E-Financial
Tinubu’s Tax Comittee Mulls Hike in VAT by 2.5 Percent
Tinubu’s Tax Comittee Mulls Hike in VAT by 2.5 PercentThe Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele, has announced plans to propose a law to the National Assembly that would increase the Value Added Tax (VAT) rate from the current 7.5 per cent to 10 per cent.
Oyedele revealed that the committee was also working on consolidating the multiple taxes in Nigeria to streamline the tax system and ultimately reduce the tax burden on citizens and businesses.
According to Oyedele, the draft of the proposed tax law will be submitted to the National Assembly soon.
He explained, “The law we are proposing to the National Assembly includes an increase in the VAT rate from 7.5 percent to 10 percent, starting from 2025. However, we are uncertain about how quickly the law will be passed. The proposal also outlines subsequent increases and the specific years they will take effect.”
Speaking on Channels TV’s Politics Today monitored, Oyedele highlighted the significant challenges facing Nigeria’s tax revenue system. “We are facing major issues in our revenue system, both tax and non-tax. The entire fiscal system is in a state of crisis,” he said.
He further explained the broad mandates given to the committee upon its establishment: “The first mandate is to examine governance, including the country’s finances, borrowing practices, and coordination within the federal government and across sub-national entities. The second mandate focuses on revenue transformation. The country’s revenue profile is abysmally low; even if we dedicated our entire revenue to infrastructure, such as road construction, it would still be insufficient. The third mandate involves the management of government assets.”
Oyedele also mentioned that the proposed tax reforms include a corresponding reduction in the personal income tax rate. He noted that if the law is passed, individuals earning N1.5 million per month or less would see a reduction in their personal income tax. Additionally, corporate income tax rates are expected to decrease from 30 per cent to 25 per cent over the next two years. “This represents a significant reduction,” he added.
Nigeria currently has multiple types of taxes, including an IT levy and an education tax. Oyedele stated, “We are consolidating all these into a single tax. Initially, the consolidated tax will be set at 4 percent, and it will decrease to 2 percent over the next few years.”
The committee’s proposals, if implemented, could bring significant changes to Nigeria’s tax landscape, with implications for both individuals and businesses across the country.
By 8 am on July 9, GTCO Holdings is set to commence trading on the London Stock Exchange.
As the group is set to list all its shares on the London Stock Exchange, becoming the first Nigerian banking entity to do so.
This is as the group launches a public offer of new ordinary shares to raise approximately $100 million on the London Stock Exchange.
The equity offering, which is an accelerated bookbuild and managed by Citigroup, began on July 2 and is to last until July 31.
On July 31, the group announced that it would cancel the listing of its Global Depositary Receipts (GDRs) on the UK Financial Conduct Authority’s (FCA) Official List.
It will also cancel their admission to trading on the London Stock Exchange (LSE)’s main market.
In place of the GDRs, the group will list all its ordinary shares directly.
aims to admit all its shares to the equity shares category for international commercial companies under a secondary listing on the FCA’s Official List.
The shares will also begin trading on the LSE’s main market for listed securities.
According to a regulatory filing on the London Stock Exchange, the net proceeds from the offering will be used to recapitalize GTBank Nigeria.
Based on the prevailing exchange rate of N1,540 to the US dollar, the targeted $100 million equates to approximately N154 billion.
This capital raise is expected to position the Group to fully meet the N500 billion minimum paid-up share capital required by regulators for banks with international licenses.
As of now, both Zenith Bank and Access Holdings have already met—and exceeded—this threshold.
The National Insurance Commission (NAICOM) has handed over new licenses to SanlamAllianz Life and General Insurance Nigeria Ltd at brief ceremony held in Abuja.
Olusegun Omosehin, commissioner for Insurance emphasized the Commission’s commitment to supporting the growth of insurance entities in the country, while ensuring strict compliance with regulatory requirements. He urged the companies to prioritize good corporate governance, stability, and timely claims settlement processes.
