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FG Begins Fresh Tax Reform Review Ahead of 2027 Budget

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FG

Nigeria begins a tax reform review ahead of the 2027 Finance Bill, with officials targeting implementation gaps, simpler compliance and stronger investment

The Federal Government has begun a fresh tax reform review in Abuja, with Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele inaugurating a technical subcommittee on Thursday, September 17, 2026, to examine the implementation of Nigeria’s new tax laws and develop recommendations for the 2027 Finance Bill.

Also read: National Tax Revenue Rises to ₦21.6tn — Kaduna Governor

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The six-week exercise comes less than a year after four major tax laws took effect on January 1, 2026. The laws include the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025.

Oyedele said the latest review was not intended to reverse the 2025 reforms but to refine them based on experience from their implementation and changing economic conditions.

“The Finance Bill 2027 should not be seen as just another annual legislative exercise,” Oyedele said. “Our task is not to rewrite the 2025 reforms, but to preserve their fundamental principles while learning from implementation and responding to new economic realities.”

The committee has been asked to identify areas where the new framework has created ambiguity, unintended consequences or unnecessary compliance burdens.

Key areas under consideration include Value Added Tax thresholds, withholding tax, capital gains treatment and multiple taxation.

The wider review will also touch on public financial management, debt, transparency, capital markets and cross-border capital flows.

The government has already received more than 134 submissions through its public consultation process, alongside additional hard-copy submissions.

The contributions came from businesses, investors, professional bodies, civil society organisations, academics and individual citizens.

Some of the proposals seek clearer and simpler tax rules, better coordination among revenue authorities and greater use of digital systems and data sharing to reduce repeated requests for information from taxpayers.

Stakeholders have also raised issues around taxpayer rights, faster refunds, safeguards for small businesses and measures to improve investment and competitiveness in sectors including mining, renewable energy, healthcare and capital markets.

The composition of the technical subcommittee reflects the breadth of the exercise. The body is chaired by the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, with Albert Folorunsho, Chairman of the Tax Advisory Committee, serving as co-chair.

Representatives from government institutions, professional organisations and the organised private sector are involved, including the Nigeria Revenue Service, Nigeria Customs Service, Central Bank of Nigeria, Debt Management Office, Budget Office of the Federation, Manufacturers Association of Nigeria, NACCIMA and major accounting firms.

Oyedele has urged the committee to consider the wider economic consequences of proposed changes, particularly for low-income households, workers and businesses.

The minister has also stressed that tax policy should not be judged solely by the revenue it generates, as measures intended to increase collections could create wider costs for businesses and the economy if poorly designed.

The review is therefore expected to balance revenue mobilisation with the need for a simpler and more predictable environment for taxpayers and investors.

“Good reform is a process, not an event,” Oyedele said, arguing that the real test of the changes comes when legislation is interpreted by businesses, implemented by administrators and experienced by citizens.

The committee has six weeks to complete its assignment and submit its recommendations, which are expected to inform the Finance Bill 2027 and related fiscal measures.

The review also comes against a backdrop of increased tax collection

. National Bureau of Statistics data show that Nigeria’s VAT report for the first quarter of 2026 was released on June 11, 2026, providing the latest official quarterly basis for assessing VAT performance under the evolving tax framework.

Also read: National Tax Revenue Rises to ₦21.6tn — Kaduna Governor

The outcome of the tax reform review could consequently have implications for how businesses calculate and remit taxes, how government agencies administer the system and how investors assess Nigeria’s fiscal environment as preparations for the 2027 budget gather pace.

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FG Urges Investment in Youth, SMEs and Local Industries to Grow Economy

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Investment

Nigeria investment in youth and local industries is vital to job creation, says FG, urging public-private partnerships and regional industrialisation

The Federal Government has called for increased investment in youth development, small and medium-sized enterprises, technology and local industries to create jobs and strengthen Nigeria’s economic competitiveness.

Also read: Osun amotekun dismisses officer over gross misconduct

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The Minister of State for Foreign Affairs, Ambassador Sola Enikanolaiye, made the call during a panel discussion titled “From Trade to Value Chains: Building Regional Industries to Compete Globally” at the 32nd Nigerian Economic Summit, held under the sub-theme, “Invest Nigeria”.

In a statement issued on Tuesday and signed by his Special Assistant on Digital Media and Public Diplomacy, Raphael Oni, Enikanolaiye said Nigeria needed stronger partnerships between the public and private sectors to mobilise the capital required for sustainable economic growth.

He argued that the country must move beyond trading raw materials towards building industries that process local resources into finished products for domestic consumption and export.

According to the minister, investment from both domestic businesses and foreign sources would be necessary to expand industrial capacity, create employment opportunities and improve living standards.

“In advancing our country, we don’t talk enough to one another in terms of constructive conversation and dialogue. We believe that partnership which allows government to engage deeper and stronger with the private sector is critical. Government alone cannot alone raise the resources needed for shared prosperity,” he said.

Enikanolaiye added that domestic capital mobilisation was as important as attracting foreign investment.

