Business
Hard But Necessary Reforms, Imperative To Ramp Up Tax Revenues — FIRS Boss
For Nigeria to attain optimum tax revenue collection capacity across the Federal, States and Local Government tax authorities, the country must make hard but necessary reforms that would yield long term benefits.
This was the position stated by the Chairman of the Joint Tax Board (JTB), Mr. Muhammad Nami, who is also the Executive Chairman of the Federal Inland Revenue Service (FIRS) at the 153rd Meeting of the Board which held today in Abuja with the theme: “Harmonization and codification of taxes at the National and Sub-national levels: Key to achieving a tax friendly environment in Nigeria.”
Mr. Nami, while delivering his address to the Board stated that for progress to be made in taxation, tax authorities must continue to explore and adopt measures and innovative initiatives that will lead to the optimisation of tax revenue for all levels of government.
“As the new administrations attempt to address the many socioeconomic challenges facing the nation on many fronts, it becomes imperative for all the levers of State to shake-off any lethargic antecedents and focus on the goal of a national resurgence.
“The unique and privileged offices we occupy as drivers of the nation’s tax administration processes presents us with a rare opportunity to take hard, but necessary decisions that are expected to yield long term benefits and add immense value to our collective prosperity as a nation.
“In recent years, especially since the dawn of our current democratic dispensation, the importance of taxation has continued to be reiterated and reinforced by all, and the critical role that tax-revenue plays in funding government and governance cannot be over-emphasized.
“However, as we continue to make progress in our unique model of taxation, it is appropriate that we continue to explore and adopt measures and innovative initiatives that will lead to the optimization of tax revenue for all the levels of government, in more efficient, more effective, more inclusive, and more sustainable ways.
“It is only by achieving this, that our efforts as tax administrators can trigger the manner of activity required in the productive sectors of our economy, towards achieving the immense economic potentials that we are capable of,” Mr. Nami said.
The Chairman of the Joint Tax Board further assured Executive Chairmen of State Revenue Authorities present that given the thrust of the current administration’s tax policy direction, the country was on the pathway to eradicating multiplicity of taxes as a core of its overall economic regeneration objectives.
Mr. Taiwo Oyedele, Chairman, Presidential Fiscal Policy & Tax Reforms Committee, while delivering a presentation on the theme of the meeting highlighted that multiple taxation was causing low tax morale in the country, as well as discouraging investments, while creating room for corruption and making doing business difficult.
The Presidential Fiscal Policy and Tax Reforms Committee Chairman further noted that the solution to the country’s revenue challenges is not to introduce more taxes, but to focus on the few taxes that are high yielding, noting that with these, tax authorities would be able to collect far more than is currently being collected.
Mr. Taiwo stated that for the government to raise more revenue, it needed to get to a point where the total number of taxes collected at the Federal, State and Local government levels would be at a single digit.
“We also need to clarify on taxing rights. We need to integrate tax collection functions—that is, all revenues that are to be collected must be collected by a single revenue agency. Government must also do well to fund our tax agencies well. We also need to harmonise revenue administration and simplify our approach to tax compliance,” Mr. Taiwo stated.
He further advocated for the country’s tax authorities to use more technology, review the country’s constitution and tax laws, as well revisit Nigeria’s concept of fiscal federalism.
Money supply hits 3-month low on liquidity squeeze
Private sector credit rises
Nigeria’s broad money supply (M3) jumped 24 percent to an all-time high of N114.2 trillion in March 2025, defying the Central Bank of Nigeria (CBN)’s ongoing monetary tightening efforts aimed at reining in inflation.
The M3, which serves as the most comprehensive measure of money in circulation within an economy, includes not only the cash used in everyday transactions but also large-scale deposits and financial assets that influence lending, investment, and inflation.
Despite the CBN’s firm stance on monetary tightening, the latest data from the apex bank indicates a year-on-year increase of 23.9 percent, with the money supply rising sharply from N92.18 trillion in March 2024.
On a month-on-month basis, the figure climbed by 3.2 percent from N110.70 trillion recorded in February 2025.
In a bid to counteract inflationary pressures and stabilise exchange rate fluctuations, the CBN withdrew N1.7 trillion from the financial system through Open Market Operations (OMO) auctions in March 2025.
Analysts at Afrinvest Securities Limited noted that the move was part of broader efforts to reduce liquidity and cool rising consumer prices.
Despite these measures, bank credit to the government expanded significantly, increasing by 28.9 percent year-on-year to reach N25.85 trillion in March 2025, compared to N20.05 trillion in the same month last year. However, on a monthly basis, government borrowing from banks dropped by 4.6 percent from N27.11 trillion in February.
