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Tax Harmonization and Prospects for the Nigerian Economy

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By Kelechi Okoronkwo

To harmonize means to produce a pleasing combination; the way it happens in music production. Different sounds and notes are blended to produce harmony; and that is when a musical piece is pleasing. For taxation to be pleasing, there is need to harmonise the tax system. The above analogy was the opening note of Mrs. Ifueko Omoigui Okauru, a former Executive Chairman of the Federal Inland Revenue Service (FIRS) as she moderated a panel discussion on the theme, Tax Harmonisation for Enhanced Revenue Generation during the second National Tax Dialogue at the Presidential Villa, Abuja recently.

Kelechi Okoronkwo

The panel discussion threw the reality on our faces—despite the level of one’s optimism, the fact remains that taxation in Nigeria is not pleasing, currently. A single country which has 774 Local Government tax committees, 38 tax authorities and multiple tax laws is far from having a pleasing tax system. The good news is that the Second National Tax Dialogue, hosted by the Federal Inland Revenue Service, began leading on a national scale, discussions with critical stakeholders at various levels to ensure that soon, Nigeria’s tax system would be properly harmonised and ultimately become pleasing.

FIRS

The FIRS used the huge platform provided by the tax dialogue held on March 29, 2022 to draw attention to the need for tax harmonisation in Nigeria. It is also gratifying to note that key stakeholders at the event were in tune with the reality and pointed the way forward for tax harmonization in Nigeria.

President Muhammadu Buhari, who declared the dialogue open noted that Nigeria’s current tax system is characterised by fragmented administration, and multiple (and sometimes, overlapping) taxes, saying that most tax-efficient nations, tax administrative processes and practices are harmonised within a single system. He stated that one key deliverable of this year’s tax dialogue is to promote synergy in tax administration among the different tiers of government.

Hear him: “Harmonising taxpayer identification across the country is a good start; but we must do more to promote ease of doing business (including ease of tax compliance) in Nigeria. On our part, we have started by clarifying in the 2021 Finance Act that FIRS is the sole authority to administer tax for the Federal Government. This clarification became necessary in order to avoid taxpayers being burdened with multiple tax compliance obligations towards different agencies of the same government. Multiplicity of tax administration is as undesirable as multiplicity of taxes; it creates uncertainty and instability; and above all, it is inefficient”.

Making reference to the 2021 Revenue Statistics in Africa, a report by the Organisation for Economic Cooperation and Development (OECD), President Buhari noted that the average ratio of Tax-to-GDP of 30 selected African countries in 2019 was 16.6% while Nigeria recorded a mere 6.0%.

“It is obvious that much needs to be done in the area of tax revenue mobilisation. It is my expectation that the discussions at this 2022 National Tax Dialogue will be focused on what we must do to maximise legitimate revenue collection and massively improve the Tax-to-GDP ratio. We all know that good intentions are not enough as they simply cannot pay for infrastructure, security or social amenities. We must therefore improve tax revenue without necessarily raising new taxes. Revenue from commodities, including crude oil, are too volatile and unreliable. Therefore, I pledge government’s support for any viable initiative for improving tax revenue that should emanate from this dialogue”, the President said.

The Minister of Finance, Budget and National Planning noted that for the Federal Government to achieve its tax objectives it needs to rethink the current tax system. “We must rethink the current fragmented tax system and harmonise same. The tax policy, legislation and administrative practices at all levels must function as one indivisible whole. For example, a harmonised taxpayer registration will ensure that no taxpayer can hide from the relevant tax authority. We have observed that countries having lower economy and fewer tax base but streamlined tax administration has fared much better than Nigeria in terms of tax revenue collection; and ratio of tax-to-GDP. The goal for this year’s National Tax Dialogue is, therefore, to kick-start the discussion for the harmonisation of the fragmented tax systems into a coherent whole for improved tax revenue collection for all the governments in the Federation”, she said.

For the Executive Chairman of FIRS, Muhammad Nami, harmonisation of the Nigeria’s tax system is long overdue. He noted that fragmented tax system provided loopholes in the system, causing the country to lose trillions of tax revenue. “This discussion is imperative in view of the fact that despite our 38 tax authorities, several tax laws and numerous taxes or levies, majority of the taxpaying public still remain outside the tax net. The tax-dodgers found it convenient to meander among the competing revenue agencies escaping their tax obligations. The result is suboptimal revenue generation at all tiers of government. It is our expectation that this second edition of the Tax Dialogue will achieve a lot more for tax administration in Nigeria. We thank the President for his continued support towards making taxation the pivot of development and economic growth in Nigeria. We equally thank the Honourable Minister of Finance, Budget and National Planning, Mrs. Zainab Shamsuna Ahmed and her team, the legislators, ministries, departments and agencies of government, who have been of great support to the Service”, Nami said.

