Economy
Number of Nigerians Paying Tax Too Low—RMAFC Chairman
By Adedapo Adesanya
The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mr Muhammad Shehu, has lamented over the number of Nigerians in the tax bracket, saying it is too small compared with the population of the country.
In an interview with the News Agency of Nigeria (NAN), he said that less than 40 million Nigerians of the 200 million people (about 20 per cent) are currently included in the tax system and are paying taxes.
According to him, Nigerians need to start contributing their taxes to boost government revenue and improve public service delivery.
In his words, “That is too low for a country that has more than 200 million population. There is all this debate about the informal economy. What this tax reform committee will do is bring a lot of agencies together, including RMAFC. We are members of that committee. We have articulated our position, and we will communicate what we believe can add value to the discussion.
“At the end of it all, we will have a better society where more people are paying taxes, and the money will be utilized for better services and infrastructure so that every Nigerian can benefit”.
He noted that the FG, through its tax collection agency, the Federal Inland Revenue Service (FIRS), is overlooking some core tax, adding that with effective collaboration, this will be achieved.
“There are some taxes that the government is not getting from Nigerians. I believe the FIRS will look at all those things and then collaborate with the NCS for better efficiency.
“I think it is very important for every Nigerian to try and pay their taxes because it is from those monies that you get services.
“All the things that people like to tell you about clean environments, good roads, and functional infrastructure in other countries—it is the taxes that citizens pay that are utilized for those services. People should learn to pay their electricity bills; they should pay their water bills; they should pay just like you pay for telephone recharge cards.”
He called on Nigerians to pay their taxes so the government could provide the necessary infrastructure and ease up on borrowing.
“The more you pay your taxes, the more money the government has to put into road and rail construction, better hospitals, pensions, social security, and a better plan to help the needy,” he said.
The President Bola Tinubu-led administration has set its sights on boosting tax revenues. According to Mr Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal and Tax Reforms, there is no plan to increase taxes but rather a need to harmonise revenue collection to reduce the tax burden.
“We do not intend to introduce new taxes or impose higher tax rates. Rather, our mandate is to reduce the number of taxes and levies while harmonising revenue collection to reduce the burden on the people and businesses.”
Nigeria has a tax-to-gross domestic product (GDP) ratio of 10.8 per cent; comparatively, the average tax-to-GDP ratio for Africa is about 18 per cent.
By Modupe Gbadeyanka
A subsidiary of Stanbic IBTC Holdings Plc, Stanbic IBTC Insurance, has continued to showcase institutional excellence, becoming one of Nigeria’s top-performing insurers.
At the 2025 Risk Analyst Insurance Brokers Performance Review Awards, the underwriting firm won the Life Insurance category for its operational discipline, prompt claims settlement, and partnership-driven approach that fosters long-term confidence with clients and brokers.
The organisers were impressed with the company’s performance in life insurance, which reflects the broader institutional direction of Stanbic IBTC Holdings, which is building resilient, trusted, and high-performing financial institutions that contribute to Nigeria’s economic growth and the development of the insurance sector.
“At Stanbic IBTC Insurance, trust is built through reliable performance, timely claims settlement, and service that supports customers when it matters most. This recognition reflects the quality of service we provide for our clients and partners.
“We are honoured to receive this accolade and will continue to raise standards across the industry,” the chief executive of Stanbic IBTC Insurance, Akinjide Orimolade, stated.
Also commenting, the chief executive of Stanbic IBTC Holdings, Mr Chuma Nwokocha, said, “We are proud of this achievement, which highlights the strength of our insurance business and the broader Stanbic IBTC Group’s focus on building strong, enduring institutions.
“Stanbic IBTC Insurance continues to set benchmarks in professionalism, client service, and operational excellence; reinforcing our role as a trusted partner to individuals and businesses across Nigeria.”
Every year, Risk Analyst Insurance Brokers Limited, which organises the event, carries out an annual assessment of insurance underwriters by evaluating partners based on key criteria, including claims settlement efficiency, service delivery, responsiveness, and broker–underwriter collaboration.
The initiative aims to promote accountability, raise service standards, and strengthen trust across Nigeria’s insurance ecosystem.
The 2025 performance of Stanbic IBTC Insurance highlights its role as a dependable and credible underwriting partner in the market.
By Adedapo Adesanya
Nigeria’s commercial nerve centre, Lagos State, has announced plans to establish West Africa’s premier International Financial Centre to unlock international investment, innovation, and sustainable growth.
TheCityUK, in partnership with the UK Government, Lagos State Government, Lagos International Financial Centre Council (LIFCC), and EnterpriseNGR, on Monday unveiled a landmark report, Establishing an International Financial Centre in Lagos (LIFC), Nigeria, outlining a strategic roadmap to achieve the goal.
The establishment of a Lagos International Financial Centre aligns with Nigeria’s Agenda 2050 and the Lagos State Development Plan 2052 to deliver long-term economic prosperity, deepen financial markets, and attract productive global investment.
