Latest news with #Tinubu
France 24
2 days ago
- Business
- France 24
Nigeria's Tinubu signs major tax overhaul
The west African economic powerhouse has a tax-to-GDP ratio of 13.5 percent, according to government figures, which is below the continental average. The country, split among 36 states, has long struggled to reform its tax system -- with the government saying its new package will "harmonise" levies across the nation. "For too long, our tax system has been a patchwork—complex, inequitable, and burdensome," Tinubu said on social media ahead of the signing, promising relief for poor and working-class Nigerians. The president's earlier reforms -- slashing a costly fuel subsidy and liberalising the naira exchange rate -- have won the praise of economists, saying such measures were long overdue. But they've also sparked massive inflation and a cost of living crisis. The four laws -- the Nigeria Tax Law, Nigeria Tax Administration Law, Nigeria Revenue Service (Establishment) Law, and Joint Revenue Board (Establishment) Law -- are a "one-stop shop," simultaneously increasing revenue generation and reducing the tax burden on low-income earners, tax expert Chukwuema Eze told AFP. With the country experiencing one of its worst economic crises in decades, the new laws exempt low-revenue small businesses from paying company tax and reduce corporate tax to 25 percent from 30 percent. The new regime also streamlines tax collection and reorganises revenue-sharing between federal and state governments -- though without completely upending the system that sees poorer, mostly northern states benefit from money put into the national pot from the oil-rich south. Major tweaks to the revenue-sharing system were dropped as the bills wound their way through the legislature, after proving controversial in a country where north and south remain divided along both economic, religious and ethnic lines. One of the laws renames the country's tax office to Nigerian Revenue Service (NRS) and strengthens its revenue generation capacity, though the federal government's earnings from the value-added tax (VAT) will decline, with more money allocated to individual states. Easing business environment The government hopes the reforms will ease the cost of doing business for both domestic and foreign firms operating in the west African powerhouse, whose economy has dived from the largest in Africa to fourth place under Tinubu's reforms. However, some tax experts including Nongomin Joshua, of Nongomin & Co, Practitioners, said the reforms will mean little if the government, marred by decades of corruption, can't spend the money effectively. "The question is, how effective, efficient, and how prudent are they managing what they have been collecting with the current taxes?" said Nongomin Joshua, of Nongomin & Co, Practitioners, an accounting group. Economist Kelvin Emmanuel based in Abuja, the capital, said the new reforms would be key in raising the tax-to-GDP ratio, a struggle for many African countries where millions work in the informal sector. "It will also strengthen the fiscal administration of local governments around Nigeria, as the new framework seeks to create a comprehensive governance framework for local governments around autonomy," he told AFP. © 2025 AFP
Int'l Business Times
2 days ago
- Business
- Int'l Business Times
Nigeria's Tinubu Signs Major Tax Overhaul
Nigerian President Bola Tinubu on Thursday signed four landmark bills into law aiming to overhaul the country's tax system, after backing away from more controversial tweaks that would have upended revenue sharing among states. The west African economic powerhouse has a tax-to-GDP ratio of 13.5 percent, according to government figures, which is below the continental average. The country, split among 36 states, has long struggled to reform its tax system -- with the government saying its new package will "harmonise" levies across the nation. "For too long, our tax system has been a patchwork--complex, inequitable, and burdensome," Tinubu said on social media ahead of the signing, promising relief for poor and working-class Nigerians. The president's earlier reforms -- slashing a costly fuel subsidy and liberalising the naira exchange rate -- have won the praise of economists, saying such measures were long overdue. But they've also sparked massive inflation and a cost of living crisis. The four laws -- the Nigeria Tax Law, Nigeria Tax Administration Law, Nigeria Revenue Service (Establishment) Law, and Joint Revenue Board (Establishment) Law -- are a "one-stop shop," simultaneously increasing revenue generation and reducing the tax burden on low-income earners, tax expert Chukwuema Eze told AFP. With the country experiencing one of its worst economic crises in decades, the new laws exempt low-revenue small businesses from paying company tax and reduce corporate tax to 25 percent from 30 percent. The new regime also streamlines tax collection and reorganises revenue-sharing between federal and state governments -- though without completely upending the system that sees poorer, mostly northern states benefit from money put into the national pot from the oil-rich south. Major tweaks to the revenue-sharing system were dropped as the bills wound their way through the legislature, after proving controversial in a country where north and south remain divided along both economic, religious and ethnic lines. One of the laws renames the country's tax office to Nigerian Revenue Service (NRS) and strengthens its revenue generation capacity, though the federal government's earnings from the value-added tax (VAT) will decline, with more money allocated to individual states. The government hopes the reforms will ease the cost of doing business for both domestic and foreign firms operating in the west African powerhouse, whose economy has dived from the largest in Africa to fourth place under Tinubu's reforms. However, some tax experts including Nongomin Joshua, of Nongomin & Co, Practitioners, said the reforms will mean little if the government, marred by decades of corruption, can't spend the money effectively. "The question is, how effective, efficient, and how prudent are they managing what they have been collecting with the current taxes?" said Nongomin Joshua, of Nongomin & Co, Practitioners, an accounting group. Economist Kelvin Emmanuel based in Abuja, the capital, said the new reforms would be key in raising the tax-to-GDP ratio, a struggle for many African countries where millions work in the informal sector. "It will also strengthen the fiscal administration of local governments around Nigeria, as the new framework seeks to create a comprehensive governance framework for local governments around autonomy," he told AFP.
