Feature/OPED
9 Proven Steps CEOs Can Take to Make Business Strategies Work
By ‘Muyiwa Osifuye
In our private lives, we set out personal goals and objectives. Within a family, there are expectations — be it nuclear or extended (depending on the social mores of a place). Every head of the family or a single parent, wish for a certain outcome and, oh yes, the wise ones know that things don’t go as expected.
Imagine a racing car on the track, no matter how well tuned or powerful it may be, without a conscientious driver behind the wheel, will not get to the finishing line. (I am aware there are now driverless vehicles in the offing, by the way).
Likewise plotted flight charts alone won’t carry aircraft passengers to their planned destination. There must be capable pilots in the cockpit whose job is to take them to their destination safely.
But how come many organizations don’t get to where they have planned, despite the best of strategies?
What makes them fail to achieve their strategic goals? I will not quote a specific figure of the failure rate here, as research findings differ widely. However a finding of the collective rates can be looked up at researchgate.net.
In my reckoning, there are two major reasons why strategic plans fail.
These are: the bossy mindset of some CEOs, decision-makers and leaders and; a nonexistent system of execution or implementation to meet the set-goals.
The bigger the organization gets, the tendency that some top executives over-delegate and fail. They wait behind the big oak table, expecting the organizational structure to drive itself to its destination.
But leaders need to be more involved, though this is not to support micro-managing.
If you send your kids to school, that is a responsible undertaking as a parent. But it is a smart thing for a wise parent to pay occasional visits to the school; to ask questions and get more information. The periodical result cards are not enough to make full and accurate judgement on the progress of that kid.
Some leaders would rather wait to react to an unfavorable outcome. Unfortunately this is a fatalistic mindset. And it is also an unprofitable way to get results, more so in our fast-changing world. And no organization is spared of failure, if it cannot institute a proper implementation system in agreement with its top executives and the rest of the workforce. It is better to be active rather than being reactive.
Having said that, then, one may ask: what then should be done to bring a strategic plan to reality?
Here are nine steps that must be instituted to achieve results in meeting strategic goals:
Develop The Leadership Mindset
The CEO and the top leaders must be more engaged with their subordinates, at their respectable levels, in pushing for results. Since you cannot do it all, you must nurture and raise leaders that would work with you. Their contribution would introduce more objectivity and accuracy in decision making.
On a scheduled basis, you would need to walk down to the “factory floor” at the units or division level. Here you feel things and listen to their opinions and comments. Here most of your job would be; asking questions. No wonder, the highly revered and successful PepsiCo Chairman and CEO Indra Nooyi took time out to visit divisions and even engages business owners who retail their products.
To be a leader whose organization desires to generate good results, the Chief Executive and the leadership can no longer be aloof in their management style.
Many bring into leadership positions some behavioral ineptitude, ignorance and naivety. A top I.Q. or technical prowess garnered over the years may not even be enough to make achieve good results. And topnotch result isn’t a bad idea either, for shareholders and other stakeholders in the organization.
There is also a need to be objective and less sentimental when dealing with people’s issues. The result oriented leaders must be emotional balanced, having behind his or her mind the results expected of the organization.
As a leader you must make things happen. Goal oriented Executives execute. No excuses… As such, they must stay less behind the big table to get the ship of enterprise to reach its planned destination.
Build The Implementation System
Your organization will design and document a set of activities, actions and processes geared towards making the strategic plan a reality. It will be a living system since various internal and external variables won’t be static over time, even with the time frame as planned.
All activities must be well coordinated with the allocated resources and the workforce to accomplish the strategic goals.
The system of purposeful action will be replicated across the different departments and divisions of the organization. These will be the sub-systems at various units or divisions. External factors must be considered first before the internal exigencies; and both built into the implementation framework. Areas of conflict will be eliminated through continuous communication and feedback loops.
The system should be able to pinpoint issues that need to be addressed urgently.
For example; are there issues about hiring and wrong staffing?
Will you bring in needed skills to meet new objectives?
How does a sub-system of implementation in various units or division read the marketplace and consumer’s trends? And other factors such as technology, suppliers, and regulations; name it…
At every leverage point within the overall operational system, the CEO and his or her top team must be able to put a finger on and understand what is going on, in a timely manner.
