Business and Economy
Saving The Tax Reform from the ‘Fake News’ Industry
By Isah Kamisu Madachi
The furore about whether the tax laws should be implemented or not has passed. The nationwide discussions about the discrepancy between the gazetted version and the version passed by the National Assembly have also faded. January 1 has come and gone, and many changes, especially around digital transactions, are already beginning to manifest, as provided for under the new tax law. The consolidated tax laws under the tax reform regime are now in force and, as a citizen, I hope they are backed by strong accountability mechanisms and oversight to ensure that collected taxes are used for the right purposes.
However, there is a major policy gap I observed at the very last minute of the law’s implementation which, if left unaddressed, may not only undermine the effectiveness of the law but also cause more harm to its objectives. If I were to estimate, I would say that less than 5% of Nigerians understand what the new tax law contains, how it works, and what it does not do. This knowledge gap has created a fertile ground for misinformation, disinformation, and fake news.
In the past few days, I have personally encountered many people who told me they had withdrawn all the money saved in their bank accounts and converted it to cash. They said they no longer trust cashless transactions. Some were told that every single transaction, irrespective of the amount, would attract a flat ₦50 charge.
Others were also told that just keeping money in their accounts would lead to monthly deductions, or that a 5% of their savings would be deducted every month for the tax. None of these claims could be traced to any provision of the law, yet they are widely being shared with absolute confidence.
Another unfortunate experience, was my encounter with a young and vibrant POS agent from whom I regularly withdraw cash. He told me he had shut down his business. According to what he was told, every ₦500,000 transaction would attract ₦15,000 in tax, every ₦5 million would attract ₦250,000, and any transaction above ₦1,000 would automatically be charged ₦50.
He was also told these deductions would be accumulated and collected at the end of the month, and that’s what frightened him most. He used to make transactions of an average of ₦50 million per month. With this information, he now chose to abandon his livelihood. Whether these claims are true or false is not the most important when one considers the damage such misinformation is already causing.
There is also a growing narrative, particularly on social media, that every transaction must now be clearly explained in the narration section. People are being told they must specify whether the money is for savings, shopping, gifts, rewards, profit, or salary. A counter-narrative exists saying this is false. Sadly, the average Nigerian does not know which version to believe. In an environment where official clarity is weak, rumours travel faster than facts.
If I were to document all the misinformation circulating about the new tax law, it would take more than a newspaper opinion. New versions emerge almost every hour. The most alarming outcome of this misinformation is how people are altering their economic behaviour. Businesses are being abandoned. Trust in digital finance is being eroded. People are deserting the cashless system out of fear, believing their money is no longer safe in the banking system.
The only effort I am aware of to address this information gap is the reported engagement of social media influencers to enlighten the public. If this effort has begun, it is not enough. If it has not, then it is urgently needed. But beyond influencers, one must ask: what happened to local radio stations? Radio remains the primary source of information for millions of Nigerians, especially in rural areas. The law should be broken down and discussed in local languages on local radio.
There are also a proliferation of online television platforms operating across social media spaces. The tax reform committee should strategically collaborate with them to explain the law in simple and creative ways. Influencers alone cannot carry this burden. Public communication must be broader, more structured, and more deliberate.
The Federal Ministry of Information also has a central role to play here. There is an urgent need for a simplified version of the tax law and other versions translated into local languages, and disseminated in collaboration with state ministries of information. Students, heads of households, community leaders, traders, and small business owners must all be deliberately engaged. Town hall meetings, especially in peri-urban communities, should be organized. They are necessary to counter the scale of misinformation already circulating.
When people are largely unaware of what a law entails, dysfunction is inevitable. The law may exist, but its implementation will be undermined by fear, resistance, and unintended consequences. By the look of things, those who understand the new tax law are currently the fewest in Nigeria, even among the highly educated. If this gap remains wide open, the law may struggle to achieve its intended outcomes.
Now that it’s here, I hope, and I genuinely pray, that if effectively implemented and properly communicated, the new tax laws will become one of the long-awaited channels for fixing many of Nigeria’s challenges. But without deliberate public education, I doubt if the policy can yield the desired result.
isahkamisumadachi@gmail.com
By Seyi Balogun
Sustainable development can only be achieved when more individuals and businesses have access to financial opportunities, says Alternative Bank, adding that inclusive finance is critical to Nigeria’s long-term economic growth.
The bank’s statement was issued on Thursday following two awards it received in recognising of its contributions to sustainable development, financial inclusion and humanitarian partnerships.
The bank received the Champion of Sustainable Development Award at the Africa Social Impact Summit 2026 Impact Capital Dinner in Lagos.
According to the statement, it also received the Distinguished Humanitarian Partnership Award from the National Association of Nigerian Visually Impaired Students, University of Lagos Chapter, during the association’s 20th anniversary celebration.
