Economy
Zero Tax on Gifts, Salaries, Insurance as Oyedele Reels Out Benefits
By Adedapo Adesanya
Ahead of the January 2026 implementation of Nigeria’s new tax laws, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, has continued to reel out the benefits of the expected changes.
According to the tax titan, the new tax laws will provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses in the country.
In an update on his X handle on Monday, Mr Oyedele noted that small businesses, including individuals earning the national minimum wage or less, and those earning annual gross income up to N1,200,000 (translating to about N800,000 taxable income) will benefit from the tax relief.
There will also be reduced PAYE tax for those earning annual gross income up to N20 million.
He also disclosed that gifts will also be exempt from being taxed.
Mr Oyedele further listed items to benefit from the tax relief as:
Allowable Deduction & Reliefs For Individuals
5. Pension contribution to PFA
6. National Health Insurance Scheme
7. National Housing Fund contributions
8. Interest on loans for owner-occupied residential housing
9. Life insurance or annuity premiums
10. Rent relief – 20 per cent of annual rent (up to N500,000)
Pensions & Gratuities – Exempt
11. Pension funds and assets under the Pension Reform Act (PRA) are tax-exempt.
12. Pension, gratuity or any retirement benefits granted in line with the PRA.
13. Compensation for loss of employment up to N50 million.
Capital Gains Tax (CGT) – Exempt
14. Sale of an owner-occupied house
15. Personal effects or chattels worth up to N5 million
16. Sale of up to two private vehicles per year
17. Gains on shares below N150 million per year or gains up to N10 million
18. Gains on shares above exemption threshold if the proceeds are reinvested
19. Pension funds, charities, and religious institutions (non-commercial)
Companies Income Tax (CIT) – Exempt
20. Small companies (turnover not more than N100 million and total fixed assets not more than N250 million) will pay 0 per cent tax.
Business Post reports that small business represent a huge chunk of employers of labour with data from National Bureau of Statistics (NBS) showing that the country has around 41.5 million micro, small, and medium-enterprises, contributing about 48 per cent of gross domestic product (GDP).
21. Eligible (labelled) startups are exempt
22. Compensation relief – 50 per cent additional deduction for salary increases, wage awards, or transport subsidies for low-income workers
23. Employment relief – 50 per cent deduction for salaries of new employees hired and retained for at least three years
24. Tax holiday for the first 5-years for agricultural businesses (crop production, livestock, dairy etc)
25. Gains from investment in a labeled startup by venture capitalists, private equity funds, accelerators, or incubators
Development Levy – Exempt
27. Small companies are exempt from 4 per cent development levy
Withholding Tax – Exempt
28. Small companies, manufacturers and agric businesses are exempt from withholding tax deduction on their income
29. Small companies are exempt from deduction on their payments to suppliers
Value Added Tax (VAT) – 0% or Exempt
30. Basic food items – 0 per cent VAT
31. Rent – Exempt
32. Education services and materials – 0 per cent VAT
33. Health and medical services
34. Pharmaceutical products – 0 per cent VAT
35. Small companies (≤ N100m turnover) are exempt from charging VAT
36. Diesel, petrol, and solar power equipment – VAT suspended or exempt
Refund of VAT on assets and overheads to produce VATable or 0 per cent VAT goods and services
37. Agricultural inputs – fertilizers, seeds, seedlings, feeds, and live animals
38. Purchase, lease, or hire of equipment for agric purposes
39. Disability aids – hearing aids, wheelchairs, braille materials
40. Transport – shared passenger road transport (non-charter)
Electric vehicles and parts – exempt
41. Humanitarian supplies – exempt
42. Baby products
43. Sanitary towels, pads or tampons
44. Land and building
Stamp Duties – Exempt
45. Electronic money transfers below N10,000
46. Salary payments
47. Intra-bank transfers
48. Transfers of government securities or shares
49. All documents for transfer of stocks and shares.
By Aduragbemi Omiyale
The chief executive of the Nigerian Exchange (NGX) Group Plc, Mr Temi Popoola, and his counterpart at the NGX Limited, Mr Jude Chiemeka, have expressed delight over the value of the bourse breaking the N100 trillion ceiling on Monday.
Yesterday, the domestic stock exchange gained 1.74 per cent, with the market capitalisation rising by N1.869 trillion to N101.807 trillion ($71.15 billion) from N99.938 trillion ($69.61 billion) and the All-Share Index (ASI) growing by 2,725.86 points to 159,218.22 points from last Friday’s 156,492.36 points.
The growth was buoyed by renewed investor demand and broad-based gains across listed stocks, resulting in a year-to-date returns of 2.32 per cent.
It was observed that the rally was driven by strong buying interest in stocks such as Cadbury Nigeria, Fidson Healthcare, and Champion Breweries, reflecting the traditional “January Effect” that often characterises early-year market activity.
Investor sentiment strengthened markedly, with market breadth improving to 9.13x as 73 equities recorded gains against eight decliners, signalling widespread participation in the rally.
“The equities market capitalisation crossing the N100 trillion mark is a defining milestone for Nigeria’s capital market and a clear signal of renewed investor confidence as the year begins.
