Economy
New Excise Bill Not Good for Tinubu’s Fiscal Reform Agenda—OPS
By Aduragbemi Omiyale
The positive results being envisaged by President Bola Tinubu through his fiscal reform agenda could be undermined by the proposed amendment to the Customs, Excise and Tariff Bill.
This is the view of the Organized Private Sector (OPS) of Nigeria, comprising the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Manufacturers Association of Nigeria (MAN), the Nigeria Employers’ Consultative Association (NECA), National Association of Small and Medium Enterprises (NASME) and the National Association of Small Scale Industrialists (NASSI).
The group argued that the current draft of the bill does not align with the federal government’s fiscal reform direction because it contains several legal and administrative gaps.
As a result, the organisation advised the National Assembly to withdraw it in order not to slowdown the current economic progress.
In a paper presented on Thursday during a public hearing on the proposed amendment bill, which recently passed its second reading in the parliament, OPS submitted that policies must be holistic, harmonised, and context-appropriate, ensuring that they improve health outcomes without undermining jobs, investment, affordability, or industrial stability.
It maintained that Nigeria’s excise framework is increasingly fragmented, as new levies are introduced without coordinated assessment of their combined effects on production, investment, backward integration, employment, exports, and inflation, which may result in unintended consequences negating President Tinubu’s administration’s key economic reforms without delivering measurable public health gains.
The group further noted that a steep excise increase or introduction of a levy would impose substantial economic costs on businesses and consumers without delivering measurable public health gains. The group stated that the proposed excise amendment introduces mathematical, legal, and administrative contradictions, worsens Nigeria’s already fragmented fiscal environment, and directly conflicts with national industrialisation priorities, including the Nigeria Sugar Master Plan.
OPS also warned that the amendment could weaken the beverage value chain, one of the country’s most significant contributors to non-oil revenue and a major employer. Industry experts added that the levy would push up operating costs, reduce capacity utilisation, and raise consumer prices at a time when households and small businesses are already under pressure, with many slipping deeper into poverty. This, in turn, could reduce VAT and CIT collections, placing additional strain on medium-term FAAC revenues.
“Nigeria’s non-alcoholic drinks sector is a critical economic stabiliser, supporting 1.5 million jobs, driving backward integration under the NSMP II, and contributing 40 – 45 per cent of gross revenues as taxes and yet already operating under severe macroeconomic strain and thin margins,” said OPS.
According to the body, given that the beverage industry falls among the non-oil revenue contributors, passing the bill into law could undermine the administration’s ease of doing business objectives at such a sensitive economic period.
The group faulted the National Assembly for advancing the bills without coordination with the Ministry of Finance, the Presidential Fiscal Policy & Tax Reform Committee, FAAC, and other responsible institutions. It noted that the bill contradicts the President’s emphasis on stability, predictability, simplicity, and non-disruptive tax reform.
It further stressed that global and domestic evidence confirm that steep or ambiguous SSB taxes in low-income economies lead to job losses, contraction of MSMEs, reduced government revenue, and no measurable health benefits, while widening inequality and accelerating the growth of the informal market.
“The amendment bill contains internal contradictions (20 per cent levy per litre of retail price) that are impossible to implement consistently. Over-taxation may shrink the formal sector, reduce VAT and CIT collections and shift consumers to informal markets. The bill may cut medium-term FAAC distributions and weaken state-level revenue stability,” OPS added.
The association added that it remains open to continued engagement with lawmakers, fiscal agencies, and civil society groups to ensure that any revision to the excise regime supports investment, jobs, and long-term revenue stability.
By Adedapo Adesanya
The first trading day in the currency market in Nigeria ended bearish for the Naira as its value further weakened against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday by N2.92 or 0.22 per cent to N1,349.24/$1 from the N1,346.32/$1 it was traded last Friday.
Also in the spot market, the Nigerian currency depreciated against the Pound Sterling by N6.62 during the trading day to close at N1,821.87/£1 versus the preceding session’s N1,815.25/£1, and lost N6.80 on the Euro to settle at N1,591.42/€1, in contrast to the previous rate of N1,584.62/€1.
At the GTBank forex desk, the Nigerian Naira crashed against the greenback yesterday by N1 to quote at N1,357/$1 versus the preceding session’s closing value of N1,356/$1, but in the black market, the Naira appreciated by N5 to close at N1,365/$1 compared with the preceding trading day’s N1,370/$1.
The Naira slide came amid renewed pressure as weekly inflows declined, as Bureaux De Change (BDC) operators were unable to purchase Dollars from banks two weeks after the Central Bank of Nigeria (CBN) reopened the official FX Market window to them.
It had been expected that BDCs would help to further deflate the parallel market premium, but according to reports, BDC operators had yet to commence FX purchases from commercial banks, two weeks after the apex bank said legitimate agents can access up to $150,000 from the banks.