Encourage Staff Participation
There is a need to institute both a formal and informal set of events to get comments from the workforce. Specially designated leaders across units, departments or division will meet on a scheduled basis to discuss the strategic plans and what must be done to achieve them.
The CEO hand-picks a top team of advisers which should include specialists at the lower rung of the ladder if need be. They help the CEO and the top executives spot each other’s blind-spot so that more informed decision can be made after these joint sessions.
Informal meets such as executive and staff retreats is a good idea if it has cost-benefits. Powerful ideas do come up when everybody is allowed to express himself in a relaxed atmosphere. The CEO or his top team should be at such events. The Executives are to ask good questions and be more of silent listeners. Once agreed upon, the valid ideas are put into action by the CEO and leaders at various units and divisions.
It now becomes a collective assignment for the success of the organization.
Allocate Resources
The staff must be supported with what they need towards the set goal. Support would come in difference shades. Where necessary additional skills will be brought from outside. Some staff may need further training or mentoring to implement new ideas. Within the workforce, resources should be allocated to develop innovative ideas for competitive edge.
Consultants may be brought in to give an objective appraisal and proffer solution in many cases where time is of essence. This also helps for clarity where internal politics and doubts on feedback may slow down the CEO and the top leaders in coming to a decision.
Ad-hoc arrangements or permanent alliance with technical partners in certain areas that the company lack expertise should also be effected, after due diligence. In extreme cases acquiring another firm may be the most effective decision rather than inventing the wheel in-house.
In essence, where a specific outcome is feasible and profitable, resources must be deployed to make it a reality.
Align Organizational Behavior And Culture
Behavioral patterns that could stall the implementation process across board must be studied and where necessary adjusted. There must be an alignment of organizational culture that supports activities that ensure that the strategic goals are met. The inevitable internal politics must be tamed.
The carrot and stick approach may be applied where necessary to induce collaboration as set targets must be met.
At the individual and group levels, persuasion and continuous dialogue must be the tactic to be used. Change takes time but smart organization and resourceful leaders work with their people to carry them along to create a more successful business organization.
Habits die hard and since human beings are not robots; but the leadership would provide the best solution to get their staff cooperation and commitment.
No staff commitment, strategic failure is a matter of time. A good dose of continuous explanation and mutual understanding with the rank and file on the overall objective of an organization would help a great deal in execution.
Manage The Workforce
As humans, our idiosyncrasies, biases and beliefs must be taken into consideration. Since people would drive the system, then they ought to be well managed. And pruning of staff may be necessary of those unwilling or unconvinced about the new orientation. The latter with such disposition must be found out and excused from the company.
Years back, I recall a new business I started which was brought down by some old staff whom I thought would pick new skills for higher pay. They scared away the efforts of my highly skilled professional I employed to head the outfit. After two days of throwing the doors open, the new manager simply put a call across to me about his departure and walked away. For other reasons I eventually closed down the outfit. Painful. It was a loss.
While at this, the Human Resources Department must key-in into the implementation system. Some of their activities would need vital contributions from the top hierarchy and other relevant departments before certain decisions can be finalized. It is a very sensitive department since people are the ones that make strategic plans and goals become a reality.
A good reward system must also be instituted. Those who meet set objectives are recognized and rewarded. Those who miss the mark or who seem to be amiss about what is happening, would be investigated to see how they can be helped to perform better. If they fail afterwards, they may have to be given a different task. If they can’t meet up here again, then they should be relieved of their appointment in an amicable manner.
Install Good Communication System
A thorough network of free-flow of information must be designed for the organization. It must be a well thought-out system. The organizational structure should support an efficient and effective flow of information that work in a timely manner.
All tools and resources that will channel vital information between the CEO, top decision-makers and the workforce must be deployed and well managed.
Channels that follow Up-down, across, and between the organization and outside must be well managed.
The accuracy and authenticity of information must be verified for decision making. The nodal points of engagement along information channels must be well managed.
The style of delivery of information must be amenable to all stakeholders for clear comprehension and understanding.
Information is sacred — secondary to human beings – and as such it is very important in our lives and in business management. We must carefully engage with it. It must be clear and understood by the receiver in whatever vehicle or form it is deployed. And the purveyor must not be careless about what is broadcast.
