Economy

The Nigerian Financial Intelligence Unit (NFIU) has welcomed Nigeria’s removal from the European Union’s list of high-risk third countries, describing it as a strong validation of the country’s financial integrity reforms implemented since 2023. In a statement issued in Abuja on Sunday, the NFIU said the development followed Nigeria’s exit from the Financial Action Task Force (FATF) Grey List in October 2025, as well as the European Union’s decision to delist the country in January 2026. According to the agency, the decisions by the FATF and the EU reflect the success of a coordinated national effort to strengthen Nigeria’s anti-money laundering, counter-terrorism financing and counter-proliferation financing frameworks. Commenting on the development, the Chief Executive Officer of the NFIU, Hafsat Bakari, said the delisting demonstrated the credibility and sustainability of Nigeria’s reforms, as well as the effectiveness of consistent implementation across government institutions. She noted that the milestone underscored Nigeria’s commitment to global standards on financial integrity while reinforcing international confidence in the country’s financial system. Read Also: Banks, Fintechs to Begin 7.5% VAT Deduction on Electronic Service Charges Monday Tinubu Returns to Abuja After Signing Major Trade Deal with UAE Nigerian Navy Launches High-Tech Agricultural Initiative to Boost Food Security Bakari explained that the reforms were carried out under the guidance of President Bola Ahmed Tinubu and supported by strategic leadership from the Attorney-General of the Federation and Minister of Justice, the Minister of Finance and Coordinating Minister for the Economy, the Minister of Interior, and the Minister of State for Finance, through the Inter-Ministerial Committee on AML/CFT/CPF. She added that the contributions of other ministries, security agencies, regulators and law enforcement bodies helped strengthen supervision of both financial and non-financial sectors, improve corporate transparency, and enhance investigations and prosecutions related to illicit financial activities. According to her, significant progress was also recorded in prosecutorial outcomes and international cooperation, particularly through the Federal Ministry of Justice, which played a key role in securing convictions, facilitating mutual legal assistance, and enabling the recovery and repatriation of illicit assets. Bakari further commended the judiciary, especially the Federal High Court, for timely adjudication and the imposition of proportionate sanctions that serve as effective deterrents against financial crimes. She disclosed that Nigeria is now consolidating the gains achieved and has begun preparations for its next AML/CFT/CPF Mutual Evaluation, reaffirming the country’s commitment to sustained collaboration and the protection of its financial system.

The Federal Government has directed commercial banks, microfinance institutions and fintech platforms to commence the collection and remittance of a 7.5 per cent Value Added Tax (VAT) on selected electronic banking service charges with effect from Monday, January 19, 2026. The directive applies strictly to service fees charged on electronic transactions and not to the actual amount transferred by customers. The Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service, said the move is aimed at standardising tax collection within Nigeria’s rapidly expanding digital economy and ensuring uniform compliance across the financial services sector. ‘The Historica Nigeria‘ reports that under the directive, financial institutions are required to deduct VAT solely from the transaction service fee. For instance, a transfer charge of ₦100 will now attract an additional ₦7.50 as VAT. Read Also: Inflation to Fall Below 10% as Nigeria’s Economy Rebounds — Tinubu Confirming the development in a notice to customers, fintech firm Moniepoint said it would begin implementing the directive from the stipulated date. The company explained that the VAT would be remitted to the Nigerian Revenue Service in line with government regulations. Moniepoint disclosed that the tax would apply to specific banking services, including electronic transfer charges, USSD transaction fees, mobile banking services and card issuance fees. According to details of the directive, VAT will be charged on mobile money transfers, USSD sessions and card-related fees, while interest earned on savings and deposit accounts remains exempt. The NRS further directed financial institutions to ensure transparency by clearly itemising VAT charges on transaction receipts and account statements to enable customers easily track deductions. The enforcement of VAT on electronic banking service charges follows the implementation of the new Tax Act, under which banks recently reinstated the ₦50 stamp duty formerly known as the Electronic Money Transfer Levy on electronic transfers of ₦10,000 and above. Although VAT on banking services is not entirely new, the NRS said the renewed enforcement is intended to ensure that both fintech platforms and traditional banks comply with the same remittance framework, thereby closing existing revenue gaps. As the January 19 commencement date approaches, customers are expected to receive similar notifications from other banks and fintech platforms detailing how the VAT deductions will apply to eligible electronic banking services.