Time of India
3 days ago
- Business
- Time of India
ECOWAS gets a new leader at pivotal time for West Africa
ECOWAS gets a new leader at pivotal time for West Africa (Image: AP) Nigerian President Bola Tinubu led the Economic Community of West African States (ECOWAS) for just under two years as its rotating chairman. But, in that short period, the main political and economic body in the region witnessed some of the biggest challenges in its history. With terror attacks and other security concerns ongoing, the ability of ECOWAS to respond to threats has been further reduced following the exit of Burkina Faso, Mali and Niger from the bloc under the leadership of their respective military rulers. Tinubu acknowledged as much in his speech at the ECOWAS summit over the weekend in Nigeria's capital, Abuja. The president expressed concern about the stalled process of rolling out an expanded ECOWAS Standby Force, which is made up of military, civilian and police components. The force was conceived in 2024 following the departures of the three Sahel nations, which established their own Alliance of Sahel States (AES) in 2023. "The ECOWAS Standby Force must move from concept to operational reality," Tinubu said, highlighting the need for a ready force to combat terrorism as well as other forms of organized crime in West Africa. "I am a little bit worried about the slow pace of its activation, which is taking longer than desired." The ECOWAS coffers received a fresh cash injection from the European Union last week of €110 million ($126 million) — though this is still a far cry from the estimated cost of €2.26 billion needed for the activation of the Standby Force. 'A completely fractured region' Though he expressed optimism that Burkina Faso, Mali and Niger would eventually "return to the family," Tinubu said he had exhausted "all diplomatic means to engage and dialogue with our brothers." The countries have categorically ruled out rejoining ECOWAS. "You now have a completely fractured region," Beverly Ochieng, a senior associate who specializes in the Sahel at the Center for Strategic and International Studies, told DW, citing successive coups in West Africa. "So you have three countries that have basically walked out of the bloc," Ochieng said. "You have one that's still under suspension until it holds its elections, and that is Guinea. And, broadly speaking, you have an ECOWAS that sometimes feels as if it is struggling to be able to just maintain a sense of unity in order for them to be able to face some of those challenges as a united front." Opposing alliances working together The AES has openly defied the authority that ECOWAS has established in the region over the past 50 years, and has been used as an example to underscore accusations that Tinubu showed too much resolve against the junta-led Sahel states during his ECOWAS presidency. "The rhetoric initially in response to the military coups may have been misplaced in the sense of ensuring open dialogue and cooperation," Ochieng said of Tinubu's hardball approach. Perhaps now as a gentle signal of rapprochement — or a final sign of defeat — ECOWAS also announced during its summit in Abuja that it had reached an agreement with the military juntas of Burkina Faso, Mali and Niger to work together in their fight against terrorism throughout the region. Ochieng said the effort was mainly based on "a realization by ECOWAS that they will ultimately have to find a way to work with the Sahel because the issues that affect the Sahel will ultimately have an impact on ECOWAS." The agreement stipulates that the principle of freedom of movement of goods and people between member states of both alliances will be maintained. A new chairman The new ECOWAS chairman, Sierra Leone President Julius Maada Bio, clearly has his work cut out for him — and he knows it, as the bloc faces unprecedented threats to its integrity. "The democratic space is under strain in parts of our region," Bio said in his opening remarks as ECOWAS president. "In some countries, the constitutional order has been disrupted." DW's Ben Shemang, who reported from the ECOWAS summit in Abuja, said Bio had pledged to prioritize democracy, security cooperation, economic integration and the institutional credibility of ECOWAS during his tenure. "Many are expecting a tenure that will not only strengthen security within the regional bloc but also to ensure unity," Shemang said. Organized crime on the rise The issues are piling up on Bio's desk. Organized crime is on the rise in West Africa against the backdrop of political and economic instability, and it often straddles multiple national borders, with insurgents mixing with criminals. Abductions for ransom, a spike in recreational drug abuse and a rise in illegal mining practices highlight the growing despair of people throughout a region with an overall population of 425 million people. "ECOWAS and some of its departments will talk about levels of crime, they'll talk about the issues affecting criminality," Ochieng said. "But when it comes to implementing measures to be able to counter to some of those vices, it's quite slow and