Either way information is channeled; from the CEOs, top executives or within the workforce, communication must be well protected with necessary tools and resources.
Transparency should be entrenched to encourage a sense of belonging, conviction and commitment by employees and their unit leaders. However, in discretionary cases, some information may not be broadcast to everybody from top management.
Understand The External Environment
No business exists in isolation. So the implementation process should feed in from outside to achieve specific outcome. The horizon changes more rapidly than in the past years because of technology.
Technology continuously causes so much change. In its wake, some industries have been subdued or became moribund while new ones have evolved.
The externals would also include the general economy, consumers and social trends. We will also consider regulation, competition, global politics and threats and others. Various trends and players within an industry and outside of it will be monitored.
Having a field tour by the CEOs and his top team across the value chain of the business would throw up some nuggets of useful ideas and unforeseen problems as well as opportunities.
It’s good for management to have an open mind. Strategies may be forced to change, if what you planned won’t go far.
Other top leaders should do the same as foot soldiers of the management in their own capacity. All data are fed into the implementation system which the top management and the CEO would work with.
To achieve strategic goals, there must be a proper engagement with suppliers and other partners to make execution a reality.
It is also a safer bet to engage in a diplomatic manner, influencers that play a major role in your industry. For big organizations, lobbying policy-makers — in an ethical manner — should be done in a timely manner as some policies may derail some strategic plans.
Review Milestones and Feedback
On a continuous basis, there must be a process to determine if milestones are being met and they must be measurable. A value should be put to specific outcome. The various sub-systems within the organization should be accorded relevant criteria of review and feedback.
When all these are carried out, a larger and clearer picture can be seen; to know how specific outcomes and strategic plans have been met.
Where success is achieved, you consolidate on that outcomes.
When the feedback falls short of expected milestones, it is a waste of energy to bark like a General at war. Though engaging in business is a war of sorts – the Chief Executive and his or her top team will go back to review and push for the objectives to be met.
Final Thoughts
Your well-crafted strategic plan is not enough. Your shareholders and other stakeholders hunger for results. You can drive the operational process with your workforce, to bring the strategic goals to a reality.
That is what is expected of you as a leader and Chief Executive, despite the shifting business horizon. It won’t be easy. But being disciplined and focused with your carefully selected team, you can do it.
And your well instituted execution plans would bring the well-crafted strategic plans on paper to reality.
And as Warren Buffett has been quoted, a little bit of the luck could help also. And that’s being pragmatic.
Feature/OPED
Publication Standards and Predatory Publishing in Africa
By Timi Olubiyi, PhD
I pray that the new year, 2026, unfolds with fresh opportunities, meaningful growth, and endless possibilities. Amid the many emerging topical issues, this piece focuses on a troubling trend in academia: the growing reliance on predatory publications and the declining pursuit of reputable, recognised journals.
For many academics, particularly early-career scholars, mid-career academics facing promotion bottlenecks, adjunct and contract lecturers under publish-or-perish pressures, and even senior scholars navigating international mobility aspirations, evolving global performance metrics, and global competitiveness, this piece is intended as a lifeline, offering clarity, guidance, and reassurance at a critical moment in evolving scholarly environment.
Predatory publications are sometimes legitimate outlets that promise rapid academic publication but without the expected integrity of research or known ethical reputation, and oftentimes quality is compromised for cash for these publications. This alarming trend is not only undermining careers but also diminishing the visibility and impact of knowledge in shaping global scientific discourse.
From an African perspective, the damage caused by predatory publishing goes far beyond wasted money; it quietly erodes academic credibility, blocks international mobility, and traps scholars within local systems that increasingly struggle to meet global university standards.
Predatory journals thrive where demand for publication is high, and support structures are weak. In many African universities from observation, promotion and appointment criteria emphasise quantity over quality and indexed publications.
The disturbing finding is that often times there are no clear differentiation between indexed and non-indexed publication. As a result, many university-based journals have become the default publishing route but these journals are largely not indexed in reputable databases like Scopus, Web of Science, ABDC (Australian Business Deans Council) and ABS (Association of Business Schools) journal ranking systems which should increase quality and standards. These non-indexed journals journals are sometimes institutionally encouraged, yet they rarely offer the global visibility, citation impact, or academic recognition required for international competitiveness.
