Nigeria News (Standard)
IMF Urges Abuja to Extend VAT to Petrol, Propose Telecom Tax Amid Rising Inflation
Federal Government yet to adopt recommendations as Nigerians raise concerns over cost of living and subsidy removal fallout
Federal Government yet to adopt recommendations as Nigerians raise concerns over cost of living and subsidy removal fallout
The International Monetary Fund (IMF) has advised the Federal Government in Abuja to introduce new taxes on fuel and telecommunications services as part of measures to boost revenue, according to its latest economic assessment released this week. The proposals, which include extending Value Added Tax (VAT) to petrol and imposing excise duties on mobile calls and data, have sparked debate nationwide as at Friday.
According to the IMF’s report, Nigeria’s government revenue remains among the lowest globally relative to GDP. The global lender recommended several steps: applying VAT on petrol and other petroleum products, introducing excise taxes on telecom services such as calls and data, gradually increasing VAT rates over time, and reducing certain tax exemptions and customs waivers. The IMF said these measures would help fund critical sectors like infrastructure, healthcare, and education while reducing government borrowing.
The recommendations come at a time when many Nigerians are struggling with high inflation, rising food prices, and reduced purchasing power following the removal of fuel subsidy and recent currency reforms. Any new tax on fuel is expected to drive up transportation costs for both commuters and businesses across states like Lagos, Kano, Rivers, and beyond. Experts warn this could lead to a further spike in prices of essential goods due to higher logistics costs.
Millions also depend on mobile phones for communication, business, and education. Additional excise duties on telecom services could increase the cost of airtime, voice calls, SMS, and data plans—an issue that has drawn concern from civil society groups and economists alike. Dr. Aisha Yusuf of the Nigerian Economic Society said during a phone interview that “any new tax regime must consider the current hardship faced by ordinary citizens before implementation.” As at Friday evening, the Federal Ministry of Finance had not issued an official statement on whether it would adopt any of the IMF’s advice.
While the IMF recommendations remain non-binding advice for now—the final decision rests with the Federal Government and National Assembly—public debate continues amid fears that such measures may worsen living conditions for many Nigerians already affected by economic reforms. Whether policymakers will adopt all or part of these proposals remains uncertain.
Source: https://www.pulse.ng/story/imf-nigeria-tax-recommendations-fuel-telecom-2026061511165832725
Nigeria News (Standard)
Manufacturers in Lagos Say Tinubu’s Reforms Yet to Lower Costs as Energy, FX Remain Major Hurdles
MAN urges urgent action on electricity, credit and naira stability, noting limited relief despite new industrial policies
MAN urges urgent action on electricity, credit and naira stability, noting limited relief despite new industrial policies
The Manufacturers Association of Nigeria (MAN) has stated that major economic reforms introduced by President Bola Tinubu’s administration have not yet translated into lower production costs or stable conditions for manufacturers in Lagos and across the country. The association made this known on Saturday, highlighting ongoing challenges with energy supply, high borrowing costs and persistent foreign exchange pressures three years into the current government.
Despite a raft of interventions, including a ₦200 billion Presidential Intervention Fund for industry and the unveiling of a ten-year Nigeria Industrial Policy aimed at boosting manufacturing’s share of GDP by 2030, manufacturers say the benefits are yet to be felt on factory floors. MAN Director General Segun Ajayi-Kadir welcomed initiatives such as withholding tax exemptions, reduced company income tax rates, and expanded VAT deductibility under the 2025 Tax Reform Act. He also acknowledged the local value addition legislation and Naira-for-Crude policy which have provided some support for downstream petrochemical firms.
However, Ajayi-Kadir noted that widespread depreciation of the naira since forex liberalisation has sharply increased the cost of importing machinery, raw materials and other critical inputs. “Margins are being squeezed and prices are rising across industries,” he said. Manufacturers also face surging energy bills due to continued grid instability—despite several tariff hikes—and many companies remain reliant on diesel and gas generators that further push up operating expenses.
Access to credit has tightened as the Central Bank repeatedly raised interest rates in response to inflationary pressures. Many firms considering expansion now find borrowing costs prohibitive. While MAN described recent reforms as necessary groundwork for industrial recovery, Ajayi-Kadir said: “Stabilisation and real sector growth are not the same destination. We need to see promised improvements in power supply, procurement enforcement, credit access and local content before these reforms can deliver real industrial growth.”
As Tinubu’s administration enters its fourth year, manufacturers are calling on government to move beyond policy announcements to address practical obstacles in energy supply, financing and implementation of local content rules. MAN maintained that only when these issues are resolved will the intended benefits of recent reforms materialise for Nigeria’s manufacturing sector.
