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  • With just over three months left in the year, some of us are already looking ahead to 2026. New year, new us—and thanks to Tinubu, new tax laws too.

    There has been plenty of talk about the tax reforms Tinubu signed into law on June 26, 2025, which will come into effect from January 1, 2026. But what do they really mean? Will we pay less tax? More tax? How much exactly? And what about our crypto wallets?

    Death and Tinubu’s Taxes

    Back in 1789, Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.” Tinubu seems to agree. His famous “let’s widen the tax net” speech made clear from the start that taxation would be central to his presidency.

     Barely two months after his swearing-in, Tinubu set up the Presidential Committee on Fiscal Policy and Tax Reforms in August 2023. The committee, led by Taiwo Oyedele (former Fiscal Policy Partner and Africa Tax Leader at PwC), was tasked with restructuring Nigeria’s tax system.

    A year later, in October 2024, the committee presented four tax bills to the National Assembly. The National Economic Council (NEC), chaired by Vice President Shettima, advised that the bills be withdrawn for further consultation. But Tinubu said no.

    By June 2025, the National Assembly had passed the bills, and Tinubu signed them into law on June 26.

    But are the tax reforms actually a good thing?

    We spoke to Financial Education Instructor, Kalu Aja, to hear what an expert thinks.

    According to him, Nigeria’s tax laws have been overdue for an update. “The current tax laws are outdated,” he said.

    He explained that the new laws encourage people to invest in health insurance and retirement savings, which is a positive step. They also widen the tax net and could help increase Nigeria’s tax-to-GDP ratio which is a sign of a healthier economy.

    The Four Horsemen of the Taxpocalypse

    So, what are these four tax reform bills?

    The government is not just trying to raise or lower taxes. It wants to simplify the whole process, for itself and for us.

    In 2023, Oyedele had recommended reducing the more than 200 overlapping taxes Nigerian businesses faced to just ten. The new laws are meant to make things easier to understand.

    The four bills are:

    • Nigeria Revenue Service Act
    • Joint Revenue Board Act
    • Nigeria Tax Act (NTA)
    • Nigeria Tax Administration Act (NTAA)

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    The tax collector got a power boost

    The Nigeria Revenue Service Act changes the name of the Federal Inland Revenue Service (FIRS) to Nigeria Revenue Service (NRS). The idea is to show that the service collects money for the whole Federation, not just the Federal Government.

    The act also gives the service more powers. For example, it no longer needs to rely on law enforcement to carry out investigations. So yes, the FIRS got a new name and a bit more muscle.

    What if I fight with my tax collector?

    The Joint Revenue Board Act is meant to improve coordination between federal, state, and local governments. It sets up:

    • The Joint Revenue Board
    • The Tax Appeal Tribunal (TAT) – to handle disputes.
    • The Office of the Tax Ombud – to investigate taxpayer complaints.

    So if you have a tax problem, this law tells you where to go.

    One Tax Law to Rule Them All

    The Nigeria Tax Act (NTA) creates a single legal framework for taxation. It replaces many older laws and puts everything in one document.

    It also sets tax rates for individuals based on income, ranging from 0% to 25% depending on income.

    Pay your tax or else…

    The Nigeria Tax Administration Act (NTAA) sets common rules for how taxes are collected. It makes tax registration mandatory for anyone earning income, introduces universal Tax Identification Number (TIN), and grants authorities more power, including the ability to seize assets from defaulters.

    Taxes kwa? How much am I making?

    The new laws apply to both individuals and businesses. Micro, small, and medium-sized enterprises (annual turnovers below ₦50 million and assets under ₦250 million) are exempt. So if you are a big-time CEO, maybe stop reading Zikoko and call your tax lawyer.

    For individuals, the tax rates are as follows:

    • 0% for the first ₦800,000
    • 15% for the next ₦2,200,000
    • 18% for the next ₦9,000,000
    • 21% for the next ₦13,000,000
    • 23% for the next ₦25,000,000
    • 25% for everything above ₦50,000,000

    But will we be paying more tax?

    According to Financial Education Instructor, Kalu Aja, the answer is, “It depends.”

    Under the new tax laws, the more you spend on things like insurance and pension contributions, the less tax you pay.

    “From my calculations, if you choose not to buy any insurance or pension plan, you will pay more under the new law if you earn ₦19 million or more a year,” he said.