For a scholar whose work never leaves these local publishing ecosystems, the world remains largely unaware of their research, no matter how insightful or relevant it may be. Yet perhaps the most painful consequence of predatory publishing is loss of global opportunities, and systematic underestimation of impact.
African academics are frequently judged as underperforming, not because they lack ideas, rigour, or relevance, but because their work is largely invisible on global platforms. From the author’s observation, a striking number of African scholars have no Scopus profile at all, or profiles are with very low visibility, despite years of teaching and publishing as experienced lecturers, senior researchers, and even professors. This invisibility feeds a damaging cycle because when it comes to international evaluation limited indexed output is seen and it is assumed that African scholars have limited scholarly contribution, while local systems continue to reward these non-indexed publications that do not translate into global recognition.
The danger becomes most visible when academics attempt to cross borders physically or professionally. Because for international job applications, visiting fellowships, postdoctoral positions, and global research collaborations increasingly rely on transparent metrics: indexed publications, citation records, journal rankings, and evidence of international engagement.
An academic who has published extensively in non-indexed or predatory journals may appear productive on paper locally, but he is invisible internationally. Hiring committees in Europe, North America, Asia, and increasingly the Middle East are trained to recognise predatory outlets; rather than viewing such publications as achievements, they quickly interpret them as red flags, questioning the rigour, ethics, and peer-review exposure of the candidate.
In this way, predatory journals do not merely fail to help academics they actively ruin their global prospects. The contrast between quality publishing and predatory publishing is very clear and obvious. Because quality publishing follows strict academic standards like peer review, transparency, and ethical practices, predatory publishing on the other hand ignores these standards and mainly exists to collect fees from authors without providing real scholarly value.
A single well-placed article in a reputable indexed journal can open doors to international conferences, editorial invitations, collaborative grants, and academic networks.
For example, Nigerian and Kenyan scholars who publish in respected international journals often find themselves invited to review manuscripts, join global research teams, or contribute to policy-oriented projects at the African Union, World Bank, or UN agencies. These opportunities rarely come from non-indexed or predatory outlets because such journals are not read, cited, or trusted beyond narrow circles. Visibility, in the modern academic world, is currency, and predatory journals offer the illusion of productivity without the substance of impact.
So, what is the future of African academics in a globalised academic labour market? As universities worldwide shift toward international rankings, global partnerships, and research impact metrics, African scholars’ risk being locked out not because they lack intellectual capacity, but because their work is trapped in publishing systems that the global academy does not recognise. The danger is a growing academic isolation, where African knowledge circulates locally but fails to influence global debates or attract global opportunities. The solution lies not in rejecting local journals outright, but in redefining academic ambition and preparedness.
African academics must increasingly think beyond local promotion requirements and prepare for international exposure from the outset of their careers. This means understanding journal indexing systems, targeting reputable outlets even if acceptance takes longer, and valuing revision and rejection as part of scholarly growth. Universities, in turn, must reform promotion criteria to reward quality, indexing, and impact rather than sheer volume. Training in research methods, academic writing, and ethical publishing should be institutional priorities, not optional extras.
Governments and regulatory bodies can support this shift by funding open-access publication in reputable journals and discouraging the use of predatory outlets in academic evaluation. The suspenseful reality is this: African academics stand at a crossroads. One path leads to rapid local advancement built on fragile publishing foundations, offering short-term comfort but long-term invisibility. The other path is slower, more demanding, and often frustrating, but it leads to global relevance, intellectual exchange, and genuine academic mobility.
Predatory journals promise speed and certainty, but they quietly close doors. Quality publications demand patience and rigor, but they open the world. For African scholars seeking international jobs, collaborations, and influence, the choice is no longer optional it is existential. The future of African academia depends not just on producing knowledge, but on ensuring that knowledge travels, is trusted, and is seen. In this new year and beyond be different, be intentional, be visible, and be globally relevant. Good luck!
How may you obtain advice or further information on the article?
