According to Bloomberg Tax and local reporting by Kuda on February 14, 2026, Nigeria’s comprehensive tax reforms have officially entered their implementation phase, significantly altering the landscape for small and medium enterprises (SMEs). The new framework stipulates that businesses with an annual turnover below ₦50 million are now exempt from paying corporate income tax, a move aimed at stimulating local production and entrepreneurship.
In addition to corporate tax relief, the personal income tax threshold has been raised to ₦800,000 annually, providing a breather for low-income earners. The law also introduces a 4% development levy for larger corporations while exempting those earning less than ₦100 million. These changes represent the most significant overhaul of the Nigerian tax system in decades, focusing on “taxing income, not capital.”
Validation from Premium Times and Tribune Online indicates that the Federal Inland Revenue Service (FIRS) has already begun sensitizing businesses on the new rules. Premium Times noted that “the reforms aim to formalize the informal sector,” while Tribune Online quoted a tax consultant: “The zero-tax policy for SMEs is a game-changer for the 2026 fiscal year.”
Echotitbits take: This is a pro-growth policy that could significantly reduce the cost of doing business in Nigeria. The challenge will be the FIRS’s ability to prevent larger firms from splitting into smaller entities to exploit the ₦50 million exemption threshold.
Source: Kuda – https://kuda.com/blog/nigeria-2026-tax-reform-what-it-means-for-your-money-and-business/, February 14, 2026
Photo credit: Kuda
Tag: Nigerian Economy
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New 2026 Tax Laws Take Effect: Zero Corporate Tax for Small Businesses
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National Revenue Service Clarifies Input Recovery Benefits in New Tax Act
According to TVC News, the Nigeria Revenue Service (NRS) has begun an intensive sensitization campaign to explain the benefits of the new Tax Act to skeptical business owners. A key highlight of the new regime is the transition to a 7.5% “full input recovery” system, which now includes services and capital expenditure (capex), unlike the old regime which was far more restrictive. Executive Chairman Zacch Adedeji emphasized that these reforms are intended to reduce the overall tax burden on productive sectors while widening the tax net.
The new Act also streamlines Personal Income Tax (PIT) and Company Income Tax (CIT) to remove “nuisance taxes” that have historically complicated compliance for Small and Medium Enterprises (SMEs). Despite these explanations, many Nigerians remain wary of the NRS’s expanded enforcement powers. The government, however, insists that the automation of tax collection will reduce human interface and corruption, ultimately leading to a more transparent fiscal environment.
Validating these updates, Channels TV reported on the public’s mixed reactions to the “full input recovery” clause, with an economic analyst stating, “While the math looks good for big corporations, small businesses still fear the aggressive enforcement stance of the NRS.” The Nation also covered the development, quoting Taiwo Oyedele of the Presidential Tax Reform Committee: “Our goal is to make Nigeria a tax-friendly destination where the system is fair and predictable.”
Echotitbits take:
The “full input recovery” is a significant olive branch to the manufacturing and service industries. It essentially means businesses can recoup more of the VAT they pay on operations. However, the success of this policy depends on whether the NRS can actually process these refunds faster than the old, sluggish system.
Source: Arise – https://www.arise.tv/lirs-activates-power-of-substitution-under-new-tax-law-to-boost-tax-recovery/, February 11, 2026
Photo credit: Arise
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Nigeria’s External Reserves Hit $46.91bn as Naira Closes at N1,366.19
According to Daily Post reporting, the Nigerian Naira concluded the week at N1,366.19 against the US Dollar at the official foreign exchange market, marking a slight daily depreciation from its previous standing. Despite this minor dip, the nation’s economic outlook remains bolstered by a significant surge in external reserves, which have now climbed to $46.91 billion as of early February 2026.
The local currency’s performance showed resilience on a week-on-week basis, gaining approximately N20.36 at the official window. Meanwhile, the parallel market—often referred to as the black market—saw the Naira ending the week with a notable N10 gain, settling at a rate of N1,450 per dollar. This convergence of rates is seen as a positive sign of stabilizing liquidity within the financial system.
Market analysts note that the steady accumulation of foreign reserves provides the Central Bank of Nigeria (CBN) with a stronger buffer to manage exchange rate volatility. This development was further validated by The Punch, which noted that “the robust reserve level is a testament to improved crude oil receipts and tighter fiscal controls,” while Vanguard added that “the stability in the FX market is increasingly attracting the interest of offshore portfolio investors.”
Echotitbits take: The climb to $46.91bn in reserves is a major milestone for the Tinubu administration’s economic team. It suggests that the aggressive monetary tightening and FX reforms are finally yielding a “liquidity cushion.” Watch for whether the CBN will use this surplus to intervene more frequently in the retail end of the market to further close the gap between official and parallel rates.
Source: Daily Post – https://dailypost.ng/2026/02/07/naira-closes-week-at-n1366-19-per-dollar-as-nigerias-external-reserves-hit-46-91bn/, February 7, 2026
Photo credit: Daily Post
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Naira Maintains Stability Against Dollar Amid Low Speculative Demand
Figures cited by Vanguard show that the Nigerian Naira opened at ₦1,367.10 per dollar in the official window this Friday, maintaining a steady course below the ₦1,400 threshold. Financial analysts attribute this relative calm to the Central Bank of Nigeria’s (CBN) consistent market interventions and a transparent electronic trading framework that has significantly dampened the activities of currency speculators.
