TAX SERVICES

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.

The belief that Nigeria must work has long fueled our collective hope. So when news broke that the Senate had passed all four tax reform bills, it felt like one of those rare moments that made you pause and wonder, “Is this really happening?” For years, the tax system has been a point of national frustration—something many had come to accept as broken. But taxation wasn’t the only concern. From power supply to education and healthcare, the shortcomings of government systems have been a persistent source of public discontent. At the same time, Nigeria’s heavy reliance on the volatile global oil market left the country with unpredictable revenue streams and limited capacity to invest in its future. That’s precisely why our vision for a new Nigeria must remain alive—because this time, we’re seeing more than just promises. We’re seeing action. President Bola Tinubu recognised that rebuilding Nigeria meant establishing a fair, effective, and sustainable tax system. A system that could generate stable revenue, distribute the burden justly, and rebuild public trust—regardless of region or economic status. That vision drove the introduction of the four major tax reform bills in 2024. After months of intense policy development, stakeholder engagement, and political courage, the National Assembly has now passed all four: These reforms are set to reduce Nigeria’s dependence on oil and empower states with the resources they need to grow and thrive. A key highlight is the new VAT-sharing formula. Under the proposed structure, 50% of VAT revenue will be distributed equally among all states, 20% based on population, and 30% according to actual consumption. This approach is designed to ensure fairness while rewarding performance—giving each state an incentive to foster economic activity and strengthen governance. The Senate also confirmed that the VAT rate will remain at 7.5%, resisting calls for an increase. For everyday Nigerians, that means no added cost on goods and services. Just as importantly, the bills protect the ongoing funding of vital development agencies such as the Tertiary Education Trust Fund, the National Agency for Science and Engineering Infrastructure, and the National Information Technology Development Agency. These institutions are essential to fostering innovation, education, and research nationwide. Another major reform is the transformation of the Federal Inland Revenue Service (FIRS) into the Nigeria Revenue Service—a move that represents far more than a name change. It’s a strategic shift toward a more transparent, supportive, and efficient revenue system—one that strengthens local government finances and backs states with the tools they need to collect and manage taxes effectively. Much of the credit goes to Dr. Zacch Adedeji, Executive Chairman of the FIRS. His leadership has been instrumental in reshaping the agency and advancing these landmark reforms. Through his efforts, we’ve seen that meaningful change is possible when those in charge are truly committed. With the passage of these four bills, Nigeria has taken a major step toward implementing the most significant tax reform in years. The process now moves into the harmonisation stage, where both chambers of the National Assembly will align their versions of the legislation. Once agreed upon, the final bills will be sent to the President for assent and publication in the official gazette. From there, the newly established Nigeria Revenue Service will take charge of implementation. And with Dr. Adedeji at the helm, there is strong reason to believe the results will not just meet—but exceed—expectations. 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 Senate has passed the remaining two tax reform bills, completing legislative approval for all four key components of Nigeria’s sweeping tax policy overhaul. These bills now proceed to the harmonisation phase, where a joint conference committee of the Senate and House of Representatives will reconcile any differences before forwarding the final versions to President Bola Ahmed Tinubu for assent. This legislative milestone represents a major step in the government’s drive to simplify the tax system, strengthen revenue generation, and promote economic stability. The reform process has attracted wide attention due to its potential implications for individuals, businesses, and the broader economy. Once harmonised, the consolidated bills will be presented to President Tinubu for final review and potential enactment into law. This marks a pivotal advancement in Nigeria’s ongoing tax reform agenda, aimed at improving compliance, fostering transparency, and creating a more efficient and equitable taxation framework. 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 a significant fiscal shift set to enhance state revenues and reshape Nigeria’s tax framework, the Senate has passed two of four critical tax reform bills. These include a new Value Added Tax (VAT) revenue-sharing formula, though the VAT rate remains unchanged at 7.5%. Under the revised formula, the Federal Government’s share of VAT will drop to 10%, while states and the Federal Capital Territory will receive 55%, and local governments 35%. This marks a departure from the current allocation of 15% to the Federal Government, 50% to states, and 35% to local governments. Senate President Godswill Akpabio announced that the remaining two bills will be debated in plenary today. The two approved bills—the Nigeria Revenue Service (Establishment) Bill, 2025 and the Joint Revenue Board (Establishment) Bill, 2025—are part of a broader effort to modernize the tax system and now await approval from the House of Representatives and President Bola Ahmed Tinubu’s assent. These reforms aim to increase revenue, ensure transparency, and promote fair distribution. A key update is the redefinition of “derivation” to reflect the “place of consumption,” meaning VAT will now be distributed based on where goods and services are consumed, rather than where they are produced or sold. The new VAT allocation formula for states is 50% by equality, 20% by population, and 30% based on consumption. Local governments will receive their share with 30% allocated equally and 70% according to population. Additionally, the Senate halved the tax collection fee for revenue agencies from 4% to 2%, particularly for oil-related revenues, following concerns raised by Senator Seriake Dickson over excessive agency earnings. A notable structural change in the Revenue Service Bill places the President as Chairman of the Service’s Board, while an Executive Vice Chairman—subject to Senate approval—will lead operations. The bill also mandates six Executive Directors, one from each geopolitical zone, with appointments rotated to avoid regional dominance. Clause 4 of the bill expands the Service’s scope to include corporate tax assessment, collaboration with ministries for tax modernization, and authority to trace, freeze, or seize assets linked to tax evasion. Clause 13(2) requires the Board Secretary to be a qualified financial or legal expert, not below the Deputy Director level, and stipulates annual reports be filed within three months of the fiscal year’s end. The Senate also introduced strict penalties for tax noncompliance: failure to register will incur a N100,000 fine with a monthly N50,000 penalty; late return filings attract N200,000 initially and N50,000 monthly thereafter. Individuals who fail to keep proper records will face N10,000 fines, and companies N100,000. Failure to remit taxes may result in fines or imprisonment of up to three years. Senate President Akpabio commended the Finance Committee and senior senators for their collaborative approach in passing the bills. He rejected accusations of regional bias, emphasizing that the reforms are designed to serve all Nigerians fairly. With these developments, Nigeria moves closer to a transparent, efficient, and equitable tax system that empowers subnational governments and aligns with contemporary economic practices. 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.