News
90 Percent of Workers to Pay Lower Taxes in Tax Reforms- PACFTR

Taiwo Oyedele, chairman, Presidential Advisory Committee on Fiscal Policy and Tax Reform (PACFTR) has said that contrary to speculations, individuals earning about N1.7 million or less per month will pay lower Pay as You Earn (PAYE) tax under the proposed Tax Amendment Bills before the National Assembly.
Besides, workers earning the new minimum wage and slightly more will also be fully exempted from tax obligations.
Addressing various tax issues on X, formerly Twitter, Oyedele said these thresholds will result in over 90 per cent of workers in the public and private sectors paying lower taxes while high income earners will pay slightly more in a progressive manner up to 25 per cent for the ultra-high net worth individuals.
His explanation came against the backdrop of general concerns that workers might pay more under the proposed tax reform initiatives of the federal government.
According to him, planned changes to the current tax table of personal income brackets and rates was to discourage arbitrage in some cases between the two income tax regimes.
He said the current tax table was introduced in 2011, stating that due to high inflation and lack of review, the structure has resulted in “fiscal drag” where many low income earners have been pushed to the top tax bracket over time.
This, he said, meant that an individual earning just N400,000 a month was paying the same top marginal income tax rate as a wealthy individual earning about N20 million per month.
“Therefore, the tax table has become regressive rather than progressive, as it was originally designed.
“Also, the current personal income tax regime does not encourage formalisation given that the effective top tax rate on companies is nearly double that of enterprises, which also encourages arbitrage in some cases between the two income tax regimes.
“Hence, the proposed changes seek to address these issues and simplify the system by incorporating current reliefs and allowances into the bands and rates to achieve an overall lower effective tax rate for the majority of workers,” Oyedele said.
Further addressing concerns over taxation of workers’ income in the proposed regulation, he clarified that apart from the N800,000 per annum, which was exempted from tax, there was a rent relief of up to N200,000 per annum, which together will exempt individuals earning up to N1 million per annum (about N83,000 per month).
He said: “This is particularly beneficial to low income earners. Also, the new tax bands and rates have been designed to avoid a situation where individuals earning slightly more than the exemption threshold are taxed to an extent that makes them worse off than a person whose income is within the exemption threshold.
“For example, a person earning N30,000 per month is exempt from tax while a person earning N30,001 per month will pay about N500 leaving the latter with a net of N29,500 which is N500 worse than the person earning N30,000.
“Under the tax bills, this problem has been addressed, as everyone will be eligible to the first tax-free bracket.”
He also revealed that statutory deductions, including pension and National Housing Fund contributions, were still applicable under the new tax bills.
According to him, “These are contributions under the National Housing Fund, National Health Insurance Scheme, Pension Reform Act, interest on loans for developing an owner-occupied residential house, annuity or premium paid for life insurance, and rent relief up to N200,000 per annum.”
He said while part of the objectives of tax reforms was simplification, the impact of the Consolidated Relief Allowance (CRA) and Personal Relief had been incorporated into the tax table such that the overall goal of exempting low income earners and reducing taxes for middle income earners was achieved.
Addressing worries over the removal of CRA and personal relief, which seemingly amounted to giving a relief with one hand and taking it back with the other, Oyedele pointed out, “By integrating the reliefs into the tax brackets and rates, many taxpayers with basic education would be able to calculate their taxes with little or no assistance thereby achieving the dual objectives of lower tax burden and tax simplification.”
On suggestions that the tax rate for the second band seemed quite steep, moving from zero per cent to 15 per cent, he said, “By comparison, the second band under the bills, which is to be taxed at 15 per cent, is currently being taxed at a marginal rate of 21 per cent even after all reliefs and allowances.
“So, while the 15 per cent may appear steep from zero per cent for the first band, it is lower compared to the current tax table.
“The real impact for a person earning about N3 million per annum equivalent to the aggregate of the first and second brackets is a lower effective tax rate of 10 per cent compared to about 12 per cent under the current tax table.”
News
DBI, Miva Open University Partner to Advance Digital Innovation, Education

Digital Bridge Institute (DBI) and Miva Open University, Abuja, have signed a Memorandum of Understanding (MoU) to jointly promote digital technology and academic excellence in computer science and innovation.