According to a statement, the project is hinged on a public-private partnership bringing visionary leadership from the government together with private sector companies seeking to tap into Nigeria’s young, dynamic market to deliver economic growth.
The unveiling was done at the State House Marina with guests including Lagos State Governor, Mr Babajide Sanwo-Olu, British Deputy High Commissioner Mr Jonny Baxter, and EnterpriseNGR Board Chairman and CEO, Mr Aigboje Aig-Imoukhuede and Mr Obi Ibekwe.
Lagos International Financial Centre Council will support Nigeria’s ambition to become an upper-middle-income country by 2050, driving inclusive growth, reducing poverty, and creating high-value jobs, especially for Nigeria’s talented youth, as per the report, adding that it will benefit from the strong UK-Nigerian co-operation, building on best practices and global benchmarks to align the LIFC with international standards.
The report proposes creating an independent International Financial Centre in Lagos to enhance regulatory clarity, simplify tax and policy frameworks, and boost investor confidence. It recommends an initial focus on Green and Sustainable Finance, FinTech and Innovation, and Commodities and Capital Markets, supported by strong governance, legal reforms, stakeholder collaboration, and targeted talent development.
Speaking on this, Governor Sanwo-Olu said, “Lagos is fully committed to the birth of the International Financial Centre. We know that it is a veritable means of supporting seamless trading and to enhance competitiveness of financial markets.
“As Nigeria’s largest economic and financial centre, Lagos plays a critical role in driving the nation’s capital markets. We need to create an ecosystem that will help to facilitate investment flows, enhance market liquidity, and promote financial literacy.
“The LIFC initiative will not only strengthen our market infrastructure but also unlock new opportunities for public-private partnerships in technology and capital market development. It will support seamless trading, attract foreign investment and enhance the competitiveness of financial markets.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner, commented, “The launch of the Lagos International Financial Centre report reflects the deepening of the UK-Nigeria partnership, combining Lagos’s comparative strengths with UK expertise. Anchored in clear, evidence‑based analysis and launched at a pivotal moment in Nigeria’s reform journey, the LIFC has the potential to unlock major domestic and international investment, deepen capital markets, create jobs, and drive sustainable economic growth across the country, not just in Lagos State.”
Mrs Nicola Watkinson, Managing Director, International, TheCityUK, said, “Nigeria is a high-growth, dynamic and large market and the Lagos International Financial Centre could be vital to its future. By building a modern, integrated business and regulatory environment and financial ecosystem, the LIFC will support the attraction of global and domestic capital, deepen domestic markets, facilitate innovation in FinTech and green finance, and create high‑value jobs for Nigeria’s youth.
“Supporting the development of Lagos as an international financial centre is a clear example of how the UK and Nigeria are deepening their strategic partnership.”
By Adedapo Adesanya
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has stressed that Nigeria was now consolidating its macroeconomic reforms to sustain economic stability in an increasingly volatile global environment.
The Minister spoke at a high-level panel on Fiscal Policy in a Shock – Prone World at the ongoing Al Ula conference for Emerging Market Economies in Riyadh, Saudi Arabia.
“Nigeria’s macroeconomic and fiscal reforms are working. Momentum must be maintained, and the benefits channelled towards long-term growth and resilience,” he stated.
He said the government is also leveraging digital tools to improve revenue assurance, while deepening fiscal and monetary coordination and promoting realistic budgeting practices to ensure durable fiscal discipline.
He noted that despite accounting for a significant share of global growth, population and natural resources, emerging economies remain under-represented in global financial decision-making.
Mr Edun also highlighted the growing strategic importance of Gulf nations in the evolving global economic landscape.
He said countries in the Gulf are increasingly shaping global trade routes, investment flows and sources of capital, making them critical partners for emerging economies such as Nigeria.
The finance minister stressed Nigeria’s commitment to building stronger partnerships that promote a more inclusive and equitable global financial system.
He said Nigeria was positioning itself to engage constructively with global partners to support reforms that unlock growth, stability and shared prosperity.
Mr Edun’s call comes amid mounting global economic pressures. Many emerging economies are grappling with high debt levels, elevated inflation, volatile capital flows and tightening global financial conditions.
Rising interest rates in advanced economies have increased debt-servicing costs, while currency volatility has strained fiscal and external balances across Africa and other developing regions.
Global trade is also facing increased fragmentation due to geopolitical tensions, supply chain disruptions and protectionist tendencies.
These trends have disproportionately affected emerging markets that depend heavily on trade, foreign investment and access to international finance.
For Nigeria, the push for a global economic reset aligns with ongoing domestic reforms aimed at stabilising the macroeconomic environment.
The country has embarked on exchange rate reforms, fiscal consolidation and efforts to attract long-term investment to support growth and job creation.
Mr Edun has repeatedly argued that without reforms to the global financial system, domestic policy efforts in emerging economies risk being undermined by external shocks.
At the Al Ula conference, he reiterated that a more balanced global system would enhance resilience, improve access to finance and support sustainable development.
He said Nigeria would continue to engage in global policy conversations to ensure that emerging economies are not only rule-takers but active shapers of the new global economic order.
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