Meanwhile, credit to the private sector rose modestly by 6.8 percent year-on-year to N76.26 trillion in March 2025, up from N71.43 trillion in March 2024. Month-on-month, the increase was marginal, rising by just 0.01 percent from N76.25 trillion in February 2025.
Currency in circulation also rose substantially over the past year. The amount of currency circulating in the economy jumped by 29.5 percent year-on-year to N5.00 trillion in March 2025, up from N3.86 trillion a year earlier. However, there was a slight decline on a monthly basis, with the figure dipping from N5.03 trillion in February 2025.
Similarly, the volume of currency held outside the banking system climbed by 26.8 percent year-on-year to N4.59 trillion in March 2025, compared to N3.62 trillion in March 2024. Month-on-month, currency outside banks increased by 1.8 percent from N4.51 trillion in February.
Over the last five years, the CBN has aggressively raised its Monetary Policy Rate (MPR), the benchmark interest rate, from 11.50 percent in 2021 to 27.50 percent as of March 2025. Most of the increase occurred in the past year, during which the rate was hiked by an unprecedented 875 basis points as the apex bank intensified its fight against inflation.
The tight monetary stance has yielded some results. Inflation, which stood at 24.48 percent in January 2025, eased to 23.18 percent in February. However, the relief was short-lived, as inflation rose again to 24.23 percent in March, signaling persistent inflationary pressures despite the Central Bank’s continued efforts.
By Abubakar Yunusa
The Securities and Exchange Commission (SEC) has issued a warning to influencers and bloggers, cautioning them against promoting unregistered investment schemes.
The Commission emphasized that it is working closely with law enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant government bodies, to investigate and prosecute violators.
Director General of the SEC, Dr. Emomotimi Agama, stated that the Investments and Securities Act (ISA) 2025 specifically targets promoters of unregistered schemes, urging celebrities, social media influencers, and bloggers to steer clear of endorsing such ventures to avoid legal consequences.
“The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment. We are therefore using this medium to warn such persons to desist from promoting unregistered entities”.
Agama said the SEC is intensifying efforts to combat Ponzi schemes following the enactment of the Investments and Securities Act (ISA) 2025, a landmark law signed by President Bola Ahmed Tinubu.
The new legislation explicitly defines Ponzi schemes and introduces stringent sanctions, including a minimum fine of ₦20 million and a 10-year jail term for promoters of such fraudulent schemes.
Dr. Agama emphasized the Commission’s capacity and readiness to tackle Ponzi schemes, stating, “SEC is capable, has the capacity, has the knowhow and of course will be able to deal with anyone caught in this mess”.
He highlighted that the SEC has dealt with similar schemes before and will continue to do so, leveraging the new powers granted by ISA 2025 to protect investors and develop the market.
“The recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion, has underscored the urgency of this crackdown. CBEX promised unrealistic returns, doubling investments within a month, and deceived many with false claims of global affiliations”
Dr. Agama noted, “We will shut down their operations and the promoters will be made to face the full weight of the law”.
He said the ISA 2025 also brings digital assets under the SEC’s regulatory umbrella for the first time, recognizing virtual assets as securities.
This inclusion, Agama said, means that Virtual Asset Service Providers and Digital Asset Exchanges must register with the SEC and comply with regulations, closing previous legal gaps exploited by fraudulent operators.
According to him, “Education is a key pillar in the SEC’s strategy. The Commission has launched podcasts, social media campaigns, and is integrating capital market education into schools and universities.
“We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes”.
The SEC also urged Nigerians to verify any investment opportunity with the Commission before committing funds, warning that once it is too good to be true it certainly is not true”.
The SEC DG emphasised that the Commission remains committed to protecting investors in line with its twin objectives of investor protection and market development and urged Nigerians to be cautious, consult professionals before investing, and to avoid schemes promising unrealistic returns.
“The SEC has also established departments for monitoring market activities and conducting inspections to detect irregularities early. We have a monitoring department, we also do onsite inspections, once we hear anything we do something. These proactive measures aim to prevent the recurrence of massive frauds like CBEX.
“The Commission is focused on democratizing wealth through a safe and transparent capital market. We are committed to providing a safe investment environment, the capital market helps you to democratize wealth for everybody. The ISA 2025 thus represents a significant step forward in protecting Nigerian investors and fostering a resilient financial market”, he added.
Adebayo Adelabu, minister of power, says Nigeria will generate and distribute 8,000 megawatts (MW) of electricity before the end of President Bola Tinubu’s first term in 2027.
The minister spoke during a ministerial press briefing hosted by Mohammed Idris, minister of information and national orientation, on Thursday.
