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Almost Half of Nigeria’s Revenue Goes to Debt Servicing – Oyedele

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Nigeria now spends less than 50 percent of her revenue on debt servicing, down from 90 percent where it was two years ago.

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee (FPTRC), Taiwo Oyedele, made the disclosure in Lagos on Monday, while presenting his keynote at PwC’s Executive Summit on Nigeria’s Tax Reform.

It held under the theme “The New Tax Era: What Nigeria’s Tax Reform Means to Individuals and Businesses”, and Oyedele highighted that the government was spending almost 97 percent of its revenue on debt servicing before the economic reforms.

“We’ve cleared unmet forex futures that were more than $7bn. And we moved from under $4 bn external reserve to over $20bn today. Budget deficit is declining, and we’re spending more on infrastructure.

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“Tax to GDP ratio moved from under 10 percent is now 13.5 percent in two years. Instead of 97 percent, service debt is now under 50 percent in two years. We no longer print money to spend. Rather, we’ve paid down part of the ways and means that the previous administration printed,” he stated.

He explained that the country’s currency could have become worthless if the Federal Government had not embarked on the current economic reforms.

According to him, Nigeria was heading in the direction of Zimbabwe and Venezuela, whose economies had collapsed.

“Nigeria today, without reforms, would have looked like that. Bigger deficits, more naira printed. We will have easily over $10bn unmet forwards. Tax to GDP ratio will be less than 10 percent. We’ll be spending over 100 percent of our revenue to service debts. You hold money; you will not find PMS to buy. There’ll be more poverty, and there will be more ways and means.

“I thought to bring the currency. I’ll show you. So, this currency, this banknote in my hand, is 100 trillion Zimbabwean dollars. I’m not 100 trillion one notes. This note, at the time I got it, was barely enough to buy a loaf of bread. I gave my friend, whom I got this from, $10 and he is still grateful till tomorrow. This is what would have happened to Nigeria. Nigeria was the road to Venezuela and Zimbabwe.”

According to the FPTRC chair, the country could have reached a $1bn economy by now if the government had begun the ongoing economic reforms a decade ago.

“If some of these reforms that were done in the past two years had been done 10 years ago. I tell you authoritatively today, Nigeria will be a $1bn economy guaranteed. And the price of PMS will be under N300/litre because the exchange rate will be under N300 to the USD.

“We’ve done this analysis over the past 10 years. Comparable balance of payment between Nigeria, Kenya and South Africa. Yet naira has lost six and a half times more value than Kenya shillings and South African rand. If only we had maintained the same level of stability as those two other countries. Nigeria will be a $1tn economy. What that means is the size of the middle class will probably be 10 times what it is. Every single investor in the world will take a seriously enough about,” Oyedele asserted.

He argued that the government was wasting trillions of naira subsidising petrol, spending a large chunk of its revenue to service debt and was just printing naira at will.

“We committed them to subsidise PMS. It still wasn’t enough. NNPC took the taxes they were supposed to pay and they used that as well. It was not enough. They started taking the taxes of the other operators in the industry to also pay for the PMS. It still wasn’t enough. If we had continued till this day, the subsidy regime would have collapsed.

“Naturally, you would hold N100,000; you will not find a litre of PMS to buy. And I said that with all sense of responsibility. Responsibility because we’re running out of fiscal space to deal with the subsidy.

“Many people like you, including myself, knew there was a lot of corruption in it. That’s true. Could we have removed the corruption in the time frame? No. We had a huge budget deficit. We printed over N30tn to spend. We’re not building roads. It wasn’t that we’re building electricity. We were paying salaries,” he emphasised.

“Many people like you, including myself, knew there was a lot of corruption in it. That’s true. Could we have removed the corruption in the time frame? No. We had a huge budget deficit. We printed over N30tn to spend. We’re not building roads. It wasn’t that we’re building electricity. We were paying salaries,” he emphasised.