Dr Timi Olubiyi is an expert in Entrepreneurship and Business Management, holding a PhD in Business Administration from Babcock University in Nigeria. He is a prolific investment coach, author, columnist, and seasoned scholar. Additionally, he is a Chartered Member of the Chartered Institute for Securities and Investment (CISI) and a registered capital market operator with the Securities and Exchange Commission (SEC). He can be reached through his Twitter handle @drtimiolubiyi and via email at [email protected] for any questions, feedback, or comments. The opinions expressed in this article are solely those of the author, Dr. Timi Olubiyi, and do not necessarily reflect the views of others.
Feature/OPED
Game of Power: Throne Reclaim
By Abba Dukawa
Kano politics has been thrown into fresh uncertainty following reports that the Kano State Governor, Abba Yusuf, is planning to defect from the New Nigeria Peoples Party (NNPP) to the All Progressives Congress (APC).
For years, Rabiu Musa Kwankwaso aspired to be Kano’s undisputed political kingmaker. He only succeeded in realizing this ambition by installing his perceived political godson as the current governor of Kano State.
His earlier attempts had failed; notably, the current governor is the only candidate Kwankwaso attempted to install twice.
Even before the recent attempt at reclaiming the political and power throne by its rightful owner, there were widespread insinuations that the relationship between the political godfather and godson was far from cordial, despite both camps publicly maintaining that all was well.
The governor’s recent move to cross over to the ruling party has been strongly opposed by the state party leadership and the NNPP’s national leader, Senator Rabiu Musa Kwankwaso. This development has triggered internal disagreements within the NNPP, particularly between supporters of the governor and loyalists of the Kwankwasiyya movement.
Since news broke of Governor Abba’s intention to defect to the APC, claims have circulated that he was acting with Kwankwaso’s consent. Those who believed that Governor Abba planned to defect with Kwankwaso’s approval made a grave misjudgment.
This is not a coordinated plan; rather, it is a political conflict akin to that between a father and a son.
From a rational political standpoint, the situation reflects a deep and intense struggle—a clear attempt at reclaiming the throne between the Governor of Kano State and the leader of the Kwankwasiyya movement, Senator Rabi’u Musa Kwankwaso.
By all political indicators, the governor’s effort to reclaim the throne appears aimed at securing absolute control and liberating himself from total submission to the national leader of the Kwankwasiyya movement.
In response to the unfolding conflict, the NNPP national leader has intensified efforts to rally federal and state lawmakers, local government chairmen, and party structures to remain loyal to him. Kwankwaso’s reaction has been firm but defensive.
Kwankwaso, addressing them, reportedly stated that it was evident the governor was abandoning the NNPP for the APC and that any member wishing to follow him was free to do so. He reminded them that they won the election by divine grace alone, asking rhetorically: “Will the God who gave us power in 2023 not still be there in 2027?”
He has denied any involvement in defection plans and reaffirmed his loyalty to the NNPP and its ideology, warning supporters against what he described as “betrayal. However, events on the ground tell a different story, as several local government chairmen, along with state and federal lawmakers, appear to be gravitating toward the governor’s camp.
Ahead of his anticipated defection and in a bid to strengthen his political base, the governor has reportedly been working behind the scenes to secure the support of National Assembly members and NNPP members of the State House of Assembly and the local government council chairman.
Although no official statement has been issued by the governor’s office since reports of the planned defection emerged, the body language of prominent government officials suggests that the plan is already in motion and that it is only a matter of time. So far, only the Speaker of the State Assembly, Yusuf Falgore, has publicly endorsed the governor’s planned defection. Sources also indicate that a significant number of local government chairmen have joined the governor’s defection train.
Blind Kwankwasiyya members ideologues fail to distinguish between political betrayal and the pursuit of independence. Politics, after all, is about survival and adaptation.
Most Kwankwasiyya members are youths. Where were they when Kwankwaso parted ways with Hamisu Musa, Musa Gwadabe, and Dauda Dangalan? Kwankwaso rose under mentorship before charting his own course. Where were they when Abubakar Rimi broke away from Aminu Kano in ’79-’80, pursuing his own path? When Abdullahi Ganduje split from Kwankwaso, he faced ridicule and insults.
These same critics should appreciate Abba Gida-Gida’s restraint in not publicly recounting the unpleasant experiences surrounding his emergence as governor under the NNPP.
The Kwankwaso–Abba conflict is, at its core, politics in its truest form—a search for solutions and self-determination. There is a clear distinction between betrayal in politics, the pursuit of solutions, and the quest for independence from total submission.
