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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

See also  Whatsapp to begin charging businesses per message from October 1

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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Whatsapp to begin charging businesses per message from October 1

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Meta, the parent company of WhatsApp, will begin charging businesses for certain messages sent through the WhatsApp Business Platform from October 1, 2026.

This was disclosed in a WhatsApp Business Platform pricing update in July 2026.

The new charges will be applied to companies using the official WhatsApp Business Platform, formerly known as the WhatsApp Business API, to manage customer conversations at scale.

Banks, fintechs, e-commerce companies, telecoms operators, logistics firms and large retailers that rely on the platform for customer service and transactional communication are among those that could be affected.

However, the development will not affect ordinary WhatsApp users or most small businesses using the standard WhatsApp Business app on their phones.

Under the current system, when a customer sends a message to a business, a 24-hour customer service window opens. During that period, businesses can respond with free-form service messages and certain utility messages without paying Meta.

However, from October 1, Meta will begin charging businesses on a per-message basis for service messages sent during the customer service window.

Meta, in its developer documentation, said, “Effective October 1, 2026, Meta will charge on a per-message basis for all service messages, consistent with how Meta charges for template messages. These messages have not been charged since November 1, 2024.”

The company added, “Effective October 1, 2026, Meta will charge on a per-message basis for utility messages sent in response to users (within an open 24-hour customer service window). These messages have not been charged since July 1, 2025.”

Utility messages include communications such as payment confirmations, order updates and delivery notifications.

See also  APC’s gov candidate slams Otti’s ‘harsh’ tax hike on Aba traders

Meta also warned businesses and Solution Providers about the need to add a payment method ahead of the new charges.

It said, “For any Solution Provider or directly-integrated businesses that does not have a payment method on file by September 30, 2026, Meta will stop delivering service messages as of when they become charged on October 1, 2026.”

For Nigerian businesses, a chargeable utility or service message is expected to cost about $0.0101 per message, equivalent to roughly ₦14 based on an exchange rate of about ₦1,340 to the dollar.

Marketing messages are considerably more expensive, at about $0.062 per message, or approximately ₦84 at the same exchange rate.

The charges are Meta’s fees and do not necessarily represent the total amount a business will pay. Companies using Business Solution Providers or third-party platforms to access the WhatsApp Business Platform may incur additional provider charges.

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FG reaffirms partnership with Taraba to unlock economic potential

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The Federal Government has reaffirmed its commitment to working with the Taraba State Government to unlock the state’s vast potential in agriculture, energy, tourism, infrastructure and mineral resources.

The Minister of Information and National Orientation, Mohammed Idris, stated this on Thursday in Jalingo at the Gala night to mark the Taraba State’s 35th anniversary and the official unveiling of the Taraba Regional Development Master Plan.

He described the newly unveiled Taraba Regional Development Master Plan as an important blueprint for sustainable growth.

Idris, who conveyed the greetings of President Bola Tinubu and the Federal Executive Council to the government and people of Taraba State, said the state’s 35th anniversary offered an opportunity not only to celebrate its progress since creation in 1991, but also to define a clear pathway for its future.

He commended Governor Agbu Kefas of Taraba for adopting a long-term development framework, saying the success of the Master Plan would ultimately depend on sustained implementation and its impact on the lives of citizens.

“The success of this Master Plan will not be measured by the ceremony at which it is unveiled, but by the roads built, businesses created, jobs generated, communities connected and lives improved,” the minister said.

Idris described Taraba as one of Nigeria’s most promising economic frontiers, with enormous opportunities in agriculture and agro-processing, livestock, hydropower, tourism, manufacturing and mineral development.

He praised the Kefas Administration for its investments in education, healthcare, infrastructure, security and economic development, particularly its policy of free and compulsory primary and secondary education.

He said the evidence was in the provision of more than N1.8 billion in 2026 to cover NECO, BECE and NABTEB examination registration for public-school students.

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The minister also highlighted the approximately 268 million dollars financing agreements signed between Taraba State and the ECOWAS Bank for Investment and Development for an integrated industrial park, 10,000 hectares of irrigated rice production and processing, and a 50-megawatt solar power plant in Jalingo.

He said the investments represented the kind of initiatives required to convert the state’s natural advantages into production, value addition, employment and sustainable economic growth.

Idris said Tinubu’s administration was complementing the state’s development drive through major federal infrastructure projects.

“These include the Gembu–Mbamnga–Yang (Lip) Road, the Bali–Serti–Gashaka–Gembu Road, interventions on the Jalingo–Mutum Biyu–Tella–Wukari corridor, as well as further work on the Mayo Selbe–Gembu, Mutum Biyu–Garba Chede and Jalingo–Numan roads.

“These are more than roads. They are investments in connectivity, trade, tourism, agriculture, security and the movement of people and goods,” he said.

The minister also reaffirmed the federal government’s commitment to harnessing Taraba’s agricultural, energy and mineral potential, including the strategic Mambilla Hydroelectric Power Project.

On security, Idris said the federal government was advancing reforms toward the establishment of State Police to bring policing closer to communities while ensuring professionalism, accountability and safeguards against abuse.

He said such a framework could be particularly beneficial to Taraba because of its vast terrain and dispersed border communities, where local knowledge, intelligence gathering and rapid response were critical to effective policing.

The minister also cited the establishment of the Nigerian Army’s 10 Division, headquartered in Jalingo, with operational responsibility for Taraba and Adamawa States, as evidence of the federal government’s commitment to strengthening security in the region.

“Security and development must go together. People cannot invest, farmers cannot move their produce, tourists cannot visit and businesses cannot grow where communities feel unsafe,” Idris said.