Adelabu explained that the Tinubu administration increased power generation by 1,700 megawatts in two years, whereas it previously took the country 35 years to achieve a 2,000 megawatt increase.
He assured that if the new trajectory is sustained, before the end of the Tinubu administration in 2027, the power ministry will generate and distribute 8,000 megawatts of power or more.
“In the country’s history of the power sector, let me thank our agencies, our operators, that this was achieved during our time,” Adelabu said.
“We have crossed the bar of 6,000 megawatts for the first time in the history of Nigeria’s power sector.
“That is not enough, this achievement was followed by a peak generation evacuation of 5,801.44 megawatts on 4th of March 2025, which also saw an impressive daily energy output, the highest ever, 128,370.75 megawatts per day on that very day.
“We’ve always been at 118,000 to 119,000 megawatts on a daily basis, but we achieved 128,000. That is the highest energy ever consumed in a day since the power sector came to being in Nigeria, and we are proud to achieve this.
“In summary, the average daily power generated and distributed in the first quarter of 2025 was 5,700 megawatts.
“Compared with what we met when we resumed office, average of 4,100 megawatts achieved in the third quarter of 2023, this indicate a growth of 1,600 megawatts, nearly 40% growth since we assumed office at the ministry.
“This is very important to us. I came into office August 2023, and between July, August, and September, what we achieved was 4,100 generated, evacuated, transmitted, and distributed, and it’s always been like that. Even though there were spikes in the past, it would go up, it would come down.
“It was not sustainable, and it took the country about 40 years. In 1984, when Alhaji Rilwanu Lukman was the federal minister of power, we achieved 2,000 megawatts of power generation.
“We took this to 4,000, about 2016-2022, so it took the country between 35 to 40 years to achieve 2,000 incremental generation.
“But this administration, thanks to our Mr. President for his support, in one and a half years, we grew this from 4,100 to a peak generation of 5,800; 1,700 increase in one and a half years.
“What we are saying is that past administrations have their own positives, creation of the NIPPs, a lot of things that they achieved.
“If they have been adding at least 1,000 megawatts of power since 1999, we’d be talking about 26,000 megawatts, plus 4,000, that would be about 30,000 megawatts of power in Nigeria today, but we cannot keep dwelling in the past.
“It’s the way forward. Now that we have created the trajectory, if we sustain this trajectory, I can assure you that before the end of this administration in 2027, we should be able to generate and distribute nothing less than 8,000 megawatts of power.
“So, given that it took the country almost 40 years to achieve an incremental 2,000 megawatts average energy, we accomplished this.”
‘NATIONAL GRID STRONGER IN TINUBU’S ADMINISTRATION’
Adelabu explained that the national grid has been stronger in Tinubu’s administration, as the Transmission Company of Nigeria (TCN) strengthened the critical network by commissioning 61 new transformers.
“It is a huge grid to cover over 200 million people, and it’s been there for so long, and we know that the maintenance history has been poor, replacement history has been poor, expansion history has been poor,” the minister said.
“It is old, so collectively enabling our grid 8.7 gigawatt operational capacity, as of today, if we grow our generation to 8,700 megawatts, the grid can still carry it, thanks to the activities of the TCN and the FGN power company.
“Two years ago, once it gets to 5,000 megawatts, the grid collapses, then we have evacuated 5,800 megawatts successfully without the grid blinking, it was still stable, so we can transport 8,700 megawatts.
“To strengthen this critical network, TCN commissioned 61 new transformers, totalling 5,589 MVA in 2024. Followed by nine additional transformers in quarter one of 2025 across key locations in Lagos, Benin, Bauchi, Oshogbo, Kano and Kaduna, we have the list of the sites, I once mentioned that TCN had over 100 unfinished projects.
“In the 2025 appropriation, we already have N25 billion to support TCN to complete some of these projects and that will also improve power supply.
“Beyond TCN, we have the activities of the presidential power initiative, which is being executed by the FGN power company. The pilot phase delivered infrastructure across 13 locations, adding 700 megawatts to the national grid.
“We experience a number of grid disturbances towards the end of last year; but since January up till today, four months into the new year, we have not seen any major disturbance to the grid.
“I can assure you, we do everything possible to maintain and sustain the current scenario. If there’s any little disturbance, our turnaround time is being worked upon, within one to two hours, the grid will be up.”
Adelabu said another remarkable initiative is the progress made towards regionalising the national grid, adding that the eastern and western supergrid approvals currently in progress will revolutionise the national grid and reduce failures.
The minister added that Nigeria needs regionalisation of the national grid so that if there is a problem in one part of the country, it will not affect other parts.