    So, for higher earners, skipping those deductions could mean handing more money over to the tax man.

    Old versus New

    The government has been advertising the new tax laws as being favourable to lower income earners. The 20 per cent rent relief and people earning less than ₦800,000 will pay no tax strengthen their case.

    The government even has a calculator you can use to compare your tax under the old and new laws.

    Here is an example we have created:

    John earns ₦100,000 per month, which is ₦1,200,000 per year. He spends a third of his income on rent, which is ₦400,000. His 20 per cent rent relief is ₦80,000.

    Apart from the rent relief, the new law allows for the following deductions:

    • Contributions under the National Housing Fund (NHF)
    • Contributions under the National Health Insurance Scheme (NHIS)
    • Contributions under the Pension Reform Act
    • Interest on loans for developing an owner-occupied residential house
    • Premium of life insurance for the person or their spouse

    The NHF contribution is 2.5 per cent of annual income. For John, that is ₦30,000 per month. The NHIS contribution is 10 per cent of income, which is ₦120,000 for John. The Pension Reform Act of 2014 mandates an 8 per cent contribution, which is ₦96,000 for John. If John is not developing a house, he has a life insurance premium of ₦100,000 per year.

    That brings his total deductions to ₦426,000. So his taxable income remains ₦774,000. This is under ₦800,000, so John pays no tax.

    According to the calculator, he would have paid ₦41,152 annual tax under the old law.

    It is easy to see these deductions driving growth in the insurance and pensions industries.

    What is the catch?

    But widening the tax net means more people must now comply. Informal businesses, traders, and freelancers will need the TINs.

    Every bank credit alert could be scrutinised. If your uncle sends you money, you will need proof that it is a gift, not a business income. 

    Digital assets such as crypto and NFTs are also now taxable. If you make money from selling them, you owe tax.

    Should I be worried?

    So earlier, we said the reforms are meant to make things easier for everyone to understand. While that is mostly true, there are still a lot of moving parts.

    For instance, the impact of the new taxes on businesses may not be felt until the laws come into effect next year. When they do, they might pass the cost on to customers. If you do not pay tax directly, you might pay more at the counter.

    Also, the law revives a very controversial five per cent surcharge on fossil fuels, which analysts fear could further worsen inflation.

    Kalu Aja told us, “Taxes do not make goods cheaper or more expensive.”

    According to him, when the government collects taxes from businesses, it is expected to reinvest that money into improving the ease of doing business—things like energy, security, and transport infrastructure.

    But when the government takes those taxes and fails to invest, it ends up hurting the businesses. “They pay a double tax,” he said, “the formal tax to the government, then an informal tax in the form of losses caused by bad roads and insecurity.”

    So, whether the new tax laws lead to higher prices depends on one key thing: “how well the government spends the money to boost productivity across Nigeria.”

    What I ordered versus what I got

    Nigeria’s challenge has never been collecting taxes; it is how the taxes are used.

    Countries like South Korea (tax rates 6–45%) and Canada  (14.5–33%) use similar progressive systems, but they deliver reliable healthcare, safer transport, and better infrastructure. But here is the difference—South Korea and Canada rank second and fourth globally for the quality of their healthcare systems. Nigeria sits at 84th out of 110 countries.

    Our healthcare system is underfunded. Doctors and nurses are leaving in record numbers, and those who stay are overworked, underpaid, and prone to strikes.

    Transport is not much better. Nigeria’s system is not only inefficient but unsafe. We have reported that both rail and boat travel are prone to accidents. Our roads are just as dangerous. Nigeria records around 21.1 road accident deaths per 100,000 people each year. Compare that to Canada’s 5.6 and South Korea’s 9.4. The global average is 16.8.

    We also have fewer roadways and railways per person than both countries, which shows how weak our transport infrastructure really is.

    And then there is security. Nigeria faces ongoing threats from terrorist groups, kidnappers, and bandits. We rank 148 out of 163 countries on the World Peace Index. Meanwhile, the Chief of Defence Staff has advised citizens to learn karate for self-defence.

    So let us recap: poor healthcare, unsafe and unreliable transport, and we are one of the most dangerous places to live in the world.

    What exactly has the government been doing with the taxes it has collected all this time? And more importantly, what will change with the new ones?

    This new tax will favour me and my family

    Ultimately, the goal of taxation is to raise revenue that the government can use to improve everyone’s living standards. Unfortunately, the Nigerian government does not inspire confidence in that regard.

