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Could the FIRS be Asking too Much?

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Federal Inland Revenue Service FIRS

By Tunji Andrews

The circular from the Executive Chairman of Federal Inland Revenue Service (FIRS), Muhammad Nami, to taxpayers over payment of taxes, is one that has left me heavily puzzled.

The circular, which gave an update on the good work by the federal government on palliative measures to cushion the effect of COVID-19 on taxpayers, went ahead to plead with corporate organizations in what it referred to as booming sectors of the economy to consider making payment of their annual returns earlier than the due date apart from their normal monthly obligations.

Muhammad Nami, made this plea in the circular, stating the obvious challenges the FG was facing at a time like this, he said that, “This has become necessary in order to ease some of the cash flow gaps being experienced by the government at this critical time.”

Across the world, governments have swung in to support businesses in the aim to retain jobs and keep the economy going.

To be honest to the Nigerian government, it has done quite a bit to support the economy as a whole. The first two paragraphs of the circular delved into these efforts.

I however fear that the FIRS may be looking at the situation without fully appreciating the nuances and peculiarities of these sectors.

The inference from this circular is that these sectors are cashing out during this time. Banking, telecoms and supermarkets (Retail/eCommerce) were some of the sectors mentioned as booming sectors and I wondered what the data behind this assumption was. Let’s examine these sectors together.

Banking as a business, derives its essence from enabling business activity. Their core roles are broadly categorized into collection of deposits, enabling the transfer of these deposits and provision of loans.

Now, every banking activity from swiping your debit card to providing a multi-billion dollar facility to build a factory, can be said to fall within these categories; and while the transfer of N10,000 from Mr Akingbade in Lagos to his aged mother in Ekiti might follow the same overall process as Dangote Cement paying one of its contractors, the fees and overall impact on the bank’s bottom-line are nearly not the same.

In fact, a large amount of bank transactions these days are the types I call sustenance driven transactions and these banks are seeing their core income hit dramatically.

In addition, some banks have had to issue between 90-days and one-year moratoriums to their customers, to help them weather this period; so, I struggle to understand how they are booming. They are actually taking serious hit.

E-commerce boom is also another assumption that is entirely not data driven. The funny thing is that the entire eCommerce push since the lockdown has been more of groceries and if the FIRS had done a little inspection, they would realize that this actually contributes between 3%-5% to the entire business.

With most people trying to survive, nobody is buying luxury items, phones, gadgets, electronics, jewellery, other household items etc.

And even when such orders do come in, the operators are grappling with security agencies who do not allow passage for any item aside those classified as “essentials”. Whereas, these other items are the major sources of eCommerce income.

More importantly, there is limited movement across board because of the lockdown which makes it difficult to carry out inter-state delivery.

Security agents are also not helping matters as they do not allow suppliers who are mostly SMEs move their item to eCommerce businesses’ warehouses because they do not recognize them. How then is the sector booming when gadgets, electronics and household items are not allowed to be sold or moved?

Telecoms often tends to get the short end of the stick with regulation in Nigeria as everyone seems to believe they are making way too much money; and maybe they are but ultimately, they are offering a service and it is being paid for.

The total amount of screen time has dramatically increased across the world, with more and more people glued to their phones and tablets for news, entertainment and even connection.

What may surprise most is that voice calls (the real cash cow) has dropped for most telecoms operators. With less formal calls to make, chat messaging and internet calls have taken center stage. Also, most enterprise services with most Telcos have also taken a hit with most businesses’ shut down.

I think FIRS may missing some variables. The key to business success in any retail sector business is consumer spending and the key to consumer spending is employment.

Recent estimates show that at least 40% of employers plan to downsize as the covid19 pandemic outbreak increases. Workers across multiple industries, including airlines, hotels, restaurants, retail, and banking need to be rehired in sufficient numbers to truly impact consumer spending.

The small and medium scale enterprises also hit by various lockdowns will struggle to pay and hold on to employees. The thought of the FIRS and by extension, the government should be on how to restore income for those workers laid off because of COVID-19 shutdowns; it will also help increase consumer confidence and spark additional spending. Till then, I believe the FIRS should be asking not what businesses can do to help government (as they are already doing it) but what the government can do to help businesses

Another interesting thing worthy of note in the whole of this issue is how the whole government apparatus allow our elected officers to live in opulence in the midst of no-wealth, they move about in convoys of expensive cars, with hundreds unproductive aides, and earning millions in allowances at a time that the global and national economies are experiencing a downturn?

Interestingly, Nigerian government is appealing for support in the fight against the COVID-19 pandemic, the legislative arm is ordering the latest model of Toyota Camry for each of the 360 members of the House of Representatives. Instead of cutting cost in these areas, the same government is looking away when the FIRS is snuffing out the little air that is sustaining the companies that are already gasping for breath.

It is surprising that Nigerian governments isn’t considering tax holiday and practical palliative for the businesses that are keeping the economy running like their counterparts in other parts of the world.

