Economy
IMF Advises Nigerian Government to Increase VAT to 15%
By Adedapo Adesanya
As part of efforts to improve Nigeria’s ailing economy, the International Monetary Fund (IMF) has thrown its weight behind the need for the country to carry out tax administration reforms.
On the back of this, it called on the Nigerian government to double Value Added Tax (VAT) to 15 per cent in the next five years from the current 7.5 per cent.
This is part of the recommendations offered by the staff of the Bretton-Wood institution at the conclusion of its 2022 Article IV Mission in Nigeria.
Amid dwindling revenues from the nation’s oil proceeds, the country has taken to borrowing, but IMF notes that this can sooner be solved by adjusting tax rates to levels comparable to the average in the Economic Community of West African States (ECOWAS) as compliance improves.
“This includes further increasing the VAT rate to 15 per cent by 2027 in steps while streamlining numerous VAT exemptions based on systemic reviews, increasing excise rates on alcoholic and tobacco products while broadening the base, and rationalizing tax incentives by streamlining tax expenditures based on comprehensive periodic reviews,” the recommendation said.
Recall that the federal government 2020 commenced the implementation of the 7.5 per cent VAT as directed in the Finance Act 2019, much to the dismay of Nigerians. Before then, VAT was 5.0 per cent.
The mission also welcomed the steady implementation of the tax automation system (TaxPro Max), which was launched by the Federal Inland Revenue Service (FIRS) in June 2021 to enable seamless registration, filling, payment of taxes, and automatic credit of withholding tax as well as other credits to the taxpayer’s accounts, among others.
The IMF also recommended stepping up efforts to further expand coverage under a well-designed roadmap and strengthen taxpayer segmentation centring on the Large Taxpayer Offices (LTOs).
Setting a medium-term target, the lender added, “the authorities should develop a compliance improvement programme and comprehensive customs modernization programme.”
To help states also revenue, the IMF tasked the Nigerian government to improve the effectiveness of the State Internal Revenue Service’s administration of the Pay-As-You-Earn (PAYE) system.
To eliminate red-tapism, it called for strengthening inter-agency coordination and data sharing.
By Aduragbemi Omiyale
The chief executive of Ellah Lakes Plc, Mr Chuka Mordi, has described the N235 billion equity offer as a pivotal step in the company’s evolution.
“This offer for subscription is about unlocking the next chapter of Ellah Lakes’ growth story.
“At an offer price of N12.50 per share, this raise reflects the intrinsic value of our scaled, integrated platform.
“We are inviting investors to participate in a clear growth trajectory built on over 30,000 hectares of resilient, diversified assets and strong processing capacity.
“The N235 billion equity expansion marks our transition from foundation building to full-scale market expansion, driving sustainable profitability and advancing Nigeria’s food security agenda,” he stated.
Also, the deputy chief executive of the firm, Mr Paul Farrer, said, “Every Naira from this raise has a clear strategic purpose.
“The proceeds will accelerate integration of the newly acquired Agro-Allied Resources and Processing Nigeria Limited (ARPN) assets and upgrade our crude palm oil and cassava processing facilities.
“Our goal is to deliver a step-change in operational efficiency and scale, maximising value for shareholders and contributing to the broader agro-industrial ecosystem.”
Business Post reports that the offer was launched during a Facts Behind the Offer presentation at the Nigerian Exchange (NGX) Limited.
The chief executive of NGX Limited, Mr Jude Chiemeka, said, “The launch of this N235 billion equity raise underscores the depth and resilience of Nigeria’s capital market as a strategic enabler of corporate growth.
“At NGX, we are particularly pleased to see a leading indigenous agribusiness like Ellah Lakes harness the market to scale its operations and deepen value creation across the agricultural value chain.
“This offer represents not only an opportunity for investors to participate in the country’s agro-industrial expansion but also a strong signal of renewed confidence in the exchange as a gateway for transformative capital formation.”
Ellah Lakes is a pioneering integrated agro-industrial enterprise in Nigeria raising N235 billion through the issuance of 18.8 billion ordinary shares of 50 Kobo each at N12.50 per share.