    The Tinubu administration scrapped fuel subsidies but has yet to show where the savings went. The World Bank reported that the Nigerian National Petroleum Company Limited (NNPCL) remits only half of the subsidy savings.

    Worse, the government has stopped publishing quarterly budget reports, despite being legally required.  A government that has not earned public trust is now demanding more from taxpayers.

    Franklin was right: taxes are inevitable. But so is the demand for accountability.

    What we can do is choose better leaders and be more active in holding them accountable.

    Further Reading

    I hate to give homework, but this time it might be worth it. The new laws expect more effort from taxpayers.

    Make sure you have your TIN if you are a “taxable person.” Keep records of all money you receive. Know what deductions you can claim. And keep proof of any money that should not count as income. Yes, I mean those shameless begging screenshots.

    Taiwo Oyedele, chair of the Tax Reforms Committee, has shared FAQs on X. Kalu Aja’s explanation includes useful scenarios to clarify how the taxes will work for individuals, businesses and digital assets.  You can also access the Nigeria Tax Act and the Tax Administration Act online here and here, respectively.

    Talk to us here. If you have had any experience when Nigeria’s systems made life harder or unexpectedly easier, we want to hear about it.

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  • When rich Nigerians are not showing off high fashion at social gatherings, they are busy dodging taxes like a creepy ex – quote the data, not me.  

    Oxfam, an NGO that addresses poverty and inequality in Nigeria, recently released a report that shows how people who earn about ₦40 million a year have been getting away with not paying taxes. Of the 130,000 high-earning Nigerians that fall into this category, only 40 were recognised as regular taxpayers. 

    If you’re wondering how these rich Nigerians have been able to get away with this questionable action for so long, it’s because “they pay tax only on their salaries, which is just a fraction of their income, then hide the rest.” 

    Why is this bad?

    Nigeria is suffering a serious inequality crisis which is being worsened by things like tax evasion by the rich and aggressive taxation on the poor. To put this into perspective, 32.5% of the country’s wealth is controlled by just 10% of the population, while the remaining 90% of the population shares what’s left of it. When you do the maths, you will also find that poor people are taxed more than the rich. The danger in this is that “if you’re born into poverty, you’re likely to stay poor.”

    But it’s not just the lack of opportunities that’s stopping average Nigerians from building generational wealth or at least affording three-square meals; the taxing system the Nigerian government has implemented is another weapon against the poor. 

    [ad]

    For example, the Value-Added Tax (VAT) was increased from 5% to 7.5% and is likely to be increased to 10% in January 2025. To rich Nigerians, VAT is just a random tax that they only notice at fine-dining restaurants, but to low-income households, it’s a crushing burden.

    How is this affecting Nigeria’s economy? 

    Taxes currently make up only 6% of Nigeria’s Gross Domestic Product (GDP), but according to the Workbank, the recommended percentage should be 15% or higher.

    Tax evasion by Nigeria’s rich is one of the major reasons the country is not able to generate what it should in tax revenue. Is this bad for the economy? Absolutely yes, and this is why—the country is not generating half of what is needed to support the growth of its economy.

    What can be done about it?

    Besides asking the Nigerian government to hold rich Nigerians accountable and let the poor breathe, Oxfam has some brilliant recommendations that the government can implement to stop rich people from evading taxes. 

    Create a special tax unit for the rich

    One major suggestion is the creation of a special unit within the Federal Inland Revenue Service (FIRS)  on high-net-worth individuals (HNWIs). This unit would conduct thorough audits, use data from multiple sources to track assets and train tax officials to better understand the complicated financial dealings of wealthy Nigerians.

    Monitor rich people’s earnings and tax them accordingly

    Another key recommendation is the introduction of a progressive wealth tax. Oxfam proposes that Nigerians 

    This is a taxation system where a person’s tax rate increases with their wealth. In Nigeria’s case, Oxfam is suggesting that people who own wealth between $1 million and $5 million should be taxed at 1%, those with over $5 million should be taxed at 2%, and those worth more than $50 million should be taxed at over 5%.

    If this recommendation is implemented, it would help reduce the concentration of wealth in the hands of the rich and generate significant revenue for poverty alleviation and social services.

    Follow the footsteps of other African countries

    Oxfam also wants Nigeria to raise its Capital Gains Tax (CGT), to match that of other African countries.

