NEWS
Almost Half of Nigeria’s Revenue Goes to Debt Servicing – Oyedele
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.
NEWS
Fire Ravages Gombe Technology Centre, N4m Property Lost
A fire outbreak has ravaged part of the Technology Incubation Centre near the Police Headquarters in Gombe, destroying property estimated at N4 million.
The incident occurred on Friday and affected five shops at the centre, according to the Federal Fire Service, Gombe State Command.
The command said its prompt intervention prevented the fire from spreading further, enabling firefighters to save property estimated at N15 million.
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The Federal Fire Service said it received a distress call about the incident at approximately 10:14 a.m., after which a multipurpose water tender was immediately deployed to the scene.
The firefighting operation was led by ASF II Mukhtar Shehu, with IF Bernard serving as the driver.
The crew successfully contained the blaze and extinguished it using one medium jet of water.
According to the command, four of the five affected shops were successfully saved, limiting the extent of the damage.
The command’s Public Relations Officer, ASF MB Muazu, said firefighters carried out a thorough inspection after extinguishing the flames and confirmed that there was no immediate threat of re-ignition.
Muazu said, “The Federal Fire Service, Gombe State Command, has successfully contained a fire outbreak involving five shops at the Technology Incubation Centre, near the Police Headquarters, Gombe.”
He added, “Four of the five affected shops were successfully saved, with property estimated at N15m salvaged, while the estimated loss stood at approximately N4m.”
The fire appliance and crew returned to the station at about 11:09 a.m. after confirming that the fire had been completely extinguished.
The Federal Fire Service reaffirmed its commitment to responding promptly to emergencies and protecting lives and property.
Muazu urged members of the public to report fire incidents promptly and adhere to basic fire safety precautions to prevent avoidable losses.
NEWS
OPEC Hails Tinubu’s Reforms, Oil Output on Nigeria’s Economy
The Organisation of the Petroleum Exporting Countries (OPEC) has expressed the view that Nigeria’s positive economic outlook is predicated on the strategic reforms of the President Bola Ahmed Tinubu administration and improved crude oil output.
The views were expressed in its latest assessment of the Nigerian economy, in which it noted that the country’s economy expanded by 3.9 percent year-on-year in Q1, 2026.
It added that the growth rate was only slightly below the 4.0 percent recorded in the fourth quarter of 2025, a confirmation that economic growth remained close to recent highs.
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According to the oil producers’ organisation, the non-oil economy continued to provide the main support for growth, with activity driven by agriculture, manufacturing, construction, trade, finance and insurance.
It pointed out that higher oil output had also improved fiscal revenues, foreign exchange inflows and external buffers. “The economy expanded by 3.9 percent, year-on-year, in 1Q26, only slightly below the 4Q25 pace of 4.0 percent, confirming that growth remains close to recent highs,” OPEC stated.
The organisation said survey indicators pointed to continued, though moderating, momentum in private-sector activity. It noted that the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) eased to 52.5 in July, from 53.4 in June and 54.1 in May.
The July reading, it said, was the weakest since March but still signalled a sixth consecutive monthly improvement in private-sector conditions. The OPEC said firms again reported a marked increase in new orders, supported by improved customer demand, better pricing and new product launches.
It added that output and employment also rose modestly during the month. The organisation predicted that higher domestic refining capacity, particularly improved fuel supply from the Dangote Petroleum Refinery and Petrochemicals (DPRP), should further support energy availability and reduce some of the pressures associated with petroleum imports.
“Higher domestic refining capacity, including improved fuel supply from the Dangote refinery, should continue to support energy availability and reduce some import-related pressures,” OPEC stated.
The DPRP, with a nameplate capacity of 650,000 barrels per day, has become a major source of locally refined petroleum products as its operations have expanded.
The refinery’s increased supply of petrol and other refined products has also reduced some of the country’s reliance on imported petroleum products, in line with the impact highlighted by the OPEC.
On inflation, the OPEC said pressures had begun to soften, with headline inflation standing at 15.9 percent year-on-year in both June and May. “The July PMI pointed to softening input costs, despite higher fuel and raw material costs,” the organisation stated.
The report said the moderation in input costs was an indication that some cost pressures facing businesses had begun to ease, although higher fuel and raw material costs remained a challenge.
The OPEC said Nigeria’s near-term outlook remained positive, with oil production, reform progress, infrastructure investment and stronger business activity providing support.
“Overall, Nigeria’s near-term outlook remains positive, supported by oil production, progress on reforms, infrastructure investment, and stronger business activity,” it stated.
NEWS
State Police Bill: FG Extends Deadline for Nigerians to Submit Memoranda
The Presidential Working Group on the National Policing Bill has extended the deadline for the submission of memoranda and position papers on the proposed legislation to Friday, August 21, 2026.
The extension, announced on Thursday, is aimed at giving Nigerians, institutions and other stakeholders more time to prepare and submit substantive contributions to the proposed reform of the country’s policing architecture.
SEE ALSO: Tinubu Pushes State Police, Sends Constitutional Amendment Bill to Reps
Chairman of the Working Group and Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, said the additional time was necessary to ensure broad consultation and enable stakeholders to make well-considered and technically sound contributions.
“The Presidential Working Group is committed to ensuring that the process of developing the National Policing Bill benefits from broad consultation and the informed perspectives of Nigerians and relevant stakeholders.
“The proposed legislation is intended to provide the operational, administrative, institutional and funding framework necessary for an effective policing architecture that responds to Nigeria’s evolving security needs while providing appropriate safeguards for accountability, professionalism and the protection of citizens’ rights,” Gbajabiamila said.
The Working Group had initially set August 13 as the deadline for public submissions but has now shifted it to 5:00 p.m. WAT on August 21.
Gbajabiamila urged legal practitioners, civil society organisations, security sector professionals, state governments, professional bodies, academics, experts and other interested members of the public to take advantage of the extension.
“All submissions must be made on or before 5:00 p.m. WAT on Friday, August 21, 2026, exclusively through the official National Policing Bill portal, nationalpolicingbill.com,” he stated.
According to the Working Group, the proposed legislation will address critical areas including sustainable funding, command and control structures, recruitment and training standards, operational jurisdiction, inter-agency coordination, accountability mechanisms and safeguards against political interference or abuse.
Gbajabiamila said these issues make extensive stakeholder engagement essential to producing a policing framework that is effective, accountable, sustainable and responsive to the security needs of communities across the federation.
“The Working Group recognises that developing an effective policing framework requires careful consideration of critical issues, including sustainable funding, command and control structures, recruitment and training standards, operational jurisdiction, inter-agency coordination, accountability mechanisms and safeguards against political interference or abuse.
“These considerations underscore the importance of robust stakeholder engagement in developing a framework that is effective, accountable, sustainable and responsive to the peculiar security needs of communities across the Federation,” he said.
The Working Group, inaugurated by President Tinubu to develop the legal framework for the implementation of state police, is expected to present a final, implementation-ready draft of the National Policing Bill for onward legislative processing.
The proposed bill is being developed alongside the constitutional amendment process required to establish state police, with the legislation expected to provide the detailed operational framework for federal and state policing.






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