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New Year: Tax law rollout begins, as economist explains what Nigerians should know

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Nigeria on Thursday, January 1, 2026, commenced the implementation of its much-anticipated new tax laws and fiscal reforms amid widespread public anxiety.

President Bola Ahmed Tinubu had on Tuesday reaffirmed that the new tax regime signed into law in June 2025 would take effect on January 1, despite repeated calls from various quarters for a suspension to allow for further review.

Among those who had urged the Federal Government to pause the implementation were the Nigeria Labour Congress (NLC), the Minority Caucus of the House of Representatives, former Senate Leader, Ali Ndume, human rights lawyer, Femi Falana (SAN), former Minister of Education Oby Ezekwesili, Bauchi State Governor, Bala Mohammed, and several opposition parties.

The controversy surrounding the tax reforms intensified after a lawmaker, Abdulsamman Dasuki, raised concerns over alleged alterations to the gazetted version of the tax law. Following the outcry, the leadership of the National Assembly ordered that the laws be re-gazetted to address the concerns.

Defending the reforms, President Tinubu assured Nigerians that the new tax laws would not impose additional burdens on citizens.

His position was echoed by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, who maintained that the implementation was necessary to reposition the country’s revenue framework.

Further clearing the path for the rollout, Justice Bello Kawu of the Federal Capital Territory High Court dismissed a suit seeking to halt the implementation of the tax laws.

Despite these assurances, concerns over the possible effects of the reforms on individual incomes, prices, businesses, and corporate operations have continued to fuel public unease.

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In an interview on Wednesday, a university don, economist, and accountant, Prof. Godwin Oyedokun, urged Nigerians to move beyond fear and misinformation, stressing that the reforms require “calm understanding rather than panic.”

He explained that the objective of the new tax laws is not to punish taxpayers but to strengthen government revenue in a sustainable manner.

“The objective of the new tax laws is not to make life harder for Nigerians.

“It is to improve revenue efficiency, block leakages, and reduce the country’s dangerous dependence on oil income,” he said.

According to Oyedokun, Nigeria’s tax-to-GDP ratio remains among the lowest globally, limiting government capacity to fund infrastructure, healthcare, education, and security without excessive borrowing.

“What the government is trying to do is to broaden the tax base, not necessarily to raise tax rates across the board,” he noted.

Impact on Low-Income Earners

Addressing fears that the reforms could worsen hardship, Oyedokun said most low-income earners are unlikely to be directly affected.

“Personal income tax thresholds and exemptions are still in place to protect the most vulnerable Nigerians,” he explained.

“The greater responsibility is expected to fall on higher-income earners, large corporations, and sectors that have historically operated with weak compliance,” he added.

However, he cautioned that indirect effects could still emerge.

“There is a real risk that some businesses may pass compliance costs to consumers through higher prices, especially in an inflationary environment.

“But this depends largely on how the laws are enforced and how competitive the markets are,” he said.

What Businesses Should Expect

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For businesses, the economist acknowledged that the reforms may initially feel demanding.

“Stronger reporting requirements and tighter enforcement will increase compliance costs in the short term,” he said.

“However, these measures are meant to ensure fairness so that companies that pay their taxes are not disadvantaged while others evade the system,” he noted.

He added that effective implementation could eventually benefit the private sector.

“A transparent and predictable tax system can support business growth through better infrastructure, improved public services, and reduced policy uncertainty,” Oyedokun said.

Call for Caution and Accountability

Oyedokun advised Nigerians to stay informed and actively engaged as the new laws take effect.

“Nigerians should approach these reforms with informed caution, not panic,” he said. “Public education, dialogue, and engagement with tax authorities are essential.”

He also stressed the responsibility of the government to deliver accountability.

“Taxes must translate into visible public value.

“Without service delivery and transparency, even the best-designed tax laws will face resistance,” he warned.

According to him, the success of the new tax regime will ultimately depend on trust, effective communication, and responsible governance.

“There may be short-term discomfort, but widespread harm is not inevitable.

“If implemented fairly and with sensitivity to current economic realities, these reforms can benefit Nigeria in the long run,” Oyedokun concluded.

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Four Nigerians among Forbes Africa’s 15 icons for 2026, see full list

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Four Nigerians, Aliko Dangote, Ngozi Okonjo-Iweala, Mo Abudu and Burna Boy, have been named among 15 personalities featured on Forbes Africa’s inaugural Icons list for 2026.

PUNCH Online on Saturday reported that the list, published in the magazine’s October-November anniversary edition, recognises individuals whose ideas, innovations and voices have influenced Africa’s past, present and future.