If Governor Abba succeeds in taking the bulk of NNPP’s structure to APC, it’ll be a major symbolic blow to Kwankwaso’s influence . It seems Kwankwaso’s biggest fear is Abba taking the state with him, leaving him with a movement without a state .
The plan Abba defection from the New Nigeria Peoples Party (NNPP) to the All Progressives Congress (APC) could reshape Kano’s politics significantly- APC regains dominance in Kano, strengthening its position ahead of 2027- NNPP’s national relevance takes a hit, struggling to recover from losing its only governor Kwankwasiyya faces a tough test without state power, potentially losing influence. New alliances might emerge as Yusuf’s move triggers political recalibrations across the North.
Game of Power: Throne Reclaim
Dukawa writes from Kano and can been reached via [email protected]
Feature/OPED
How Nigeria’s New Tax Law Could Redefine Risk in the Banking Sector
By Blaise Udunze
Nigeria’s new tax identification portal goes live nationwide tomorrow, Friday, January 1, 2026, marking a pivotal moment in the country’s fiscal and financial governance. Designed to modernise tax administration and strengthen taxpayer identification, the reform reflects a decisive shift in economic strategy by a government grappling with shrinking oil revenues, rising public debt, and widening fiscal deficits.
At the centre of this shift is a deeper integration of identity systems, banking data, and tax administration, most notably the adoption of the National Identification Number (NIN) as a tax identification mechanism for operating bank accounts. In parallel, banks will also begin charging a N50 stamp duty on electronic transfers of N10,000 and above, following the implementation of the Tax Act.
Individually, these measures may appear modest, even reasonable. Collectively, however, they signal a fundamental reordering of the relationship between the state, banks, and citizens with far-reaching implications for banking business, customer trust, financial inclusion, and credit creation.
Banks at the Centre of Fiscal Enforcement
Under the new tax framework, Nigerian banks are no longer merely financial intermediaries or corporate taxpayers. They are increasingly positioned as collection agents, reporting hubs, and frontline enforcement points for government revenue policy.
The linkage of NIN to tax compliance, combined with transaction-based stamp duties, reinforces a stark reality that the banking system has become the most visible and accessible channel through which the state now extracts revenue from citizens.
This expanded role exposes banks to a new layer of risk not just financial or operational, but social, reputational, and political risks that extend far beyond balance sheets.
A Structural Shift in the Banking, Tax Relationship
Historically, banks played a facilitative role in tax compliance, primarily through payment processing and remittance support. The use of NIN as a tax identifier marks a structural departure from this model.
Bank accounts are no longer merely financial tools; they are becoming gateways to tax visibility.
This shift fundamentally alters the risk profile of the banking business. Banks are now exposed not only to credit, market, and operational risks, but also to heightened social backlash, reputational damage, and political sensitivity, arising from their expanded enforcement role.
Account Friction and Slower Customer Onboarding
One of the earliest and most visible consequences of NIN-based tax identification is increased friction in account opening and maintenance.
Consequently, in a real sense, millions of Nigerians will continue to face challenges with the NIN system, including delays in enrolment and correction, biometric mismatches as well as inconsistencies between NIN, BVN, and bank records.
For banks, this translates into slower onboarding processes, higher rates of account restriction or rejection, and increased congestion across branches and digital platforms.
What should be a growth engine for deposit mobilisation instead becomes a bottleneck, resulting in lost customers, fewer transactions, and weakened scale advantages in an increasingly competitive banking environment.
Banks as the Face of an Unpopular Tax Regime
Perhaps the most underappreciated consequence of the new tax regime is the escalation of customer hostility toward banks.
When accounts are flagged, restricted, or subjected to enhanced scrutiny, customers rarely direct their frustration at tax authorities or policymakers. Instead, they confront the most visible institution in the chain, their bank.
Banks are increasingly blamed for account freezes, accused of colluding with government, and perceived as punitive rather than service-oriented institutions. This hostility is particularly pronounced among informal sector operators, small traders, artisans, and self-employed professionals with irregular income streams.
In a low-trust economy such as Nigeria’s, perception often outweighs regulation. Banks risk becoming the public face of coercive taxation, absorbing reputational damage for policies they neither designed nor control.