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He said the federal government’s economic reforms were designed to create a stronger fiscal foundation for development, noting that the removal of petrol subsidy had mobilised N15.8 trillion in additional resources for the Federation between June 2023 and December 2025.

According to him, approximately N5.4 trillion accrued to the federal government while about N10.4 trillion went to states and local governments, providing additional resources for infrastructure, education, healthcare, security and human capital development.

Idris said the federal government remained opposed to a return to the previous subsidy regime, stressing that the priority was to consolidate the gains of reform, protect vulnerable Nigerians and ensure that additional public resources translated into tangible improvements in citizens’ lives.

He emphasised that development must ultimately be people-centred, creating opportunities for young people, expanding women’s economic participation, supporting farmers and small businesses, and connecting communities to markets and public services.

The minister also pledged stronger collaboration between the Federal Ministry of Information and National Orientation and the Taraba State Ministry of Information and Re-Orientation to ensure citizens understand and embrace the objectives of the Master Plan.

“The vision contained in this Master Plan must go beyond government offices. It must reach the farmer, the entrepreneur, the student, the trader and communities across Taraba.

“This is because a plan for Taraba must ultimately be a plan owned by the people of Taraba,” he said.

Idris congratulated Kefas, the government, and the people of Taraba State on the state’s 35th anniversary, describing the occasion as both a celebration of Taraba’s history and a renewed commitment to its future.

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“35 years of history. A new blueprint for the future. And a renewed commitment to building the Taraba we want and the Nigeria we deserve,” the minister said.

In his remarks, Kefas also called for continuity in governance, acknowledging the contributions of former military administrators and elected governors to Taraba State’s development.

He said his administration was committed to building on previous achievements, correcting what needed to be corrected, completing worthy projects and opening new frontiers for future generations.

He stressed that the development of Taraba must remain bigger than any government, political party, ethnic group or individual, urging former leaders to continue contributing their experience and institutional knowledge to the peace, unity and prosperity of the state.

“Government must be a continuum. Development must be cumulative. Taraba is bigger than any government, any administration, any political party, any ethnic group, or any individual,” Kefas said.

He added that the ultimate credit for development belongs to the people of Taraba State.

Present at the event were the former Governor of Taraba State, Rev. Jolly Nyame; Secretary to the Government of Taraba State, Chief G.T. Kataps; Director-General of the Nigerian Television Authority, Salihu Dembos; and  Director-General of the Federal Radio Corporation of Nigeria, Dr Mohammed Bulama.

Others were the Managing Director of the Nigerian Ports Authority, Dr Abubakar Dantsoho; as well as other distinguished government officials, traditional leaders, members of the diplomatic and business communities, and other dignitaries.

NAN

Source: punchng.com

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CBN cuts T-bill rate amid N3.63tn demand

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Investors are increasingly positioning for longer-term returns in Nigeria’s fixed-income market, with the latest treasury bills auction showing an overwhelming preference for the one-year government security.

At the Central Bank of Nigeria’s (CBN) primary market auction on Wednesday, investors submitted N3.63tn for the 364-day T-bill, representing 95.9 per cent of the N3.79tn total bids received across the three maturities.

The demand came despite the CBN lowering the stop rate on the one-year instrument by 44 basis points to 17.15 per cent, from 17.59 per cent at the previous auction.

The auction results point to a significant shift in investor appetite towards longer-dated government securities, even as demand for shorter-tenor instruments remained subdued.

The CBN had offered N700bn across the three maturities, comprising N100bn each for the 91-day and 182-day bills and N500bn for the 364-day bill.

However, total subscriptions reached approximately N3.79tn, more than five times the amount offered.

The PUNCH that the 364-day instrument was the clear outlier at the auction, receiving bids equivalent to 7.26 times the amount offered.

The CBN ultimately allotted N638.19bn, exceeding the N500bn offer by N138.19bn. Despite the additional allotment, only about 17.6 per cent of total bids submitted for the instrument were accepted.

Investors quoted yields between 16.00 per cent and 19.05 per cent, but the CBN settled at 17.15 per cent, suggesting that the level of demand allowed the regulator to reject more expensive bids.

The development is significant because the CBN achieved a lower borrowing rate even after receiving exceptionally strong demand for the security.

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The contrast was stark at the shorter end of the curve. The 91-day bill attracted N103.32bn in subscriptions against N100bn offered. The CBN allotted N89.10bn at an unchanged stop rate of 16.30 per cent.

The 182-day bill performed even more weakly, attracting only N52.93bn against N100bn on offer. The CBN allotted N35.59bn, while the stop rate remained at 16.50 per cent.

Secondary-market yields for the three instruments stood above their respective auction stop rates, at 17.45 per cent for the 91-day bill, 17.05 per cent for the 182-day bill and 17.24 per cent for the 364-day bill.

According to a financial sector analyst, Jimbe Asalor, the concentration of bids in the one-year instrument suggests investors may be placing greater value on locking in relatively attractive yields over a longer period rather than repeatedly rolling over shorter-term securities.

He noted that the latest auction also demonstrates “the CBN’s ability to borrow more cheaply when demand is concentrated around a particular maturity.”

He added that by accepting N638.19bn on the 364-day bill at 17.15 per cent, the CBN borrowed above its initial offer while simultaneously cutting the rate by 44 basis points.

“The nine-basis-point difference between the auction stop rate and the 17.24 per cent secondary-market yield also indicates that the one-year segment is now trading relatively close to market expectations.”

A Lagos-based consultant economist, Chukwunonso Iheoma, said if the preference for longer-dated treasury bills persists, the development could provide further support for a gradual decline in government borrowing costs while strengthening expectations of eventual interest-rate cuts.

See also  Whatsapp to begin charging businesses per message from October 1

Source: punchng.com

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