The implementation of Nigeria’s new tax law is quietly redefining the country’s fiscal architecture, with states and local governments emerging as the biggest beneficiaries of a revised Value Added Tax (VAT) sharing formula that significantly reduces the Federal Government’s take.

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has clarified that its investigation into a petition filed by billionaire businessman Alhaji Aliko Dangote against the immediate past Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engineer Farouk Ahmed, is ongoing, despite the withdrawal of the petition by the petitioner.

Since the unification of foreign exchange in 2023, the naira has been on a journey to find its footing. In 2025, its performance has been mixed, with distinct phases of depreciation, stabilisation, and eventual appreciation at different points.

Credit extended to Nigeria’s private sector by deposit money banks declined by N1.3 trillion over the past year, reflecting the combined impact of aggressive monetary tightening and rising borrowing costs, even as short-term fluctuations show businesses continue to rely heavily on bank financing.

The new Nigerian tax regime was formally proposed on October 3, 2024, when President Bola Ahmed Tinubu transmitted the Tax Reform Bills to the National Assembly.

‎Nigeria has undertaken several reform exercises over the years, ranging from electoral restructuring to constitutional amendments, yet few have generated as much controversy in recent times as the current tax reforms.