Economy
Zero Tax on Gifts, Salaries, Insurance as Oyedele Reels Out Benefits
By Adedapo Adesanya
Ahead of the January 2026 implementation of Nigeria’s new tax laws, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, has continued to reel out the benefits of the expected changes.
According to the tax titan, the new tax laws will provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses in the country.
In an update on his X handle on Monday, Mr Oyedele noted that small businesses, including individuals earning the national minimum wage or less, and those earning annual gross income up to N1,200,000 (translating to about N800,000 taxable income) will benefit from the tax relief.
There will also be reduced PAYE tax for those earning annual gross income up to N20 million.
He also disclosed that gifts will also be exempt from being taxed.
Mr Oyedele further listed items to benefit from the tax relief as:
Allowable Deduction & Reliefs For Individuals
5. Pension contribution to PFA
6. National Health Insurance Scheme
7. National Housing Fund contributions
8. Interest on loans for owner-occupied residential housing
9. Life insurance or annuity premiums
10. Rent relief – 20 per cent of annual rent (up to N500,000)
Pensions & Gratuities – Exempt
11. Pension funds and assets under the Pension Reform Act (PRA) are tax-exempt.
12. Pension, gratuity or any retirement benefits granted in line with the PRA.
13. Compensation for loss of employment up to N50 million.
Capital Gains Tax (CGT) – Exempt
14. Sale of an owner-occupied house
15. Personal effects or chattels worth up to N5 million
16. Sale of up to two private vehicles per year
17. Gains on shares below N150 million per year or gains up to N10 million
18. Gains on shares above exemption threshold if the proceeds are reinvested
19. Pension funds, charities, and religious institutions (non-commercial)
Companies Income Tax (CIT) – Exempt
20. Small companies (turnover not more than N100 million and total fixed assets not more than N250 million) will pay 0 per cent tax.
Business Post reports that small business represent a huge chunk of employers of labour with data from National Bureau of Statistics (NBS) showing that the country has around 41.5 million micro, small, and medium-enterprises, contributing about 48 per cent of gross domestic product (GDP).
21. Eligible (labelled) startups are exempt
22. Compensation relief – 50 per cent additional deduction for salary increases, wage awards, or transport subsidies for low-income workers
23. Employment relief – 50 per cent deduction for salaries of new employees hired and retained for at least three years
24. Tax holiday for the first 5-years for agricultural businesses (crop production, livestock, dairy etc)
25. Gains from investment in a labeled startup by venture capitalists, private equity funds, accelerators, or incubators
Development Levy – Exempt
27. Small companies are exempt from 4 per cent development levy
Withholding Tax – Exempt
28. Small companies, manufacturers and agric businesses are exempt from withholding tax deduction on their income
29. Small companies are exempt from deduction on their payments to suppliers
Value Added Tax (VAT) – 0% or Exempt
30. Basic food items – 0 per cent VAT
31. Rent – Exempt
32. Education services and materials – 0 per cent VAT
33. Health and medical services
34. Pharmaceutical products – 0 per cent VAT
35. Small companies (≤ N100m turnover) are exempt from charging VAT
36. Diesel, petrol, and solar power equipment – VAT suspended or exempt
Refund of VAT on assets and overheads to produce VATable or 0 per cent VAT goods and services
37. Agricultural inputs – fertilizers, seeds, seedlings, feeds, and live animals
38. Purchase, lease, or hire of equipment for agric purposes
39. Disability aids – hearing aids, wheelchairs, braille materials
40. Transport – shared passenger road transport (non-charter)
Electric vehicles and parts – exempt
41. Humanitarian supplies – exempt
42. Baby products
43. Sanitary towels, pads or tampons
44. Land and building
Stamp Duties – Exempt
45. Electronic money transfers below N10,000
46. Salary payments
47. Intra-bank transfers
48. Transfers of government securities or shares
49. All documents for transfer of stocks and shares.
By Aduragbemi Omiyale
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) for the Nigerian private sector in July 2026 contracted to 52.5 points from 53.4 points in June 2026, a statement made available to Business Post has shown.
This occurred despite the business environment sustaining its growth last month, with an increase in new orders experienced, as inflationary pressures softened, and output and employment modestly rising.
The Head of Equity Research West Africa at Stanbic IBTC Bank, Mr Muyiwa Oni, said the PMI indicated that the private sector recorded its slowest since March 2026, as businesses also increased their input purchasing activity to keep up with current demand requirements and prepare for future workloads.
“Nigerian businesses reported improved customer demand in July while better pricing and new product launches also helped them to capture new orders arising from the increase in demand. These factors helped to keep the private sector activity in an expansionary territory, although this moderated when compared to June,” he was quoted as saying.