bureaucratic." Threats of further fragmentation The founding of the AES has also emboldened leaders as well as opposition groups in the region and beyond to seek new directions, with many interpreting the actions of Mali, Burkina Faso and Niger as an overdue response to the lingering effects of colonialism. A recent survey in Togo carried out by the independent, pan-African research network Afrobarometer found that 64 percent of Togolese respondents found the establishment of the AES "somewhat" or "very" justified and that that 54 percent of Togolese thought their country would benefit from leaving ECOWAS to join the AES. Guinea, which has also been under military rule for close to four years but has not joined the AES, remains suspended from ECOWAS, which could lead the nation to further distance itself from the bloc. Uphill battles for both ECOWAS and the AES Such trends can be interpreted as evidence of the waning influence of former colonial powers, but they also reflect the fact that bodies such as ECOWAS appear to have little impact on people's daily lives, as instability and unrest continue to affect millions. "Understandably, there is a feeling that [ECOWAS] is not fit for purpose in terms of being able to address current political pressures, and in doing so, being able to address the issues that then lead to economic and civil unrest," Ochieng said. She added that ideas like "joining the AES feel like a more reactionary solution. And even the AES itself is a very reactionary institution." "Perhaps the AES could be moving in a direction that people feel is admirable, that is very purposeful, that is very driven, but it's also on a very fragile foundation," Ochieng said. "These are military leaderships. They have widespread unrest and instability that they are facing as they are trying to establish this institution." Growing numbers of people in the region nevertheless appear to be showing their support for strongmen tactics over democratic and consensus-led policies. Bio seemed to be aware of the big task that lies ahead as he begins his tenure. During his opening speech, the new leader of the bloc acknowledged that "ECOWAS must reform itself, and become more transparent, efficient and responsive to its people's needs."
Zawya
4 days ago
- Business
- Zawya
Nigeria: SGF Akume commends investment group for climate change initiative
The Secretary to the Government of the Federation, Dr George Akume, has praised the Africa Business Ventures and Investment Group (ABVIG) for its bold initiative in organising the Bi/Multilateral Africa Infrastructure and Climate Change Summit (AICIS) 2025. Akume, who was the special guest of honor at the stakeholders' engagement and global press briefing held at the Rotunda Hall, Ministry of Foreign Affairs, Abuja, emphasized the importance of Africa taking charge of its sustainable development. SGF, Who was represented by the Permanent Secretary, Economic and Political Affairs, Engr Nadungu Gagare, said, 'We commend ABVIG for this bold and visionary initiative,' Akume stated. 'As the world intensifies action to tackle the twin challenges of climate change and infrastructure gaps, Africa must be positioned not as a passive recipient of solutions but as an active architect of its own sustainable development.' The forthcoming summit, scheduled for later this year, aims to provide a continental platform for articulating, aligning, and activating collaborative strategies for resilient infrastructure and climate action across Africa. Akume pointed out that the summit's goals align with the priorities of President Bola Ahmed Tinubu's administration, which include strategic infrastructure development, energy transition, environmental sustainability, and inclusive economic growth. Akume stressed that Africa needs to assert its voice and agency in global climate discourse, ensuring its peculiar challenges and comparative advantages are well-represented in shaping global solutions. He also emphasized the importance of empowering women and integrating their voices into development and climate solutions, noting that this is crucial for achieving transformative agendas. Akume encouraged stakeholders to remain steadfast in their shared mission to build a prosperous, climate-resilient Africa anchored on inclusive infrastructure. 'The summit's success will depend on the active participation of governments, the private sector, development partners, and the diplomatic community.' Akume urged all stakeholders to align their efforts, pool resources, and harmonize policies to achieve the summit's objectives. By working together, Africa can develop sustainable infrastructure and mitigate the impacts of climate change. Akume expressed optimism and confidence that the summit's outcomes will significantly contribute to Africa's development trajectory and global standing. Also speaking, the Chairman of the Planning Committee, AICIS 2025, Hon. Moses Owharo emphasized the summit's significance, stating, 'AICIS 2025 represents a continental platform for driving Africa's sustainable development vision through climate-smart solutions.' 