S&P’s latest position places Nigeria on a stronger footing ahead of future reviews and sends a positive message to global investors assessing opportunities in Africa’s largest economy.
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Analysis: Tinubu’s Tax Bills & Nigeria’s Economic Future
On Thursday, President Bola Tinubu is expected to sign into law four sweeping tax reform bills aimed at overhauling Nigeria’s complex and inefficient revenue system.
According to the Presidency, these reforms mark a significant milestone in the country’s fiscal history and are poised to reshape the tax landscape for both individuals and businesses.
The bills: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill, have been in the works for several months and were passed by the National Assembly after consultations with stakeholders across the public and private sectors.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, confirmed the development in a statement on Wednesday evening, describing the reforms as “transformational.”
The bills will be signed into law at the Presidential Villa in Abuja in the presence of several high-ranking officials. Dignitaries expected include Senate President Godswill Akpabio, House Speaker Tajudeen Abbas, and Finance Minister Wale Edun, among others. The inclusion of governors and revenue committee leaders underlines the multi-tiered cooperation the reforms are meant to foster.
What the New Laws Aim to Do
At the heart of these reforms is a mission to modernize tax administration, streamline revenue collection, and encourage compliance. Each bill carries distinct goals:
- Nigeria Tax Bill (Ease of Doing Business):
This bill consolidates Nigeria’s fragmented and often contradictory tax laws into a single statute. The aim is to reduce the multiplicity of taxes and eliminate duplication, which has historically burdened businesses and discouraged compliance. The streamlined framework is expected to reduce the cost and complexity of doing business in Nigeria. - Nigeria Tax Administration Bill:
This legislation creates a harmonized legal and operational framework for tax administration across the federal, state, and local governments. By aligning tax processes nationwide, it intends to minimize bureaucratic inefficiencies and reduce conflict between different tiers of government over tax jurisdiction. - Nigeria Revenue Service (Establishment) Bill:
A key highlight of the reform package, this bill repeals the Federal Inland Revenue Service (FIRS) Act and establishes the Nigeria Revenue Service (NRS), a more autonomous and performance-driven national revenue agency. Its expanded mandate will include non-tax revenue collection, and it introduces a framework for transparency, accountability, and service delivery.
Joint Revenue Board (Establishment) Bill:
Designed to foster cooperation among federal, state, and local tax authorities, this bill creates a formal governance structure to oversee joint revenue efforts. Notably, it includes the creation of a Tax Appeal Tribunal and a Tax Ombudsman’s Office, both aimed at safeguarding taxpayer rights and offering avenues for dispute resolution.
What It Means for Nigeria’s Economy
At a time when Nigeria faces dwindling oil revenues, mounting public debt, and inflationary pressures, the move to reform tax administration is both strategic and necessary. Here’s what the new tax framework could mean in practical terms:
1. Improved Revenue Generation
Nigeria’s tax-to-GDP ratio, which hovers below 10%, is among the lowest in Africa. By streamlining collection and cutting down on evasion and inefficiencies, the reforms could significantly raise government revenues without introducing new taxes. This would help finance critical infrastructure and social services, reducing reliance on external borrowing.
2. Ease of Doing Business
For years, businesses in Nigeria have had to navigate a web of overlapping and often arbitrary taxes. The consolidated tax bill aims to simplify this environment, which could attract both domestic and foreign investors. A predictable tax system lowers the cost of compliance and encourages formal sector participation, an essential ingredient for sustainable growth.
3. Federalism and Fiscal Coordination
The creation of a Joint Revenue Board and a harmonized tax administration framework signals an effort to improve intergovernmental coordination. Historically, states and the federal government have clashed over tax authority and allocation. A unified system can reduce duplication and friction while increasing the efficiency of public finance at all levels.
4. Institutional Reform and Accountability
By replacing the FIRS with the Nigeria Revenue Service, the government appears committed to modernizing tax collection through a performance-driven model. The inclusion of oversight mechanisms, such as the Tax Ombudsman, signals a shift toward a more transparent and accountable system that protects taxpayer rights.
5. Risks and Implementation Challenges
While the reforms are ambitious and laudable, implementation will be key. Without proper training, digital infrastructure, and cooperation among agencies, the new framework could falter. Also, taxpayer trust, especially among SMEs, remains low, and it will take sustained outreach and consistent results to shift public perception.
Is This A Path to Fairer Taxation?
For ordinary Nigerians, tax often feels more like punishment than participation. With the cost of living soaring, many worry about what reform means for them. The government insists these laws will not introduce new taxes but will instead make the system more efficient and equitable.
If implemented as planned, these reforms could reduce harassment from tax agents, bring clarity to payment obligations, and ensure that citizens see more visible returns on their contributions to the public purse.
The signing of these four tax bills represents a foundational shift in how Nigeria manages one of its most crucial levers of development: domestic revenue. While the path ahead may be fraught with institutional and logistical hurdles, the reforms offer a chance to reset the country’s tax narrative, from one of confusion and coercion to one of clarity, fairness, and growth.
Whether the government can translate intention into impact will determine whether these laws truly become the game-changers they promise to be.
Ripplesnigeria.com
Abdulsamad Rabiu, the founder of BUA Group, has emerged as the fastest-growing African billionaire in 2025.
His wealth rise in 2025 is higher than Africa’s richest man, Aliko Dangote and other African billionaires.
According to the latest data from the Bloomberg index, Rabiu’s net worth has increased by $5.25 billion in 2025, bringing his total net worth to $8.4 billion as of Friday, November 14.
In comparison, Dangote who has a total net worth of $29.8 billion, has gained $1.75 billion from January to November 14, 2025.
The increase in Rabiu’s wealth is thanks to the performance of his key assets on the Nigerian Exchange: BUA Cement and BUA Foods, two of the largest companies in the country.
However, Dangote remains Africa’s wealthiest individual for total net worth
A Lagos-based financial analyst, Kelvin Umeni, said: “Rabiu’s companies have been performing strongly. If you check the half-year results of his two companies, you will realize he is doing very well. I am not surprised, and I expect him to hit a $10 billion net worth soon.”
Other African billionaires on the Bloomberg billionaire index have also recorded impressive gains this year but not at the same pace with Rabiu.
Johann Rupert, Africa’s second-richest man, has a total net worth of $18.4 billion as at Friday, an increase of $4.79 billion from the start of the year. His wealth is driven by stakes in Richemont.
Nicky Oppenheimer, another South African billionaire known for his holdings in De Beers, has gained $2.18 billion so far in 2025, bringing his wealth to $13.7 billion. While Egyptian billionaire Naguib Sawiris wealth totals $10.1 billion, which is a YTD increase of $3.23 billion.
His fellow countryman, Nassef Sawiris net worth currently stands at $9.42 billion, a $727 million growth in 2025.
South African entrepreneur Natie Kirsh fortune has increased by $530 million, taking his total net worth to $9.86 billion.
It is important to note that Dangote remains Africa’s richest man by a distance, but for wealth gain in 2025, Abdulsamad Rabiu is the rising star.
The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has welcomed the decision of S&P Global Ratings to revise Nigeria’s outlook to “positive” from “stable,” describing it as a signal that reforms in the financial system are gaining traction.
S&P announced the upgrade on Friday citing improving policy coordination, strengthened monetary management and steps taken to restore confidence in the Nigerian economy.
The revision shows that Nigeria is now viewed as having a better chance of achieving stronger credit fundamentals over the medium term. This means S&P now sees Nigeria as more likely to strengthen its economic and financial stability in the coming years, based on recent policy improvements.
In practical terms, the agency believes the country has a stronger chance of earning a future credit rating upgrade if current reforms are sustained.
Speaking at a strategic session in Abuja, Cardoso said the development reflects the steady progress recorded in stabilizing key economic indicators since the beginning of the year.
According to him: “This is encouraging news for the country. It shows that our efforts to restore stability, strengthen governance frameworks and rebuild trust in the financial system are being recognized internationally.”
The Governor noted the CBN’s actions—ranging from tighter monetary policies to enhanced foreign exchange market operations—have contributed to clearer market signals and better investor confidence.