“It reflects the market’s growing depth, resilience, and ability to respond positively to improving macroeconomic conditions and structural reforms,” Mr Popoola stated, adding that sustained collaboration between market stakeholders and regulators has played a key role in strengthening market credibility.
“Over the past two years, closer alignment between market operators, policymakers, and the Securities and Exchange Commission (SEC) has enhanced transparency, liquidity, and investor protection, reinforcing the Exchange’s role in mobilising long-term capital for economic growth,” he said.
On his part, Mr Chiemeka said, “The breadth of the market tells a positive story. We are seeing strong participation across banking, industrial, and consumer stocks, alongside rising trading volumes, which suggest growing investor confidence and a more active market at the start of the year.”
By Adedapo Adesanya
The Managing Director of the NASD Over-the-Counter (OTC) Securities Exchange, Mr Eguarekhide Longe, has said the bourse in 2026 would play its role in expanding the economic space and anchoring enduring socio-political transformation and inclusive growth in the country.
Speaking as part of his new year message, the NASD helmsman noted that the steady gains recorded in the nation’s macro-economy will translate to further gains in 2026.
“In this regard, we are optimistic about the further structural reforms and gains that will attend the implementation of the Nation’s new tax law.
“We know that there are development gaps to be covered in improving hard and soft infrastructure, as well as supporting genuine entrepreneurs across the length and breadth of the country, providing justification for scaling up projects and businesses via the instrumentality of structured capital market platforms,” he said.
He also said the flagship OTC market performed moderately with new admissions and a consolidation of the staple performers in the trading year 2025.
“2025 has turned out, in many respects, to be a year of reasonably positive performance, financially, but more a year of tangible results from the diversification of the activities on NASD,” Mr Longe said.
Business Post analysis of the bourse’s 2025 Trading Summary showed that the exchange recorded a strong expansion in market capitalisation in 2025, even as overall trading activity by deal count declined compared with 2024.
Market capitalisation on the exchange more than doubled to N2.12 trillion in 2025, representing a 106 per cent increase from N1.03 trillion in 2024. The number of admitted securities also rose marginally to 47, up from 45 in the prior year, reflecting a 4 per cent growth.
The NASD Securities Index (NSI) rose by 18 per cent to 3,543.74 points, compared with 3,002.68 points in 2024. Similarly, the NASD Pension Index advanced by 21 per cent to 1,032.88 points, up from 954.33 points.
Trading volumes surged significantly during the year. Total volume traded climbed to 14.03 billion units, marking a 377 per cent increase from 2.98 billion units in 2024. However, this sharp rise in volume contrasted with a decline in transaction value, which fell by 43 per cent to N59.29 billion, down from N103.96 billion in 2024.
The total number of deals executed on the platform dropped to 6,456, representing a 26 per cent decline from 8,724 deals recorded the previous year, indicating fewer but larger or more strategic transactions.
The exchange also recorded notable listings in 2025, with Infrastructure Credit Guarantee Company PLC (InfraCredit), Paintcom Investment Nigeria PLC (Paintcom), and MRS PLC admitted to trading. In addition, the listing of the Access Bank PLC Rights Issue contributed to market growth. Combined, new listings on the NASD in 2025 were valued at approximately N1.121 trillion.
Commercial Paper admissions unto the NASD platform exceeded N34.32 billion in the trading year and maiden offer on the NASD Digital Securities platform of a tokenised Commercial Paper stood at N5 billion.
By Adedapo Adesanya
The trading compass at the NASD Over-the-Counter (OTC) Securities Exchange pointed north on Monday, January 5 after the market closed higher by 0.60 per cent.
The NASD Unlisted Security Index (NSI) added 21.49 points to close at 3,575.33 points compared to the previous session’s 3,553.84 points just as the market capitalisation inflated by N12.86 billion to finish at N2.139 trillion, in contrast to last Friday’s value of N2.126 trillion.
The growth recorded by the NASD OTC bourse yesterday was influenced by three securities led by FrieslandCampina Wamco Nigeria Plc, which gained N4.70 to close at N51.70 per share compared with the previous N47.00 per share.
Further, Geo-Fluids Plc appreciated by 43 Kobo to settle at N6.94 per unit versus N6.51 per unit, and Central Securities Clearing System (CSCS) Plc appreciated by 37 Kobo to N36.00 per share from N35.63 per share.
Data from the alternative stock exchange showed a drop in investor appetite as the volume of trades declined by 94.7 per cent to 193,973 units from 3.6 million units, while the value of transactions decreased by 68.2 per cent to N4.5 million from N14.1 billion, with the number of deals sliding by 34.8 per cent to 15 deals compared to 23 deals.
At the close of business, CSCS Plc was the most traded stock by value on a year-to-date basis with 341,080 units sold for N12.2 million, followed by Geo-Fluids Plc with 535,970 units valued at N3.5 million, and Industrial and General Insurance (IGI) Plc with 2.9 million units exchanged for N1.9 million.
However, IGI Plc was the most active stock by volume on a year-to-date basis with 2.9 million units traded for N1.9 million. trailed by Geo-Fluids Plc with 535,970 units worth N3.5 million, and CSCS Plc with 341,080 units valued at N12.2 million.
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