Erosion of Trust in the Banking Relationship
Banking fundamentally depends on trust that deposits are safe, transactions are private, and institutions act in customers’ best interests.
When NIN becomes a tax enforcement gateway, that trust begins to fray. Banks are no longer seen primarily as custodians of savings, enablers of enterprise, or neutral financial intermediaries. Instead, they are increasingly perceived as extensions of tax authorities, surveillance nodes, and compliance police.
Once trust erodes, customer behaviour adjust often in ways that undermine the formal financial system itself.
The Hidden Impact of the N50 Stamp Duty
The introduction of a N50 stamp duty on electronic transfers of N10,000 and above may appear trivial. In practice, it carries outsized implications.
For many Nigerians, especially low- and middle-income earners, electronic transfers are not discretionary transactions. They are salary payments, family support remittances, SME operating expenses, and routine commercial settlements.
Customers rarely distinguish between government levies and bank charges. The stamp duty will therefore be perceived as yet another bank fee, deepening resentment toward institutions already accused of excessive charges.
Behaviourally, customers may respond by breaking transactions into smaller amounts, increasing cash usage, or migrating to informal transfer channels, distorting transaction patterns and weakening the efficiency of the digital payments ecosystem.
Although banks merely collect the duty on behalf of the government, they will once again bear the reputational cost.
Threat to Deposit Mobilisation and Liquidity
Fear of tax exposure is a powerful behavioural driver. As NIN becomes closely associated with tax scrutiny and transaction charges mount, many customers are likely to reduce account balances, avoid lump-sum deposits, split transactions to stay below thresholds, or move funds outside the banking system entirely.
For banks, the consequences are clear, as these will result in slower deposit growth, volatile liquidity positions, and reduced capacity to fund loans.
Deposit mobilisation is the lifeblood of banking. Any policy that discourages formal savings weakens banks’ intermediation role and, by extension, the broader economy.
Reversal of Financial Inclusion Gains
Nigeria has invested more than a decade in expanding financial inclusion through agent banking, digital wallets, and tiered KYC frameworks. The use of NIN as a tax trigger threatens to reverse these gains.
Many newly banked individuals, particularly those at the base of the economic pyramid, may abandon formal accounts, revert to cash-based transactions, or rely on informal savings mechanisms.
The irony is stark as an identifier designed to formalise the economy may inadvertently push activity back into informality.
Rising Compliance, Legal, and Technology Costs
Operationally, integrating NIN as a tax identifier significantly increases banks’ compliance burden. However, institutions are expected to synchronise multiple databases, resolve inconsistencies at scale, implement continuous monitoring systems while also managing customer disputes arising from mismatches or wrongful flags.
The challenges inherent in these demands require heavy investment in IT infrastructure, expanded compliance teams and enhanced cybersecurity. The costs either erode profitability or are passed on to customers, further fuelling public resentment.
Credit Creation and Economic Growth at Risk
Reduced deposits, higher compliance costs, reputational strain, and customer attrition converge on a single outcome that mainly constrained lending capacity.
There is no two ways about this, banks under sustained pressure will tighten credit standards, reduce SME and consumer lending, and favour low-risk government securities. The ripple effects include slower job creation, constrained entrepreneurship, and, on a dangerous level, it leads to weaker economic growth, ultimately undermining the very revenue base the tax reform seeks to expand.
Revenue Without Ruin
No doubt, linking NIN to tax identification and expanding transaction-based levies may enhance government visibility over economic activity, but in reality they carry significant unintended consequences for banking business.
They risk weakening customer trust, undermining deposit mobilisation, reversing financial inclusion gains, increasing operational and reputational risks, and constraining credit growth.
Banks do not oppose taxation. What they caution against is turning financial inclusion infrastructure into a blunt instrument of tax enforcement without adequate safeguards.
For the policy to succeed without damaging the banking system, regulators must ensure clear thresholds and exemptions, strong data protection guarantees, phased implementation and ensure sustained public education to redirect hostility away from banks.
Ultimately, the critical question is not legislative readiness but execution, especially coordination across institutions, technological preparedness and the capacity to prevent unintended disruption to businesses and citizens alike. The authorities must understand that when revenue meets risk, wisdom lies in balance.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn











