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In the past few days, I have personally encountered many people who told me they had withdrawn all the money saved in their bank accounts and converted it to cash.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
Business and Economy
Experts Warn Against “informalization of formal employment”
By Isa Abdul
Economic crunch is gradually reshaping the Nigerian economic landscape, particularly the formal employment system.
According to the Punch, businesses are abandoning traditional fixed salary structures as employers are moving their workers, entirely or partially, to commission-based remuneration models. This is shifting the burden of low sales directly onto their staff.
From retail outlets to tech startups and manufacturing firms, the narrative is uniform: if you do not bring in revenue, you do not get paid.
This is a new survival switch
Years back, monthly pay was the golden standard of employment security in Nigeria.
But with business patronage slowing to a crawl, companies say maintaining a high wage bill is no longer sustainable.
“We had no choice,” says Mr. David Amaechi , the Managing Director of a mid-sized consumer electronics retail chain. He continued that:
“Our foot traffic has dropped by more than 40 percent compared to last year.
“People are prioritizing food and fuel over gadgets.
“We were faced with two options: either shut down operations entirely and lay off all 25 employees, or transition them to a performance-based system.
“We chose to keep them on, but now, a base salary only covers basic transport, while 70 percent of their take-home pay relies purely on the volume of goods they sell.”
He explained that while the decision was painful, it has kept his business afloat.
“It forces the team to be aggressive, but more importantly, it aligns our expenses directly with our actual revenue.
“If the business doesn’t make money, we cannot afford to pay out millions in fixed wages.”
While business owners view the move as an innovative emergency cushion, employees describe it as a fast track to financial insecurity.
With the cost of transportation, housing, and utilities skyrocketing, an unpredictable paycheck is pushing many urban workers to the brink.
Chioma Nnaji, a sales representative at a drycleaning service company, shared her recent struggles under the new payment structure.
“Two months ago, management announced that our basic salary was being cut by 60 percent, and the rest would be made up via a five percent commission on a number of clothes washed.
“But the customers are simply not coming. Some days, we don’t make a single sale.
“Those that come leave their clothes for months before coming to collect them.
“Last month, I went home with less than half of what I used to earn. My rent is due, food prices are rising daily, and I cannot even predict what I will earn next week.”
Labor experts warn that this trend could trigger widespread job dissatisfaction and a mental health crisis among the workforce.
The pressure to convert window-shoppers into paying clients in a depressed economy is turning workplaces into high-stress environments.
Economic analysts note that while commission structures are standard practice in sectors like real estate and insurance, their sudden adoption in conventional retail, hospitality, and corporate services reflects a deeper structural crisis.
“What we are seeing is the informalization of formal employment,” Dr. Abiodun Shonubi, a labor economist, said.
“Employers are effectively outsourcing their market risks to their employees. When consumer patronage slows because disposable income has been wiped out by inflation, it is unfair to penalise the floor worker who has no control over macroeconomic policies.
“While it helps businesses survive short-term cash flow crunches, it ultimately dampens aggregate demand because workers have less money to spend, creating a vicious cycle for the economy.”
However, given the scarcity of alternative job openings, many employees feel powerless to challenge the changes.
As the business landscape remains volatile, the commission-based salary model appears poised to stay.
For Nigerian employers, it is a necessary life support machine. For the average worker, it is another heavy layer of uncertainty in an already challenging economic climate.
Business and Economy
NBTI Receives, Presents Nigeria’s 7 Shining Stars in Lahore, Pakistan to Science and Tech Minister
By Seyi Balogun
Seven Nigerian entrepreneurs who proudly represented the nation and distinguished themselves at the SEE Pakistan 2026 World Startup Championship in Lahore, Pakistan have been received by the Management of the National Board for Technology Incubation (NBTI), led by the Director-General/Chief Executive Officer, Dr. Kazeem Kolawole Raji.
The remarkable international performance of the Nigerian entrepreneurs represents another compelling demonstration of the depth of talent, creativity, enterprise and technological ingenuity embedded within Nigeria’s emerging innovation ecosystem. SEE Pakistan 2026 brought together startups, entrepreneurs, investors, mentors and innovation stakeholders through a major international platform designed to promote entrepreneurship, innovation, visibility and global collaboration.
Following their reception at NBTI, the seven champions were presented to the Honourable Minister of Innovation, Science and Technology, Dr. Kingsley Tochukwu Udeh, SAN, where their outstanding international achievement was formally showcased as part of the Federal Government’s continuing efforts to strengthen Nigeria’s technology, innovation and entrepreneurship ecosystem.
The achievement is particularly significant against the backdrop of the transformative economic direction of the administration of President Bola Ahmed Tinubu whose bold economic and institutional reforms are designed to reposition Nigeria for sustainable growth, productivity, investment and prosperity.
President Tinubu’s administration has articulated the ambition of building a $1 trillion Nigerian economy by 2030, with technology, innovation, productivity, enterprise development and a skilled youthful workforce forming important components of that transformation agenda. The Federal Government’s Nigeria First Policy, in particular, places emphasis on strengthening Nigerian businesses, promoting domestic products and services, creating employment and enhancing the competitiveness and innovative capacity of Nigerian enterprises.
The NBTI Management commends President Bola Ahmed Tinubu, GCFR, for providing a policy environment in which Nigerian entrepreneurs, innovators and technology-driven enterprises can increasingly aspire to compete beyond the shores of Nigeria.
The Board recognises that the transformation of Nigeria into a globally competitive, innovation-driven economy requires more than policies alone. It requires deliberate investment in people, institutions, technology, entrepreneurship, research, product development, incubation, commercialisation and access to international markets.
It is within this broader national vision that NBTI continues to strengthen its Technology Incubation Centres and support mechanisms for entrepreneurs across the country.
Speaking at the reception, the Director-General/CEO of NBTI, Dr. Kazeem Kolawole Raji, congratulated the entrepreneurs for their resilience, professionalism, determination and exceptional representation of Nigeria on the international stage.
Dr. Raji described their achievement as a powerful reflection of the enormous creative and entrepreneurial capacity of Nigerian youths and innovators.
He stated that the success of the entrepreneurs was not merely an individual accomplishment but also a demonstration of what can be achieved when innovation, incubation, mentorship, institutional support and entrepreneurial determination are brought together.
Business and Economy
Reduce Food Waste, Mrs Tinubu urges Nigerian Households, Communities
By Nick Ibe
A call to reduce food waste and adopt sustainable practices to protect the environment has been made by the First Lady, Senator Oluremi Tinubu in a message marking the 2026 World Cleanup Day.
The day was observed on Sunday with the theme, “From Clean Plates to Clean Cities.”
She said the focus on food waste was particularly apt as climate change, conflicts and other global challenges continue to disrupt food production and supply. In her words:
“This year’s focus on food waste is particularly important at a time when climate change, conflicts, and other global challenges continue to disrupt food production and supply.”
She urged Nigerians to become more responsible in how they purchase, prepare, consume, and preserve food.
“I encourage households, businesses, and communities to reduce food waste, dispose of refuse properly, and adopt more sustainable practices that protect our environment,” she added.
Tinubu said collective efforts were needed to build cleaner and healthier communities for present and future generations.
“Through our collective efforts, we can build cleaner, healthier communities for present and future generations,” she said.
