tax processes, are steps in the right direction and should be expanded. Widening the tax net through mandatory registration—such as requiring Tax Identification Numbers (TIN) for specific transactions—has already begun to yield results. This strategy not only increases transparency but also brings more individuals and businesses into the formal economy, ensuring they contribute their fair share. Finally, the government must demonstrate that taxes are being put to good use. When citizens see tangible improvements in infrastructure, education, healthcare, and security, they are more likely to comply voluntarily. Transparency, accountability, and visible impact are the strongest tools for encouraging compliance and building trust. In conclusion, Nigeria’s economic potential is immense—like a forest full of ripe fruit. But without a tax system that works, this potential remains largely unharvested. The time has come for the country to close the gap between tax policy and implementation and unlock the full power of taxation as a driver of national development. 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 may reinstate a 5% excise tax on telecom services, as proposed in the 2024 Finance Bill passed by the Senate last week. The tax would apply to data and voice services. Initially introduced in 2020 under former President Buhari to broaden the tax base, the levy was suspended in 2023 by President Bola Tinubu in response to soaring inflation. However, with mounting fiscal pressures, the government is now revisiting the policy. Telecom operators warn that reintroducing the tax would increase service costs and hinder efforts to bridge Nigeria’s digital divide, with over 40% of the population still lacking internet access. Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), criticized the proposal for its lack of clarity and potential impact on consumers. “We’ve received no details on how this 5% tax would be implemented, but it’s clear the burden will fall on users. Telecom services should be treated as essential infrastructure, not taxed like luxury goods. No serious economy taxes telecoms in this manner,” Adebayo said. ALTON also highlighted that telecom operators already face 54 different taxes across Nigeria. The Nigerian Communications Commission (NCC) has yet to receive the official bill for review. Industry analysts warn that the tax could discourage investment in digital infrastructure, threatening recent sector gains. MTN Nigeria reported a Q1 2025 profit of ₦133.7 billion ($83.3 million), while Airtel Africa announced a pre-tax profit of $661 million for its financial year ending March 2025. With internet access increasingly vital for education, healthcare, and employment, experts argue that higher telecom costs risk deepening Nigeria’s digital divide. They advocate for long-term strategies focused on investment and connectivity rather than short-term tax fixes. 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.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has revealed that Nigeria collects only 30% of its potential tax revenue—leaving a massive 70% shortfall, among the highest globally. Speaking on the theme “Taxation for Development: Policies, Law and Implementation” at the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja, Oyedele highlighted deep-seated inefficiencies in the country’s tax system. He pointed to policy loopholes, rampant abuse of waivers and incentives, and weak enforcement as primary contributors to the revenue gap. He emphasized that significant losses stem from the misuse of import waivers and duties, arguing that no taxpayer should receive deductions or allowances on imported goods without first paying the associated duties. To tackle these challenges, Oyedele advocated for the deployment of advanced tax technologies capable of real-time monitoring. He noted that intelligent systems can track inventory, monitor sales, detect inconsistencies, and uncover evasion—particularly when there’s a mismatch between reported income and lavish lifestyles, such as frequent international travel or luxury spending. He expressed concern that while a few exploit the system for personal gain, millions of Nigerians bear an unfair tax burden. He disclosed that some of the country’s largest companies—especially in the oil and gas sector—face paper tax rates as high as 85%, yet many have paid little or nothing over the past decade due to aggressive tax planning and unchecked incentives. Oyedele questioned the ethics of making billions while contributing nothing to the public purse, insisting that all entities must shoulder their fair share of the tax responsibility. He also criticized the role some tax professionals play in enabling evasion. According to him, certain agents lack the necessary technical knowledge and ethical standards, with some even selling confidential tax strategies to the highest bidder—a practice he warned could destabilize Nigeria’s fiscal health. To address this, Oyedele proposed a comprehensive regulatory framework for tax practitioners. This would require all tax agents to be accredited, demonstrate competence and ethical integrity, and register officially. Agents would need to prove personal tax compliance and ensure a verifiable connection between themselves and every filing they handle. He stressed that practitioners who mislead clients—for example, by falsely claiming that VAT and withholding tax offset each other—would face sanctions such as suspension or disqualification. Oyedele further recommended that every business, regardless of size, should appoint a designated tax representative. Drawing from international best practices in the U.S., Australia, Malaysia, and South Africa, he noted that these countries not only regulate individual practitioners but also