It was stated that while input costs increased at their slowest pace in five months, panellists reported higher costs for fuel and raw materials. Selling prices also softened in line with the picture for input costs in July.
Headline inflation eased slightly to 15.91 per cent y/y in June from 15.93 per cent y/y in May, snapping three consecutive months of price increases.
Although July inflation is likely to be higher m/m, it is expected to print lower, likely at 15.72 per cent y/y, primarily driven by favourable base effects from the corresponding period of last year, because there are no expectations of the magnitude of m/m inflation witnessed in July 2025 (1.99 per cent) to materialise this year.
“We retain our 2026 growth forecasts at 4.1 per cent as we see the oil sector growing by 3.45 per cent y/y in 2026, from 8.50 per cent y/y in 2025, while the non-oil sector is likely to grow by 4.11 per cent y/y, from 3.71 per cent y/y in 2025.
“The risks to our outlook include country-wide insecurity which may constrain food production, exchange rate pressures resurfacing, extreme-weather related conditions and higher fertiliser prices impacting crop yield, and a volatile global environment which may affect sentiment and constrain capital flows,” Mr Oni noted.
By Adedapo Adesanya
Sahara Upstream, a Nigeria-focused crude producer, has deployed a new 380,000-barrel tanker to boost exports from the OML 18 block as part of a wider push by domestic operators to invest in infrastructure and lift output and exports for Africa’s biggest oil producer.
The MT D Adesanya, which can hold more than 62,000 cubic metres of crude, will operate alongside the MT D Bayero, receiving crude from shuttle vessels at Bonny Anchorage, one of Nigeria’s main crude export hubs, before transferring it to the FSO Cawthorne storage facility.
Sahara said the tanker would help cut turnaround times, currently about 30 to 48 hours, and support a planned 50 per cent increase in exports from the block’s current level of about 950,000 barrels per month.
The block currently produces about 36,000 barrels per day, according to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with Sahara targeting output of 60,000 barrels per day.
OML 18 is one of the Niger Delta’s oldest producing assets. It began production in 1970 and contains an estimated 1.5 billion barrels of oil equivalent in reserves.
Shell, Total and Eni sold their combined interests to Eroton in 2015 as part of a broader shift toward domestic ownership in Nigeria’s upstream sector.
This development comes as Sahara Upstream is deepening its exploration and production footprint through Asharami Energy Limited (AEL), its upstream E&P business, which says it is targeting 350,000 barrels of oil per day by 2030 through its subsidiary, Enageed Resources Limited (ERL).
The growth target comes as AEL also marks a major safety milestone, achieving 6 million Lost Time Injury (LTI)-free man-hours in its OML-148 operations — reinforcing the company’s commitment to operational excellence and safety leadership.
According to Asharami Energy, the milestone reflects its ability to execute complex operations safely, in line with Sahara’s Beyond XXX vision, which builds on the group’s 30-year legacy of responsible enterprise while marking its next chapter of impact, innovation, and sustainable growth.
The developments position Sahara Upstream and its subsidiaries among the domestic operators driving increased investment in Nigeria’s oil and gas infrastructure, as the group works to scale up production and exports for Africa’s biggest oil producer.
By Aduragbemi Omiyale
One of the leading energy firms in Nigeria, Aradel Holdings Plc, has expressed its desire to optimise its enlarged portfolio and improve operational efficiency in the second half of 2026.
The company is planning to build on the success it recorded in the first half of the year, where it grew its revenue by 577 per cent to N2.5 trillion from N368.1 billion in H1 2025.
The significant rise in earnings was driven by higher production volumes together with stronger realised crude oil and gas prices, with the average at $90.4/bbl and $2.08/mmscf, respectively.
In the period under review, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased by 688 per cent to N1.4 trillion from N176.4 billion in the corresponding period of last year, while the operating profit surged by 789 per cent to N1.1 trillion from N118.6 billion due to higher revenue and crude handling income at N149.8 billion, partly offset by underlift cost and general and administrative costs.
The net cash generated from operations was N975.6 billion between January and June 2026 versus N140.8 billion in the same period of 2025, reflecting the cash generation of the enlarged organisation.
The net debt contracted by 70 per cent on a year-to-date basis to N46.5 billion from N475.1 billion as of December 31, 2025.
Aradel, in the period under consideration, improved its post-tax profit by 30 per cent to N191.0 billion from N146.4 billion, a development that impressed its chief executive, Mr Adegbite Falade, who said, “A firmer price environment supported performance, generating net cash from operating activities of N975.6 billion and a closing cash balance of N1.7 trillion.”
“Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders and unlocking that potential is our main focus.
“We reaffirm our full year production guidance of 110 – 140 kboepd and remain committed to operating responsibly in a changing energy landscape and to delivering lasting value for our stakeholders,” he stated.
