E-Financial
Fiscal Policy and Tax Reforms Committee Clarify New Tax Reform Laws
The Presidential Fiscal Policy and Tax Reforms Committee has clarified some misconceptions surrounding Nigeria’s newly enacted tax reform laws.
Speaking at engaged journalists, influencers, and public analysts in an interactive session in Lagos yesterday, Taiwo Oyedele, the Committee’s Chairman, stated that while it is not unusual for tax reforms to be misunderstood anywhere in the world, deliberate misreporting and uninformed analyses are harmful to our collective interest given that the reforms are designed to benefit ordinary Nigerians, secure long-term economic stability and inclusive growth for the country.
“The objectives of the reforms have been clear from the very beginning – reduce the tax burden on the masses, harmonise and simplify tax rules to address multiplicity of taxes, promote a modern, business friendly and globally competitive tax system. Our approach is people-centric, growth-focused, and efficiency-driven,” Mr. Oyedele said.
Key Highlights of the New Tax Reform Laws
- Personal Income Tax: Low income earners including those earning national minimum wage are exempted from tax. The average income earners will pay less tax while high-income earners (about the top 3% of the population) will contribute progressively more, up to 25% of their income.
This is a much lower rate than the top rates in countries such as Ghana & Kenya at 35% and South Africa at 45%.
- Value Added Tax (VAT): Businesses will enjoy broader input credits on their assets and
overhead to lower costs. Basic items such as food, education and health services are taxed at 0% while rent and transportation are exempt. These measures are expected to result in lower prices for consumers. In addition, small businesses are exempted from charging VAT ensuring that they are not overburdened with excessive tax obligations.
- Tax Identification (Tax ID): The provision of “Tax ID” is only mandatory for opening and
operating a bank account intended for income generating or business purposes. The “Tax ID” is not a new ID card but a system that builds on and harmonises the existing Tax Identification Numbers (TIN) for ease of economic activities. The requirement to provide a TIN for operating a business account was introduced via the 2020 Finance Act and has been implemented since 13 January 2020. While banks are required to report quarterly transactions above a certain threshold under the new tax laws, it is not true that inflows into bank accounts will be automatically taxed.
- Informal Sector: The new tax laws offer major tax reliefs to small businesses. The new tax structure is designed to encourage formalisation by exempting small companies with annual turnover of N100m or less from corporate income tax. In addition, these small businesses are exempted from charging VAT or accounting for withholding tax on their transactions. The goal is to reduce the burden on nano, micro and small businesses who constitute the largest share of employment and GDP.
- Tax Harmonisation: There is an ongoing process to reduce over 60 different taxes and levies to fewer than 10, easing compliance and curbing proliferation of multiple charges. Contrary to the misconception about imposing a higher tax burden or introducing new taxes, the current administration is reducing both the number of taxes and the burden on citizens and businesses.
Some taxes which were introduced by the previous administrations have in fact been reversed or suspended including the 5% levy on airtime and data, cybersecurity levy on bank transfers, carbon tax on single used plastics, excise tax on vehicles and so on.
- No imposition of tax on individuals not previously taxable: The new tax laws did not introduce taxes on individuals who were not previously taxable. Online content creators, influencers, income from virtual assets, and other income generating activities have always been subject to tax under the old Personal Income Tax Act. The new tax laws only provide clarity, and ensure fairness by allowing deductions for losses where applicable. Income earned by way of a gift rather than as a payment for a transaction is not taxable.
The ongoing tax reform is raising public awareness which sometimes leads to the wrong impression that a requirement is new. The Committee stressed that the reforms are aimed at fairness, efficiency, and simplicity – ensuring that the tax system supports investment, job creation, and sustainable growth.
The Committee clarified that:
- The poor are not being taxed under the new laws, and the average citizen will pay less, not more taxes.
- Businesses will save costs through harmonisation, enhanced input credits, faster tax refunds, lower withholding tax rates, and planned reduction in corporate tax rate.
- Small companies are exempted from corporate income tax, charging of VAT on their transactions and withholding tax. The informal sector will benefit from incentives to join the formal economy rather than being penalised thereby enhancing their opportunity for growth.
- These reforms are not about raising taxes arbitrarily, but about making the system simpler, fairer, pro-people and pro-growth. The measures designed to curb tax evasion are necessary to provide a level playing field for honest and patriotic taxpayers.