There were no FX inflows from the CBN during the past week, according to a report by the research department of Coronation Merchant Bank.
Meanwhile, Nigeria’s external reserves, which provide the CBN with firepower to support the naira, rose to $48.77 billion as of February 19, 2026.
Meanwhile, the cryptocurrency market was in the red as a broader risk-off shift tied to an emerging “AI scare trade” in equities is weighing on crypto markets.
This is leading traders to sell, while the sharp liquidation events that typically attract dip buyers have seen no such move recently, with Bitcoin (BTC) down by 3.2 per cent to $62,901.86.
Further, Ethereum (ETH) depreciated by 2.5 per cent to $1,821.13, Cardano (ADA) slid 1.9 per cent to $0.2571, Litecoin (LTC) went down by 1.9 per cent to $50.45, Solana (SOL) shrank 1.8 per cent to $76.54, Dogecoin (DOGE) declined by 1.7 per cent to $0.0912, Ripple (XRP) slumped 1.2 per cent to $1.32, and Binance Coin (BNB) lost 0.6 per cent to sell for $589.88, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
By Adedapo Adesanya
Crude oil eased on Monday ahead of a third round of nuclear talks between the US and Iran, and amid increased economic uncertainty after the latest US tariff upheaval.
According to data, Brent crude futures lost 27 cents or 0.38 per cent to close at $71.49 a barrel, while US West Texas Intermediate (WTI) crude futures fell 17 cents or 0.26 per cent to per barrel $66.31.
Iran has indicated its preparedness to make concessions on its nuclear programme in return for sanctions lifting and recognition of its right to enrich uranium.
The Iranian government, facing pressure at home with a growing opposition and globally with threats of a US military strike, appears ready for a third round of Omani-mediated talks with American negotiators this week.
According to reports, the Foreign Minister of Oman, Mr Badr Albusaidi, on Sunday said talks would resume on Thursday, February 26, in Geneva “with a positive push to go the extra mile toward finalising the deal” over Iran’s nuclear program.
In separate remarks, the Iranian government suggested talks in the Swiss city on that date. However, there has been no confirmation from the US officials.
The US administration has been pressuring Iran to agree to curtail its nuclear program, which Iran insists is intended for peaceful, civilian purposes, such as electricity generation. The US, along with Israel and others in the West, has accused Iran of intending to build atomic weapons.
US President Donald Trump has dispatched two aircraft carrier strike groups, with dozens of fighter jets and bombers to the region, and other military planes and supporting forces have been spotted flying into air bases in the Middle East.
President Trump said on Saturday that he would raise a temporary tariff from 10 per cent to 15 per cent on US imports from all countries, the maximum allowed under the law.
This came after a US Supreme Court ruling last week struck down key parts of President Trump’s tariff plans, rekindling uncertainty among investors and businesses.
Goldman Sachs lifted its Q4 2026 Brent forecast to $60 and WTI to $56 per barrel, citing lower-than-expected OECD stock levels.
The bank still projects a 2.3 million barrels per day surplus in 2026, assuming no major supply disruptions.
Meanwhile, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) may resume production increases in 2026 amid limited inventory builds and shifting market dynamics.
By Aduragbemi Omiyale
The investing public has been advised to exercise due diligence before trading stocks on the Nigerian Exchange (NGX) Limited.
This caution was given by the NGX Regulation Limited (NGX RegCo), the independent regulatory arm of the NGX Group Plc.
The advisory became necessary in response to notable price movements observed in the shares of certain listed companies over recent trading sessions.
On Monday, the bourse suspended trading in the shares of newly-listed Zichis Agro-allied Industries Plc. The company’s stocks gained almost 900 per cent within a month of its listing on Customs Street.
In a statement today, NGX RegCo urged investors to avoid speculative trading based on unverified information and to consult licensed intermediaries such as stockbrokers or investment advisers when needed.
It explained that its advisory is part of its standard market surveillance functions, as it serves as a measured reminder for investors to prioritise informed and disciplined decision-making.
The notice emphasised that the Exchange will continue to monitor market activities closely in line with its mandate to ensure a fair, orderly, and transparent market.
“NGX RegCo encourages all investors to base their decisions on publicly available information, including a thorough assessment of company fundamentals, financial performance, and risk profile,” a part of the disclosure said.
It reassured all stakeholders that the NGX remains stable, well-regulated, and resilient, saying the platform continues to foster an environment where investors can participate with confidence, supported by robust oversight and transparent market operations.
“Our primary responsibility is to maintain a level playing field where market participants can trade with confidence, backed by timely and accurate information.
“This advisory is a routine communication, reinforcing that sound fundamentals, not speculation, remain the foundation for sustainable investment outcomes. We are fully committed to preserving the integrity and stability of our market,” the chief executive of NGX RegCo, Mr Olufemi Shobanjo, stated.
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