Tinubu’s Tax Reforms: Group Urges OPS Support Amidst Uncharacteristic Silence

LAGOS, NIGERIA – The Tinubu Media Support Group (TMSG) has urged Nigeria’s Organised Private Sector (OPS) to actively support President Bola Tinubu’s proposed tax reforms, expressing concern over the sector’s unusual silence on the issue.

The group claimed the reforms offer significant benefits to businesses of all sizes.

TMSG, in a statement signed by Chairman Emeka Nwankpa and Secretary Dapo Okubanjo, highlighted several key provisions of the four tax reform bills currently before the legislature.

These include: Increased Tax Exemption for Small Businesses: Raising the annual turnover threshold for exemption from Company Income Tax (CIT) from N25 million to N50 million.

TMSG estimates this could benefit up to 80% of businesses in Nigeria.
Reduced CIT for Medium and Large Companies: A proposed reduction in the CIT rate from 30% to 25% in 2026 for companies with annual turnover exceeding N50 million.

Elimination of Minimum Income Tax: The proposal eliminates the 1% minimum income tax on gross earnings for profitable companies, taxing only actual profits.

Harmonisation of Development Levies: Consolidating the 2.5% Education tax, 1% NITDA tax, and 0.25% NASENI tax into a single 2% development levy, earmarked for student loans from 2030.

This aims to reduce the overall tax burden and eliminate what TMSG refers to as “nuisance taxes” levied by various states.

TMSG argues these measures will free up capital for reinvestment, boosting productivity and economic expansion.

They expressed bewilderment at the OPS’s lack of public support, contrasting this with the sector’s vocal opposition to the fuel subsidy removal and exchange rate unification earlier this year.

“We wonder whether they are still processing the proposed tax policies or they are waiting for an invitation from the National Assembly,” the statement reads.

However, TMSG insisted the reforms deserve commendation and urged the public to avoid politicizing the issue.

They believe the benefits extend to all Nigerians and call on the OPS to actively participate in the legislative process to ensure the bill’s swift passage.