By Adedapo Adesanya

An Abuja High Court has cleared the way for the implementation of Nigeria’s new tax regime scheduled to commence tomorrow, Thursday, January 1, 2026, as it dismissed a suit seeking to halt the exercise.

The ruling gives the federal government, the Federal Inland Revenue Service (FIRS) and the National Assembly full legal backing to proceed with the take-off of the new tax laws.

The suit was filed by the Incorporated Trustees of African Initiative for Abuse of Public Trustees, which dragged the Federal Republic of Nigeria, the President, the Attorney-General of the Federation, the President of the Senate, the Speaker of the House of Representatives and the National Assembly before the court over alleged discrepancies in the recently enacted tax laws.

In an ex parte motion, the plaintiff sought an interim injunction restraining the federal government, FIRS, the National Assembly and related agencies from implementing or enforcing the provisions of the Nigeria Tax Act, 2025; Nigeria Tax Administration Act, 2025; Nigeria Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board of Nigeria (Establishment) Act, 2025, pending the determination of the substantive suit.

The group also asked the court to restrain President Bola Tinubu from implementing the laws in any part of the federation pending the hearing of its motion on notice.

However, in a ruling delivered on Tuesday, Justice Kawu struck out the application, holding that it lacked merit and failed to establish sufficient legal grounds to warrant the grant of the reliefs sought.

The court ruled that the plaintiffs did not demonstrate how the implementation of the new tax laws would occasion irreparable harm or violate any provision of the Constitution, stressing that matters of fiscal policy and economic reforms fall squarely within the powers of government.

Recall that Mr Tinubu had ignored suspension calls and insists the new tax laws will take off tomorrow.

Justice Kawu further held that once a law has been duly enacted and gazetted, any alleged errors or controversies could only be addressed through legislative amendment or a substantive court order, noting that disagreements over tax laws cannot stop the implementation of an existing law.

Consequently, the court affirmed that there was no legal impediment to the commencement of the new tax regime and directed that implementation should proceed as scheduled from January 1, 2026.

The new tax regime is anchored on four landmark tax reform bills signed into law in 2025 as part of the Federal Government’s broader fiscal and economic reform agenda aimed at boosting revenue, simplifying the tax system and reducing leakages.

The laws — the Nigeria Tax Act, 2025, Nigeria Tax Administration Act, 2025, Nigeria Revenue Service (Establishment) Act, 2025, and the Joint Revenue Board of Nigeria (Establishment) Act, 2025 — consolidate and replace several existing tax statutes, including laws governing companies income tax, personal income tax, value added tax, capital gains tax and stamp duties.

Key elements of the reforms include the harmonisation of multiple taxes into a more streamlined framework, expansion of the tax base, protection for low-income earners and small businesses, and the introduction of modern, technology-driven tax administration systems such as digital filing and electronic compliance monitoring.

The reforms also provide for the restructuring of federal tax administration, including the creation of the Nigeria Revenue Service, to strengthen efficiency, coordination and revenue collection across government levels.

The Tinubu administration has said the reforms are critical to stabilising public finances and funding infrastructure and social services, however recent allegations of discrepancies between the versions passed by the National Assembly and those later gazetted has raised a few eyebrows including former Vice President Atiku Abubakar and the Nigerian Bar Association (NBA).

By Adedapo Adesanya

Aradel Holdings Plc has completed the acquisition of an additional 40 per cent equity interest in ND Western Limited, strengthening its position in Nigeria’s upstream oil and gas sector.

The transaction, executed through Aradel’s wholly owned subsidiary, Aradel Energy Limited, followed the fulfilment of all regulatory and contractual conditions. It was first announced on October 24, 2025, and involved the purchase of the stake from Petrolin Trading Limited.

With the completion of the deal, Aradel Energy Limited’s shareholding in ND Western has increased from 41.67 per cent to 81.67 per cent, making ND Western a subsidiary of Aradel Energy Limited. The acquisition also raises Aradel’s aggregate indirect shareholding in Renaissance Africa Energy Company Limited from 33.3 per cent to 53.3 per cent. Renaissance is a consortium made up of four local companies and one foreign firm, including Aradel, ND Western, and Petrolin among others.