The selection marks the 15th anniversary of Forbes Africa, which said it chose personalities whose work had made a lasting impact beyond their industries and national borders.

The four Nigerians represent business, international economic leadership, media and music.

Dangote, president of Dangote Group, is recognised for his role in African industry and private enterprise.

Dangote

Okonjo-Iweala, director-general of the World Trade Organization and a former Nigerian finance minister, represents Africa’s presence in international economic leadership.

Iweala

Abudu, founder and chief executive of EbonyLife Group, is recognised for her contribution to African media and entertainment, while Burna Boy, whose real name is Damini Ebunoluwa Ogulu, represents the international reach of Nigerian music.

Mo Abudu

The other personalities on the list are South African businessman Adrian Gore, CAF president and businessman Patrice Motsepe, Zimbabwean entrepreneur Strive Masiyiwa and former Liberian President Ellen Johnson Sirleaf.

Also featured are Nobel Prize-winning novelist Abdulrazak Gurnah, Ethiopian athletics legend Haile Gebrselassie, former Ivorian footballer Didier Drogba, South African businessman Johann Rupert, Kenyan-Mexican actor Lupita Nyong’o, South African comedian Trevor Noah and Beninese musician Angélique Kidjo.

The 15 personalities represent sectors including business, public service, literature, sport, music and entertainment.

According to Forbes Africa’s methodology, the selection was based on factors including global recognition, legacy, measurable economic, social or cultural influence, and contributions to Africa’s growth narrative over the years.

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The magazine said its editorial team consulted established figures, experts and professionals in the respective industries to gather insights on the honourees’ impact and legacy.

The list is presented in no particular order, the release noted.

Full list of Forbes Africa Icons 2026

– Mo Abudu — Nigerian-British media entrepreneur and founder-chief executive of EbonyLife Group.

– Ngozi Okonjo-Iweala — Nigerian economist and director-general of the World Trade Organization.

– Adrian Gore — South African businessman and founder-chief executive of Discovery Group.

Gore

– Patrice Motsepe — South African businessman and president of the Confederation of African Football.

Motsepe

– Strive Masiyiwa — Zimbabwean entrepreneur and founder and executive chairman of Econet Global and Cassava Technologies.

Masiwiya

– Ellen Johnson Sirleaf — Former president of Liberia.

Sirleaf

– Aliko Dangote — Nigerian industrialist and president of Dangote Group.

– Burna Boy — Nigerian singer and songwriter.

Burna Boy

– Abdulrazak Gurnah — Zanzibar-born novelist and Nobel laureate in Literature.

Gurnah

– Haile Gebrselassie — Ethiopian athletics legend and businessman.

Gebrselassie

– Didier Drogba — Former Ivorian footballer.

Drogba

– Johann Rupert — South African businessman and chairman of Compagnie Financière Richemont.

Rupert

– Lupita Nyong’o — Kenyan-Mexican actor.

Nyong’o

– Trevor Noah — South African comedian, writer, producer and former host of The Daily Show.

Noah

– Angélique Kidjo — Beninese musician and actor.

Kidjo

Forbes Africa said the list celebrates individuals whose contributions have helped shape the continent’s development and standing on the global stage.

Source: punchng.com

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Lagos e-hailing drivers begin indefinite strike over fares

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E-hailing drivers in Lagos State have begun an indefinite strike over concerns about fare structures, commissions, deductions and welfare.

The drivers, under the Amalgamated Union of App-Based Transporters of Nigeria, announced the industrial action in a notice seen by PUNCH Metro on Saturday, saying it would commence on Monday and continue until further notice or satisfactory progress was made in addressing their grievances.

AUATON, an affiliate of the Nigeria Labour Congress, said the strike followed persistent concerns over operational policies, drivers’ welfare, safety, security and the sustainability of their operations.

“Despite repeated efforts by drivers and stakeholders to draw attention to these concerns, many of the issues remain unresolved,” the union said.

It added that the decision to embark on the strike was informed by the need to address challenges affecting drivers’ earnings and working conditions.

To cushion the impact of the industrial action, AUATON appealed to fleet owners and managers to grant temporary relief from daily remittance obligations and related operational targets for the duration of the strike.

“During the industrial action, drivers will not be generating their normal revenue from which daily remittance obligations ordinarily arise.

“We, therefore, appeal to fleet partners to refrain from imposing penalties, sanctions or adverse measures solely on the basis of a driver’s participation in the action, as drivers are not expected to operate during this period,” the notice read.