    CGT is a specific type of tax charged on any profit made from the sale of things like stocks and shares, real estate, and investments. Currently, Nigeria charges a 10% tax on these things while other African nations like South Africa and Kenya, charge about  15% to 35%. This would close tax loopholes and ensure that financial assets and intangible properties are taxed correctly.

    Stop over-taxing the poor

    The NGO also recommends that the government stop taxing essential items like food and housing  Value Added Tax (VAT). Instead of burdening the poor with VAT, they suggest that it be put on luxury items like private jets and yachts and every other item that only rich people can afford instead. 

    In addition, they want the government to exclude Nigerians earning the minimum wage or below from paying personal income taxes while introducing higher tax brackets for the wealthiest individuals. For instance, a 40% tax rate could apply to those earning above ₦100 million annually, with the rate increasing to 47% for those earning above ₦230 million.

    Oxfam also suggests bringing back inheritance taxes and strengthening gift taxes. This way, wealthy people who pass on money or give large gifts would be taxed fairly, while average Nigerians would be exempt.

    Stop rich people from cheating

    They also stressed the need for Nigeria to renegotiate its Double Taxation Agreements (DTAs). Right now, these agreements allow wealthy individuals and big companies to find loopholes and avoid paying the taxes they should. If the rules were tightened, the rich would no longer be able to avoid paying these taxes. 

    I don’t expect things to change overnight, but with these recommendations, Nigeria will be well on its way to closing the insane gap between the rich and the poor.

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  • The federal government has been going hard on tax reforms since October. With controversial taxes like the proposed increase in the Value Added Tax (VAT) we pay on things like food and electricity, nobody knows what to expect from the Tinubu-led administration these days. 

    For many reasons, the new telecom tax seems to be the most controversial of all the tax reforms I’ve written about this month. 

    What’s happening?

    To the long-distance lovers who depend on voice and video calls to keep the spark alive and the remote workers who are already spending more than they should on data subscriptions, I’ll hold your hands gently while I tell you what the Tinubu-led administration has been up to lately. 

    The Federal Government wants to put a 5% tax on telecom services, meaning we’ll soon be paying more just to make calls and browse the internet. The bill has a weird long name (“A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters,”) and proposes an annoying increase in the cost of telecom services that over 215 million Nigerians use every day. 

    Here’s the craziest part-  this bill doesn’t just target telecom services; it’s also going to introduce taxes on gaming, gambling, lotteries, and betting. 

    Why is this a problem?

    Nigeria’s telecom sector already pays more than 50 different taxes to various government bodies –This is one of the main reasons why the cost of data has been on the rise recently. If they pay an additional tax like this bill wants them to, whatever increase you’ve noticed before will rise even higher.

    If you add this to the proposed VAT increase (that could make food, electricity, shelter, and everything more expensive), you find that Nigerians already have many battles to fight. 

    What’s more? The World Bank recently announced that about 63% of Nigerian citizens are now poor, with most surviving on less than $2.15 daily. If there was ever a perfect time to come up with a tax like this, it’s not 2024. 

    Why is the government proposing this tax? 

    The government’s new tax reforms are part of a larger plan to make more money from non-oil sources. Since telecoms and betting are thriving industries, the government is taxing these companies (who will start charging Nigerians more as a result of these taxes) to boost the country’s revenue. This wouldn’t be such a bad thing if the government’s strategy was not so counterproductive. Indirectly taxing poor citizens to pour more money into the country’s economy is a questionable strategy, especially when President Tinubu’s previous reforms have not lived up to his promises. For a country that has a long and consistent history of corruption and funds misappropriation, this isn’t the smartest move. 

    What can you do? 

    Thankfully, there’s a chance that the proposed tax will not see the light of the day. Since telecom companies are affected too, they are fighting against the tax on behalf of Nigerians. This isn’t the first time the government is proposing this tax. They proposed it in August 2022 under the administration of former president Muhammadu Buhari, but telecom companies and Nigerians kicked against it till it was suspended in 2023,

    The National Association of Telecoms Subscribers, who had taken the government to court over the tax before it was suspended in 2023, is getting ready to go to court again until the government withdraws the proposed tax.

    It’s important to start and join in conversations surrounding controversial bills like this that affect all of us. Sharing this article is a great way to let other people know what is going on and keep the conversation going until the government withdraws the tax.

  • The one thing we might need to get used to quickly with this new administration is the endless billing. 

