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Status Brief: Proposed Tax Reform Policies

Published

2 years ago

October 25, 2024

By Arabinrin Aderonke Atoyebi

The economy is changing, and we can all see that. With President Bola Tinubu in charge and Dr. Zacch Adedeji leading the Federal Inland Revenue Service, Nigeria is stepping into an era that promises to reshape its tax administration.

This moment is important, as it represents a break from the past, a past where the tax system often felt like an obstacle rather than a growth. For decades, we can say that Nigeria’s tax system has been criticized for being cumbersome, complex, and filled with inefficiencies. But now, with the recent introduction and endorsement of the Nigeria Tax Bill, the Nigeria Tax Administration Bill (NTAB), the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill by President Tinubu, there’s a sense of hope. People are starting to envision a tax system that works for them, one that supports not just businesses but also the citizen.

Historically, Nigeria’s tax system has been unorganized, with corporate income tax, personal income tax, value-added tax, capital gains tax, and others governed by different laws, creating confusion and inefficiencies. At the same time, the outdated framework failed to account for Nigeria’s growing digital economy, leaving new sectors such as fintech and e-commerce largely outside the tax net. Now, with these new tax laws, Nigeria is embracing a simpler, more unified system that aims to reflect modern realities.

The proposed tax laws are designed to enhance the existing tax framework without introducing new burdens. The Nigeria Tax Bill 2024 aims to simplify the current taxation sector by merging various taxes into a more cohesive system. Instead of raising taxes or adding new ones, the government focuses on making tax obligations easier to understand and navigate. Tax types like corporate income tax (CIT), personal income tax (PIT), value-added tax (VAT), and capital gains tax (CGT) will now be managed under one structure. For many Nigerians, this new clarity could make it easier for them to manage their finances, giving them a sense of confidence as they meet their tax obligations.

The Nigeria Tax Bill 2024 aims to make the tax system simpler and introduce new categories for businesses. Small companies with annual earnings of less than N50 million will not have to pay any corporate income tax. Larger companies will benefit from a gradual reduction in their corporate income tax rate, dropping from 27.5% in 2025 to 25% by 2026. This change will provide companies with more room to manage their finances, helping them to grow and invest more effectively.

The proposed reforms highlight the government’s dedication to protecting taxpayers. By establishing the Joint Revenue Board and introducing a Tax Ombudsman, the government is taking a modern approach to tax management. These measures will give taxpayers a way to express their concerns and get help when needed, which encourages accountability and transparency. Nigerians need to trust that their tax money is being used fairly and responsibly. With these changes, the government aims not only to make tax processes easier but also to build a system where tax authorities are responsible for their actions, enhancing public confidence in the tax system.

For the first time, Nigeria’s tax laws will be structured in a way that makes it easier for taxpayers to understand their obligations, reducing opportunities for corruption and creating a fairer, more predictable tax environment. By addressing inefficiencies in tax collection, the government will expand its revenue base, which will allow for better investment in areas such as infrastructure, healthcare, and education.

The new tax reforms feel like a breath of fresh air, and they promise a brighter future for all of us. These changes aim to simplify the tax system, making life easier for small businesses and entrepreneurs.
This will be tax regulations without the usual headaches. The reduced corporate income tax for smaller firms allows us to invest more in growth and create jobs. Plus, the fairer adjustments to personal income tax lighten the load for those earning less while ensuring that the rich contribute their fair share. With these reforms, we can see a stronger economy that benefits everyone, and that is something we can all celebrate.

Dr. Zacch has played a huge role in driving these reforms and this shows a real dedication to building a better tax system in Nigeria. The Tax Boss shows he is taking steps to update how taxes are managed and encouraging teamwork. Thanks to his efforts, Nigeria is set to tap into its economic potential. This progress reflects smart planning that could greatly improve the country’s financial situation.

People should see a clearer and better Nigeria now. These are the much-needed reforms for everyone. Nigeria will be one of the strongest and richest countries in the world, where people will want to stay and invest, no more japa!

Arabinrin Aderonke Atoyebi is the technical assistant, broadcast media to the Executive Chairman, Federal Inland Revenue Service (FIRS)

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Strategic Partnerships, Diaspora Investment and Improved Workforce Critical to Industrialization-DG RMRDC

Published

2 days ago

November 12, 2026

The Gleamer

By: Stella Azi and Adaora Adibe

The Director-General/Chief Executive Officer of the Raw Materials Research and Development Council (RMRDC), Prof. Nnanyelugo Ike-Muonso, has called for a strategic shift from the exportation of raw commodities to domestic processing, manufacturing and value addition, declaring that Nigeria possesses enormous untapped raw material resources capable of driving industrialisation, creating jobs and strengthening the country’s economic competitiveness.

Prof. Ike-Muonso made this submission in a lecture titled Unlocking Nigeria’s Raw Material Value Chain for Industrialization, Manufacturing and Competitiveness, where he presented an extensive assessment of Nigeria’s resource endowments, industrial challenges and emerging investment opportunities across agricultural commodities, solid minerals and waste-based raw materials.

The lecture highlighted a combined US$2.65 trillion global market opportunity across 30 major raw material value chains, comprising 12 agricultural value chains valued at US$932 billion, 11 mineral value chains worth US$1.352 trillion and seven circular-economy value chains estimated at US$366 billion.

According to the RMRDC Boss, Nigeria must move beyond the traditional approach of extracting and exporting raw materials to building competitive domestic industries that transform these resources into intermediate products, industrial inputs and finished goods for local consumption and international markets.

He observed that the country’s manufacturing sector has struggled to sustain its 2014 peak, with its contribution to real Gross Domestic Product declining from 9.64 per cent in 2014 to 8.05 per cent in 2025, representing a 16.5 per cent decline. He also drew attention to the increasing cost of raw material imports, which rose to US$20.5 billion in 2025, approximately six times the 2020 level.

He explained that the growing dependence on imported industrial inputs exposes Nigerian manufacturers to foreign exchange volatility, increases production costs and weakens the competitiveness of locally manufactured products.

Prof. ke-Muonso stressed that the solution lies in developing domestic raw material value chains through deliberate investment in processing facilities, research and development, technology, infrastructure and stronger linkages between producers, processors and manufacturers.

He identified agriculture, solid minerals and industrial waste as three major resource platforms for Nigeria’s industrial transformation, stating the country’s significant production capacity and the enormous opportunities available for downstream processing.

Ike-Muonso noted that Nigeria produces over 63 million metric tonnes of cassava annually, making it the world’s largest producer, while also maintaining strong positions in cocoa, cashew, sesame, palm oil and cotton. However, more than 80 per cent of agricultural output leaves farms without adequate processing, resulting in the loss of significant economic value and industrial opportunities.

In the solid minerals sector, he identified more than 44 commercially viable minerals across over 500 locations, including lithium, gold, barite, bitumen, iron ore and high-grade limestone, describing them as strategic resources capable of supporting steel production, energy storage, electrification and advanced manufacturing.

The DG further drew attention to Nigeria’s industrial and agro-waste resources, noting that the country generates over 32 million tonnes of solid waste annually. He explained that agricultural residues, cassava peels, scrap metals, plastics and electronic waste could serve as important feedstock for bio-fertilisers, industrial chemicals, recycled polymers, energy production and other manufacturing applications.

In the agricultural sector, the DG identified cassava and industrial starch, cotton and natural textiles, natural rubber and elastomers, oil palm and oleochemicals, maize derivatives and cocoa processing as priority areas requiring increased investment.

He explained that processing agricultural commodities into industrial starch, sweeteners, textiles, technical rubber, specialty fats and other intermediate products would enable Nigeria to capture more value from its agricultural resources while reducing dependence on imported industrial inputs.

For the minerals sector, he highlighted crude oil-to-olefins and petrochemicals, lithium and energy storage, iron ore and steel, rare earth elements, bauxite and aluminium, and copper and electrification as strategic investment opportunities.

He particularly emphasised the importance of moving beyond mineral extraction into beneficiation, refining, battery precursors, industrial chemicals, metal fabrication and advanced materials production.

On the circular economy, Prof. Ike-Muonso identified electronic waste recovery, scrap metal recycling, plastic waste processing, agro-waste valorisation and battery recycling as emerging industrial opportunities.

He explained that transforming waste into productive industrial feedstock would not only reduce environmental pollution but also create new manufacturing industries, generate employment and reduce the importation of valuable industrial materials.

He noted that to address the structural challenges confronting raw material-based industrialisation, the DG highlighted the strategic interventions of the RMRDC, particularly the proposed 30% Value Addition Bill and the Nigeria Integrated Information Statistical System for Raw Materials and Products (NISSRAMP).

He described the 30% Value Addition Bill as an important policy instrument designed to encourage domestic processing of raw materials before export, strengthen local manufacturing capacity and guarantee access to essential raw materials for Nigerian industries, and NISSRAMP as a critical data infrastructure that would improve access to verified information on the availability, location and quality of raw materials.

According to him, the combination of appropriate policy instruments and reliable resource data would help de-risk investments, improve transparency and strengthen confidence in Nigeria’s raw material sector.

He emphasised the importance of collaboration among government, academia and industry in developing bankable projects, sharing investment risks and accelerating the establishment of processing and manufacturing facilities.

Professor Ike-Muonso called on Nigerians in the diaspora and other local and international investors to take advantage of the opportunities available in Nigeria’s raw material sector.

He identified industrial processing parks, mineral beneficiation and refining, agro-industrial platforms, circular-material processing, industrial input manufacturing and enabling infrastructure as viable investment platforms.

He noted that diaspora investors could contribute beyond financial capital by bringing technology, international business networks, governance standards, technical expertise and access to global markets.

He maintained that Nigeria’s industrial transformation requires coordinated investment across the entire value chain, from raw material sourcing and aggregation to processing, manufacturing, certification and export development.

Professor Ike-Muonso stressed that the country’s industrial future would depend not merely on the volume of raw materials extracted but on the capacity to transform them into competitive products that meet domestic and international market requirements.

He maintained that developing local value chains would stimulate industrial growth, create employment opportunities, diversify exports, conserve foreign exchange and deepen Nigeria’s technological capabilities.

Through its strategic interventions, the RMRDC is positioning itself as a critical bridge between resource availability, investment opportunities and industrial competitiveness, with the ultimate objective of transforming Nigeria from a predominantly raw material exporting economy into a strong manufacturing and value-adding nation.

Ike-Muonso has demonstrated this since assumption of office as the Director General/ CEO RMRDC in the area of capacity building, improved working conditions, promotion of merit, and maintaining a conducive environment that rewards excellence, innovation and dedication. This is evident in his institution of RMRDC training school, reward for winners of the RMRDC innovation challenge among others.

His commitment has brought recognition both nationally and internationally: Al-Jazirah double honour awards as Public Servant /Government Agency of the year 2024-2025 and the recent election as the Sub-Saharan Africa Regional Representative on the Board of the World Association of Industrial and Technological Research Organisations (WAITRO) is a attestation to his commitment.

Concluding the lecture, the DG charged staff, researchers, manufacturers and investors to see themselves as nation builders in the new era of raw materials-led industrialization.

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