Economy
Nigeria’s New Tax System Looking Like Extortion—Peter Obi
By Aduragbemi Omiyale
The presidential candidate of the Labour Party in the 2023 general elections, Mr Peter Obi, has likened Nigeria’s new tax system to extortion because it fails to clearly state how it intends to deliver “tangible benefits to citizens.”
In a post on X, formerly Twitter on Tuesday, the former Anambra State Governor, therefore, called for the suspension of the implementation of the tax laws, most especially after a renowned global accounting firm, KPMG, highlighted some errors in the laws.
Last week, KPMG Nigeria in a note on its website pinpointed some issues in the new laws, warning that they could discourage investments in the country.
However, the government reacted via the chairman on the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, saying the agency misunderstood the laws.
This week, officials of KPMG had a meeting with the chairman of the National Revenue Service (NRS), Mr Zacch Adedeji, on the issue.
For Mr Obi, “The fact that it took private meetings between the National Revenue Service and KPMG for these serious issues to be acknowledged” makes it more alarming.
He posited that, “It is now undeniable that the tax laws have been fundamentally altered, and even a firm as esteemed as KPMG has pinpointed 31 critical problem areas, from drafting errors to glaring policy contradictions and administrative gaps. This revelation should prompt every responsible government to take immediate action.”
“If experts require closed-door discussions to navigate the complexities of our tax laws, what hope does the average Nigerian have of comprehending the obligations being imposed on them?
“Taxation transcends mere fiscal policy; it represents a social contract between the government and its citizens. You cannot enforce a social contract that isn’t understood or trusted.
“Globally, tax policies are justified by delivering tangible benefits to citizens: improved healthcare, better educational systems, job opportunities, infrastructure development, and social safety nets. This is what the social contract signifies.
“In Nigeria, the narrative is all about how much more the government seeks to extract, rather than what it is prepared to offer in return. A tax system devoid of clear public benefits isn’t reform; it is, quite frankly, extortion,” he stated.
Speaking further, he said, “Typically, months, if not years, are dedicated to consulting with businesses, workers, and civil society before tax drafts are presented for public discussion, with the ramifications clearly explained. People must be informed not only about their financial contributions but also about the benefits that will ensue. This is how legitimacy is cultivated. Yet, in Nigeria, we have seen no such public consultations or discussions regarding the final tax laws, leaving ordinary citizens completely in the dark about both the regulations and the benefits of the taxes they’re expected to pay.
“We have hastily pursued collection without securing a consensus and imposed enforcement without providing adequate explanations. Even after the removal of subsidies, Nigerians remain in limbo, waiting for tangible benefits or relief. Instead, they are grappling with skyrocketing food prices, exorbitant transport costs, dwindling purchasing power, and escalating poverty levels.
“Before we have even begun to address these issues, we are being thrust into an expansive new tax regime, riddled with inconsistencies and producing 31 alarming red flags from a leading global accounting firm. This is not the hallmark of responsible governance.
“Without trust, taxation feels like punishment. Without clarity, it breeds confusion. Without evident public value, it amounts to robbery.
“Nigeria cannot afford to place further burdens on its already struggling citizens. What we need is a government that listens, communicates effectively, and prioritises building national consensus. This is the only viable path to genuine reform, unity, growth, and shared prosperity.”
By Adedapo Adesanya
Five securities caused the NASD Over-the-Counter (OTC) Securities Exchange to experience a setback of 0.64 per cent on Monday, February 2.
During the first trading session of February 2026, FrieslandCampinaWamco Nigeria Plc shrank by N4.46 to end at N63.54 per unit versus the previous session’s N68.00 per unit, as Okitipupa Plc depreciated by N3.83 to close at N230.77 per share versus last Friday’s N234.60 per share.
Further, Central Securities Clearing System (CSCS) dropped 50 Kobo to sell at N40.00 per unit compared with the previous closing price of N40.50 per unit, UBN Property Plc dipped by 21 Kobo to N1.99 per share from N2.20 per share, and Acorn Petroleum Plc lost 3 Kobo to end at N1.35 per unit versus N1.38 per unit.
As a result, the market capitalisation went down by N13.98 billion to settle at N2.158 trillion, in contrast to the previous value of N2.171 trillion, and the NASD Unlisted Security Index (NSI) contracted by 23.35 points to settle at 3,606.76 points compared with last Friday’s closing value of 3,630.11 points.
Amid the loss, Geo-Fluids Plc managed to finish green after it chalked up 9 Kobo to sell at N6.84 per share versus the N5.75 per share it ended in the last trading day.
Yesterday, the volume of securities traded by investors surged by 1,238.5 per cent to 3.9 million units from 287,618 units, the value of securities increased by 1,075.2 per cent to N36.0 million from N3.1 million, and the number of deals soared by 90.5 per cent to 40 deals from 21 deals.
At the close of trades, CSCS Plc remained the most traded stock by value (year-to-date) with 15.4 million units valued at N623.9 million, followed by FrieslandCampina Wamco Nigeria Plc with 1.7 million units worth N110.2 million, and Geo-Fluids Plc with 10.6 million units sold for N69.9 million.