Governments in other clime are looking for ways of cushioning the effects of COVID-19 pandemic for corporates, but the Nigerian government, through its agencies, are adding to the burden of these companies.

My candid advice is for the federal government is to ask the Federal Inland Revenue Service to withdraw the circular appealing for advance payment of the company tax, and look inwards to bridge the funding gaps.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Taxation Without Representation

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Austin Orette Taxation Without Representation

By Dr Austin Orette

The grandiosity of Nigerians when they discuss events and situations can be very funny. If the leaders use this kind of creativity in proffering solutions, we may be able to solve some of the problems that plague Nigeria perennially.

There seems to be a sublime affectation for new lingos when the system is being set to punish Nigerians. It is a kind of Orwellian speak.

Recently, there was no electricity throughout the country. The usual culprit and government spoke; people came out to tell us the power failure was due to the collapse of the National grid. Does it really matter what is collapsing? This is just an attempt by some government bureaucrats to sound intelligent.

Intelligence is becoming a borrowed commodity from the IMF or World Bank. What does it mean when you tell Nigerians that the national grid collapsed? Is that supposed to be a reassurance, or it is said to give the assurance that they know something about the anemic electricity, and we should get used to the darkness. This is a language that is vague and beckons the consumer to stop complaining. Does that statement mean anything to Nigerians who pay bills and don’t see the electricity they paid for? If they see it, it comes with an irregular voltage that destroys their newly purchased appliances. Just tell or stay quiet like in the past.

Telling us that a grid collapse is a lie. We have no national grid. Do these people know how silly their language sounds? Nigeria produces less than 10,000 megawatts of electricity for a population of 200 million people. How do you permutate this to give constant electricity to 200 million people? It is an insult to call this low output a national grid. What is so national about using a generator to supply electricity to 200 million people? It is simple mathematics. If you calculate this to the minute, it should not surprise you that every Nigerian will receive electricity for the duration of the blink of an eye. They are paying for total darkness, and someone is telling them they have an electricity grid.

If you can call the 10,000-megawatt national grid collapsed, it means you don’t have the mind set to solve the electricity problem in Nigeria.

To put it in perspective is to understand the basic fact that the electrical output of Nigeria is pre-industrial. Without acknowledging this fact, we will never find solutions as every mediocre will come and confuse Nigeria with lingos that make them sound important.

It is very shameful for those in the know to always use grandiose language to obfuscate the real issues.

South Africa with a population of sixty million produces about 200,000 megawatts of electricity daily. Nigeria produces less than 10,000 megawatts. Why South Africa makes it easy to lift the poor from poverty, Nigeria is trying to tax the poor into poverty.

The architects of the new tax plan saw the poor as rich because they could afford a generator.

A non-existent subsidy was removed, and the price of fuel went through the roof. Now the government says they are rich. What will they get in return for this tax extraction? Why do successive Nigerian governments always think the best way to develop Nigeria is to slap the poor into poverty? What are the avenues for upward mobility when youth corps members are suddenly seen as rich taxpayers? Do these people know how difficult it is to start a business in Nigeria?

After all the rigmarole from Abuja to my village, I cannot get a government certificate without a-shake down from government bureaucrats and area boys. The government that is so unfriendly to business wants to tax my non-existing businesses. Are these people in their right state of mind? Why do they think that taxing the poor is their best revenue plan? A plan like this can only come from a group of people who have no inkling of what Nigerians are going through. People can’t eat and the government is asking them to share their meager rations with potbellied people in Abuja.

Teach the people how to fish, then you can share in their harvest. If an individual does what the government is doing to Nigerians, it will be called robbery, and the individual will be in prison. When the government taxes people, there is a reciprocal exchange. What is being done in Nigeria does not represent fair exchange.

Nigerians have never gotten anything good from their government except individual wealth that is doled out in Abuja for the selected few.

The question is, will Nigerians have a good electricity supply? NO. Will they have security of persons and properties? No. Will they have improved health care? NO. Will there be good roads? No. Will they have good schools and good education? No.

Taxation is not good governance. A policy like this should never be rushed without adequate studies. Once again, our legislators have let us down. They have never shown the people the reason they were elected and to be re-elected. They are not playing their roles as the watchdog and representatives of the people. Anyone who voted for this tax bill deserves to lose their positions as Senators and Members of the House of Representatives.

We are not in a military regime anymore. Nigerians must start learning how to exercise their franchise. This taxation issue must be litigated at the ballot box. The members of the National Assembly have shown by their assent that they don’t represent the people.

In a normal democracy, taxation without representation should never be tolerated. They must be voted out of office. We have a responsibility and duty to use our voting power to fight unjust laws. Taxation without representation is unjust. Those voted into power will never respect the citizens until the citizens learn to punish errant politicians by voting them out of office. This responsibility is sacred and must be exercised with diligence.