'The summit aims to unite governments, development finance institutions, private investors, technical experts, and civil society to forge actionable partnerships around Africa's infrastructure transformation and climate adaptation imperatives.' 'The summit will drive the global climate agenda in Africa, aligning with the United Nations Framework Convention on Climate Change (UNFCCC) and building on the outcomes of COP29. 'It will also attract investment to key sectors, connecting global investors to transformative projects in green energy, blue economy, and infrastructure development.' 'Furthermore, the summit will mobilize resources for infrastructure development, addressing Africa's infrastructure deficits and supporting climate resilience. 'Additionally, it will promote the blue economy, harnessing Africa's oceanic resources for GDP growth and sustainable development, and empower MSMEs and youth, providing a platform for entrepreneurial innovations and climate-focused solutions.' Owharo also highlighted the importance of Africa's leadership in global climate discourse, citing President Bola Ahmed Tinubu's statement at COP28 that 'strategic investment in green infrastructure is the catalyst for inclusive growth and long-term climate security.' 'The summit will feature a dynamic three-day executive workshop and plenary program, with over 3,000 participants, including high-level government officials, business leaders, institutional investors, and representatives from civil society. 'The event will also showcase innovative solutions across various industries, including aviation, marine transport, clean energy, digital infrastructure, and artificial intelligence.' 'With its focus on inclusive infrastructure and climate resilience, AICIS 2025 promises to be a landmark event in Africa's development calendar, providing a platform for knowledge sharing, networking, and partnership building.'
DW
4 days ago
- Politics
- DW
ECOWAS gets a new leader at pivotal time for West Africa – DW – 06/24/2025
Sierra Leone's president is assuming the rotating leadership of the Economic Community of West African States. Under previous chairman Bola Tinubu ECOWAS faced some of the greatest challenges in its 50-year history. Nigerian President Bola Tinubu led the Economic Community of West African States (ECOWAS) for just under two years as its rotating chairman. But, in that short period, the main political and economic body in the region witnessed some of the biggest challenges in its history. With terror attacks and other security concerns ongoing, the ability of ECOWAS to respond to threats has been further reduced following the exit of Burkina Faso, Mali and Niger from the bloc under the leadership of their respective military rulers. Tinubu acknowledged as much in his speech at the ECOWAS summit over the weekend in Nigeria's capital, Abuja. The president expressed concern about the stalled process of rolling out an expanded ECOWAS Standby Force, which is made up of military, civilian and police components. The force was conceived in 2024 following the departures of the three Sahel nations. "The ECOWAS Standby Force must move from concept to operational reality. I am a little bit worried about the slow pace of its activation, which is taking longer than desired," Tinubu said, highlighting the need for a ready force to combat terrorism as well as other forms of organized crime in West Africa. While also having faith that Burkina Faso, Mali and Niger would eventually "return to the family," Tinubu also highlighted the fact that he had exhausted "all diplomatic means to engage and dialogue with our brothers" during his tenure. The three nations, however, have categorically ruled out any suggestions of rejoining the fold. Beverly Ochieng, a senior associate at Center for Strategic and International Studies (CSIS) in Washington, says that in the wake of multiple coups in West Africa "you now have a completely fractured region." "So you have three countries that have basically walked out of the bloc; you have one that's still under suspension until it holds its elections, and that is Guinea; and broadly speaking, you have an ECOWAS that sometimes feels as if it is struggling to be able to just maintain a sense of unity in order for them to be able to face some of those challenges as a united front," Ochieng told DW. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video To add insult to injury, the establishment of the Alliance of Sahel States (AES) by the three renegade former ECOWAS members in 2023 openly defies the bloc's established authority in the region for the past 50 years, and has been used as an example to underscore accusations of Tinubu showing too much resolve against the junta-led Sahel states during his ECOWAS presidency. "The rhetoric initially in response to the military coups may have been misplaced in the sense of ensuring open dialogue and cooperation," says Ocheing, referring to Tinubu's hardball approach. Perhaps now as a gentle signal of rapprochement — or a final sign of defeat — ECOWAS also announced during its summit in Abuja last week that it had reached an agreement with the military juntas of Burkina