CSCS Plc was also the most active stock by volume (year-to-date) with 15.4 million units traded for N623.9 million, trailed by Geo-Fluids Plc with 10.6 million units worth N69.9 million, and Mass Telecom Innovation Plc with 10.1 million units transacted for N4.1 million.
By Adedapo Adesanya
The value of the Naira dropped against the United States Dollar in the the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, February 2 by N3.81 or 0.27 per cent to N1,390.36/$1 from the N1,386.55/$1 it traded last Friday.
This was driven by stronger demand for forex at the official market, which outweighed to what was available to meet customers’ needs. But the local currency remained within the expected trading range.
In the same market window, the domestic currency further appreciated against the Pound Sterling during the session by N6.72 to close at N1,899.51/£1 compared with the preceding session’s rate of N1,906.23/£1 and improved against the Euro by N7.70 to trade at N1,644.52/€1 versus the previous trading day’s value of N1,652.22/€1.
In the parallel market, the exchange rate of the Nigerian Naira to its American counterpart remained unchanged yesterday at N1,465/$1 and at the GTBank FX counter, it also maintained stability at N1,419/$1.
The Naira is expected to remain relatively stable in the coming days, boosted by stronger FX liquidity, enhanced price discovery, and a gradual restoration of offshore investor confidence while Nigeria’s external reserves, which provide the Central Bank of Nigeria (CBN) with the capacity to defend the Naira and stabilise the foreign exchange market, have continued to grow steadily.
Updated data showed that Nigeria’s gross external reserves printed at $46.18 billion as of January 29, 2026, reflecting an addition of $62.40 million.
As for the cryptocurrency market, it was bullish after a sharp weekend sell-off while a resurgent US Dollar index, which has logged its strongest two-day gain in nine months, threatened to keep gains in check.
Expectations that US Federal Reserve chair nominee, Mr Kevin Warsh, will be cautious on interest-rate cuts, along with upcoming US jobs data, are seen as potential drivers of further Dollar strength.
The biggest gainer for the session was Cardano (ADA), which rose by 6.2 per cent to trade at $0.2976, Ethereum (ETH) appreciated by 5.5 per cent to $2,319.80, Dogecoin (DOGE) grew by 5.3 per cent to $0.1066, Binance Coin (BNB) gained 4.8 per cent to sell for $776.00, and Solana (SOL) added 4.6 per cent to sell at $103.75.
In addition, Litecoin (LTC) improved by 4.5 per cent to trade at $59.95, Bitcoin (BTC) appreciated by 3.6 per cent to $78,445.62, and Ripple (XRP) expanded by 3.4 per cent to $1.60, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited managed to finish in the green territory on Monday after it marginally closed higher by 0.01 per cent.
The last minute escape from the bears was triggered by the gains posted by large-cap equities like Zenith Bank, Aradel Holdings and others, offsetting the losses recorded by GTCO, Oando, First Holdco and others.
According to data obtained by Business Post, only 29 stocks ended on the gainers’ chart, while 44 equities landed on the losers’ table, indicating a negative market breadth index and weak investor sentiment.
Universal Insurance rose by 10.00 per cent to sell for N1.32, Premier Paints appreciated by 10.00 per cent to N11.00, DAAR Communications improved by 9.93 per cent to N1.55, RT Briscoe increased by 9.92 per cent to N8.64, and Morison Industries advanced by 9.91 per cent to N10.98.
On the flip side, Omatek declined by 10.00 per cent to N2.70, Union Homes REIT declined by 9.96 per cent to N85.40, AXA Mansard shrank by 9.94 per cent to N14.31, Deap Capital decreased by 9.90 per cent to N8.46, and C&I Leasing moderated by 9.80 per cent to N6.90.
On the first trading session of this week, market participants bought and sold 762.8 million shares valued at N18.4 billion in 55,374 deals compared with the 687.4 million shares worth N15.0 billion traded in 41,553 deals last Friday, a spike in the trading volume, value, and number of deals by 10.97 per cent, 22.67 per cent, and 33.26 per cent, respectively.
Tantalizers ended the day as the most active stock with 88.5 million units sold for N329.4 million, Zenith Bank traded 40.2 million units worth N2.9 billion, Veritas Kapital transacted 39.2 million units valued at N92.1 million, Universal Insurance exchanged 29.3 million units for N38.1 million, and First Holdco transacted 27.6 million units worth N1.1 billion.
The sectorial performance yesterday showed that the mood of investors was in the sell region despite the slight growth recorded by Customs Street, as only the energy index closed in green, rising by 2.00 per cent.
The insurance counter was down by 1.99 per cent, the banking industry depleted by 0.64 per cent, the consumer goods shrank by 0.37 per cent, and the industrial goods retreated by 0.08 per cent.
When the first trading day of February 2026 ended on Monday, the All-Share Index (ASI) went up by 14.23 points to 165,384.63 points from 165,370.40 points, while the market capitalization chalked up N9 billion to finish at N106.162 trillion compared with the previous session’s N106.153 trillion.
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