“The Central Bank has brought stability to the economy and become a beacon of hope,” he stated.
Cardoso added that the improved outlook should motivate both public and private sector stakeholders to sustain ongoing reforms that support growth, investment, and long-term macroeconomic resilience.
The Federal Government on Saturday said it has earmarked 40,000 hectares of land for 2025/2026 dry season wheat production and registered 80,000 farmers, with an expected output value of approximately ₦160 billion.
The Minister of Agriculture and Food Security, Abubakar Kyari, disclosed this during the official flag-off of the 2025/2026 dry season wheat production programme under the National Agricultural Growth and Agro Pocket Project (NAGSAP) in Jere Local Government Area of Borno State.
Speaking at the ceremony, the minister said that out of the 40,000 hectares earmarked for wheat production this dry season, 3,000 hectares have been allocated to Borno State, representing 6,000 registered wheat farmers.
He said: “Under the 2023/2024 dry season wheat production programme, a total of 107,429 registered farmers were supported with critical subsidized inputs, resulting in an output valued at ₦474,628,000 billion. During the 2024/2025 dry season, 279,297 registered farmers received support, with an output valued at ₦893,750,004 billion.
“For the current 2025/2026 season, the programme is targeting 80,000 registered farmers with an expected output value of approximately ₦160 billion.”
Kyari emphasized that the NAGSAP programme will deploy Agricultural Extension Agents to guide farmers on modern agronomic practices and provide continuous field-level advisory services.
“In addition, Fertiliser and Seed Quality Control Officers will be mobilised to ensure that all inputs delivered to farmers meet the required standards, thereby guaranteeing higher productivity and improved yields,” Kyari added.
According to him, the wheat component of the NAGSAP programme covers sixteen states of the federation.
“These are Adamawa, Bauchi, Borno, Cross River, Gombe, Kaduna, Kano, Kebbi, Niger, Plateau, Sokoto, Taraba, Yobe, and Zamfara. The inclusion of Cross River last year expanded wheat production into the southern region for the first time and strengthened our national capacity to diversify production across ecological zones,” he said.
Kyari noted that the project is designed to include women and young people, enabling them to access training and agricultural opportunities.
“NAGSAP is deliberately designed to leave no one behind. The program ensures that farmers across communities—including women and young people, who play vital roles in our agricultural workforce—have equitable access to inputs, training, and opportunities.
“The success of any agricultural season depends on the quality of inputs that reach our farmers. Without certified seeds, accurate fertilizer blends, and timely access to crop protection products, no level of effort in the field can deliver the yields we require as a nation. This is why NAGSAP places strong emphasis on input quality, traceability, and transparent delivery systems, ensuring that every farmer receives the right inputs at the right time to achieve higher productivity and better returns,” he said.
Also speaking, the Governor of Borno State, Babagana Zulum, applauded the Federal Government for its continuous support towards irrigation development.
“Mr President’s commitment to food security and national productivity provides the foundation upon which programs like this are built,” he stated.
According to him, Borno State, with its vast arable and irrigable land—especially within the Lake Chad Basin—remains one of Nigeria’s most promising agricultural frontiers.
He said: “Today is more than a ceremony; it is a celebration of hope, resilience, and our unwavering commitment to ensuring that no family in Borno State goes hungry and no farmer is left behind. Despite the challenges of displacement, insecurity, and climate shocks, Borno State remains steadfast in growing its own food and empowering its people.”
The governor reaffirmed his administration’s commitment to sustaining all-season farming through the provision of essential infrastructure, logistics, modern machinery, improved seeds, fertilizers, agrochemicals, and other inputs required to boost productivity and support farmers across the state.
“Here in Borno State, wheat cultivation is not just a program; it is a transformative initiative. Through targeted investments in irrigation, mechanization, quality inputs, and extension services, we are equipping farmers to achieve higher yields, enhance productivity, and contribute meaningfully to national output.”
He further stated: “Borno State has achieved remarkable milestones under our people-centered agricultural vision. Our input support programmed have reached tens of thousands of smallholder farmers, resettled households, women, and youth, providing improved seeds, agrochemicals, and agronomic guidance.”
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