Dr Austin Orette writes from Houston, Texas

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Why GOtv Continues to Shape Nigeria’s Home Entertainment Culture

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GOtv Logo

For many Nigerian families, GOtv has become more than a television service. It is part of the daily routine. It is what people unwind with after a long day, what keeps children entertained on quiet weekend mornings, and what brings households together during football matches, movie nights, and festive celebrations. Over the years, GOtv has blended naturally into these everyday moments, shaping the way Nigerians enjoy entertainment at home.

Here are some of the reasons GOtv continues to stand out.

1. Local Content That Feels Like Home

Nigerians love stories that reflect their lives, and GOtv delivers this consistently. With Africa Magic, ROK, and other local channels, viewers enjoy Nollywood movies, relatable dramas, reality shows, and lifestyle programming that speak their language. These are familiar faces, familiar stories, and familiar experiences. GOtv understands the value of cultural connection and continues to invest in the content viewers care about.

2. Affordable Packages That Work for Real Families

GOtv has built its reputation on affordability. With packages designed for different budgets, families can enjoy quality entertainment without financial pressure. Some of the affordable packages on GOtv include GOtv Jinja, GOtv Jolli, GOtv Max, GOtv Supa, GOtv Supa Plus. This balance of good content at a comfortable price is a major reason GOtv remains a trusted household name across Nigeria.

3. A Channel Lineup That Has Something for Everyone

The beauty of GOtv is its range. Children enjoy their cartoons and animated shows, parents relax with movies and telenovelas, sports lovers stay connected to live games and highlights, and music and lifestyle channels keep the energy lively. Whether it is catching up on the news, finding something light after work, or choosing a family movie for the weekend, GOtv fits naturally into everyday Nigerian life.

4. Programming That Matches Our Daily Rhythm

GOtv understands the way Nigerians watch television. Weeknights come with easy to follow entertainment, weekends offer longer movies and marathons, and festive seasons arrive with special programming that brings everyone together. The schedule is practical, familiar, and aligned with the pace of Nigerian homes.

5. Easy Access Across the Country

From major cities to smaller communities, GOtv remains reliable and easy to use. Installation is straightforward, navigation is simple for both adults and children, and the service works seamlessly across the country. Even when life gets busy, GOtv makes it easy to stay connected, subscribers can pay and reconnect instantly without long processes or penalties, picking up right where they left off.

With relatable content, pocket-friendly pricing, and a channel lineup built around real Nigerian lifestyles, GOtv has earned its place in homes across the country. As the entertainment landscape evolves, GOtv continues to grow with its viewers, shaping how Nigerians watch, share, and enjoy moments together every day.

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Tegbe Highlights Benefits of Nigerian Tax Reform Acts

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joseph tegbe tax laws

Chairman of the National Tax Policy Implementation Committee (NTPIC), Mr Joseph Tegbe, has enumerated the benefits of the Nigerian Tax Reform Acts 2025, stating they mark a significant turning point in the country’s pursuit of a robust and sustainable economy.

In an article published in several national publications, Mr Tegbe said the tax laws were a comprehensive overhaul of the country’s fiscal architecture, aimed at creating a modern, efficient, and transparent tax system that supports economic growth, development, and prosperity for all Nigerians.

The NTPIC chair, who is also the Director-General of the Nigeria-China Strategic Partnership (NCSP), affirmed that the new tax laws are built around four key pillars: reconnecting the economy to the state, standardising and modernising fiscal administration, promoting predictability, and re-balancing the fiscal social contract.

“By broadening the tax net, simplifying rules, and improving administration, we are creating a more predictable fiscal environment that supports businesses and households,” he explained.

He cited global best practices that informed the reforms like South Korea, Singapore, and Rwanda, where tax reforms have driven economic growth and development.

“These countries have shown that with the right policies, institutions, and leadership, it is possible to transform a nation’s economy and improve the lives of its citizens,” he said.

According to him, the tax reform will protect low-income earners and small businesses, with measures such as zero tax rates for those earning up to N800,000 and the expansion of zero-rated VAT items for critical sectors, including healthcare, education, and agriculture.

“By taking away the tax burden on small income earners and small businesses, the reforms aim to preserve livelihoods, encourage formal participation, and allow enterprises to grow organically. We recognise that these sectors are critical to our nation’s development, and we are committed to supporting them,” he noted.

The Acts also emphasise digitalisation and technology-driven tax administration, with the introduction of e-invoicing to improve compliance, transparency, and reduce administrative burdens, a significant step towards modernising the tax system and making it more efficient, he posited.

Consequently, he emphasised that the success of the reform depends on careful implementation, necessitating ongoing engagement with stakeholders to ensure proper understanding.

The implementation of the tax Act is expected to stabilise the fiscal environment, support production, protect critical sectors, and modernise tax administration in line with global standards, adding it will also enhance Nigeria’s ease of doing business, attract foreign investment, and generate employment opportunities.

“We are confident that these reforms will unlock new opportunities for businesses, investors, and entrepreneurs, and contribute to the growth and development of our economy,” he added.

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