Mr. Oyedele called on Nigerians to seek credible information and engage constructively. “These reforms are designed to benefit all Nigerians. Let us work together to ensure effective implementation and position ourselves for the better days ahead of us,” he said.
Next Steps
The Committee assured stakeholders of working with relevant implementing agencies for a robust and transparent implementation process, with continuous engagement to seek feedback, address concerns and ensure smooth transition.
Cybercriminals have developed a new Android malware that can turn victims smartphones into a bridge for stealing bank card information and carrying out contactless payment fraud, cybersecurity researchers have warned.
The malware, identified as WindRelay, operates in conjunction with a known remote-access trojan, SpyNote, to capture live information exchanged between a physical bank card and an Android phone via Near Field Communication (NFC).
NFC is the short-range technology that enables contactless payments when a bank card or smartphone is tapped against a payment terminal.
According to cybersecurity firm Group-IB, WindRelay was detected in the wild in August 2025 and has been used in a social-engineering scheme targeting victims in Czechia, Slovakia and Slovenia.
Meanwhile, the fraud begins with a phone call, text message or other communication in which criminals pretend to be bank officials.
The victim is persuaded to install an application, often personalised with the victim’s name, and once installed, SpyNote gives the criminal remote access to the phone and can silently install WindRelay, with the victim then tricked into placing a physical bank card against the infected smartphone, supposedly for identity verification, PIN change, or account resolution.
WindRelay reads the card’s NFC signals and sends the information in real time to another device controlled by the criminal, with such a device then imitating the victim’s card at a payment terminal or ATM, as the victim’s smartphone becomes a wireless bridge between the victim’s bank card and the criminal’s device.
Group-IB said it identified 23 WindRelay samples uploaded to VirusTotal between November 2025 and July 2026, with the malware samples impersonating financial institutions in Czechia, Slovakia and Slovenia.
Meanwhile, the development adds to existing concerns over the use of mobile devices in cybercrime and financial fraud in Nigeria.
In June, the Nigeria Computer Emergency Response Team (ngCERT) issued an advisory on IPIDEA malware and malicious residential proxy networks, warning that the malware could hijack consumers internet connections and use compromised devices as part of criminal proxy networks.
While the ngCERT advisory concerns a different malware and attack method, both incidents highlight a growing risk: ordinary smartphones and connected devices can be secretly turned into tools for cybercriminals.
This is particularly relevant as Nigerians increasingly rely on smartphones for mobile banking, digital payments and other financial services.
Consequently, cybersecurity experts have advised users not to install applications sent through unsolicited calls, text messages or links, especially when the sender claims to represent a bank, as users should also be suspicious of requests to place payment cards against smartphones for supposed account verification.
The Securities and Exchange Commission (SEC) has cleared additional Virtual Asset Service Providers (VASPs) for admission into its Accelerated Regulatory Incubation Programme (ARIP).
Among the newly cleared is BC Access Nigeria Limited (Blockchain), marking an important step in the company’s long-term commitment to Nigeria and its broader expansion across Africa.
Nigeria is one of Africa’s most important digital asset markets, where crypto increasingly plays a practical role in how people access, hold and move.
Value Admission into ARIP means Blockchain has satisfied the SEC’s initial requirements to participate in the programme and is authorised to operate within its defined sandbox scope, subject to the Commission’s ongoing compliance obligations, testing parameters, and regulatory conditions.
Through ARIP, Blockchain can work directly with the SEC as the Commission evaluates digital asset business models, tests. appropriate safeguards and develops its long-term regulatory framework for the market.
Speaking, General Manager for Africa, Blockchain, Owen Odia, said: “Nigeria is one of Africa’s most important digital asset markets and participating in the SEC’s ARIP is an important step forward in our long-term commitment to the country.
“The programme gives us the opportunity to work directly with the SEC in a controlled environment, bring our global experience to the Nigerian market and help support a framework that protects consumers while enabling responsible innovation. We appreciate the SEC’s proactive approach and look forward to contributing to a safe, transparent and well-regulated digital asset ecosystem.”
Blockchain’s participation in ARIP forms part of a broader global strategy to engage constructively with regulators and build within established regulatory frameworks.
Over the past year, Blockchain has secured several formal licenses and registrations globally, including the UK Financial Conduct Authority (FCA), EU Markets in Crypto-Assets (MiCA), and Cayman Islands Monetary Authority (CIMA) Virtual Asset Service Provider (VASP) License. Participating in Nigeria’s ARIP sandbox builds on that experience, bringing global standards in compliance, security and consumer protection to its local operations.
For Blockchain, ARIP provides a structured environment to test services for the Nigerian market, strengthen consumer protections and work directly with regulators and local stakeholders.
The company sees Nigeria as an important market in its African strategy, with strong existing demand for digital assets and an increasingly clear regulatory pathway for responsible operators. The company’s strategy materials specifically identify Nigeria as an important market for its African expansion.
ARIP was established by Nigeria’s SEC as a controlled regulatory sandbox for VASPs and fintech innovators. The programme allows the SEC to observe live applications of digital asset technologies, study operational risks, and establish tailored investor protection and anti-money laundering (AML) standards before final regulatory rules are codified.
Blockchain is pleased to participate in ARIP as we work alongside regulators to support responsible innovation, consumer protection and market integrity.
Founded in 2011, Blockchain is one of the world’s longest-standing digital asset companies with more than 95 million wallets, more than 44 million confirmed accounts and over $1.2 trillion processed.
Leadway Assurance has unveiled the Leadway Lifetime Plan, a one-of-a-kind whole-of-life insurance solution designed to extend financial protection beyond the immediate household to the wider family circle.
The newly introduced plan unveiled at a press briefing in Lagos reinforces Leadway’s commitment to building lasting financial security, preserving wealth, and delivering meaningful, long-term protection for the people who matter most.
The Leadway Lifetime Plan responds to the increasingly complex financial responsibilities faced by many working adults, particularly members of the Sandwich Generation individuals who simultaneously provide financial support for ageing parents while raising children and planning for their future.
With family responsibilities now extending beyond the traditional nuclear household, the Leadway Lifetime Plan is designed to offer broader, long-term protection that reflects the realities of modern Nigerian families.
Speaking on the new insurance plan, Olufunmilayo Amanwa, executive director, Technical & Operations, Leadway Assurance, said the product reflects the insurer’s recognition that family structures and financial responsibilities are evolving, and that insurance solutions must evolve with them.
“Financial responsibility no longer stops at the nuclear family. Today, one individual may be supporting children, a spouse, ageing parents, and in some cases, parents-in-law or siblings, all at once. That reality demands a different approach to protection.
The Leadway Lifetime Plan was built around this reality. It gives customers a way to extend continuous protection to the extended family, ensuring the people who depend on them are covered, while also delivering meaningful benefits to policyholders within their own lifetime. This is the Leadway way, designing solutions that respond to how people actually live, not recycling old products with new names”
Beyond traditional life protection, the Leadway Lifetime Plan incorporates a range of living benefits designed to provide financial support during critical stages of life.
Following five years of complete premium payment and subject to the policy terms, the policyholder and spouse may access up to 50 per cent of their current sum assured upon diagnosis of a covered critical illness. This benefit can provide valuable financial support at a time when a serious health event may place pressure on income, savings and overall household stability.
The plan also provides greater long-term financial flexibility. Eligible policyholders may access up to 50 per cent of the policy value for significant life goals after the premium payment term plus five years, subject to applicable policy conditions.
While Leadway’s existing Family Benefit Plan provides family-focused whole-life protection, the Lifetime Plan has been developed as a more expansive, multi-generational solution that combines lifelong protection with financial value that can be accessed during the policyholder’s lifetime.
Explaining the thinking behind the product, Rosetta Aryeetey, head, Life Underwriting and Life Business, Leadway Assurance said the solution was developed around the changing needs of customers. “The starting point for the Leadway Lifetime Plan was the customer.
We looked closely at how families are structured Today, how financial responsibilities are shared and the challenges customers face when they are responsible for several generations at the same time. What emerged was a need for a solution that does more than pay a benefit after death. Customers need protection for the people who depend on them, but they also need support when critical life events occur and flexibility as their financial priorities evolve.”
She added that the combination of multi-life protection, living benefits, long-term value and flexibility makes the Lifetime Plan relevant across different stages of a customer’s financial journey.
The plan also offers flexibility to enhance financial protection over time through an Escalation of Sum Assured feature. This allows customers to increase their benefits by a fixed percentage, giving them the flexibility to align their level of protection with their evolving financial needs and circumstances.
With the launch, Leadway Assurance is reinforcing its commitment to developing insurance solutions that respond to real-life needs while helping families build resilience, preserve financial stability and create lasting legacies.
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