Mr. David Daser, president/CEO, DBI, and Professor Tayo Arulogun, vice chancellor, Miva Open University.
DBI, a Federal Government-owned ICT training institute with headquarters in Abuja and campuses across Nigeria’s six geo-political zones, hosted the signing ceremony at its headquarters.
The MoU marks a significant step in formalizing and strengthening the existing relationship between the two institutions.
Signing on behalf of their institutions were
Speaking during the event, Mr. Daser praised Professor Arulogun’s leadership and commitment to academic development, which he said made the partnership possible. He emphasized that unlike many MoUs that remain inactive, this collaboration is set to deliver tangible results.
“We value this partnership and are confident it will meaningfully contribute to Nigeria’s education sector. DBI is fully prepared to implement the agreement and drive an impact across our campuses in Enugu, Abuja, Kano, Lagos, Asaba, and Yola,” Daser said.
He added that the collaboration would strengthen DBI’s National Innovation Diploma (NID) program and other initiatives through shared resources and new opportunities.
Professor Arulogun, in his remarks, highlighted the need for greater collaboration among Nigerian universities, criticizing the prevalent “do-it-alone syndrome.”
“Many institutions prefer to operate in silos, but collaboration is key. Pooling resources and working together will enhance capacity and academic output,” he stated. “With this partnership, we are ready to hit the ground running from student exchange to joint innovation projects like hackathons.”
He noted that hackathons provide platforms for discovering hidden talents and fostering innovation, and Miva is eager to integrate such activities into its academic programs.
Mr. Emeka Nzeih, head of Learning and Development, DBI, outlined the partnership’s key focus areas: student internships, real-world project collaborations, joint research in fields like AI, robotics, and cybersecurity, and shared access to DBI’s ICT labs and equipment for Miva’s students and faculty.
According to Nzeih, the initiative aims to enhance practical learning, foster innovation, and build capacity through collaborative training, research, and mentorship.
News
FIRS Commits to Fostering Trust, Voluntary Compliance Nationwide @ Tax Clinic

The Federal Inland Revenue Service (FIRS) has reaffirmed its commitment to fostering trust and voluntary tax compliance among small businesses, startups, and informal sector operators across the country.
This pledge comes ahead of the 2025 edition of its flagship outreach programme, the Tax Clinic, an initiative aimed at deepening tax education and strengthening compliance across Nigeria’s economic sectors.
Speaking in anticipation of the event, the Executive Chairman of FIRS, Dr Zacch Adedeji, emphasised that the clinic forms part of broader efforts to promote transparency, accountability, and inclusion in the tax system.
“The clinic reflects our commitment to promoting a culture of voluntary compliance by bringing tax education closer to the people. It is a critical step in strengthening trust, transparency, and inclusion in the tax system,” Dr Adedeji stated.
He noted the importance of expanding the country’s tax base and ensuring that citizens and business operators are empowered to fulfil their civic obligations.
“This clinic is more than an event; it’s a movement to ensure every Nigerian understands their role in nation-building through voluntary tax compliance,” he added.
Organised by the FIRS Emerging Taxpayers’ Group (ETG), the two-day event will feature expert-led sessions, panel discussions, interactive service desks, and live Q&A forums on issues such as tax filing, business registration, and dispute resolution.
Attendees will also have access to representatives from key institutions, including the Lagos State Internal Revenue Service (LIRS), Joint Tax Board (JTB), Corporate Affairs Commission (CAC), Tax Appeal Tribunal (TAT), National Identity Management Commission (NIMC), and Nigerian Investment Promotion Commission (NIPC).
Several professional bodies will also participate, including the Chartered Institute of Taxation of Nigeria (CITN), Institute of Chartered Accountants of Nigeria (ICAN), Association of National Accountants of Nigeria (ANAN), Nigerian Bar Association (NBA), and Nigerian Medical Association (NMA).
In addition to tax advisory services, the NMA will provide free basic medical screenings at the event. The first 300 participants to register physically will also receive branded gifts.
The clinic is open to business owners, self-employed individuals, trade groups, and professionals, with livestream options available for virtual participants.
With the theme ‘Tax Clinic for Tax Clarity’, the event is scheduled to take place on 15th and 16th July 2025 in Lagos.
FIRS says the initiative is central to its drive to boost revenue generation, integrate the informal economy, and streamline Nigeria’s tax architecture in line with its economic development agenda.
News
FG Commissions Rebuilt Kano Digital Industrial Park with Support from IHS Nigeria