Oyedele disclosed that only three per cent of informal sector operators could pay taxes in Nigeria.

He explained, “From our analysis, it is only the top three per cent of the informal sector that has the ability to pay. Therefore, in these reforms, we have legally exempted the bottom 97 per cent from paying taxes. Let them breathe. When they grow, they will have the capacity to pay. And many people would ask me, ‘Are you sure that all the companies in Nigeria will not become small?’.

“This will happen anywhere in the world if you create an exemption threshold. People want to force themselves to be under the threshold. Isn’t it because they don’t want to pay tax? It’s hard to pay tax anywhere in the world. Nigerians are not bad people. They’re not worse than people who live in other countries where things work. The difference is the system. So, the system we are building is that if you like to go and lie and say your business is small when it is not, we will find out, and there shall be consequences for those who underdeclare and engage in tax evasion.”

According to the FPTRC chair, the country’s tax is now progressive, and all the major taxes have become progressive.

Oyedele also disclosed that the gazette of the recently signed tax law was being printed in Lagos, and the final copy of the tax would be released to the public afterwards.

Recall that President Bola Tinubu signed four bills into law on June 26, but they would become effective on January 1, 2026.

Also, the Regional Senior Partner, PwC West Market Area, Sam Abu, noted that the reforms embarked on by the government were a good starting point for engaging in that conversation very robustly.

“Policy alone won’t deliver. Real change requires partnership and commitment. It required every single one of us here, the government, business leaders, and private sector individuals, to collaborate and work together to shape what will come up, to shape the kind of society and the kind of business community that we want to operate together, that we want to believe is okay. It requires us to engage with the spirit of these reforms, with sincerity, with integrity and with optimism,” he emphasised.

He said perspectives of stakeholders were critical in ensuring that those reforms take root and deliver on the outcomes that had been promised.

“Everybody has had a part to play in this regard. So, a PWC objective is clear. We want to remove complexity from tax. We want to help our clients anticipate risk and deliver solutions that are practical and tailored to their businesses, so that you, as business leaders, can focus on what you do best, which is making an impact on growing your businesses,” Abu added.

Major highlights of the new tax law are the exemption of employees who earn less than N800,000 annually from the personal income tax, the harmonisation of federal taxes and making the Federal Inland Revenue Service the sole collector of federal taxes.

Meanwhile, Partner and Tax and Regulatory Service Leader, Chijioke Uwaegbute, added that with the new tax law, by January 1, 2026, an entity that is resident abroad will be fully taxed in Nigeria if it is being controlled from the country.

“Control meaning where the board sits and things like that, or it is being effectively managed in Nigeria, being where the people who make the decisions sit. That is potentially a big one.

“Similarly, we have rules around indirect transfers as well. I have a situation where you dispose of or there’s a disposal of the shares of a foreign entity that owns a Nigerian company.  And if that disposal means that there’s a change in the ownership of the Nigerian company, that disposal then is seen as a taxable event in Nigeria, not minding the fact that the shares that were disposed of are not of the Nigerian company.

“So all of these rules that we see here are really to reflect some of the advances we’ve seen in other countries, minimise opportunities for avoidance and ensure that Nigeria is able to tax its fair share of taxes,” he said while highlighting major changes in the new tax law.

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NEWS

Lagos Warns Hospitals Against Denying Emergency Care Over Payment

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Lagos to Tackle Health Tourism with World-Class Health System — Sanwo-Olu

The Lagos State Government has warned healthcare providers against denying emergency medical treatment to patients because of financial constraints, insisting that patients must be stabilised before payment or health insurance details are discussed.

Governor Babajide Sanwo-Olu gave the warning on Wednesday while flagging off the enforcement of Executive Order EO/BOS/01 of 2024 and unveiling the Lagos Private Health Plans (LPHP).

The governor said the policy was designed to protect residents from the financial burden of unexpected medical expenses and ensure that access to healthcare does not depend solely on their ability to pay when illness or an emergency occurs.

