Echotitbits – Nigeria News

Tag: public finance

  • Tinubu doubles down: Nigeria’s new tax laws kick off January 1

    Tinubu doubles down: Nigeria’s new tax laws kick off January 1

    2025-12-31 08:00:00

    According to PUNCH, President Bola Tinubu said the new tax laws will begin on January 1, 2026, insisting the government is moving ahead despite lingering debate around implementation and potential pushback from some quarters.

    The presidency’s line is that the reforms are designed to modernise the tax system, widen the base, and improve collection efficiency—while reducing leakages and uncertainty that have long weakened fiscal planning.

    Officials also framed the rollout as part of a broader reform bundle meant to stabilise the economy and strengthen public finances, with the administration urging stakeholders to focus on execution rather than delay.

    Premium Times also reported Tinubu calling the reforms a “once-in-a-generation opportunity,” while Reuters quoted him saying “No substantial issue should cause us to renege on a programme that will benefit our economy.”

    Validation: Premium Times said “once-in-a-generation opportunity” and Reuters reported “No substantial issue should cause us to renege on a programme that will benefit our economy.”

    Echotitbits take: This is the kind of policy moment where the headline is easy, but the real story is implementation. Watch for the early guidance notes, compliance timelines, and how disputes (if any) are resolved without undermining confidence.

    Source: Lindaikejisblog — 31 December 2025 (https://www.lindaikejisblog.com/2025/12/president-tinubu-insists-new-tax-law-to-commence-january-1-2026.html)

    Lindaikejisblog 31 December 2025

    Photo Credit: Lindaikejisblog

  • Tax Reform Faces New Headwinds as Reps Minority, Students Demand Suspension

    Tax Reform Faces New Headwinds as Reps Minority, Students Demand Suspension

    2025-12-30 10:00:00

    In an update published by Punch, Nigeria’s newly enacted tax laws hit fresh turbulence after the House Minority Caucus and the National Association of Nigerian Students urged the Federal Government to halt rollout amid claims of post‑passage alterations.

    The report said the FCT High Court fast‑tracked hearing in a suit challenging the Acts’ authenticity and a proposed January 1, 2026 start date. Lawmakers warned that enforcement under disputed texts would undermine legislative integrity.

    Punch also reported that NANS threatened protests unless implementation is suspended, while the House set up an ad hoc committee to investigate the alleged alterations.

    Ametrocopy summarised the dispute and reported that the court ordered accelerated hearing, echoing that opponents want implementation paused while the text controversy is investigated, describing the case as moving on a “fast track.” Punch’s editorial stance also captured the tension, urging authorities to “correct the alleged errors and sustain the January 1, 2026, take‑off date.”

    Echotitbits take: This is a credibility test for reform. If the public believes the gazetted text differs from what lawmakers passed, compliance will crater. Watch for (1) the ad hoc committee’s findings, (2) publication of Clerk‑authenticated copies, and (3) whether government negotiates a short implementation shift to rebuild trust.

    Source: The Punch — December 30, 2025 (https://punchng.com/tax-laws-reps-caucus-opposes-rollout-court-battle-begins-wednesday/)

    The Punch 2025-12-30

    Photo Credit: The Punch

  • SERAP takes subsidy-savings fight to court, demands project-by-project disclosure

    SERAP takes subsidy-savings fight to court, demands project-by-project disclosure

    2025-12-29 09:00:00
    According to Punch, SERAP has sued state governments and named officials over the handling of fuel-subsidy savings, arguing that the public deserves full disclosure of what was received and which projects were funded.

    The group’s case is built around traceability: if subsidy removal was justified partly as freeing funds for development, then spending should be linked to locations, contractors and outcomes.

    A separate report also framed the case as an attempt to compel disclosure and accountability around subsidy-era windfalls at subnational level.

    The suit matters because it could expand expectations of fiscal transparency from Abuja to the states, especially around pooled or shared national savings.

    Punch reported SERAP is asking the court to force disclosure of how subsidy savings were spent, while another report described the suit as a bid to compel “accountability and transparency” over the funds.

    Echotitbits take: If courts entertain the suit, governors may face new documentation pressure. Watch for whether the case triggers pre-emptive publication of state-level scorecards—projects, costs and completion status.

    Source: THISDAYLIVE — https://newsdiaryonline.com/serap-sues-governors-wike-over-failure-to-account-for-n14trn-fuel-subsidy-savings/ — December 29, 2025

    THISDAYLIVE 2025-12-29

    Photo Credit: THISDAYLIVE

  • FAAC review flags weak responses from firms in road tax credit scrutiny

    FAAC review flags weak responses from firms in road tax credit scrutiny

    2025-12-29 09:00:00
    In an update published by Punch, FAAC’s post-mortem sub-committee reviewing the Road Infrastructure Tax Credit Scheme reportedly received responses from only three of seven companies contacted, raising fresh questions around transparency and project accountability.

    The scheme allows companies to build eligible roads and offset costs against future tax liabilities, making it a large fiscal lever that directly affects distributable revenue.

    The central issue now is governance: whether project valuation, scope, and delivery milestones align with tax credits claimed across participating firms.

    ThisDay reports that “a combined $577.6 million and N822.3 billion were utilised under the scheme,” while ARISE News says the panel is probing “the scale of deductions, transparency of project execution and accountability.”

    Echotitbits take: Tax-credit infrastructure can be smart—if procurement and monitoring are airtight. If not, it becomes a quiet drain on FAAC. Watch for the committee’s recommendations and whether disclosure rules get tougher.

    Source: The Punch — December 29, 2025 (https://punchng.com/faac-flags-poor-responses-in-road-tax-scheme/)
    The Punch 2025-12-29

    Photo Credit: The Punch

  • NNPC Directors’ Pay Jumps to N4.1bn, Renewing Corporate Governance Questions

    NNPC Directors’ Pay Jumps to N4.1bn, Renewing Corporate Governance Questions

    Photo Credit: The Punch
    2025-12-26 07:20:00

    In a report published by *PUNCH*, the Nigerian National Petroleum Company (NNPC) Limited’s directors’ fees and expenses reportedly increased sharply, reigniting scrutiny of cost discipline and transparency at the state-backed energy giant.

    The report is likely to energise debate around value-for-money, board oversight standards, and how corporate governance practices are evolving under the “commercial” NNPC Limited framework.

    For citizens, the optics matter: in a period of tight public finances and cost-of-living strain, governance headlines at strategic national companies quickly turn into political accountability tests.

    Market watchers will look for clearer disclosure context—what drove the increase, how it compares to peer benchmarks, and whether board performance metrics are publicly defensible.

    *PUNCH* reported directors’ pay “soars 58% to N4.1bn.”

    Echotitbits take: Governance credibility is part of energy-sector reform. Watch for fuller annual-report disclosures, audit commentary, and whether oversight bodies demand stronger explanations for board-related cost movements.

    Source: The Punch — Dec 26, 2025 (https://punchng.com/nnpc-directors-pay-soars-58-to-n4-1bn/)

  • FG’s Deficit Funding: N6.1trn Raised Locally in Six Months

    FG’s Deficit Funding: N6.1trn Raised Locally in Six Months

    Photo Credit: The Punch
    2025-12-25 09:10:00

    In a budget-performance update cited by The Punch, Nigeria’s federal government reportedly raised about N6.10 trillion from domestic sources in the first half of 2025 to help plug a wide fiscal gap. The report points to a deficit of roughly N5.70 trillion, with financing largely driven by local borrowing instruments.

    The same performance data indicates debt service pressure remains heavy, with large outflows to service obligations even as revenues lag spending needs. That combination—high deficits and high debt service—continues to compress fiscal space for social and capital priorities.

    The report also suggests the borrowing mix leaned heavily on bonds and other local issuances, reinforcing the concern that domestic credit may be crowded toward government paper instead of private-sector lending.

    Corroborating the same Budget Office picture, another outlet reported the government had to finance the deficit through “domestic borrowing… of N5.70tn” and proceeds including “privatisation… N64.92bn,” while a separate report noted “debt service was N4.44tn,” underscoring the weight of repayments in the fiscal structure.

    Echotitbits take: Nigeria’s deficit story is increasingly a debt-service story. Watch for (1) whether revenue reforms lift the non-oil base fast enough, and (2) whether domestic borrowing costs ease—because a sustained high-rate environment makes deficits more expensive and squeezes development spending.