The Federal Government has commissioned the fully refurbished and restored Kano Digital Industrial Park, reaffirming its commitment to inclusive digital growth, youth empowerment, and strong private sector collaboration.
The facility, which suffered significant damage during the August 2024 protests, has now been fully restored through a generous intervention by IHS Nigeria.
The commissioning ceremony, which took place on Wednesday, July 2, 2025, was led by the President of Nigeria, ably represented by the Honourable Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani.
The event was graced by several dignitaries, including the Deputy Governor of Kano State (representing the Governor) Aminu Abdussalam Gwarzo; the Emir of Kano, represented by His Highness, Jarman Kano, Amb. Ahmed Umar OON; the Executive Vice Chairman/CEO of the Nigerian Communications Commission Dr Aminu Maida; the Minister of State for Youth Development; representatives from IHS Nigeria; and other senior government officials.
Delivering his opening remarks, the Executive Vice Chairman of the NCC, Dr. Aminu Maida, emphasized the strategic importance of the park and reaffirmed the Commission’s commitment to enabling Nigeria’s digital future.
“The recommissioning of the NCC Digital Industrial Park in Kano is a landmark moment in our journey to accelerate ICT innovation and empower the next generation of digital pioneers.
“This facility will serve as a catalyst for digital inclusion, economic transformation, and youth empowerment not just in Kano, but across the entire Northwest region. We remain committed to creating a thriving digital ecosystem where innovation can flourish and no one is left behind in Nigeria’s digital revolution.” He said.
Speaking on behalf of the Executive Governor of Kano State, the Deputy Governor, Comrade Aminu Abdussalam Gwarzo, reaffirmed the state’s digital ambition and expressed deep appreciation for the partnership that made the park’s restoration possible.
“This commissioning marks more than the unveiling of a refurbished structure, it represents Kano’s bold vision to lead Northern Nigeria’s digital transformation. “We are grateful to IHS Nigeria for their swift response and unwavering support following the vandalization of this facility. Their commitment goes beyond corporate responsibility, it reflects a shared vision for a digitally inclusive Nigeria. He said.
Also speaking at the commissioning ceremony, the Chief Operating Officer of IHS Nigeria, Kazeem Oladepo, who represented the CEO of IHS Nigeria, reaffirmed the company’s commitment to advancing Nigeria’s digital future.
“Our decision to sponsor the refurbishment of the Kano Digital Park is rooted in our commitment to supporting Nigeria’s digital economy and empowering young Nigerians with the skills to thrive in the digital age,” he said.
“This partnership with the Ministry of Communications, Innovation and Digital Economy is a clear demonstration of the power of public-private collaboration in addressing national challenges.
“We are proud to contribute to the 3MTT program and help restore this park as a hub of innovation and opportunity for the Kano community. Supporting initiatives like this and others such as the Ilorin Innovation Hub is how we aim to foster long-term digital growth, create jobs, and drive inclusive development across Nigeria.” He added.
Capping off the event, the Honourable Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, highlighted the significance of public-private collaboration in shaping Nigeria’s digital future.
“The recommissioning of the Kano Digital Industrial Park is a powerful demonstration of what is possible when public and private sector actors unite behind a shared vision. This facility is more than just infrastructure, it is a beacon of innovation, resilience, and opportunity for Northern Nigeria.
“IHS Nigeria’s swift intervention following the vandalism of this park reflects true partnership and corporate citizenship. Together, we are laying the foundation for a future where young Nigerians, especially those in underserved communities, have the tools and training to thrive in a digital economy.” He highlighted.
The Kano Digital Industrial Park forms a key part of the 3 Million Technical Talent (3MTT) initiative, a flagship government program aimed at equipping Nigerians with globally competitive digital skills.
The renovation includes fully equipped training labs, power and connectivity infrastructure, upgraded learning spaces, and restored digital equipment to support thousands of learners across Northern Nigeria.
The commissioning of the Kano Digital Industrial Park comes just weeks after Ilorin Innovation Hub, the largest innovation hub of its kind in West Africa, which is also sponsored by IHS Nigeria, kicked off its incubation and acceleration programs. These interventions highlight IHS Nigeria’s continued commitment to fostering innovation, creating jobs, and driving the growth of Nigeria’s digital economy.
By bringing the Kano Digital Industrial Park back on stream, IHS is reinforcing its pledge to support impactful initiatives at both the federal and sub-national levels, particularly those that provide opportunities for young Nigerians, who represent the future of the nation.
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