He identified Nigeria’s youthful population as a major asset that could accelerate industrialisation if supported by investments in education, skills development, innovation and entrepreneurship.

“Our youth population is very critical – a vibrant population. We need to invest more in human capital, focusing on Small and Medium Scale Enterprises, technology, innovation and creativity. By so doing, we will be able to generate more employment for the youth and also raise more wealth and income,” he said.

On foreign policy, the minister said the administration had reordered its four-point 4D doctrine to place the welfare and prosperity of Nigerians at the centre of the country’s international engagements.

The framework focuses on Demography, Development, Democracy and Diaspora.

Enikanolaiye said democratic governance should produce tangible economic benefits for citizens rather than remain an end in itself.

“Democracy is good, but it is a means to an end, not an end in itself. Democracy must deliver on core priorities of economic development and economic prosperity to our people,” he said.

The minister also emphasised the importance of macroeconomic stability and reliable economic data in helping businesses assess investment opportunities and make long-term plans.

He said Nigeria had recorded improvements in macroeconomic stability and that inflation was coming down, although he did not provide supporting figures in the statement.

Enikanolaiye further called for reforms to make the Ministry of Foreign Affairs more responsive to Nigerians and strengthen its engagement with businesses.

He said cooperation between the government and private sector, alongside partnerships with neighbouring countries and other international markets, could help Nigeria expand its industrial base and improve its access to regional and global markets.

Also speaking at the summit, the President of the Economic Community of West African States Commission, General Birame Diop, called for greater emphasis on industrialisation to create jobs and strengthen regional trade.

His remarks were delivered by the ECOWAS Commissioner for Economic Affairs and Agriculture, Dehpue Yenpea Zuo.

Diop argued that trade agreements alone could not deliver widespread employment and economic growth without industries capable of processing raw materials and producing goods.

“Trade agreements do not create jobs; industries do,” he said.

He noted that intra-African trade accounted for about 15 per cent of the continent’s total trade, compared with more than 60 per cent in Europe and Asia.

He attributed the gap partly to the limited scale of regional industries.

According to Diop, the regional market, with more than 300 million consumers, provides an opportunity for West African manufacturers to expand production before competing across the continent under the African Continental Free Trade Area.

He outlined four priorities for advancing regional industrialisation: implementing existing trade agreements, including commitments on border management; developing value chains in sectors where West Africa has a competitive advantage; improving access to finance for businesses and producers; and measuring progress through jobs created and goods processed within the region.

Also read: Osun amotekun dismisses officer over gross misconduct

Diop said converting trade commitments into productive industries would be essential to expanding employment, increasing regional economic activity and strengthening West Africa’s competitiveness in global markets.

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Economy

Cash Outside Nigerian Banks Rises to N4.92tn

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Cash outside Nigerian banks rose to N4.92tn in September 2026 as Nigeria’s broad money supply increased to N146.6tn, CBN data show

Cash outside Nigerian banks rose to N4.92tn in September 2026, an increase of N48.73bn from the N4.87tn recorded in August, according to monetary data published by the Central Bank of Nigeria.

Also read: UCL: Nico Paz Scores Twice as Como Crush Man United

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The latest figures also showed an expansion in Nigeria’s broad money supply, which increased to N146.6tn in September from N139.09tn in the previous month.

The growth represents an increase of N7.51tn within one month, reflecting a broader expansion in the amount of money circulating across the economy.

The CBN data further showed that narrow money, which consists of currency in circulation and highly liquid deposits, rose to N44.05tn in September from N43.11tn in August.

Cash held outside banks refers to physical currency kept by individuals and businesses rather than within the banking system.

Broad money, by contrast, covers a wider range of monetary assets, including cash, demand deposits, savings and time deposits, as well as foreign currency deposits.

Nigeria’s broad money supply increased by 18.3 per cent between January and September, rising from N123.95tn to N146.6tn, the data indicated.

The latest increase followed the CBN’s decision in September to reduce its benchmark interest rate by 350 basis points, bringing it down from 26.5 per cent to 23 per cent.

The reduction was reported as the largest cut in the benchmark rate since December 2006.

Despite the rate cut, the Monetary Policy Committee retained the Cash Reserve Requirement for commercial banks at 45 per cent and merchant banks at 16 per cent.

The committee also maintained the 75 per cent reserve requirement on non-Treasury Single Account public-sector deposits.

The Cash Reserve Requirement determines the proportion of eligible deposits that banks must hold as reserves with the central bank.

It is one of the monetary policy tools used to influence banking-sector liquidity and credit conditions.

The rise in cash outside Nigerian banks formed part of the broader increase in money supply.

Also read: UCL: Nico Paz Scores Twice as Como Crush Man United

However, the figures alone do not establish why households and businesses held more physical cash or how much of the increase was driven by spending, savings behaviour or other economic factors.

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Obasanjo: Policy is meaningless without entrepreneurs like Wale Tinubu

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Obasanjo

Olusegun Obasanjo says government policies require entrepreneurs like Wale Tinubu to translate economic plans into investment, industrial growth and jobs (more…)

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