    Last week, we discussed the newly introduced annual vehicle ownership verification fee, set at ₦1,000. For today, we’ll be looking into the recent partnership between the Federal Inland Revenue Service (FIRS) and the Market Traders Association of Nigeria (MATAN) to collect Value Added Tax (VAT) from traders. 

    On July 3, 2023, the FIRS announced the VAT Direct Initiative to facilitate collecting and remittance taxes from this informal sector using unified systems technology, and traders will also be given identity cards to track their turnover. Nigeria currently has one of the lowest tax collection rates in the world at 10.8%; according to MATAN, there are about 40 million traders across the country, and this tax collection would help improve our tax base. Traders will also benefit from this, as the FIRS plans to work with security agencies to stop the illegal collection of taxes in the markets by thugs and self-appointed tax collectors. 

    Lagos thugs when they hear this

    This is all part of President Bola “T-Baby” Tinubu’s plan to improve our revenue generation and fund more infrastructural and social projects. However, we all know that Nigeria is cursed with a corruption problem. So, once again, it looks like citizens struggling to make ends meet are being asked to make sacrifices with little to no assurance of tangible rewards. 

    What else happened this week?

    Diphtheria Outbreak in Abuja

    On July 3, 2023, Sadiq Abdulrahman, the director of the Federal Capital Territory (FCT) Public Health Department, confirmed in a press briefing that the outbreak of diphtheria has already claimed the life of a four-year-old boy. 

    Diphtheria is a deadly bacterial infection that affects the mucous membranes of the nose and throat. It can lead to breathing difficulties, health rhythm problems, heart, kidney, and nervous system damage, and death, especially in children. 

    The recent outbreak in Abuja is said to have spread from Niger state, and so far, there have been eight reported cases. To combat the spread of this bacterial infection, residents are advised to take personal hygiene very seriously and to get vaccinated at any of the 400 vaccine outlets around the FCT. Also, the Public Health Department has started collaborating with states to prevent the further spread of this disease. 

    Video of the week

    Question of the week

    With Elon Musk channelling his inner Lex Luthor, our days on Twitter might be numbered. Is it time for Nigeria’s tech space to create an alternative social media platform? 

    Ehen one more thing…

    The initial six months of 2023 are done and dusted. What should we expect as we step into the second half? Find out here

    To ensure you don’t miss out on the next edition of Game of Votes, subscribe to the newsletter here.

  • Vol 10 | 26-12-2022

    Brought to you by

    Merry Christmas (in arrears),

    I hope you had a great weekend and are currently enjoying a slow Monday.

    In other news, the new year is only a few days away. I know we all roll our eyes at new year’s resolutions but one thing I definitely want to get better at is tracking my expenses. I can’t wait to share any tips and learnings as I go along.

    This is the last edition of the Money by Zikoko newsletter and I really appreciate your opening, reading, and sharing.

    This week we have handpicked some really great Naira Life stories from this year that we think you really need to read. I enjoyed them and I hope you do too.

    In this letter:

    • #NairaLife: Most-Read stories of 2022
    • #LoveCurrency: Dating in Abuja on a ₦700k Influencer Monthly Income
    • Money Meanings: “Tax”

    #NairaLife: You Should Read These Stories

    Last week we showed you all the stories you loved from the year. Now we are bringing you the ones you will love – you just don’t know it yet.

    Our compilation takes into account the types of stories and what you should expect from them. We try our best to explain why the stories made our list.

    Read The Stories Here

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    #LoveCurrency: Dating in Abuja on a ₦700k Influencer Monthly Income

    After COVID, Julia* quit her insurance job to focus on being a food blogger. In this article, she tells us how her boyfriend influenced her decision, going from earning ₦30k to ₦700k monthly and her plan to be financially independent.

    When asked about their plans as a couple, she says: “I don’t know as a couple — I feel like anybody can still serve you breakfast, so I’m trying to focus on my own plans. “

    This story was brought to you by Fluid Finance

    Read This Article

    Money Meanings



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    All good things must come to an end. But not this good thing. We’ll be back next week.

    In the
    meantime, keep reading Zikoko’s articles and be sure to share the love.

    Till next week…

    Yours cashly,

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  • 2022 will be a memorable one for many Nigerians even if they’re trying to forget. We saw the price of items double, our naira had a makeover, our national grid died and resurrected more than a few times, schoolchildren will now be taught in their native languages, and Meffy rolled out new cash withdrawal restrictions as a Christmas gift. 