The union said its task force would be deployed across all local government areas in Lagos State to monitor compliance with the strike.

It warned that drivers found operating in violation of its directives could face sanctions under its internal disciplinary measures.

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AUATON, however, urged fleet owners, managers and affected drivers to maintain open communication and resolve operational concerns through constructive engagement during the strike.

Highlighting the potential benefits of addressing its demands, the union said improved earnings, welfare and operating conditions could help boost driver retention, reduce turnover and improve commitment among drivers.

“Meaningful improvements in driver earnings, welfare and operating conditions may contribute to improved driver retention and reduced turnover, better driver commitment and engagement, more sustainable vehicle utilisation and reduced operational disputes between drivers and fleet partners,” it said.

The union added that better earnings could also improve vehicle maintenance and promote stability in the app-based transportation sector.

It stressed that its objective was not to disrupt businesses unnecessarily but to advocate better operating conditions for drivers and other stakeholders.

The notice was signed by the Lagos State Chairman of AUATON, Jaiyesimi Olalabi Azeez, popularly known as Makavelli, who appealed to fleet partners for understanding and cooperation.

The union reiterated its commitment to peaceful engagement and constructive dialogue with fleet owners, managers and other stakeholders to find lasting solutions to the issues prompting the industrial action.

Source: punchng.com

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Tinubu reveals that World Bank report affirms reform gains

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President Bola Tinubu on Sunday welcomed the World Bank’s latest Nigeria Development Update, saying its findings, including that the poverty rate has stabilised for the first time since 2019, confirm that his economic reforms are working.

In a statement on Sunday by his Special Adviser on Information and Strategy, Bayo Onanuga, the President said the October 2026 edition of the report, titled ‘Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities,’ showed that the reforms were delivering results and putting the economy on a firmer footing for sustained growth.

He noted the bank’s expectation that poverty will decline gradually as gross domestic product grows faster than the population.

According to the report, the economy grew 4.2 per cent in the first half of 2026, up from 3.9 per cent in the first half of 2025, despite the impact of the conflict in the Middle East.

The bank projected growth to average at least 4.4 per cent between 2026 and 2028.

On prices, it said inflation fell from 27.6 per cent in January 2025 to 15.2 per cent in December 2025.

Higher global fuel prices linked to the Middle East conflict have since slowed the decline, but the bank said it expects inflation to ease to about 12 per cent by 2028.

The report also said the current account surplus rose to $12bn, or 7.0 per cent of GDP, in the first half of 2026, from $8.6bn a year earlier.

Gross external reserves increased from $45.5bn at the end of 2025 to $53.8bn at the end of August 2026.

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The bank credited the reforms since 2023 with raising federation revenues by 69 per cent in real terms between 2023 and 2025, with states the largest beneficiaries.

It said states used the extra resources to increase capital spending by 151 per cent in real terms over the same period, most of it going to roads and other transport, agriculture, energy and housing.

Twenty-nine of 33 states shifted spending towards economic infrastructure, while real social spending per person rose in all but one state, the report said.

It also found that internally generated revenue grew in real terms in 31 of 35 states; 21 states reduced their debt-to-GDP ratio between 2021 and 2025; and Nigeria’s overall public debt is expected to fall from 40.0 per cent of GDP in 2025 to 38.1 per cent in 2026.

Tinubu said the findings confirmed that “the difficult but necessary decisions to remove the petrol subsidy, unify the foreign exchange market and strengthen fiscal discipline have raised revenues, stabilised the economy and created fiscal space for every tier of government to invest in its people.”

“The dividends of reform are becoming visible,” he said, adding, “But more work remains to ensure they fully translate into better living standards for every household, starting with lower food prices and decent jobs for our young people.”

He said his administration would “stay the course of reform and redouble its focus on inclusive growth under the Renewed Hope Agenda.”

Tinubu promised to keep expanding targeted cash transfers, which he said had already reached more than 10 million households.

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He also pledged to accelerate the rollout of Compressed Natural Gas, raise agricultural productivity, and improve access to affordable healthcare and quality education “so that the prosperity being created is shared by all.

President Tinubu urged state governments to use their higher revenues “more prudently” and to prioritise projects that improve living standards and the health and education of residents.

He commended the Economic Management Team, led by the Minister of Finance and Coordinating Minister of the Economy, as well as state governors and other stakeholders, for their cooperation in implementing the reforms.

He said, “I assure Nigerians that the best is yet to come under the Renewed Hope Agenda 2.0, which will accelerate the delivery of shared prosperity for all Nigerians.

Source: punchng.com

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