Business
Tax Applies to Profits, Not Assets, Savings, Adedeji Clarifies
….Reassures citizens no deductions from bank accounts
….Low-income earners to benefit from exemptions on food, transport
…Tax reforms focus on profits, modernisation, simpler compliance
By Joel Ajayi
The Executive Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, has sought to allay rising public concerns surrounding Nigerias recently implemented tax reforms, firmly dismissing speculation that funds held in bank accounts may be subjected to taxation.
Speaking on Tuesday during Journalists Hangout, a current affairs programme on TVC, Adedeji emphasised that neither the former tax regime nor the new legal framework empowers any authority to levy taxes on bank balances, savings, transfers or account holdings. He stressed that the countrys tax system remains fundamentally profit-based.
Whether under the old tax law or the new one, nobody has any business with your personal bank account, whether you are an individual or a company, he said.
Tax is calculated as a percentage of your profits. Assets and savings are not taxed; only profits and returns are.His remarks follow widespread rumours suggesting that the reforms, effective from 1 January 2026, would enable automatic debits from bank accounts based on transaction descriptions, balances, or transfers.
Adedeji described such claims as sheer misinformation, stating unequivocally that no law authorises tax authorities to direct banks to deduct money merely because funds are transferred or retained.
There is no law that allows anyone to go into your bank account and tax you simply because you transfer or keep money, he reiterated, adding that personal transfers, gifts, and movement of funds between accounts are not, by default, taxable events.
He further debunked suggestions that transaction narrations could trigger tax deductions, noting that no existing tax legislation – old or new – contains such provisions.Adedeji also clarified that the transition from the Federal Inland Revenue Service (FIRS), to the Nigeria Revenue Service (NRS), represents a comprehensive institutional reform rather than a mere change of nomenclature.
The overhaul, he explained, aims to modernise tax administration, simplify compliance, and enhance efficiency.
Transition provisions were embedded in the law signed in June 2025, with a January 2026 commencement date to give citizens and businesses sufficient time to adjust.Addressing anxieties surrounding the newly introduced development levy, the NRS chief stated that it does not constitute a fresh tax.
Rather, it consolidates existing earmarked taxes, such as the education tax and police trust fund levy, into a single charge. This consolidation, he noted, reduces multiplicity, eases planning for businesses, and still channels funding to education, security, and other development priorities.
Previously, we had several earmarked taxes – education tax, police trust fund and others – which made planning difficult for businesses, he explained.
With the development tax, these are consolidated into one item, simplifying compliance while still supporting those key sectors.Adedeji emphasised that the reforms were deliberately structured to protect poorer Nigerians.
He pointed out that essential goods and services absorbing the bulk of low-income expenditure, particularly food and transportation, are exempt from transactional taxes.If you consider the exemption list, about 90 per cent of the disposable income of low-income earners goes on food and transport, he said.
These items are exempted from transactional taxes.
He further disclosed that workers on lower salary bands would notice reduced tax deductions in their January payslips.Responding to calls for suspension of the new tax laws, Adedeji maintained that such demands were inconsistent with democratic principles. Suspension of law has no place in a democracy.
Once a law is passed, it becomes law, he said, warning that suspension would create a legal vacuum since the previous tax laws had already been repealed.
On criticisms reportedly raised by KPMG, he explained that government preferred constructive engagement over confrontation.
He confirmed that he had met with representatives of the firm to discuss areas of concern, saying it was natural for people to misunderstand aspects of new legislation. Feedback, he stated, remains welcome as part of ongoing implementation.He further clarified that existing tax clearance certificates remain valid and reaffirmed that withholding tax constitutes a prepaid tax, not an additional charge.
Proper filing, he said, would ensure that any withheld sums are credited against final liabilities.Adedeji added that taxation of digital asset activities applies only to realised profits, not to underlying capital. He highlighted that the reforms have eliminated minimum tax provisions that compelled payment even when businesses made losses.
Where there are losses, you do not pay tax, because tax is imposed only on profits, he said.
According to him, the overarching objective of the reforms is to harmonise Nigerias tax system, reduce manual processes, and deepen the use of technology and revenue intelligence, ultimately fostering a fairer, more transparent and efficient regime.
Business
Turning Africa’s Raw Materials Into Wealth: The ARMS 2026 Industrial Agenda
By Joel Ajayi
For decades, Africa’s vast natural resources have powered industries and economies far beyond the continent, while many African countries have remained largely exporters of unprocessed commodities and importers of finished products.
That familiar pattern is now coming under renewed scrutiny as policymakers, researchers, investors and industrialists seek to change the direction of Africa’s resource economy.
At the centre of that conversation is the second edition of the Africa Raw Materials Summit (ARMS 2026), scheduled for October 19 and 20 at the Abuja Continental Hotel, Abuja, under the theme: “From African Feedstock to African Factories.”
Organised by the Raw Materials Research and Development Council (RMRDC), the summit is being positioned as more than another gathering of policymakers and industry stakeholders. It is intended to provide a platform for confronting the structural challenges that have kept African raw materials largely disconnected from local manufacturing.
Africa has for years operated largely within a “pit-to-port” economic model, exporting raw materials while importing expensive finished products.
Speaking at a press conference ahead of the summit on Tuesday in Abuja, the Director-General and Chief Executive Officer of RMRDC, Prof. Nnanyelugo Martin Ike-Muonso, said the event would bring together policymakers, investors, researchers, technology providers and industrialists to develop practical strategies for transforming Africa’s abundant natural resources into industrial wealth.