    But to end the year with a bang, the federal government is proposing adding a 20% tax on non-alcoholic beverages.

    Buhari soft drinks policy

    What does this mean for Nigerians? 

    Because soft drinks make up the bulk of non-alcoholic beverages, if the 20% tax is implemented, there’d most likely be an increase in the prices of these drinks soon. However, this isn’t the first time the government is taxing the soft drinks industry.

    What happened before? 

    Earlier this year, there was an increase in the prices of some drinks — a bottle of Coke sold formerly for ₦200 became ₦250. Unknown to many of us, this increase was because of the ₦10 per litre tax the federal government placed on Sugar-Sweetened Beverages (SSB).

    Buhari soft drinks

    What’s their reason?

    Statistics show that nearly 40 million litres of soft drinks are sold annually in Nigeria, the fourth highest in the world. This puts many consumers at risk of diseases like stroke, heart disease and type 2 diabetes. So, the government imposed the ₦10 per litre tax to reduce our consumption of these beverages. The extra revenue from the tax is channelled towards treating sugar-related diseases. 

    What happens now? 

    Beyond the price hike, if the 20% tax is implemented, there are other possible side effects.

    People will lose their jobs

    Since the ₦10 per litre tax has been added, many beverage companies have found it challenging to make a profit. A study showed that there had been an 8% decrease in revenue between July and August this year, and this decline is expected to reach 25% by December. 

    Buhari Wants You to Pay More for Your Soft Drinks

    If the 20% tax is further implemented, revenue figures could be further affected  and would eventually lead to the loss of jobs. 

    We’ll scare off foreign investors

    During a stakeholders’ meeting discussing the effects of the proposed government tax on December 6, 2022, it was noted that the tax discouraged one of the bottling companies from proceeding with its £300 million investment plan. And if the tax is finally implemented, we can expect more stories like this.

    The government’s plan to help reduce the consumption of carbonated soft drinks isn’t bad. Still, they must try to strike a balance instead of frustrating manufacturers and increasing our already high cost of living.

  • If there’s one thing the Buhari government knows how to do, it’s to keep taking without giving enough back. That’s exactly how he’s driven Nigeria’s debt profile from ₦12.1 trillion in 2015 to ₦41.6 trillion in 2022. 

    For his next trick, he’s raising taxes on the telecommunications industry that’s going to make life a bit harder for everyone. 

    Buhari needs more of your tax

    How’s he gonna do it?

    The Minister of Finance Budget and National Planning, Zainab Ahmed, announced on August 4th 2022 that a 5% inclusive excise duty is about to fall on telecom services in Nigeria. 

    Buhari needs more of your tax

    This tax didn’t just come out of nowhere. In fact, it’s in the Finance Act of 2020 but remained dormant like a tumour just cooking to fuck up your life when you least expect it.

    Ultimately, the decision to fix the rate on excise duties was on President Always Take, and he’d been taking his time to do that, until now.

    Why’s Buhari doing this?

    Buhari needs more of your tax

    The truth is Nigeria is broke. The country’s income isn’t even enough to take care of settling its debt, not to talk of other things you need money to run. 

    Like TGIF

    And since Nigeria’s oil revenue isn’t vomiting nearly enough money, the government is looking into non-oil sectors to pull their weight. That’s why the president is turning to the telecom sector to squeeze some more revenue out of it for the government to spend.

    ALSO READ: What Nigeria Can Learn from Kenya About Cutting Politicians’ Salaries

    But how does this affect your pocket?

    When the government announced the imminent implementation of the additional 5% tax, operators didn’t waste any time in passing it on to their customers. The Chairman of the Association of Licensed Telecom Owners of Nigeria (ALTON), Gbenga Adebayo, said operators already pay too many taxes to the government and can’t shoulder another one. And what’s even crazier is that this tax is rare in a sector like telecom.

    Excise duties are indirect taxes placed on the manufacture of non-essential, potentially harmful products like alcohol and tobacco. You can call it a “sin tax” in the sense that it exists to discourage the consumption of such products.

    YOLO

    But in this case, Buhari has extended the sin tax to something as essential as talking to your family and friends as this will affect the prices of things like recharge cards and vouchers. Why would he do this? Maybe because he hates your enjoyment. Or he needs all the revenue he can get to send more exotic cars across the border to his first cousins in Niger Republic.