The Commissioner reiterated NAICOM’s dedication to removing unnecessary bottlenecks and improving the insurance industry’s overall performance. He expressed confidence that the merger would enhance the companies’ capabilities and contribute to the industry’s growth.
SanlamAllianz recently launched its operations in Nigeria, marking a significant step in the company’s Pan-African expansion.
The launch follows the merger of Sanlam and Allianz’s Nigerian operations, creating a new entity named SanlamAllianz Nigeria.
This joint venture aims to transform the Nigerian insurance landscape by offering enhanced customer experiences, innovative solutions, and improved financial inclusion.
World Bank has approved an additional $65 million loan for Nigeria to support the Sustainable Procurement, Environmental, and Social Standards Enhancement (SPESSE) project, increasing the total financing for the initiative to $145 million.
The approval was granted on June 24, 2025, according to details posted on the World Bank’s website, which also indicates that the project’s status has moved to “active” following the approval.
The SPESSE project, initially launched with an $80 million loan approved in February 2020, aims to strengthen institutional capacity for managing procurement, environmental, and social standards in both the public and private sectors across Nigeria.
The World Bank described the project’s development objective as the establishment of sustainable capacity in these areas.
This latest approval is part of a broader wave of financing expected from the World Bank to Nigeria in 2025.
The bank is scheduled to approve loans totalling $1.61 billion over the coming months, supporting various development initiatives.
Among these is a $300 million loan for the ‘Solutions for the Internally Displaced and Host Communities Project,’ expected to be finalised by the end of July.
This project aims to improve access to basic services and economic opportunities for internally displaced persons (IDPs) and host communities in selected local government areas in northern Nigeria.
In September, the World Bank plans to approve four additional loans: a $10.5 million facility to support technical assistance for the Central Bank of Nigeria, a $300 million Health Security Program targeting Western and Central Africa (Nigeria – Phase IV), a $500 million project for building resilient digital infrastructure (BRIDGE), and a $500 million loan under the Nigeria Sustainable Agricultural Value-Chains for Growth project aimed at promoting sustainable growth and job creation within key agricultural sectors.
Earlier in March 2025, the bank approved three financing requests amounting to $1.13 billion.
These funds are directed towards projects focused on enhancing quality education, boosting household and community resilience, and improving nutrition.
Among the approved loans were $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project, $552 million for the HOPE for Quality Basic Education for All programme, and $500 million for the Community Action for Resilience and Economic Stimulus Programme.
In February, the Nigerian government announced expectations of new World Bank loans totalling $2.2 billion for six different projects in 2025. This follows a $1.5 billion loan disbursed in 2024 aimed at strengthening Nigeria’s economic stability and resource mobilisation efforts.
DBI, Miva Open University Partner to Advance Digital Innovation, Education
GTCO to Become First Nigerian Bank to List on London Stock Exchange
IFC, AfDB Collaborate with EbonyLife Media to Explore Supporting the African Film Industry to Drive Job Creation
FIRS Commits to Fostering Trust, Voluntary Compliance Nationwide @ Tax Clinic
NAICOM Issues New Licenses to SanlamAllianz Life, General Insurance
Telecom3 days agoAVEVA Highlights Climate Impact Gains in 2024 Sustainability Report
General News3 days agoAfCFTA Opens Opportunity for Logistics Sector
Telecom3 days agoALTON Explains SIM-related Services Disruption Across Mobile Networks
Telecom2 days agoNCC Approves MTN, 9Mobile Roaming Collaboration Deal
E-Financial2 days agoWorld Bank Approves Extra $65m for Nigeria’s SPESSE
Telecom3 days agoMTN Foundation, NDLEA, UNODC Unite in Abuja Against Substance Abuse
E-Financial2 days agoEcobank Taps Google Cloud to Deepen Financial Inclusion
E-Business2 days agoCAC Launches AI-powered Business Registration Portal