Economy
Nigeria to Phase Out Obsolete Pioneer Tax Exemptions
By Dipo Olowookere
The federal government has disclosed that it plans to phase out some old pioneer tax exemptions granted to some companies as it looks to bolster its revenue to cut its fiscal deficits.
The government has expressed concern over the country’s debt burden, and with earnings from crude oil sales not improving, it is looking toward taxes to generate more funds.
Last month, the Debt Management Office (DMO) said the total debt profile of Nigeria increased by 2.98 per cent on a quarter-on-quarter basis to N42.84 trillion in June 2022 from N41.60 trillion in March 2022.
It explained that the total public debt stock of N42.84 trillion comprises the funds borrowed by the federal government, the 36 state governments and the Federal Capital Territory (FCT).
In Dollar terms, the money owed by Nigeria stood at $103.31 billion as of June 30, 2022, in contrast to $100.07 billion as of March 31, 2022.
Last week, the International Monetary Fund (IMF) expressed concerns over the debt burden of Nigeria, advising the government to use proceeds from oil sales to reduce the fiscal deficit.
The federal government, through the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, agrees that something must be done to slice the debt burden, but this can be done by increasing taxes and not earnings from crude oil.
At a workshop on tax expenditure in Abuja, she said that the government would commence the rationalisation of tax exemptions by phasing out antiquated pioneers and other tax incentives for matured industries.
According to her, contrary to what was obtained in the past, the country is reaping the benefits of tax exemptions and concessions given to small businesses.
“A lot has changed, the system is more transparent, and tax expenditure that government has given which is a tax for a bond, is to encourage ailing and infant industries to do more and employ more youths,” the Minister, represented by the Director, Technical Services in the Ministry, Ms Fatima Hayatu, said.
Mrs Ahmed further said the government would introduce some taxes to generate more funds to repay the loans from various sources, including China, the World Bank, and the IMF.
Mrs Ahmed expressed confidence that if the government introduces more taxes or expands the current tax base and block revenue leakages, the nation would have more funds to ease the debt burden.
“The debt is not something that cannot be surmounted. The programme is to block leakages where the taxes are being diverted.
“So, if we block leakages, and if it is transparent, Nigeria will borrow less, and we will have more money to finance other sectors,” the Minister said at the programme organised by the ECOWAS Commission under the Context of the Implementation of the Support Programme for Tax Transition in West Africa (PATF).
She reemphasised that, “If we have more taxes and redirect the taxes to the right fiscal sectors of our economy, we will reduce our debt burden.
“It is not as if the debt is beyond what the government can handle. If you look at the debt to the Gross Domestic Product (GDP) ratio, I think the government is doing well.”
Business Post reports that the workshop was put together to examine directives on the harmonisation of tax expenditure management practices and the monitoring and evaluation of tax transition in ECOWAS member states.
By Adedapo Adesanya
The federal government says Nigerian businesses now have access to a $1 billion financing facility under the African Continental Free Trade Area (AfCFTA), designed to strengthen production and improve export competitiveness across African markets.
Speaking at the 2nd Quarter 2026 meeting of the AfCFTA Central Coordination Committee in Abuja, the Minister of Industry, Trade and Investment, Mrs Jumoke Oduwole, described the financing window as a major opportunity for businesses looking to scale operations and deepen regional trade.
“This financing facility presents a significant opportunity for Nigerian companies seeking to expand operations, modernise production, and increase exports across African markets,” she said.
Mrs Oduwole noted that despite progress in AfCFTA implementation, Nigerian exporters still face challenges such as documentation bottlenecks, certification requirements, and standards compliance issues.
She said the government is addressing these gaps through trade facilitation reforms and stronger collaboration with agencies, including the Nigeria Customs Service (NCS) and the Nigerian Export Promotion Council (NEPC).
The trade minister also stressed the importance of strengthening Nigeria’s legal and regulatory framework, particularly through the domestication of the AfCFTA Digital Trade Protocol.
At the meeting, the National Coordinator and CEO of the Nigeria AfCFTA Coordination Office, Mrs Patience Okala, said the $1 billion AfCFTA Adjustment Fund Credit Facility is targeted at large-scale businesses with a minimum financing threshold of US$10 million.