    Buhari needs more of your tax

    Is anyone fighting this?

    Telecom operators aren’t happy about the excise duty, but they’re passing the burden of it to their customers like it’s an STD, so it may be naive to expect them to put up a spirited fight. But someone else has offered to do that. 

    Resident terrorist sympathiser who’s also the Minister of Communications and Digital Economy, Isa Pantami, is a surprise objector to the tax.

    The minister said more taxes on the telecom sector makes no sense as it’s already one of the government’s hottest honeypots. 

    Buhari needs more of your tax

    Pantami feels so strongly about the tax that he’s vowed to fight it by any means necessary so it doesn’t destroy the digital economy sector.

    What’s the damage here?

    Only a handful of countries place excise duty on telecom services. And the danger is that consumption levels may drop because Nigerians are already seeing shege with the state of the economy. If demand drops, the revenue generated from the telecom sector may start to shrink and ultimately worsen Nigeria’s revenue headache.

    Right now, it’s still unclear when full implementation of the excise tax will commence, but if it does, communication is about to get more expensive for you.

    ALSO READ: Buhari Is Using Exotic Cars to Fight Insecurity in Niger Republic

  • Rivers VAT not for Abuja people, I don’t care if heaven falls!”, Wike insists. 

    If you’re wondering why governors seem to be in a stand-off with the federal government, we have the tea. The situation is about a type of tax called Value Added Tax (VAT) and which level of government has the power to collect it — the Federal Government of Nigeria or the state governments.

    Whoever wins this battle is certainly going to get richer by about ₦1.5 trillion.

    The Federal High Court Ruling

    On August 10, 2021, in a lawsuit marked FHC/PH/CS/149/2020, Justice Stephen Dalyop Pam of the Federal High Court ruled that it is the Rivers State Government, not the Federal Inland Revenue Service (FIRS), that should collect Value Added Tax (VAT) and Personal Income Tax (PIT) in Rivers state.

    The judge granted all of Rivers State’s requests over the matter, and it agreed with the state’s argument that the Federal Government of Nigeria, through the FIRS, cannot collect VAT because it does not have the power to do so under items 58 and 59 of the “Exclusive Legislative List” of the Constitution and items 7 and 8 of the “Concurrent Legislative List” of the Constitution.

    The Federal Government of Nigeria has been collecting VAT across Nigeria since 1993, but Rivers State has basically said “enough”.

    What Is VAT?

    The Value Added Tax is a tax that is collected at every stage of production of an item or service, from the beginning of production to when the item or service is finally sold. 

    In Nigeria, VAT is charged on all goods and services except on medical products, basic food items, books and educational materials, baby products, fertilizers, farming machinery, medical services and a few other goods and services in the first schedule of the VAT Act.

    Nigerians pay a 7.5% VAT on everything we buy, including recharge cards, wines, cars and many other things.

    What This Means

    VAT is the second-highest generating tax in Nigeria after the Companies Income Tax, and Nigeria made about ₦1.5 trillion from VAT in 2020 alone. But it is not the amount of money that is provoking emotions, it is the way the money is shared.

    Under Section 40 of the VAT Act, 15% of the VAT pool must go to the Federal Government, 50% to the states and 35% to the Local Government. 20% of the entire money must also be shared according to where they are gotten from.

    But Rivers State is not happy with this arrangement. According to the governor, Nyesom Wike, the state generated ₦15 billion from VAT in June 2021 but only got ₦4.7 billion when the VAT pool was shared according to the current sharing formula, whereas Kano State generated ₦2.8 billion naira from VAT in June 2021 and got the same ₦2.8 billion naira it made.

    If states begin to collect their own VAT following the new court ruling, it would mean that every state in Nigeria gets to keep the VAT money it makes, and states like Lagos, Rivers, Oyo, Kaduna, Delta and Katsina where up to 80% of VAT is collected will get to keep their fair share without giving it to the federal government.

    Rivers State, for instance, would be able to keep its VAT money and use it to develop the state, something in the range of the ₦15 billion it generated from VAT in June 2021 alone. Already, Lagos State House of Assembly has passed the state’s VAT law to ensure that it starts keeping the VAT money it makes.

