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FG Introduces 50% Tax Relief For Companies Increasing Low-Income Worker Salaries
In a bid to strengthen support for low-income workers and stimulate job growth, the Federal Government has introduced a bill proposing a 50 percent tax relief for companies that raise salaries or provide transportation allowances for employees earning below N100,000 per month.
This move is part of broader tax reforms under the proposed “Nigeria Tax Act,” aiming to overhaul Nigeria’s tax system.
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The bill, titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters,” was presented to the National Assembly for review.
If enacted, the law will enable companies to qualify for a tax deduction in their 2023 and 2024 assessment years, covering wage increases and transportation subsidies for eligible workers.
The tax relief is limited to companies that support low-income employees and does not extend to additional wages for staff with monthly salaries above N100,000.
Additionally, the proposal incentivizes companies to increase their workforce.
Firms that achieve a net increase in hires from 2023 to 2024 and retain these employees for at least three years will qualify for the deduction, provided employees are not involuntarily terminated within this period.
“A company shall be entitled to an additional deduction of 50 per cent…for costs incurred in 2023 and 2024 calendar years on wage awards, salary increases, transportation allowance or transport subsidy,” the bill specifies, outlining provisions that focus on protecting workers’ earnings and employment stability.
Beyond wage relief, the government has also proposed an Economic Development Incentive Certificate as a tax incentive for companies undertaking capital investments.
To obtain the certificate, companies must apply through the Nigerian Investment Promotion Commission (NIPC) and pay a 0.1 per cent fee on their capital expenditure, capped at N5 million.
After the NIPC’s review, applications will be forwarded to the Minister and may be escalated to the President for approval.
This proposed tax bill marks a major shift in Nigeria’s tax policy, designed to boost employment, support low-income workers, and encourage corporate investment in capital projects.
The Governor of Benue State, Rev. Fr. Hyacinth Alia, has assured corps members deployed to the state of their safety, despite rising security concerns across the region.
Speaking on Friday through the Commissioner for Youth, Sports Development and Creativity, Hon. Terkimbi Ikyange, Governor Alia said his administration is working closely with security agencies to ensure the safety and well-being of all National Youth Service Corps (NYSC) members throughout their service year.
“Sadly, our nation is currently bedevilled with security challenges, and Benue State is not exempt,” the governor stated.
“However, let me quickly allay your fears and assure you that, as a government, we are committed to ensuring that your safety is guaranteed throughout your stay in the state.”
He noted that comprehensive protective measures have been implemented across corps lodges and other areas occupied by corps members in the state.
Governor Alia also encouraged the new corps members to take full advantage of the NYSC’s Skills Acquisition and Entrepreneurship Development (SAED) programme, describing it as a “gateway to great opportunities.”
He further urged them to use their God-given talents to contribute meaningfully to the nation’s development.
In her remarks, the State Coordinator of the NYSC, Mrs. Veronica Garba, thanked the governor and the people of Benue for their continued support of the scheme.
She charged the new inductees to actively participate in the four cardinal components of the orientation course: physical training, motivational lectures, sporting activities, and SAED.
The orientation exercise welcomed a total of 1,600 corps members, officially inducted into the programme by Justice Peter Ukande, who represented the Chief Judge of Benue State, Justice Maurice Ikpambeae.
The Federal Ministry of Health and Social Welfare has approved the appointment of a new Acting Director of Administration for the David Umahi Federal University Teaching Hospital (DUFUTH), Uburu.
This was contained in a statement in Uburu on Thursday by the DUFUTH’s Public Relations Officer, Agwu N. O.
According to Agwu, the new appointee is Edith Anih, an indigene of Enugu State with relevant working experience, having worked at the University of Nigeria Teaching Hospital (UNTH), Enugu, where she was Deputy Director of Administration.
It was gathered that the approval was conveyed in a letter dated April 23, 2025, addressed to the Chief Medical Director.
Prior to her appointment, Anih held the position of Deputy Director of Administration at the University of Nigeria Teaching Hospital (UNTH), Enugu.
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He wrote, “Mrs. Anih Edith Ndidi is a seasoned administrator born on May 22, 1973. She is married and hails from Enugu State, specifically Enugu South Local Government Area.
“She holds a Bachelor’s degree in Public Administration and a Master’s degree in Human Resources Management. She is also an associate member of the Institute of Health Service Administrators of Nigeria (IHSAN).
“The Management of DUFUTH extends a warm welcome to the new DA and looks forward to collaborating with her as she brings a fresh perspective to the hospital’s administrative leadership.”
The Federal Government of Nigeria is set to launch a forensic audit of the Nigerian National Petroleum Company Limited (NNPCL), in a major move aimed at enhancing transparency and accountability in the oil and gas sector.
This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the ongoing Nigerian Investor Forum, held on the sidelines of the IMF/World Bank Spring Meetings in Washington DC.
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Edun explained that the upcoming audit, along with recent changes in NNPCL management, is part of a broader effort to reform the state-owned oil company and rebuild trust in Nigeria’s economic institutions.
Addressing top global investors, including representatives from financial giant J.P. Morgan, Edun outlined a series of bold economic reforms introduced by the administration of President Bola Tinubu.
He said the measures are already yielding positive results and have laid a strong foundation for future growth.
“Our goal is not just to maintain this momentum, but to accelerate it,” Edun said. “We are targeting seven per cent annual growth, and we believe the policies we have implemented have laid the groundwork to achieve this.”
According to Edun, Nigeria’s economy grew by 3.84% in the fourth quarter of 2024, with an overall annual growth rate of 3.4%.
He described the government’s economic strategy as “unprecedented,” adding that key indicators such as the budget deficit, trade balance, and exchange rate have all shown signs of improvement.
“We said we would do it, and now we have done it. This time, we’re staying the course,” he emphasized.
The minister also highlighted the government’s focus on agriculture as a critical driver of economic growth, saying efforts are underway to close the food supply gap by empowering local producers.
“We aim to close the food supply gap, not by importing more, but by enabling domestic producers to scale and innovate,” he said.
In the area of infrastructure, Edun announced that 90,000km of fibre optic cable has been rolled out to boost internet connectivity, especially for young Nigerians and the tech ecosystem.
Additionally, 4,000km of roads have been earmarked for private sector participation, with the first 1,000km already approved for construction.
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