The Nigeria Revenue Service (NRS) has officially commenced operations, replacing the former Federal Inland Revenue Service (FIRS) as the country’s new national tax authority. The transition follows the signing of the Nigeria Revenue Service Establishment Act 2025 by President Bola Ahmed Tinubu in June. The commencement of operations coincided with the beginning of the new year. The official launch was marked by the unveiling of the NRS logo and brand identity at an event held in Abuja, signalling a new phase in Nigeria’s revenue administration framework. Speaking on the development, the Executive Chairman of the NRS, Zacch Adedeji, described the rebranding as a major milestone in the ongoing efforts to modernise Nigeria’s revenue system. Read Also: Tax Reforms on Track as Tinubu Dismisses Suspension Rumours In a statement issued by his Special Adviser on Media, Dare Adekanmbi, Adedeji said the new identity reflects a renewed commitment to building a unified, efficient, and service-oriented revenue system aligned with Nigeria’s broader economic transformation agenda. He explained that the establishment of the NRS represents continuity of purpose, enhanced operational capacity, and a forward-looking approach aimed at supporting taxpayers while strengthening national development. Adedeji further reaffirmed the agency’s commitment to transparency, partnership, and service excellence, stressing that the NRS is focused on building public trust and promoting shared prosperity across the country.

President Bola Ahmed Tinubu has reaffirmed that the newly enacted tax laws will be implemented as scheduled, dismissing speculations about any suspension or reversal of the reforms. The President stated that the tax laws, which took effect on June 26, 2025, alongside other related Acts scheduled to commence on January 1, 2026, will proceed as planned. In a statement personally signed on Tuesday, Tinubu described the tax reforms as a once-in-a-generation opportunity to build a fair, competitive, and resilient fiscal foundation for Nigeria. According to him, the new laws are not designed to increase taxes but to support a comprehensive structural reset of the tax system, promote harmonisation, protect taxpayer dignity, and strengthen the social contract between the government and citizens. The President urged all stakeholders to support the implementation phase, noting that the reform agenda has now firmly entered the delivery stage. Read Also: FIRS Declares NIN as Automatic Tax ID for Individual Nigerians Tinubu Begins End-of-Year Break, Heads to Europe Kano APC Reiterates Unity, Ready to Receive Governor Yusuf He acknowledged ongoing public discourse over alleged changes to certain provisions of the laws but maintained that no substantial issues have been identified that would justify disrupting the reform process. Tinubu stressed that trust in governance is built over time through responsible decision-making rather than through premature or reactive measures, while reaffirming his administration’s commitment to due process and the integrity of laws already enacted. He further pledged that the Presidency would work closely with the National Assembly to ensure the timely resolution of any issues that may arise during implementation. The President assured Nigerians that the Federal Government would continue to act in the overriding public interest to establish a tax system that supports prosperity, equity, and shared responsibility.

Professionals, academics, civil society actors, and representatives of Small and Medium Enterprises (SMEs) in Kano have urged the Federal Government to suspend the implementation of the recently gazetted Nigeria Tax Administration Act (NTAA) 2025. The appeal followed a one-day stakeholders’ dialogue held at the Centre for Information Technology and Development (CITAD) on Sunday, 21 December 2025, in collaboration with the Association of Professional Bodies of Nigeria (APBN), Kano Chapter. The dialogue brought together tax administrators, economists, SME operators, and civil society actors to discuss the impact of the new tax law on small businesses, sub-national economies, and constitutional governance. While participants acknowledged that the NTAA aims to expand the tax net, simplify tax administration, and promote digital compliance, they warned that structural and procedural challenges such as weak public awareness, low SME digital readiness, and poor record-keeping could place undue burdens on small businesses. Stakeholders expressed serious concern over alleged discrepancies between the versions of the NTAA passed by the National Assembly and the gazetted version, the inclusion of punitive clauses, limited public consultation, and foreign technical partnerships that may compromise Nigeria’s fiscal data sovereignty. In a communiqué delivered by Dr. Ahmad Muhammad Sarari and signed by representatives of Kano professional bodies, including Engr. YZ Yau, Dr. Muhammad Awwal Haruna, and Engr. Murtala Gara, participants called on the relevant authorities to suspend the implementation of the NTAA pending a comprehensive legislative review, ensure full constitutional scrutiny, protect national tax data from foreign access, remove punitive clauses, introduce SME-friendly incentives, and enhance capacity-building to encourage voluntary compliance. Read Also: Ex-FIRS Boss Calls for Cancellation of Gazetted Tax Law NNPCL Restores Escravos–Lagos Pipeline After December Explosion National Grid Restored After Nationwide Power Collapse Highlighting data protection concerns, Engr. Rabi’u Haruna warned that national tax information may have been exposed to foreign partners in violation of the Nigeria Data Protection Commission Act, which safeguards data privacy and ensures responsible handling of national data. The stakeholders further cautioned that implementing the contested tax laws without addressing these concerns could trigger litigation, constitutional challenges, and a loss of public trust in Nigeria’s tax system. They pledged continued collaboration with civil society organizations and SME associations to pursue lawful remedies should transparency and legislative integrity continue to be undermined.