https://en.sputniknews.africa/20250201/nigerias-tax-reform-set-to-tackle-inflation-official-says-1070452887.html
Nigeria's Tax Reform Set to Tackle Inflation, Official Says
Nigeria's Tax Reform Set to Tackle Inflation, Official Says
Sputnik Africa
The inflation rate in Nigeria reached the highest values in Africa at 34.8% in December last year, with the country ranking fourth in the world in this... 01.02.2025, Sputnik Africa
2025-02-01T15:27+0100
2025-02-01T15:27+0100
2025-02-01T15:27+0100
sub-saharan africa
bola tinubu
nigeria
west africa
africa
economy
inflation
finance
taxes
inequality
https://cdn1.img.sputniknews.africa/img/07e9/02/01/1070452708_0:1:3092:1740_1920x0_80_0_0_984cb44e80e7fe222abb299c4f8c4f91.jpg
Presidential advisor Taiwo Oyedele defended Nigeria's tax reforms, aimed at curbing inflation by lowering costs. Following petrol subsidy removal and currency devaluation, President Bola Tinubu shifted focus to tax reform, targeting 15% inflation this year. Key reforms include a gradual value-added tax (VAT) increase to 12.5% by 2026, improved tax collection, and federal-state revenue sharing changes.VAT exemptions are proposed for food, medicine, and essentials (82% of spending) to lower citizen costs. Despite a possible 18% price increase on other goods, VAT revenue is projected to decline by 30-40%. The overhaul seeks better compliance, global alignment, and addresses Nigeria's low tax-to-GDP ratio.The VAT changes face criticism, with concerns about stifling consumption, similar to the 2019 hike. A major issue is the proposal to allocate 60% of VAT to states where it’s collected, up from 20%, which northern governors oppose, citing regional inequality concerns.The federal government is considering a counter-proposal from the governors, capping revenue-generating states' VAT share at 30%.
https://en.sputniknews.africa/20250128/inflation-in-nigeria-becomes-highest-in-africa-and-fourth-highest-globally-study-shows-1070388188.html
nigeria
west africa
africa
Sputnik Africa
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
2025
News
en_EN
Sputnik Africa
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
Sputnik Africa
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
bola tinubu, nigeria, west africa, africa, economy, inflation, finance, taxes, inequality, government, governor, prices
bola tinubu, nigeria, west africa, africa, economy, inflation, finance, taxes, inequality, government, governor, prices
Nigeria's Tax Reform Set to Tackle Inflation, Official Says
Ekaterina Shilova
Writer / Editor
The inflation rate in Nigeria reached the highest values in Africa at 34.8% in December last year, with the country ranking fourth in the world in this indicator.
Presidential advisor Taiwo Oyedele defended
Nigeria's tax reforms, aimed at curbing inflation by lowering costs. Following petrol subsidy removal and currency devaluation, President Bola Tinubu shifted focus to tax reform, targeting 15% inflation this year. Key reforms include a gradual value-added tax (VAT) increase to 12.5% by 2026, improved tax collection, and federal-state revenue sharing changes.
VAT exemptions are proposed for food,
medicine, and essentials (82% of spending) to lower citizen costs. Despite a possible 18% price increase on other goods, VAT revenue is projected to decline by 30-40%. The overhaul seeks better compliance, global alignment, and addresses Nigeria's low tax-to-GDP ratio.
The VAT changes face criticism, with concerns about stifling consumption, similar to the 2019 hike. A major issue is the proposal to allocate 60% of VAT to states where it’s collected, up from 20%, which northern
governors oppose, citing regional inequality concerns.
The federal government is considering a counter-proposal from the governors, capping revenue-generating states' VAT share at 30%.
