President Bola Tinubu’s economic policies are making waves, with tax reforms designed to boost investor confidence, ease financial burdens on workers, and drive business expansion.
A key highlight is the exemption of minimum-wage earners from personal income tax, ensuring relief for low-income Nigerians. Additionally, the proposed VAT increase has been halted at 7.5%, reducing inflationary pressure. Small businesses also benefit, as the tax exemption threshold has been raised from ₦25M to ₦50M in annual turnover, while corporate income tax has been slashed from 30% to 25%, encouraging investment and job creation.
Despite opposition from labour unions, analysts argue that these reforms prioritize fairness and economic growth. The revised VAT revenue-sharing formula now allocates 60% of VAT proceeds to states, empowering local governments with resources for development. Furthermore, the establishment of the Office of Tax Ombud ensures transparency and fairness in tax administration.
Supporters believe Tinubu’s reforms lay the groundwork for a more stable economy. With Senate approval pending, these policies could mark a turning point for Nigeria’s financial future, fostering prosperity, innovation, and long-term stability.