Faso, Mali and Niger to work together in their fight against terrorism throughout the region. According to Ochieng, however, this move is mainly based on "a realization by ECOWAS that they will ultimately have to find a way to work with the Sahel because the issues that affect the Sahel will ultimately have an impact on ECOWAS." The agreement further stipulates that the principle of freedom of movement of goods and persons between member states of both alliances will also be maintained. Under these circumstances, ECOWAS' new chairman, Sierra Leone's President Julius Maada Bio, clearly has his work cut out for him and knows it, too, as the unity of the bloc and indeed much of the entire region is facing unprecedented threats to its integrity. Bio himself stated in his opening remarks as ECOWAS president that "the democratic space is under strain in parts of our region. In some countries, the constitutional order has been disrupted," referring in no uncertain terms to the military takeovers of Burkina Faso, Mali, Niger and Guinea in recent years. DW's Ben Shemang, who reported from the ECOWAS summit in Abuja last week, said that Bio had pledged to prioritize democracy, security cooperation, economic integration and the institutional credibility of ECOWAS during his tenure. "Many are expecting a tenure that will not only strengthen security within the regional bloc but also to ensure unity," Shemang explained. But at the same time, there are new issues piling up on the new leader's desk in addition to the widespread erosion of civilian rule and the proliferation of Islamist threats across West Africa: Organized crime is on the rise in West Africa against the backdrop of both political and economic instability, and it often straddles multiple national borders where insurgents mixing with criminals has resulted in growing unrest. Abductions for ransom, a spike in recreational drug abuse and a rise in illegal mining practices highlight the growing despair of people throughout a region with an overall population of 425 million people. If ECOWAS was a country with all its current, as well as former member states, it would be the third most-populous state in the world after Indiaand China. "ECOWAS and some of its departments will talk about levels of crime, they'll talk about the issues affecting criminality. But when it comes to implementing measures to be able to counter to some of those vices, it's quite slow and bureaucratic," says Ochieng. The bloc's coffers, meanwhile, just received a fresh cash injection from the European Union last week of €110 million ($126 million) — though this is still a far cry from the estimated cost of €2.26 billion needed for the activation of ECOWAS' Standby Force — outgoing ECOWAS President Tinubu's pet project. The foundation of the Alliance of Sahel States (AES), meanwhile, has also emboldened leaders as well as opposition groups in the region and beyond to seek new directions, with many interpreting the actions of these three countries as an overdue response to the lingering effects of colonialism and attempts at neo-colonialism. A recent survey in Togo carried out by the independent, pan-African research network Afrobarometer found that 64% of Togolese respondents found the establishment of the AES "somewhat" or "very" justified and that that 54% of Togolese thought their country would benefit from leaving ECOWAS to join the Alliance of Sahel States. Meanwhile, Guinea, which has also been under military rule for close to four years now but has not joined the AES, remains suspended from ECOWAS in a delicate balancing act which, if there's further discord, could also lead to the West African nation further distancing itself from the bloc. Such trends can be interpreted as evidence of the waning influence of former colonial powers but also reflect the fact that bodies like ECOWAS appear to have little impact on people's daily lives, as instability and unrest continue to affect millions. "Understandably, there is a feeling that [ECOWAS] is not fit for purpose in terms of being able to address current political pressures, and in doing so, being able to address the issues that then lead to economic and civil unrest," Ochieng told DW. She added that ideas like "joining the AES feel like a more reactionary solution. And even the AES itself is a very reactionary institution." "Perhaps the AES could be moving in a direction that people feel is admirable, that is very purposeful, that is very driven, but it's also on a very fragile foundation. These are military leaderships. They have widespread unrest and instability that they are facing as they are trying to establish this institution," she added. As growing numbers of people in the region nevertheless appear to be showing their support for strongmen tactics over democratic and consensus-led policies, Maada Bio is aware of this big task that lies ahead as he begins his tenure. During his opening speech, the new leader of the bloc acknowledged that "ECOWAS must reform itself, and become more transparent, efficient and responsive to its people's needs." To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