Though presented by different organisations, they reflected a shared recognition that sustainable development goes beyond providing capital and requires broader participation in economic activities, including groups often excluded by conventional financial systems.
The Executive Director, Commercial and Institutional Banking, Lagos and South-West, Korede Demola-Adeniyi, while highlighting the import of the recognition said:
“Finance delivers its greatest value when it expands opportunity. Sustainable growth is achieved by supporting businesses, strengthening communities and ensuring more people have access to the tools they need to succeed. Anything less leaves the job unfinished.”
The statement noted that the Champion of Sustainable Development Award was presented during the Africa Social Impact Summit Impact Capital Dinner, organised by the Sterling One Foundation in partnership with the United Nations Population Fund and supported by the MacArthur Foundation.
It added that the summit brought together business leaders, policymakers, development partners and investors to discuss practical strategies for financing Africa’s development priorities.
The bank said the award acknowledged its efforts to promote responsible finance while supporting initiatives that expand economic opportunities and strengthen communities.
The statement further explained that the Distinguished Humanitarian Partnership Award recognised the bank’s collaboration with organisations advancing disability inclusion, educational access and community development.
The Head of Corporate Social Investment at The Alternative Bank, Solomon Okonkwo, said lasting partnerships were necessary to eliminate barriers that prevent people from participating fully in society and the economy.
“Inclusion becomes meaningful when people can learn, work and contribute without unnecessary barriers. We remain committed to partnerships that expand access and create opportunities for individuals and communities to thrive,” he said
By Seyi Balogun, Lagos
Wife of billionaire Mike Otedola, has revealed how she tried her hands ten other business ideas before finally settling one: laundry services.
The businesswoman Nana Otedola has revealed that she struggled through several ventures before hitting her successful laundry business.
Speaking on the How Far podcast hosted by her daughter Temi Otedola and son-in-law Mr Eazi, Nana said she experimented with about 10 different business ideas before finding her footing.
She recalled attempting to work as an administrative staff member, but said her husband was against it. Did buying and selling, but it didn’t work out.
“I tried like 10 other things. I tried to work as an admin staff member in an office, although your dad kicked against it. I tried to buy and sell. I was trying other things while doing the dry-cleaning business.
“I remember a consultant known as Brian said to me, ‘Do you think this will work?’ Your dad also asked me, ‘Do you think this will work?’ Lagos needs a good dry-cleaning and laundry service,” she said.
Despite initial doubts from both Femi Otedola and the consultant, Nana said she stayed committed and the business eventually thrived.
Lagos, like any city, has a huge demand for reliable laundry services today.
By Nick Ibe
Bassey Otu, Cross River State governor, has pledged to bring Tinapa Business and Leisure Resort back to life before the end of 2026.
The promise was made while fielding questions from newsmen in Calabar last Thursday. He revealed that his administration had engaged in lengthy negotiations to recover and reposition the business resort that the state recently recovered from Asset Management Corporation of Nigeria (AMCON).
Otu explained the imperative to focus on reviving Tinapa due to the state’s financial realities and the need to protect existing public investments. In his words:
“The state has invested more than 400 million US dollars in Tinapa over the years, making it impossible for his administration to abandon the facility.
“Leaving it unattended would have led to further deterioration of the infrastructure and a waste of the huge public investment already committed to the project.
“I am confident that before the end of the year, Cross River residents would begin to witness a transformed Tinapa.”
He revealed that rehabilitation works were already ongoing at the retail emporiums and other commercial facilities within Tinapa complex.
Otu added that government has restored the power generation segment to guarantee stable electricity for businesses operating there.
He further announced that an anchor tenant has already committed to operating in Tinapa, a move he believed would attract more investors and increase commercial activities.
He also disclosed plans to construct a jetty to improve access to the resort and create more opportunities for local businesses.
He noted that Cross River remained one of the states receiving the lowest federal allocations and that many inherited projects were initiated based on revenue projections that never materialised.
He explained that his government’s priority was to complete and revive abandoned investments before embarking on new mega-projects.
According to him, once those projects become fully operational and begin generating value, the state will be better positioned to pursue initiatives such as the gas project.
Otu also highlighted progress made in completing abandoned government infrastructure across the state. He cited the completion of buildings now occupied by the Local Government Service Commission, noting that several ministries and agencies were gradually relocating into modern office facilities.
“The administration’s goal is to provide a better working environment for civil servants, improve morale within the public service and strengthen service delivery.
“We will also ensure that government operates more efficiently for the benefit of Cross River residents.”
Tinapa was taken over by Asset Management Corporation of Nigeria in 2011 when the state had difficulties in meeting loan repayment agreements.
However, in 2025, Cross River negotiated and repossessed it.
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