Economy
IMF Suggests VAT Hike, Fiscal, Exchange Rate Reforms to Nigeria
By Dipo Olowookere
The International Monetary Fund (IMF) has advised Nigeria to consider further increasing the value-added tax (VAT) from the existing 7.5 per cent in order to improve revenue.
The global lender said this would be necessary because the current consolidated government revenue-to-gross domestic product (GDP) ratio at 7.5 per cent “remains among the lowest in the world.”
According to the organisation, if the Nigerian government fails to implement these and other suggestions, some significant risks could put pressure on the nation’s economy.
In the third quarter of 2020, Nigeria slipped into another recession under President Muhammadu Buhari but in the next quarter, it exited and since then, it has been struggling to recover fully.
Last month, the Executive Board of the IMF concluded its consultation with Nigeria and on Monday, February 7, 2022, a statement was released containing the thoughts of the team on the nation.
In the statement obtained by Business Post, the financial institution said socio-economic conditions remain a challenge in the country as levels of food insecurity have risen and the poverty rate is estimated to have risen during the pandemic as “a worsening of violence and insecurity could also derail the [economic] recovery.”
But in order to absorb these shocks, the IMF advised the authorities to carry out major reforms in the fiscal, exchange rate, trade, and governance areas.
It also urged the government to urgently “create policy space and reduce debt sustainability risks,” calling for “significant domestic revenue mobilization, including by further increasing the value-added tax rate, improving tax compliance, and rationalizing tax incentives.”
The IMF further advised Nigeria to remove “untargeted fuel subsidies, with compensatory measures for the poor and transparent use of saved resources.”
On the exchange rate reforms, it said this “should be accompanied by macroeconomic policies to contain inflation, structural reforms to improve transparency and governance, and clear communications regarding exchange rate policy.”
However, the global bank commended the authorities for the proactive approach it took to contain COVID-19 infection rates and fatalities in the country, though it stressed that low vaccination rates expose Nigeria to future pandemic waves and new variants, including the ongoing Omicron variant.
The IMF also said Nigeria’s ratification of the African Continental Free Trade Agreement (AfCFTA) could also yield a positive boost to the non-oil sector while oil production could rebound, supported by the more generous terms of the Petroleum Industry Act (PIA).
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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