ND Western holds a 45 per cent participating interest in Oil Mining Lease (OML) 34, a producing asset located in the western Niger Delta. The company also owns 50 per cent of the share capital of Renaissance Africa Energy Holding Company Limited, the parent company of Renaissance Africa Energy Company Limited, which operates the Renaissance Joint Venture.

Aradel said the acquisition aligns with its long-term strategy focused on disciplined portfolio consolidation, asset base expansion and sustainable value creation. The company noted that the transaction is expected to enhance its operational scale, efficiency and resilience across its asset portfolio.

Commenting on the development, Aradel Holdings Plc’s Chief Executive Officer, Mr Adegbite Falade, said the completion of the acquisition represents another step in the company’s growth and consolidation strategy.

“Increasing our equity interest in ND Western reinforces Aradel’s position as a leading indigenous integrated energy company and enhances our ability to drive long-term value for shareholders through scale, operational efficiency, and portfolio optimization.”

The company confirmed that the transaction received all required regulatory approvals, including those from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Competition and Consumer Protection Commission (FCCPC), and complies with applicable governance and disclosure requirements.

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has projected that the country’s external reserves would climb to $51.04 billion in 2026, up from $45 billion in 2025.

The projection was contained in the Macroeconomic Outlook for Nigeria in 2026 titled Consolidating Macroeconomic Stability Amid Global Uncertainty, published by the apex bank on Tuesday.

“The external reserves are projected at $51.04 billion in 2026 compared with $45.01 billion in 2025. The external reserves are expected to be boosted by reduced pressure in the FX market based on the anticipated rise in oil earnings, sovereign bond issuance, and diaspora remittance inflows.

“Additionally, Dangote refinery’s expansion of its nameplate capacity to 700,000 bpd from 650,000 bpd in 2025 and eventually to 1.4 million bpd in the medium term would further support the growth in external reserves,” the report read.

In the FX market, the apex bank noted that reforms are expected to further enhance efficiency and transparency, narrow the premium between the Nigerian Foreign Exchange Market and Bureau de Change rates, and sustain exchange rate stability.

In addition, improved domestic oil refining capacity is expected to reduce foreign exchange demand for fuel imports.

It also projected a more stable and resilient economy in 2026, despite lingering global uncertainties, citing the impact of reforms implemented since 2023 and improved macroeconomic coordination.

According to the report, the outlook for 2026 is “cautiously optimistic”, with expectations that the economy will stabilise further as growth picks up modestly, inflation continues to moderate, and the foreign exchange market remains stable.

The lender also projected improved activity in the non-oil sector, although it noted that structural constraints persist.

The CBN said that following a prolonged period of monetary tightening to curb inflationary pressures, it eased its policy stance in September 2025 to support domestic growth and investment. The decision, it said, was driven by “continuing disinflation, sustained exchange rate stability, and improved liquidity conditions”.

It added that external buffers strengthened during the period due to increased remittance inflows through International Money Transfer Operators (IMTOs), steady oil receipts, and rising non-oil exports, which collectively supported naira stability.

The CBN also reported “substantial progress” in its transition towards a full-fledged inflation-targeting regime, supported by improved forecasting tools, modelling frameworks, and enhanced policy communication.

According to the outlook, strategic policy decisions taken in 2025 improved price and exchange rate stability, boosted capital inflows, and strengthened the resilience of the financial system.

It noted that significant progress was also recorded in the ongoing banking sector recapitalisation exercise, with many banks already meeting the new capital thresholds.

“As a result of the implementation of coordinated macroeconomic policy measures and the impact of the reforms, the Outlook projects a more stable and resilient Nigerian economy in 2026,” the report stated, adding that inflation is expected to continue moderating, output growth to strengthen, and foreign exchange stability to be sustained, leading to further reserve accumulation.

The document stressed the need for harmonised fiscal and monetary policies, institutional reforms, and tailored guidelines to sustain investor confidence and economic momentum.

The apex bank also stressed the importance of maintaining orthodox monetary policy and continued reforms in the foreign exchange market to ensure price and exchange rate stability.