    Source: The Punch — December 25, 2025 (https://punchng.com/budget-deficit-fg-raises-n6tn-locally-in-six-months/)

    The Punch 2025-12-25

  • Budget Crunch: NASS Pushes 2025 Fiscal Year to March 2026

    Budget Crunch: NASS Pushes 2025 Fiscal Year to March 2026

    Photo Credit: The Punch
    2025-12-25 09:05:00

    Reporting by The Punch indicates Nigeria’s National Assembly has extended the 2025 fiscal year timeline to allow more time for budget implementation, amid delays in budget passage and execution. The move is framed as a pragmatic reset to reduce the usual year-end rush that leaves capital spending under-delivered.

    The extension is tied to the broader issue of late appropriation cycles, where projects start too late in the year and MDAs struggle to complete procurement and releases before the fiscal window closes. Supporters say it improves planning realism; critics worry it normalizes delays.

    In practical terms, the extension gives ministries and agencies more runway to draw down releases and push ongoing capital projects, especially where procurement timelines already spilled beyond the calendar year.

    In related coverage, Vanguard quoted Senate President Godswill Akpabio describing the measure as a “major transformative step,” while Premium Times reported that the extension is aimed at “ensuring the full release and utilisation of budgeted funds for capital projects.”

    Echotitbits take: The real test is whether the extra months translate into measurable capital delivery—not just paperwork. Watch Q1 2026 releases and project milestones, plus whether the executive also reforms procurement bottlenecks that routinely delay project starts.

    Source: The Punch — December 25, 2025 (https://punchng.com/budget-crisis-nass-extends-2025-fiscal-year-to-march/)

    The Punch 2025-12-25

  • Senate advances ₦58.47tr 2026 budget, tees up debate for the new year

    Senate advances ₦58.47tr 2026 budget, tees up debate for the new year

    Photo Credit: The Nation
    2025-12-24 07:00:00

    According to The Nation, the Senate has advanced the proposed 2026 federal budget after it scaled second reading, keeping the appropriation process on track ahead of more detailed committee work.

    The move signals early legislative buy-in for the headline spending plan, even as lawmakers prepare to drill into the assumptions—revenue projections, borrowing needs, and the spending mix that will shape implementation.

    With the second reading done, the next stage shifts to deeper scrutiny, where sector-by-sector allocations and policy trade-offs become the real battleground.

    TheCable also reported the development, noting that the Senate “passed the N58.472 trillion 2026 appropriation bill for second reading.” ARISE News similarly described the session as lawmakers “passed the N58.47 trillion 2026 appropriation bill for second reading.”

    Echotitbits take: The key watchpoint is not the second reading itself, but the credibility of the financing plan. Nigerians should track what gets trimmed, what gets protected, and whether lawmakers demand stronger performance metrics for MDAs—especially on power, security, and inflation-sensitive social spending.

    Source: The Nation — December 23, 2025 (https://thenationonlineng.net/n58-47tr-2026-budget-scales-second-reading-in-senate/)
    The Nation 2025-12-23

  • Fiscal-year extension aims to end Nigeria’s ‘overlapping budget’ problem

    Fiscal-year extension aims to end Nigeria’s ‘overlapping budget’ problem

    Photo Credit: The Punch
    2025-12-24 06:00:00

    According to Punch, Nigeria’s National Assembly has moved to extend the implementation window for the 2025 budget into early 2026 as lawmakers debate how to avoid a repeat of “multiple budgets running at the same time” and the planning distortions that follow.

    The shift effectively keeps the 2025 appropriation alive beyond the traditional December-end cycle, giving MDAs a wider runway to complete ongoing procurement, releases, and capital execution that typically slip late in the year.

    The extension is also being framed as a legislative response to recurring delays in budget passage and cash-backing—an attempt to align “budget life” with actual spending realities rather than calendar formality.

    In practical terms, the change sets a new reference point for ministries and contractors: the 2025 budget is not “dead” on December 31, which could reduce abandoned projects and rushed year-end spending.

    Reuters reported the plan was intended to “bring an end to the practice of running multiple budgets concurrently,” while TVC News described it as extending the 2025 budget’s life “to March 31, 2026.”

    Echotitbits take: This is an admission that Nigeria’s budget cycle still struggles with realism—late passage, slow releases, and weak project discipline. Watch for whether cash releases and procurement timelines are also adjusted; otherwise, lawmakers may simply be postponing the same execution bottlenecks into Q1 2026.

    Source: The Punch — December 24, 2025 (https://punchng.com/budget-crisis-nass-extends-2025-fiscal-year-to-march/)
    The Punch 2025-12-24