Other distinguished speakers at the dialogue who threw weight behind harmonisation of Nigeria’s tax system included the Minister of State, Finance, Budget and National Planning, Prince Clement Agba, the Governor, Central Bank of Nigeria (CBN), Godwin Emefiele and the Ooni of Ife, Oba Adeyeye Enitan Ogunwusi.

Other knowledgeable personalities who led the discussion from the panel were a member of FIRS Board, Mrs. Adetola Aigbangbe, PwC Africa Tax leader and thematic lead, National Economic Summit Group Taxation and Public Finance Policy Commission, Taiwo Oyedele, Commissioner for Finance and Coordinating Economy, Imo State, Dr. (Mrs) Doris Uzoka-Anite, the Executive Chairman, Kaduna State Internal Revenue Service, Dr. Zaid Abubarkar and the FIRS Group Lead, Special Tax Operations Group, Matthew Gbonjubola.

The success of the first National Tax Dialogue in 2021 on the theme, Taxation in a Post-COVID Economy, which highlighted the importance of tax automation in Nigeria, brought about massive improvement in automation in Nigeria’s tax system. The result was evident on the revenue performance of the FIRS in 2021. Testifying to this, Nami said: “2021 was a year that the whole world continued to battle a devastating global pandemic which affected economic growth and disrupted business; yet, the FIRS was able to record an unprecedented feat in tax revenue generation. The Service surpassed its target and collected N6.4 trillion, the highest collection ever in the history of the FIRS. This feat was largely made possible by the cooperation of all stakeholders and use of technology which anchored our operations. Our tax system can do much more provided policies, laws, administrative processes and practices are harmonised to function as one”, he said.
The FIRS boss, recalled that FIRS alone contributed 59.45 percent of revenues shared among the three tiers of government by the Federation Accounts Allocation Committee (FAAC) in March, 2022.

“Permit me to quickly illustrate this with statistics from March 2022 FAAC meeting: Total revenue from all revenue agencies stood at N803.072 billion. Of that amount, tax revenue contributed by FIRS alone stood at N513.522 billion (63.94%); Non-tax revenue (from all other agencies) stood at N289.55 billion (36.06%). Mr. President may note that average tax or FIRS contribution to FAAC in 2021 was 59.45%. Mr President, this trend is set to continue for some time to come. As such, all hands must be on deck to support the tax system and make it function efficiently”, Nami said.

The success of the second National Tax Dialogue signals an era of tax harmonisation in Nigeria; an era with promises of economic prosperity for Nigeria. The FIRS hopes to meet and possibly surpass its N10.1trilion revenue target by the end of 2022.

Kelechi Okoronkwo is a technical staff to the FIRS Executive Chairman.

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Eid-ul-Mawlid: Uphold Hon. Lucky Otuo in your prayers, Ima-owaji Shedrack Urges non indigenes in ANOLGA

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A stakeholder in Andoni Local Government Area of Rivers State, Ima-owaji Shedrack, has called on Muslim faithful in the area to remember the Chairman of Andoni LGA, Hon. Lucky Promise Otuo, in their prayers as they celebrate Eid-ul-Mawlid, the commemoration of the birth of Prophet Muhammad (SAW).

Speaking on Friday during the nationwide celebration, Ima-owaji stressed the importance of continuous prayers for leaders at all levels, describing Hon. Lucky Otuo’s administration as one that transcends sentiments, tribal lines, and religious differences.

“The government of Hon. Lucky Otuo is one beyond discrimination. Both indigenes and non-indigenes are carried along. This is why I urge our Muslim brothers and sisters to use this sacred celebration to pray for him and for the peace, progress, and prosperity of Andoni LGA,” Ima-owaji said.

FIRS

He further noted that the Eid-ul-Mawlid celebration provides Muslims with another opportunity to renew their commitment to unity and inclusiveness, while also offering prayers for leaders who are steering the affairs of the people with sincerity.

Ima-owaji urged residents of Andoni, regardless of religion or origin, to embrace peace and support the development agenda of Hon. Otuo’s administration, which he said is focused on progress and inclusivity.

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What to Know About CBN’s New Geo-Tagging Requirement for POS Terminals

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pos machine

The Central Bank of Nigeria (CBN) has issued a new directive requiring all Point of Sale (POS) terminals to be geo-tagged within the next 60 days, a move designed to curb fraud, enhance oversight, and modernize Nigeria’s digital payment ecosystem.

According to a circular released on August 26, 2025, any terminal not geo-tagged will be deactivated from October 20, 2025.