The exercise is led by Rand Merchant Bank (RMB) as the lead issuing house. It commenced on Monday, November 10, 2025, and will close on Friday, December 5, 2025.
By Adedapo Adesanya
Three stocks weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.73 per cent on Monday, November 10, with 11 Plc dropping N35.30 to close at N360.00 per share compared with the preceding session’s N395.50 per share.
Further, Nipco Plc went down by 90 Kobo to end at N239.10 per unit compared with last Friday’s closing price of N240.00 per unit, and Central Securities Clearing System (CSCS) Plc weakened by 75 Kobo to N39.25 per share from N40.00 per share.
Consequently, the market capitalisation lost N16.10 billion in value to close at N2.174 trillion compared with the preceding trading day’s N2.190 trillion, and the NASD Unlisted Security Index (NSI) decreased by 26.91 points to 3,634.16 points from 3,661.07 points.
Business Post reports that the price of Afriland Properties Plc went up during the session by 40 Kobo to end at N21.13 per unit compared with the preceding day’s N20.73 per unit.
Yesterday, the volume of securities traded rose by 639.6 per cent to 1.5 million units from the 197,833 units achieved in the past trading session, the value of transactions surged by 591.4 per cent to N27.9 million from N4.0 million, and the number of deals increased by 45.8 per cent to 35 deals from 24 deals.
At the close of business, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most traded stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, followed by Okitipupa Plc with 170.3 million units transacted for N8.0 billion, and Air Liquide Plc with 507.4 million units worth N4.2 billion.
InfraCredit Plc was also the most traded stock by volume on a year-to-date basis with 5.8 billion units worth N16.4 billion, trailed by Industrial and General Insurance (IGI) Plc with 1.2 billion units traded for N419.7 million, and Impresit Bakolori Plc exchanged 536.9 million units for N524.9 million.
By Adedapo Adesanya
The Naira depreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, November 10, as FX liquidity pressure plummeted the value of the local currency by 71 Kobo or 0.05 per cent to N1,437.39/$1 from the N1,436.58/$1 it traded in the previous session.
Equally, the Naira lost N12 against the Pound Sterling in the spot market to settle at N1,894.78/£1, in contrast to the preceding trading session’s N1,882.35/£1 and declined against the Euro by N5.72 to quote at N1,663.24/€1 versus last Friday’s value of N1,657.52/€1.
However, the domestic currency gained N4 against the greenback at GTBank to close at N1,442/$1 versus N1,446/$1 and depreciated against the US Dollar by N5 to sell for N1,455/$1 compared with the preceding session’s N1,450/$1.
The decline recorded by the Nigerian currency was largely driven by insufficient supply from foreign portfolio investors (FPIs) and local participants to cover for the demand, according to investment firm AIICO Capital Limited.
Naira came under pressures due to weak US dollar liquidity in the official currency market. The slowdown in FX flows forced the CBN into action with $50 million sold to boost liquidity last week.
FX inflows fell last week by about 14 per cent to $899 million, according to Coronation Merchant Bank research subsidiary, from $1.04 billion the previous week.
The market anticipates that the Naira will trade stable as the CBN maintains stance to support the local currency, a move strengthened by growing external reserves.
As for the cryptocurrency market, investors didn’t seem fazed by progress toward ending the US shutdown boosted sentiment, even as traders eyed a short-term liquidity boost from drawing down the Treasury General Account.
Market analysts noted that the shutdown has created a mixed backdrop for crypto.
On the positive side, the end of the shutdown could release $150–200 billion from the Treasury General Account (TGA) into bank reserves, a liquidity jolt that has historically benefited risk assets, including crypto.
Litecoin (LTC) lost 4.4 per cent to sell at $103.69, Binance Coin (BNB) dropped 2.2 per cent to close at $983.19, Ethereum (ETH) slumped by 1.5 per cent to $3,550.15, Dogecoin (DOGE) depreciated by 1.2 per cent to $0.1785, Solana (SOL) fell by 1.0 per cent to $165.56, Bitcoin (BTC) declined by 0.8 per cent to $105,351.58, and Cardano (ADA) slumped by 0.5 per cent to $0.5845.
On the flip side, Ripple (XRP) gained 1.5 per cent to finish at $2.48, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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