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“We are also setting a firm boundary for all healthcare providers, no hospital in Lagos is permitted to turn away anyone needing emergency care due to financial constraints,” Sanwo-Olu said.

“Patients must be stabilized first before any payment or insurance details are discussed,” he added.

Under the arrangement, Lagos residents have until December 31, 2026, to obtain health insurance coverage, with formal enforcement scheduled to begin on January 1, 2027.

Explaining the need for the policy, the governor said rising healthcare costs had made reliance on direct payments during emergencies increasingly difficult for families.

“Healthcare costs are rising rapidly and relying on cash payments when an emergency strikes simply does not work,” he said.

“We are changing that system today so that quality care is accessible to all without putting your life savings at risk.”

The initiative introduces the Lagos Private Health Plans to extend insurance coverage to salaried workers and corporate organisations, complementing the existing Ilera Eko scheme, which caters to vulnerable residents and people working in the informal sector.

According to Sanwo-Olu, 21 Health Maintenance Organisations (HMOs) have already joined as partners to expand coverage across the private sector.

Lagos Increases Health Equity Fund to ₦3bn

As part of efforts to ensure that low-income residents are not excluded from healthcare coverage, the state government has increased its Health Equity Fund from ₦1 billion to ₦3 billion.

Sanwo-Olu said the expanded fund would enable the government to pay insurance premiums directly for more than 500,000 residents who cannot afford coverage on their own.

“To ensure no one is left behind, we tripled our Health Equity Fund from ₦1 billion to ₦3 billion,” he said.

“This allows us to pay premiums directly for over 500,000 residents who cannot afford insurance on their own.”

The governor also emphasised that employers must take responsibility for the healthcare coverage of their workers, describing it as a mandatory obligation comparable to pension contributions.

“To our business owners and employers, employee healthcare is not an optional extra, it is a mandatory responsibility just like pensions,” he said.

He added that strengthening healthcare financing would help retain medical professionals in the country.

“To our doctors and medical professionals, strengthening our healthcare financing builds the solid foundation we need to keep your talents right here at home,” Sanwo-Olu said.

The governor maintained that the reform would help families avoid financial hardship caused by unexpected medical bills while encouraging more residents to seek treatment when necessary.

“We are protecting families from the burden of unexpected medical bills, helping more people seek care when they need it and building a healthcare system that works for everyone,” he said.

He added: “No one should have to choose between getting medical care and protecting their household finances.”

With the December 31 deadline approaching, residents, workers and employers are expected to obtain the required health insurance coverage before formal enforcement begins on January 1, 2027.

Sanwo-Olu said the ultimate objective was to build a healthcare system in which quality medical services were accessible and affordable to residents across the state.

 

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NEWS

₦70,000 Monthly Allowance: FG, NLC Leave Minimum Wage Dispute Unresolved

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The Federal Government and the Nigeria Labour Congress (NLC) have agreed on a ₦70,000 monthly transport allowance for workers for six months, beginning in November 2026, but failed to resolve their disagreement over the effective date for implementing the national minimum wage.

The agreement was reached at a conciliation meeting between the Federal Government and organised labour at the Ministry of Labour and Employment in Abuja on October 27, 2026.

The transport intervention is part of measures proposed by the Federal Government to cushion the effects of rising petroleum pump prices and the resulting pressure on workers’ finances.

SEE ALSO: NLC Ultimatum: Wage Demands Can Be Resolved in Two Weeks – HR Expert

Under the resolutions reached at the meeting, the government will provide the monthly transport allowance for six months, beginning in November.

However, despite the agreement on transport support and other welfare measures, the minimum wage implementation date remains unresolved.

FG, NLC to Begin Minimum Wage Negotiations

As part of efforts to address the disagreement, the meeting agreed that the Minimum Wage Negotiation Committee should be constituted and commence meetings immediately.

The move is expected to provide a platform for further discussions between the government and organised labour on workers’ minimum wage demands.