“This initiative is designed to ensure that all PoS terminals are traceable and that transactions are secure. Terminals operating outside their registered location will be flagged, and non-compliant devices will be deactivated,” the CBN stated.

FIRS

Here’s a breakdown of what the policy means for operators, agents, merchants, and customers.

What Geo-Tagging Means

Geo-tagging is the process of embedding location data, such as latitude and longitude, into a digital device.
For POS terminals, this means linking each machine to its exact physical address using GPS technology, creating a traceable digital footprint that makes every device verifiable and harder to misuse.

The CBN’s Key Requirements

  1. Geolocation Features
    All POS devices must have GPS and dual-frequency receivers for accurate location tracking.
  2. Real-Time Location Transmission
    Terminals must capture and transmit their exact location at the start of every transaction.
  3. Geofencing
    Each POS terminal will be restricted to a 10-metre radius around its registered location. Transactions outside this zone will be flagged for investigation.
  4. Registration
    Licensed banks and fintechs—such as Moniepoint, OPay, PalmPay, and others—must register each device with exact merchant coordinates through a payment aggregator.
  5. New Devices
    No new terminal will be certified or activated without geo-tagging.

Why Geo-Tagging Matters

  • Crackdown on Fraudulent Terminals
    Geo-tagging eliminates “ghost” or cloned devices and reduces card fraud, unauthorized withdrawals, and misuse of mobile POS machines. It also disrupts ransom collections and terrorism financing through untraceable transactions.
  • Better Oversight and Transparency
    Regulators gain real-time visibility of nationwide transactions, improving fraud detection and aiding financial inclusion strategies by identifying underserved areas.
  • Boosting Consumer Trust
    Customers gain stronger protection knowing every POS is tied to a verified address, building confidence in digital payments.

Impact on Stakeholders

  • Banks & Fintechs
    Institutions face the challenge of upgrading thousands of terminals and registering them within 60 days, requiring both funding and logistics.
  • POS Agents & Merchants
    Operators must work strictly within 10 metres of their registered business location, potentially disrupting mobile POS services that move around to serve customers.
  • Customers
    Shoppers stand to benefit most, with safer and more transparent transactions in Nigeria’s payment system.

Conclusion

The CBN’s geo-tagging directive is one of the most sweeping reforms in Nigeria’s digital payments landscape. While it presents operational hurdles for banks, fintechs, and agents, it promises stronger security, fraud reduction, and renewed consumer trust in the long run.

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Goodluck Nwaneri Pays Condolence Visit To The APC National Chairman

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Goodluck Nwaneri Pays Condolence Visit To The APC National Chairman

Chief Goodluck Nwaneri, a Director city boy movement, has paid a condolence visit to the APC National Chairman, Prof. Nentawe Yilwatda, at his residence in Abuja, following the passing of his beloved mother, late Mrs. Lydia Toma Yilwatda.

During the visit, Chief Nwaneri expressed his deep sympathy to Prof. Nentawe and the entire Yilwatda family, describing the death of a mother as a painful and irreplaceable loss. He noted that the late Mrs. Lydia Toma Yilwatda lived an exemplary life of faith, humility, and service, evident in the leadership qualities and values instilled in her children.

Chief Nwaneri prayed for the peaceful repose of her soul and asked God to grant the APC National Chairman and his family the strength and fortitude to bear the painful loss. He also encouraged them to find comfort in the enduring legacy their mother left behind.

FIRS

He further reaffirmed his solidarity with Prof. Nentawe in this moment of grief, while urging the family to remain strong and united in honoring the life and memory of their departed matriarch.

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Reflections on the Labour Party’s Challenges: A Call for Peter Obi to Pause and Ponder

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Pst Dr Mrs Dayo Ekong,

By Pst Dr Mrs Dayo Ekong, State Chairman, Labour Party, Lagos State

As the State Chairman of the Labour Party in Lagos State, I have watched with growing concern the internal dynamics and external perceptions plaguing our great party.

FIRS

The Labour Party, once a beacon of hope for the masses, is now grappling with issues that threaten its unity and relevance in Nigeria’s political landscape. Chief among these is the meddlesome role and evidently waning influence of our former presidential candidate, Mr. Peter Obi. While I respect his contributions and the passion he ignited in 2023, it is time for a candid conversation.

Mr. Obi must recognize the grace that propelled him in the last election cycle—a divine and collective favor from the party and the electorate—and reflect on how his recent actions are eroding that very foundation.

Let us rewind to 2023. Peter Obi enjoyed an extraordinary wave of support, not just from the Labour Party’s structures but from a broad coalition of Nigerians yearning for change. Despite the controversies surrounding the election results, where many believe he was robbed of victory, his outing was undeniably successful. He garnered millions of votes, particularly from the youth and disillusioned voters, because the party rallied behind him, and the electorate saw him as a fresh alternative to the status quo.This grace was a combination of factors: the party’s platform, grassroots mobilization, and a genuine public desire for integrity in leadership. It was this synergy that allowed him to shine brightly, even in defeat.