The currency’s performance was also tracked by BusinessDay and The Cable, which both reported a narrowing gap between the official and parallel markets. BusinessDay observed that “the absence of aggressive hoarding has stabilized retail demand,” while The Cable quoted a BDC operator in Abuja saying, “The market is no longer as volatile as it was last year; supply is more predictable now.”
Market experts suggest that the current stability is a result of a 15.15% moderating inflation rate and the CBN’s decision to maintain the Monetary Policy Rate at 27.00%. This high-interest-rate environment has continued to attract foreign portfolio investment, providing the necessary liquidity to support the local currency.
Echotitbits take: The Naira’s stability is a win for the CBN’s orthodox monetary policies. However, for this to be sustainable in the long term, Nigeria needs to significantly diversify its export base to move beyond total reliance on oil-driven forex inflows.
Source: Legit.ng – https://www.legit.ng/business-economy/economy/1695016-dollar-stumbles-year-naira-opens-month-a-surprise-surge/, February 6, 2026
Photo credit: Legit.ng
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Naira Strengthens Against Dollar as Market Liquidity Stabilizes
According to reporting by Vanguard, the Nigerian Naira sustained its positive momentum against the United States dollar during the early trading hours of Thursday, February 5, 2026. The local currency opened at approximately 1,368.56 per dollar at the Nigerian Foreign Exchange Market (NFEM), reflecting a steady appreciation from the 1,388 levels recorded only 24 hours prior. This recovery is largely attributed to the Central Bank of Nigeria’s (CBN) aggressive market-matching strategies and a robust increase in external reserves.
The Electronic Foreign Exchange Matching System (EFEMS) has been cited as a primary driver for narrowing bid-ask spreads, fostering greater transparency within the official window. In the parallel market, the dollar exchanged between 1,450 and 1,465 across major hubs like Lagos and Abuja. Bureau De Change operators noted that while a premium remains, the gap between official and informal rates has contracted to one of its lowest margins in several months due to steady supply from diaspora remittances.
The Punch and ThisDay have corroborated this downward trend in exchange volatility. Business analysts at The Punch remarked that “the Naira’s resilience this week suggests a shift from speculative behavior to demand-driven market fundamentals.” Similarly, ThisDay reported that “investor confidence is returning as the CBN stabilizes the liquidity pool,” with one analyst noting that “we are seeing the most stable foreign exchange window since the unification reforms of 2024.”
Echotitbits take:
The narrowing gap between the official and parallel market rates is a significant victory for the CBN’s monetary policy. If the current liquidity levels are maintained through Q1 2026, we expect a further reduction in imported inflation, which could lead to a potential softening of interest rates by mid-year. Watch for the next Monetary Policy Committee (MPC) meeting to see if these gains trigger a shift from the current 27% MPR.
Source: BusinessDay – https://businessday.ng/news/article/naira-maintains-steady-rise-hits-n1358-28-as-reserves-grow/, February 5, 2026
Photo credit: BusinessDay
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Naira Maintains Resilience in Official Market as Exchange Rate Stabilizes
Figures cited by Vanguard show that the Nigerian Naira held its ground against the US Dollar on February 4, 2026, opening the session at approximately N1,387.42 in the official window. This continued stability is being attributed to the sustained impact of the Central Bank of Nigeria’s (CBN) Electronic Foreign Exchange Matching System (EFEMS), which has drastically reduced speculative activities and improved market transparency.
Market analysts observe that the naira’s performance is bolstered by healthy external reserves and the clearing of historic FX backlogs. While the parallel market continues to trade at a premium—ranging between N1,460 and N1,475—the spread has narrowed significantly compared to the volatility experienced in late 2025. The absence of “aggressive speculative activity” is seen as a major win for the current monetary policy direction.
This stability is corroborated by reports from Punch and ThisDay. Punch highlights that the convergence of rates is helping corporate planning, stating that “businesses are finally seeing a predictable window for import financing.” Meanwhile, ThisDay reports that the central bank’s recent liquidity injections have successfully met retail demand, with an analyst quoted as saying, “The current exchange rate reflects a genuine market equilibrium rather than artificial suppression.”
Echotitbits take: The Naira’s stability is a breather for an economy that has faced years of currency trauma. The success of the EFEMS suggests that structural reforms in the FX market are finally taking root. For the average Nigerian, this could lead to a gradual reduction in the cost of imported goods, provided the CBN maintains its current level of transparency and supply.