oversee the professional bodies that certify them. Although he acknowledged that reform efforts may face pushback, he asserted that Nigeria’s fiscal survival hinges on eliminating leakages and ensuring transparency across the board. Supporting Oyedele’s call, Abimbola Oyelola, Chief Economist and Group Head of Research at the Bank of Industry (BoI), urged stakeholders to move beyond skepticism and actively engage in the reform process. Representing BoI’s Managing Director, Olusupo Olusi, Oyelola emphasized that reform success depends on collective participation and an informed public. “The best way to predict the future is to operate it—not just complain about it,” he stated. Oyelola reiterated BoI’s commitment to Nigeria’s industrial transformation through financial and advisory support for businesses. This, he explained, will help build enterprise capacity and drive sustainable national development. Oyedele also sought to dispel common misconceptions around Nigeria’s Value Added Tax (VAT), currently at 7.5%. Many small business owners, he said, wrongly assume they must pay VAT out of pocket, when in fact, the tax is borne by the end consumer. He noted that enrolling in the VAT system could offer financial benefits for SMEs and professionals through input tax credits. Despite criticisms, he pointed out that most consumer goods are either VAT-exempt or zero-rated, easing the burden on low-income households. While acknowledging that Nigeria may eventually need to raise the VAT rate—possibly to 15%—he stressed that any such move must be paired with measures to protect vulnerable groups. For now, the government has opted to keep the rate at 7.5%. On broader reforms, Oyedele emphasized the urgent need to boost personal income tax compliance. Efforts are ongoing in collaboration with the Joint Tax Board and state tax authorities to simplify the system and improve transparency. He lamented that many tax officers operate without adequate data on taxpayer behavior, making the system reactive rather than proactive. For long-term improvement, he argued that trust—not fear—must drive compliance, with tax payment viewed as a civic duty, not a penalty. He also flagged the need for Nigeria’s VAT system to remain regionally competitive, warning that significant rate disparities across West Africa could fuel transshipment and abuse. Looking ahead, Oyelola shared the BoI’s efforts to support innovation and entrepreneurship, particularly through tech hubs and digital platforms. Young Nigerians, he said, are already proposing creative solutions to decentralize development. BoI currently operates five tech hubs in two major cities, with plans to expand nationwide in the coming year. In conclusion, he called on all Nigerians—citizens, business leaders, and professionals—to take ownership of the tax reform process. “Paying tax should not be a source of fear, but a badge of trust,” he said. “It’s no longer enough to critique; we must participate.” 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.

Ada Chukwudozie, Chairman of Keystone Bank, has urged the Institute of Chartered Accountants of Nigeria (ICAN) to address the digital skills gap within the accounting profession. She made this appeal on Wednesday while delivering the keynote address at ICAN’s 75th induction ceremony for new members, held in the Amuwo Odofin area of Lagos. During the event, ICAN formally inducted 1,851 new members, with women making up 53% and men 47% of the cohort. Speaking on the theme, “Financial Leadership for Sustainable Development: Best Practices and Future Directions,” Chukwudozie emphasized the vital role of accountancy in driving good corporate governance, fostering investor confidence, ensuring regulatory compliance, and building resilient economies. “At Keystone Bank, I have the privilege of working alongside a team of highly competent and experienced chartered accountants at both the board and management levels. Their contributions have been instrumental in transforming the bank and restoring it to profitability,” she said. “Financial leadership goes beyond interpreting audit trails or analyzing balance sheets. It involves the capacity to lead institutions, systems, and even governments with ethical judgment and sound financial insight. Every digit represents a decision — one that can either build or erode trust. These numbers reflect real lives: workers, farmers, entrepreneurs, pensioners, children, the vulnerable, and the voiceless.” “In a country like Nigeria, where resources are stretched, systems are still evolving, and corruption often poses as competence, the role of financial leaders becomes even more crucial. The future of financial leadership demands that accountants go beyond traditional methods, embracing new ideas and strategies to drive national development.” On the importance of closing the digital gap in the profession, Chukwudozie stated, “We are in the midst of the Fourth Industrial Revolution, which is transforming industries globally — and accountancy is no exception. The adoption of data analytics, blockchain for secure and transparent record-keeping, artificial intelligence for improved efficiency and fraud detection, and cloud-based accounting platforms are no longer optional — they are essential.” She called for digital literacy to be embedded as a core skill within the ICAN curriculum and in ongoing professional development initiatives across the country. “This will equip accountants to deliver deeper insights and play a more active role in data-driven economic policymaking. Today’s accountants must be proficient in tools such as QuickBooks, SAP, Oracle, Power BI, and blockchain auditing platforms,” she added. 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.

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.