Source: https://www.pulse.ng/story/man-says-tinubu-reforms-not-yet-helping-manufacturers-2026061512204059465
Nigeria News (Standard)
NBS Reports 31% Decline in Company Income Tax Collection, Raises Concerns for Nigerian Businesses
Sharp drop in tax revenue for Q1 2026 attributed to inflation, forex volatility and higher operating costs across sectors
Sharp drop in tax revenue for Q1 2026 attributed to inflation, forex volatility and higher operating costs across sectors
Company income tax revenue in Nigeria dropped by 31.05 percent year-on-year to ₦1.37 trillion in the first quarter of 2026, according to fresh data released by the National Bureau of Statistics (NBS) in Abuja on Saturday. The agency said the figure reflects a significant fall from the ₦1.98 trillion recorded in Q1 of 2025, and an 8.08 percent decrease from the ₦1.49 trillion collected in the previous quarter.
The NBS report highlights that company income tax collections have continued to slide despite ongoing economic reforms and government initiatives aimed at boosting non-oil revenue streams. Most of the tax receipts during the quarter came from foreign companies operating within Nigeria, signalling persistent pressure on local firms.
Analysts say this steep decline is a worrying indicator for Africa’s largest economy, as businesses struggle with surging inflation, unstable foreign exchange rates, increased borrowing costs and rising operational expenses. The development has sparked concerns about reduced government capacity to fund key infrastructure and social programmes, especially at a time when public finances are already stretched.
Economic experts warn that without urgent interventions to stabilise macroeconomic conditions and support private sector recovery, company income tax performance may remain weak in coming quarters. Stakeholders have called on government agencies to address inflationary pressures and improve access to affordable credit for businesses.
With company earnings under strain across major sectors including manufacturing, telecoms and services, observers say policymakers must act swiftly to prevent further erosion of Nigeria’s non-oil revenue base. The NBS noted it will continue monitoring trends in corporate tax payments as part of efforts to provide timely economic guidance.
Source: https://guardian.ng/news/nigeria/national/corporate-tax-revenue-drops-31-amid-economic-strain-nbs/
Nigeria News (Standard)
FCT Police Commissioner Parades Four Suspected Kidnappers After Abuja Raid
Command says intelligence from residents led to arrest of alleged kidnapping, banditry network in Paze–Byazhin area
Command says intelligence from residents led to arrest of alleged kidnapping, banditry network in Paze–Byazhin area
The Federal Capital Territory (FCT) Police Command on Monday paraded four suspected kidnappers and logistics suppliers arrested during a series of operations in the Paze–Byazhin axis of Abuja. Commissioner of Police, Mohammed Sanusi, disclosed this while briefing journalists at the command headquarters, stating that the arrests followed coordinated anti-kidnapping operations carried out on June 9 and June 11, 2026.
According to Sanusi, the police stormed a suspected hideout in the Paze–Byazhin area based on actionable intelligence gathered with support from local residents. The operation resulted in the arrest of Yahaya Abdullahi, Muhammed Yunusa, Hauwa Shafiu, and Shamsudeen Mustapha. Preliminary investigations revealed that the suspects were allegedly part of a wider criminal network responsible for repeated kidnapping and banditry incidents within and around the FCT.
Sanusi said the suspects had managed to infiltrate local communities to gather information on potential targets and coordinate attacks. He also confirmed that one of those paraded, Hauwa Shafiu, was identified as a logistics supplier for the group. “The FCT Police Command has recorded another breakthrough in its sustained crackdown on kidnapping and banditry across the Federal Capital Territory,” Sanusi said during the press briefing.
The commissioner noted that the ongoing crackdown is part of broader efforts to address rising security challenges in Abuja and neighbouring areas. Residents have repeatedly called for improved security following several high-profile abductions reported across different parts of the territory in recent months. While parading additional suspects linked to supplying materials for criminal activities, Sanusi reiterated that community cooperation remained crucial to police success.
Sanusi assured that investigations are ongoing and pledged that all those found culpable will face prosecution. He called on Abuja residents to continue providing credible information to law enforcement agencies, promising improved patrols and rapid response in vulnerable communities. As at press time, opposition parties or civil society groups had yet to issue formal reactions to the arrests.
Source: https://guardian.ng/news/nigeria/metro/fct-police-command-arrests-parades-suspected-kidnappers/
Manufacturers in Lagos Say Tinubu’s Reforms Yet to Lower Costs as Energy, FX Remain Major Hurdles
NBS Reports 31% Decline in Company Income Tax Collection, Raises Concerns for Nigerian Businesses
FCT Police Commissioner Parades Four Suspected Kidnappers After Abuja Raid
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