Source: The Punch – https://punchng.com/naira-hits-1418-26-at-official-market/, February 4, 2026
Photo credit: The Punch
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Fuel Prices Surge Toward N1,000 Milestone as Global Crude Rises
Figures cited by The Punch show that Nigerian fuel marketers are warning of a potential petrol price hike to ₦1,000 per litre as global crude oil prices cross the $70 per barrel mark. Marketers indicated that the current landing cost of Premium Motor Spirit (PMS) has been significantly impacted by the rising international oil prices and the continued volatility of the Naira. This development threatens to further strain the disposable income of citizens who are already grappling with high transport costs.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is currently under pressure to review the pricing template to reflect these market realities. Industry experts suggest that without a significant appreciation of the Naira or a subsidy-like intervention, the ₦1,000 mark is nearly inevitable. This comes at a time when the federal government is shifting focus from economic stabilization to expansionary growth.
This news was also covered by Leadership and ThisDay. Leadership reported that “marketers are calling for a transparent pricing mechanism to avoid supply disruptions,” while ThisDay noted that “the $70 crude price is a double-edged sword for Nigeria’s oil-dependent budget.”
Echotitbits take:
Rising fuel prices are the most potent trigger for inflation in Nigeria. If the price hits ₦1,000, we expect another wave of transport fare hikes and a possible spike in food prices. Watch for the government’s “Renewed Hope” ward development programs to be fast-tracked as a palliative measure to douse public tension.
Source: The Punch – https://punchng.com/petrol-to-hit-n1000-litre-as-crude-crosses-70-marketers/, January 31, 2026
Photo credit: The Punch
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Max Healthcare Liquidates Nigerian Subsidiary
Max Healthcare Institute Limited has initiated voluntary liquidation of its wholly-owned Nigerian subsidiary, MHC Global Healthcare (Nigeria) Limited.
Reports indicate the unit had zero revenue and a negative net worth as of March 2025, representing an immaterial portion of the group’s consolidated financials.
Analysts describe the move as a cleanup of non-performing assets, while also highlighting persistent challenges for foreign healthcare operators in Nigeria.
Echotitbits take: This reads like routine corporate housekeeping, but it’s also a signal: Nigeria’s market size doesn’t automatically translate to viable foreign operations. Regulatory friction, FX risk, and operating costs can neutralize demand—watch if more international firms quietly de-risk.
Source: Investy Wise – https://www.investywise.com/max-healthcare-voluntary-liquidation-of-subsidiary/ 2026-01-29
Photo Credit: Investy Wise -
Nigerian Naira Maintains Resilience as Official Exchange Rate Dips Below 1,400
Figures cited by Vanguard show the Naira holding below the 1,400-per-dollar threshold in the official market. On Thursday morning, the currency opened around 1,395.09/$ in the Nigerian Foreign Exchange Market (NFEM), supported by liquidity improvements and the Central Bank’s Electronic Foreign Exchange Matching System (EFEMS).
While the parallel market remained higher, the narrowing premium suggests speculative pressure may be easing. Analysts attribute the resilience to efforts to clear FX backlogs and to a rise in external reserves, giving the central bank more room to intervene and smooth volatility.
The Punch noted the currency’s benefit from improved price discovery, while ThisDay quoted market analysts pointing to reduced panic buying and improving investor confidence.
Echotitbits take: Staying below the 1,400 psychological level is a notable win for the CBN narrative on stability. The next key signal is the MPC decision: holding rates could protect the FX gains, while easing could support growth but risk renewed pressure if liquidity tightens.
Source: Facebook/TheCable – https://web.facebook.com/thecableng/posts/naira-appreciates-to-n1400-at-official-market-strongest-performance-since-may-20/1213502280966076/?_rdc=1&_rdr# 2026-01-29
Photo Credit: Facebook/TheCable
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Nigerian Naira Gains Ground in Official Market as Reserves Hit $46 Billion
Reporting by Vanguard indicates that the Nigerian Naira has maintained a strong positive trajectory against the United States Dollar during the mid-week trading session. In the Nigerian Foreign Exchange Market (NFEM), the local currency strengthened significantly, settling at approximately 1,400.66 per dollar. This appreciation is being fueled by increased liquidity and a surge in the country’s external reserves, which have now surpassed the $46 billion mark, providing a substantial buffer for the Central Bank of Nigeria (CBN).
The stability in the official window is starting to reflect in the parallel market, where panic buying has largely subsided. While the “black market” rate remains slightly higher, trading between 1,480 and 1,485, the narrowing gap between the two rates suggests that the CBN’s recent monetary policy adjustments are beginning to take hold. Financial experts predict that if the current liquidity levels are sustained, the Naira could settle into a predictable range of 1,400 to 1,500 for the remainder of the fiscal year.
Market data from MarketForces Africa corroborated the gains, noting that the “Naira touched N1,400 per Dollar in the Nigerian currency market” following a series of aggressive interventions. The Nation also reported on the currency’s resilience, with a financial analyst quoted as saying, “The absence of speculative pressure is a clear signal that the market is beginning to trust the current FX management framework.”
Echotitbits take: The growth in external reserves is a vital sign of economic recovery, likely driven by improved crude oil production and foreign portfolio inflows. Watch for whether this stability translates into a reduction in the prices of imported consumer goods over the next quarter.
Source: BusinessDay – https://businessday.ng/business-economy/article/naira-gains-as-reserves-reach-eight-year-high-of-46bn/ January 28, 2026
Photo Credit: BusinessDay