Nigeria’s economy posted its strongest quarterly growth in ten years at the close of 2024, according to the World Bank. The country’s GDP grew by 4.6% year-on-year in the fourth quarter (Q4), driven by stronger fiscal performance, sustained reform efforts, and improved macroeconomic indicators. During a presentation on Monday, Alex Sienaert, the World Bank’s lead economist for Nigeria, attributed the growth to recent economic reforms, which he said are already yielding results. He added that early indicators suggest continued economic momentum into 2025, with business activity remaining robust. The World Bank forecasts a 3.6% GDP growth for Nigeria in 2025. Sienaert emphasized that several bold policy initiatives by the federal government have improved the country’s economic outlook, increased government revenue, and strengthened Nigeria’s fiscal position. According to the World Bank, government revenue rose by 4.5% of GDP in 2024, supported by more efficient tax administration and higher remittance inflows. The fiscal deficit also narrowed significantly to 3% of GDP, down from 5.4% in 2023. However, the Bank cautioned that the full fiscal benefits of subsidy reforms are yet to be fully realised. Foreign reserves rose to around $37 billion in the last quarter of 2024, supported by a more stable and market-driven foreign exchange regime, which has created a more favorable environment for reserve accumulation. Despite these gains, inflation remains a major concern. Headline inflation stood at 23.18% in February 2025. While food inflation slightly moderated to 23.51%, core inflation increased to 24.43%. Consumer prices surged by 3.90% in March, up from 2.04% in February, signaling ongoing cost-of-living pressures. Sienaert stressed that maintaining fiscal and monetary discipline will be essential to sustaining the current momentum. He noted that tight monetary policy, coupled with consistent reforms, will be key to managing inflation and driving long-term growth. The World Bank will release its full Nigeria Development Update report today in Abuja, offering a comprehensive analysis of the country’s economic trends, reforms, and policy impacts. While significant challenges remain, the Q4 2024 GDP growth figures highlight the positive impact of ongoing reforms and may help boost investor confidence in the months ahead. 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.

Lagos State recorded a 45% increase in revenue in 2024, reaching N1.3 trillion—up from N895 billion in 2023. This was disclosed by the Commissioner for Finance, Abayomi Oluyomi, during a statement commemorating the second anniversary of Governor Babajide Sanwo-Olu and Deputy Governor Obafemi Hamzat’s second term in office. Speaking at the annual ministerial briefing on his ministry’s performance from 2024 to 2025, Oluyomi revealed that the State generated N14 billion from the Land Use Charge in 2024—a 37% rise compared to the previous year. He also noted that local rating agencies have rated Lagos at A1+, while Fitch Ratings assigned it a AAA rating. According to the commissioner, approximately 800,000 properties are listed in the State government’s database. However, he expressed concern over widespread default on property tax payments. He stated: “Through strategic reforms and innovative financial strategies, Lagos State continues to lead in revenue generation. We ended 2024 with a record N1.3 trillion, marking a 45% increase from N895 billion in 2023.” Oluyomi placed the State’s Gross Domestic Product (GDP) at $259 billion, reaffirming Lagos as not only Nigeria’s economic powerhouse but also the largest sub-national economy in Africa. Addressing the State’s debt profile, Oluyomi said Lagos had the lowest debt-service-to-revenue ratio in the country at 19.2%. He also reported a total-debt-to-GDP ratio of 3.83% and a total-debt-to-revenue ratio of 172% in 2024. To further boost revenue, he announced plans to convert idle government properties worth N3 billion into income-generating assets. Between 2024 and 2025, the State paid N67.9 billion in entitlements to 20,956 retirees, while it received N290.43 million in insurance claims for damage to public infrastructure. Oluyomi highlighted that of the three million registered taxpayers in Lagos, only about 700,000 currently pay taxes. He called on more residents to fulfill their tax obligations, emphasizing that the government would adopt innovative strategies to broaden the tax base and improve compliance. 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 Senate has approved sweeping tax reforms, and one of the most notable elements is the restructuring of the Value Added Tax (VAT) system. While the VAT rate remains unchanged at 7.5%, despite proposals to increase it, major changes have been introduced to how VAT revenue will be shared and administered: 🔸 New VAT Revenue Sharing FormulaVAT will now be allocated based on where goods and services are consumed, not where businesses file returns. This change promotes fairness and encourages local economic activity. States that generate more consumption will now receive more revenue. 🔸 No VAT on EssentialsThe new tax laws exempt essential services such as public transport and basic food items from VAT, reducing the burden on low-income Nigerians. 🔸 No VAT Rate HikeDespite earlier discussions, the government chose not to raise VAT to 15%. This decision avoids adding further pressure on consumers and businesses. 🔸 Digital Economy InclusionVAT is now extended to digital services, ensuring fairness in a growing sector of the economy. These reforms aim to make Nigeria’s VAT system fairer, more efficient, and aligned with global practices, while boosting trust in the tax system and improving revenue for national development. As Senate President Godswill Akpabio said, “These are legacy laws that will define Nigeria’s economic future.” 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.