The challenge, therefore, is not simply the abundance of resources, but the continent’s ability to transform those resources into industrial value, employment, technology and wealth within Africa.
Nigeria alone, according to the RMRDC, has more than $582.4 billion in documented non-renewable natural resources, while the wider continent possesses substantial deposits of critical minerals, agricultural raw materials and industrial feedstock.
Yet, the benefits of this resource endowment have often been constrained by inadequate processing capacity, weak infrastructure, limited technology, financing gaps and fragmented regional value chains.
From Dialogue to Industrial Action
ARMS 2026 builds on the maiden edition held in May 2025, which attracted more than 1,000 delegates from across the world.
The inaugural summit also witnessed the unveiling of the Ten-Year Raw Materials Transformation Roadmap (2025–2034) by the Minister of State for Industry, Senator John Owen Enoh.
The roadmap was designed around areas including technological capability, climate-resilient processing and backward integration, establishing a policy framework for greater domestic utilisation of Africa’s raw materials.
The second edition is expected to move the conversation further by bringing policy, capital, technology and industrial stakeholders around practical mechanisms for turning raw materials into locally manufactured products.
One of the major proposals highlighted by the RMRDC is the 30 per cent Mandatory Value Addition Bill, which seeks to establish a statutory minimum level of value addition to Nigerian raw materials before export.
The Council says the proposed framework could support job creation, import substitution, foreign-exchange conservation and increased manufacturing contribution to the economy.
Building the Infrastructure for Value Addition
The industrial transformation envisaged by ARMS 2026 goes beyond legislation.
A major concern is the “missing middle” between where raw materials are produced and where factories are located.
Poor transportation networks, inadequate cold-chain facilities, weak rural roads, limited testing and certification infrastructure and border-related delays can make locally sourced materials more expensive and less competitive.
Consequently, logistics and infrastructure constitute one of the five principal pillars of the summit.
The objective is to develop more reliable corridors connecting farms and mines with processing centres and manufacturing facilities, thereby reducing losses and improving the movement of industrial inputs.
The Digital Dimension
Technology is also becoming an important part of the Council’s strategy.
The RMRDC says it has developed the Nigeria Integrated Information Statistical System for Raw Materials and Products (NISSRAMP), described as a digital repository containing information on feedstock deposits, specifications, production outputs and industrial absorption rates.
The Council has also highlighted its transition towards paperless operations and its certification as a Data Controller/Processor of Major Importance by the Nigeria Data Protection Commission.
Such digital infrastructure could provide investors and manufacturers with better information about the availability and characteristics of raw materials while supporting more informed industrial planning.
Turning Waste Into Industrial Inputs
Another major component of ARMS 2026 is the proposed expansion of the circular economy.
The summit will examine how agricultural by-products, mine tailings, scrap metals and biomass can be recovered and reused as inputs for new production processes rather than being treated simply as waste.
The RMRDC argues that such an approach could lower raw-material costs while supporting more sustainable and climate-resilient manufacturing systems.
For Africa, where industrial expansion must increasingly balance economic development with environmental considerations, waste industrialisation could become an important part of the continent’s manufacturing conversation.
From National Production to African Value Chains
The African Continental Free Trade Area is another important element of the summit’s agenda.
The RMRDC sees AfCFTA as an opportunity to create regional value chains in which raw materials sourced in one African country can be processed and supplied to manufacturers in another.
Under such a model, Africa would move beyond simply exporting commodities to external markets and develop stronger internal networks for supplying chemicals, refined minerals, agricultural inputs and other industrial materials across national borders.
This approach places regional integration at the heart of Africa’s industrialisation strategy.
Bridging Research and Capital
A recurring weakness in many developing economies is the gap between research and commercialisation.
Innovations may emerge from universities, research institutions and laboratories without receiving the financing, equipment or market connections required to become commercially viable.
ARMS 2026 intends to address that gap through technology commercialisation and capital linkages, connecting research outputs with investors, development finance institutions and industrial off-takers.
The RMRDC has also cited partnerships with the Bank of Industry for commercial-scale post-harvest processing and a South-South technology-transfer partnership with the National Innovation Centre par Excellence in Shanghai, China.
A Larger Industrial Conversation
The scale of ARMS 2026 is expected to be significantly larger than the maiden edition.
The organisers project more than 1,800 delegates from all 54 African countries and global industrial partners.
The programme will feature high-level policy dialogues, technical panels, an advanced raw materials and technology exhibition, industrial site visits and the African Raw Materials Industry Awards.
The exhibition, in particular, is expected to showcase locally fabricated processing machinery, advanced domestic materials, green chemicals and engineered commercial inputs.
Beyond the speeches and exhibitions, however, the real significance of ARMS 2026 will ultimately depend on what happens after the summit.
Africa’s challenge has never been a shortage of raw materials. The more difficult question has been how to transform those resources into factories, products, skilled employment, technology and sustainable economic opportunities.
For Nigeria and the rest of the continent, the proposed shift from “pit-to-port” to “feedstock-to-factory” therefore represents a broader debate about the future structure of African economies.
ARMS 2026 seeks to place that debate firmly on the industrial agenda — with value addition, technology, finance, infrastructure, circular production and regional trade at the centre.
If the commitments and partnerships generated by the summit translate into measurable industrial activity, the event could provide another platform for Africa to examine how its enormous resource base can support stronger domestic manufacturing.
The message from the organisers is clear: the continent’s raw materials should not only leave African soil as commodities; they should increasingly become the foundation for African industrial production
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