The failure to agree on an implementation date leaves the issue open even as both parties pursue other measures aimed at easing the financial pressure on Nigerian workers.

FG Agrees to Pay Outstanding Allowances

The resolutions also provide for the payment of peculiar allowance arrears in three equal monthly instalments beginning in November 2026.

For health workers, the Federal Government agreed to redeem 19 months of outstanding allowances within three months, starting in December 2026.

The meeting also addressed the proposed hazard allowance for agricultural officers.

According to the resolutions, the Federal Ministry of Agriculture and Food Security had submitted the list of beneficiaries and the associated cost implications to the National Salaries, Incomes and Wages Commission for verification.

The commission is expected to complete the verification exercise within two weeks and issue an implementation template.

Decision on Health Workers’ Salary Adjustment Pending

The proposed adjustment to the Consolidated Health Salary Structure (CONHESS) was also discussed during the meeting.

The National Salaries, Incomes and Wages Commission is expected to complete an updated assessment of the cost implications within three weeks.

The assessment will be forwarded to the Presidential Committee on Salaries for consideration.

No final decision on the proposed adjustment was announced in the resolutions.

Tax Relief Referred to NEC

On tax relief for workers, the meeting agreed that the matter should be referred to the National Executive Council (NEC) for consideration.

The resolutions stated that, “Since tax is a statutory matter, the issue of tax relief for workers will be taken to National Executive Council (NEC).”

The meeting did not specify the proposed tax relief measures or when a final decision would be made.

FG, NLC to Review Implementation

The Federal Government and the NLC also urged state and local governments to participate in the intervention process.

The parties agreed to reconvene after one month to assess progress on the resolutions reached at the meeting.

The agreement was signed on behalf of the Federal Government by the Minister of Labour and Employment, Dr Muhammad Maigari Dingyadi; the Director-General of Budget, Timi Yakubu; and the Permanent Secretary of the Service Welfare Office in the Office of the Head of the Civil Service of the Federation, Dr Garba Abdul S.U.

NLC President, Comrade Joe Ajaero, signed on behalf of the Congress, while Olowoyo Gbenga signed for the Joint National Public Service Negotiation Council (JNPSNC).

 

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Tinubu Congratulates Lula on Re-Election, Seeks Stronger Nigeria-Brazil Ties

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President Bola Ahmed Tinubu has congratulated Brazilian President Luiz Inácio Lula da Silva on his reported re-election for a fourth term, expressing his desire to strengthen Nigeria-Brazil relations across trade, investment, energy and other key sectors.

Tinubu conveyed his congratulations in a statement dated October 26, 2026, in Abuja, describing Lula as his friend and emphasising the historical ties between Nigeria and Brazil.

SEE ALSO: Peter Obi Demands Release of Rilwan Olawale, Accuses Tinubu of Undermining Democracy

The Nigerian president said Lula’s renewed mandate presents an opportunity for both countries to strengthen their longstanding friendship and expand cooperation in areas of mutual interest.

“Your renewed mandate offers an opportunity to strengthen the longstanding friendship and historical ties between Nigeria and Brazil,” Tinubu said.

He noted that Nigeria and Brazil, as leading nations of the Global South, could work together to promote economic integration and advance their shared interests amid a rapidly changing global order.

Tinubu said he looked forward to expanding cooperation between both countries in trade and investment, agriculture and food security, energy, oil and gas, manufacturing, science and technology, education, aviation and cultural exchange.

He also reaffirmed Nigeria’s commitment to strengthening multilateral cooperation with Brazil and advancing shared priorities across Africa, South America and the wider Global South.

“I affirm Nigeria’s continued commitment to working with Brazil to strengthen multilateral cooperation and advance shared priorities in Africa, South America, and across the Global South,” he said.

Tinubu, on behalf of the Nigerian people, wished Lula success in his new term in office.

“On behalf of the people of Nigeria, I wish you a successful new term in office,” the president added.

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