“The facility will support business expansion, modernisation, working capital requirements, project development, industrialisation efforts, and regional value chain integration,” she explained.
Mrs Okala added that the coordination office is working with fund managers to ensure qualified Nigerian firms can access the facility, while also assembling a pilot group of businesses to maximise participation.
She further highlighted growing private sector engagement, noting that recent sensitisation events in Kano attracted more than 470 businesses, including women-led enterprises.
On his part, a representative of the Federal Ministry of Industry, Trade and Investment, Mr Simon Om-Ezomo, commended stakeholders for their collaboration and urged sustained commitment to policy implementation.
By Aduragbemi Omiyale
To revive the local industry and create jobs to boost the economy, the Senate has advised the federal government to ban textile imports.
The upper chamber of the federal parliament made this suggestion on Tuesday at the plenary presided over by the Deputy Senate President, Mr Jibrin Barau.
They noted that to resuscitate textile industries in the country, the Federal Ministry of Industry, Trade and Investment, and the Federal Ministry of Agriculture should immediately implement investment-friendly policies.
The red chamber of the National Assembly recalled when Nigeria used to have a vibrant textile industry, but lamented that the influx of foreign fabrics destroyed the sector.
The Senate emphasised that to stimulate economic growth and tackle insecurity in the country, there must be a total ban on the importation of textile materials into Nigeria.
“With the lifting of the ban on textile importation in 2010, Nigeria now has almost 80 per cent of its textiles imported from China, Indonesia, Taiwan and other countries.
“This trend is definitely not helping the Nigerian economy in terms of employment generation and the conservation of foreign exchange,” Mr Katung Marshall, who co-sponsored a motion on the Urgent Need to Revive the Textile Industries in Nigeria, said on the floor of the Senate yesterday.
The Senator informed his colleagues that the government protection policies in the 1960s and 1970s, particularly the restrictions on textile imports, attracted investors and helped the sector to flourish.
According to him, during the period, Nigeria’s textile industry accommodated about 167 mills and directly employed over 500,000 people, making it the nation’s second-largest employer after the federal government.
But he said this went south in the late 1990s due to obsolete machinery, inadequate capital and persistent power supply challenges, adding that by 2007, major companies, including Kaduna Textile Limited, Arewa Textiles and United Nigerian Textiles Limited, had shut down operations, leading to the loss of over 7,000 jobs.
By Adedapo Adesanya
Six securities led by FrieslandCampina Wamco Nigeria Plc further weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.48 per cent on Tuesday, June 9.
The notable dairy firm lost N7.87 during the trading day to close at N173.81 per unit compared with the previous session’s N181.68 per unit, Nitrox Industrial Gases Plc depreciated by N2.42 to N21.88 per share from N24.30 per share, Afriland Properties Plc dipped by N1.25 to N15.55 per unit from N16.80 per unit, Food Concepts Plc stumbled by 27 Kobo to N2.48 per share from N2.75 per share, UBN Property Plc dropped 9 Kobo to settle at N2.11 per unit versus N2.20 per unit, and Industrial and General Insurance (IGI) Plc crashed by 4 Kobo to 50 Kobo per share from 54 Kobo per share.
As a result of these losses, the market capitalisation went down by N12.50 billion to N2.593 trillion from N2.606 trillion, and the NASD Unlisted Security Index (NSI) declined by 20.89 points to 4,335.31 points from 4,356.20 points.
Business Post reports that there was a price gainer yesterday, and this was Central Securities Clearing System (CSCS) Plc, which improved its value by N2.65 to N81.13 per unit from N78.48 per unit.
The volume of transactions soared on Tuesday by 644.3 per cent to 1.6 million units from 213,188 units, the value of trades increased by 208.6 per cent to N62.3 million from N20.2 million, and the number of deals surged by 64 per cent to 41 deals from 25 deals.
The most active stock by value on a year-to-date basis remained Great Nigeria Insurance (GNI) Plc, with 3.4 billion units worth N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and CSCS Plc with 65.1 million units sold for N4.4 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
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