    But there’s also a downside to it. Many states who don’t make as much money from VAT rely on the national sharing pool. Because Nigeria’s 36 states and 774 local governments all share 85% of the total VAT money, it means that many states get allocation from the VAT pool even though they contribute less than 20% to it. This is the reason why Gombe’s governor has pleaded with other states to be their “brother’s keeper,” because if each state begins to collect its own VAT, about 30 states in Nigeria will suffer a significant decline in their revenue. And this is because there is little production and consumption activity going on in those 30 states, so there’s only a little VAT to collect.

    The Federal Inland Revenue Service (FIRS), the agency that collects taxes on behalf of the federal government, has already filed an appeal to overturn the judgement of the Federal High Court. We’ll have to wait and see where this case leads. But one thing is certain: the question about who has the power to collect VAT in Nigeria is far from over.

  • Sometimes it feels like there are more dogs than humans in Nigeria, so they should be required to pay tax. If you need to be convinced, here are eight reasons why.

    1) They are constantly roaming the streets

    The streets of Nigeria were made with taxpayers money. So, why are freeloaders using it more than the people that paid for it? Sometimes, they’d even chase taxpayers off of the streets. This is unacceptable. If they want equal access to the roads, they should open their doggy wallets.

    How tax collectors should pull up to those dogs

    2) Destruction of property

    Dogs need to stop getting away with chewing up shoes and knocking things over. The time has come for them to learn about the consequences of their actions. The owners should not pay so the dogs can learn to be responsible. This is why I propose a new government body called Dog Income Collection Service. Puppy dog eyes won’t work for the law.

    3) Feeding

    Manna will not always fall from heaven, and these creatures need to realise that. If they want to continue enjoying food to their hearts content, they need to open their purses.

    4) Every Nigerian must pay tax

    These dogs are basically Nigerian citizens at this point. Either by birth, naturalization, etc. The time how now come for them to perform their basic civic duty. Citizenship is not free.

    5) Retirement homes

    If they do not pay tax, how do they plan on retiring? The tax can also serve as a retirement fund for when they just can’t be as agile as they used to be.

    This kind of life is not cheap

    6) Healthcare

    Any small thing, they need to go to the vet. Since vets are so expensive, imagine if dogs paid their own way? you know how expensive vets are? Imagine if dogs paid tax and healthcare was covered by the government? #freeuniversalhealthcareforall

    7) Tough times are lasting

    Nigeria is broke. It is time for man’s best friend to give back to man. We’ve been there for them, they need to be here for us.

    8) They are wealthy

    Since the plan is to tax the wealthy, that should also include dogs and their endless generational wealth. If you didn’t know dogs are wealthy, ask yourself, what are they always hiding/burying? It’s funds.

    I hope with these few points of mine, I’ve been able to convince you and not confuse you that Nigerian dogs need to be taxed

    For more on what’s inside this life, click here

  • Citizen is a column that explains how the government’s policies fucks citizens and how we can unfuck ourselves.

    In case, you slept yesterday afternoon and suddenly woke up this morning, well, good morning. But a lot has happened.

    The Federal Government directed that all Nigerians should go to all the banks they have an account in and fill something called a “Self Certification Form”. They say the BVN, National ID, Voter’s Card, Drivers Licence, National Passport and all the other data we have in this country is not enough to help them find what they are looking for.

    In case you are still confused, we wrote about it in a series of articles.

    The Real Purpose of the Self-Certification Form

    Taiwo Oyedele, a foremost tax expert has revealed on Twitter that this form is for the exchange of tax information between Nigeria and other countries. Financial institutions would know the tax residency of customers and be able to share the information with other countries.

    In other words, the government (through banks) wants to know the countries you live and where you should be paying different taxes to.

    He also stated that for companies, the government would know who has the controlling interest in a business, commonly known as “beneficial ownership.”

    Other Opinions

    1. It is a self-enforcement tax issue, not an identification issue.

    2. Tax residency is for 0.00001% of the population.

    https://twitter.com/Ambrosia_Ijebu/status/1306738570716229632?s=19

    The Thing About Tax Residency

    For tax purposes, a resident of a country is any person that is subject to tax under the domestic laws of that country by reason of residence, place of incorporation, or any other criteria.

    Because different countries have different ideas on what it means to be a resident, countries generally enter into agreements (or treaties) with one another, so that a person living in say, the US, might still be paying Nigeria’s income taxes.

    It is this exchange of information that Nigeria has entered into with other countries. And that is why this new tax information is needed, so that the government can trace them.