Economy
Africa Needs Stronger Tax, Trade Laws—Experts
By Modupe Gbadeyanka
Experts have advised African leaders to come up with stronger tax laws and trade treaties in order to block huge amount of money lost to weak tax laws and unfair trade treaties.
At the Pan-African Conference on Illicit Financial Flows (IFFs) from Africa organised by Tax Justice Network Africa (TJNA) in Nairobi, Kenya, speakers agreed that a lot of funds have been lost to weak tax laws and trade treaties and that African countries must begin a holistic review of all trade and tax laws to address this.
According to the News Agency of Nigeria (NAN), over $50 billion has been lost to multinationals who take advantage of weak tax laws and unfair trade treaties.
In an interview with NAN on the sidelines of the conference, Mr Jason Braganza, Deputy Executive Director, TJNA said Africa was yet to ascertain the real amount being lost to IFFs as the quoted $50 billion was just a fraction of the entire sum.
He said that the conference was part of efforts to broaden Africa’s approach at defining and calculating illicit financial flows with a view to stopping them.
Mr Braganza said that there were a number of ways through which multinational companies cheated African countries, taking advantage of weak laws and policies without breaking them.
“When we talk about broadening the definition, what we mean is the need to come up with an approach that includes aggressive tax planning by high net worth individuals as well as big multinational corporations who engage in harmful tax practices in order to maximise their profits.
“They take advantage of weak tax policies and tax laws in many African countries, which make the countries vulnerable to these multinationals who are able to manipulate the laws without breaking them.
“Therefore taking away the profits from where they are generated and moved to other tax jurisdictions like offshore tax havens where there is high level of secrecy and tax laws are in favour of multinationals.
“The way businesses conduct their activities, the international financial architecture is very fractured, fractured in the sense that the complexity of operating tools and models for business transactions means that one single business can have over 100 subsidiaries or special purpose vehicles.
“This sort of arrangement provides them with the platform to hide or not fully reveal the kind of activities they have been undertaking, the kind of incomes they are making.
“They are able to hide what they are supposed to be paying to government, this is a big problem,” he said.
Mr Braganza said the illicit ways high net worth individuals and corporations were exploiting weak existing laws, policies and legislation was having a detrimental impact on government ability to collect revenue.
He said also that it significantly impacted on government’s ability to implement development projects.
He therefore advised African countries to review their laws to check such excesses by multinationals.
Mr Braganza said also that there were weak laws that allowed multinationals to trade within themselves and either charge lower or higher rates to evade tax liability.
He said that the law review should also include transparency in transactions and audit reports adding that African countries must collaborate to check the activities of these companies.
He also called for review of all trade treaties especially those entered into for decades and were not beneficial to Africa but to the western nations.
“There are a number of laws, policies and strategies that need to be strengthened in order to avoid and close these loops.
“In Uganda for instance, the government has taken the decision to suspend the negotiation of new treaties pending a review of all existing treaties to understand what exactly is contained in these treaties.
“You can go even in the case of Kenya, there are treaties that dates back to the 70s that have never been analysed for people to understand what the country has signed itself up for.
“The first step is to really appreciate that some of the treaties that were signed several decades ago are harmful and detrimental to the economies.
“The second point is for members of parliament to get involved in this conversation and be part of the negotiation process that governments enter into and not leave it only to technocrats or bureaucrats.
“This is because the lawmakers are the ones who pass laws that have significant impact on how a government or an economy can run,” he said.
Mr Braganza also called on African government to show more political commitments to implement recommendations that had already been made on these issues.
“The high level panel is a good example, they have made very good set of recommendations that can actually help African governments to try and stop IFFs, to better improve the way they negotiate treaties.
“The African Tax Administrative Forum (ATAF) is another platform where governments should sign on, because ATAF is responsible and involved in developing legislation and policy guidelines for Africa perspective.
“So we advise that African countries review all trade treaties but most importantly, implement the recommendations that they have signed up to.
“There is a charter that all heads of state of AU have signed up to, committing themselves to working with their members of parliament to try and curb IFFs,” he said.
Mr Braganza said that TJNA had also been engaging parliaments from different African countries to build their skills to understand the technicality of some of these issues so as to inform their law making process.
He added that TJNA had a specific programme, African Parliamentary Network on Illicit Financial Flows and Tax which was dedicated to working with lawmakers across the continent.
By Adedapo Adesanya
The Lagos Chamber of Commerce and Industry (LCCI) has noted that the N15.52 trillion allocation to debt servicing in the 2026 budget remains a significant fiscal burden.
LCCI Director-General, Mrs Chinyere Almona, said this on Tuesday in Lagos via a statement in reaction to the nation’s 2026 budget of N58.18 trillion, hinging the success of the 2026 budget on execution discipline, capital efficiency, and sustained support for productive sectors.
She noted that the budget was a timely shift from macroeconomic stabilisation to growth acceleration, reflecting growing confidence in the economy.
She lauded its emphasis on production-oriented spending, with capital expenditure of N26.08 trillion, representing 45 per cent of total outlays, and significantly outweighing non-debt recurrent expenditure of N15.25 trillion.
According to Mrs Almona, this composition supports infrastructure development, industrial expansion, and productivity growth.
However, she explained that the N15.52 trillion allocation to debt servicing underscored the need for stricter borrowing discipline, enhanced revenue efficiency, and expanded public-private partnerships to safeguard investments that promote growth.
She added that a further review of the 2026 budget revealed relatively optimistic macroeconomic assumptions that may pose fiscal risks.
“The oil price benchmark of $64.85 per barrel, although lower than the $75.00 benchmark in the 2025 budget, appears optimistic when compared with the 2025 average price of about $69.60 per barrel and current prices around $60 per barrel.
“This raises downside risks to oil revenue, especially since 35.6 per cent of the total projected revenue is expected to come from oil receipts.
“Similarly, the oil production benchmark of 1.84 million barrels per day is significantly higher than the current level of approximately 1.49 million barrels per day.
“Achieving this may be challenging without substantial improvements in security, infrastructure integrity, and sector investment,” she said.
Mrs Almona said the exchange rate assumption of N1,512 to the Dollar, compared with N1,500 in the 2025 budget and about N1,446 per Dollar at the end of November, suggests expectations of a mild depreciation.
She said while this may support Naira-denominated revenue, it also increases the cost of imports, debt servicing, and inflation management, with broader macroeconomic implications.
The LCCI DG added that the inflation projection of 16.5 per cent in 2026, up from 15.8 per cent in the 2025 budget and a current rate of about 14.45 per cent, appeared optimistic, particularly in a pre-election year.
She also expressed concern about Nigeria’s historically weak budget implementation capacity, likely to be further strained by the combined operation of multiple budget cycles within a single year.
Looking ahead, Mrs Almona identified agriculture and agro-processing, manufacturing, infrastructure, energy, and human capital development as key drivers of growth in 2026.
She said that unlocking these sectors would require decisive execution—scaling irrigation and agro-value chains, reducing power and logistics costs for manufacturers, and aligning education and skills development with private-sector needs.
The LCCI head stressed the need to resolve issues surrounding the Naira for crude, increase the supply of oil to local refineries to boost local refining capacity and conserve the substantial foreign exchange used for fuel imports.
“Overall, the 2026 Budget presents a credible opportunity for Nigeria to transition from recovery to expansion.
“Its success will depend less on the size of allocations and more on execution discipline, capital efficiency, and sustained support for productive sectors.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.
Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.
In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.
Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.
Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.
On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.
Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.
Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.
By Adedapo Adesanya
Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.
In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.
Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.
“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.
He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.
Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.
“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”
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