However, fast-forward to today, and the narrative has shifted. Peter Obi’s influence in the Nigerian polity appears to be waning, as Nigerians grow increasingly tired and wary of what some perceive as inconsistent antics and political maneuvering. His interventions, once seen as principled, now risk being viewed as disruptive and self-serving, alienating allies and diminishing his appeal. This is not mere speculation; it is evident in recent electoral outcomes where his endorsements have failed to deliver victories, signaling a loss of the magnetic pull he once commanded.

Take the 2024 Edo State governorship election as a prime example. Amid internal party tensions, Peter Obi chose to campaign vigorously for Olumide Akpata, pitching his tent against the preferences of the National Working Committee led by Julius Abure, who wanted to adhere to the political leanings of zoning which the Edo electorate tilted towards, but because of his issues with Abure he stood firm behind Akpata.
While Akpata was the official Labour Party candidate, Obi’s involvement highlighted factional rifts, with his support seemingly at odds with key party figures.
The result? Akpata lost woefully to the APC’s Monday Okpebholo, securing only a fraction of the votes despite Obi’s rallies and endorsements in Benin and beyond.This defeat in Edo, a state where Labour had shown promise, underscores how Obi’s influence no longer guarantees electoral success.

Similarly, in the 2023 Imo State gubernatorial election, Obi threw his weight behind Senator Athan Achonu, the Labour Party’s candidate. Achonu, backed by Obi’s visibility and campaign efforts, was positioned as a strong contender against the incumbent, Hope Uzodimma. Yet, the outcome was another resounding loss, with Achonu failing to unseat the APC governor in a landslide defeat. These back-to-back failures in Imo and Edo raise questions about the effectiveness of Obi’s political strategy and whether his touch still carries the transformative power it did in 2023.

The most telling blow came recently in the Anambra State by-elections, particularly in Onitsha—Peter Obi’s own backyard and supposed stronghold. Here, we witnessed his sudden switch of allegiance, embodying the “Labour today, ADC tomorrow” shenanigans that have confused supporters and diluted party loyalty.

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IYD: Nigeria Beyond Politics; The Role of Youth in Development in a Dynamic Digital World

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Bonaventure Asonye Nwankama, founder BONA NAIJA
Bonaveture Asonye Nwankama

…… the politics of division ethnic, religious, or partisan has slowed Nigeria’s growth for decades. In the digital age, collaboration is the new power

Today, as the world marks International Youth Day, we are reminded that the destiny of nations is not built solely in political chambers or government offices. True progress emerges from the creativity, resilience, and innovation of its people especially its youth.

In Nigeria, a country blessed with one of the largest youth populations in the world, the possibilities extend far beyond politics.

FIRS

The modern world is evolving at a pace like never before, driven by technology, digital innovation, and global interconnectedness.

For Nigerian youth, this era offers an unprecedented opportunity to lead transformation not just by voting or holding political office, but by shaping industries, influencing culture, and building sustainable systems that outlast election cycles.

Recently, I listened to an elder reflect on Nigeria’s journey. He reminded us that during the Industrial Revolution, our nation missed the opportunity to industrialize at the same pace as other parts of the world. That moment in history has passed but a new one is here. This is the Digital Revolution, and it is the youth’s turn to seize it.

READ ALSO: Meta’s Standoff with FCCPC: Nwankama Calls For Negotiation Over $220m Fine

Redefining Development Beyond the Ballot Box

Politics is important, but it is only one part of national development. Nigeria’s youth must recognize that progress also comes from entrepreneurship, science, technology, the arts, and social innovation.

The future will be shaped by those who can solve real problems whether in agriculture, renewable energy, fintech, health tech, or creative industries. Our role is to channel the same passion often poured into political debates into building solutions: Creating start-ups that employ thousands. Developing apps that solve everyday challenges. Producing films, music, and art that tell authentic Nigerian stories to the world.

Leveraging the Digital Revolution

In a dynamic digital world, the tools for impact are literally at our fingertips. With a smartphone and internet connection, a Nigerian youth can learn artificial intelligence, code a mobile app, sell fashion designs internationally, or run a global awareness campaign from their bedroom. Digital platforms are breaking barriers of geography and capital opening doors for anyone ready to learn, adapt, and innovate.

But this opportunity demands discipline: We must move from just consuming content to creating value-driven content. We must master digital skills that place us in the global economy. We must see technology as a tool for empowerment, not just entertainment.

Collaboration Over Division

The politics of division ethnic, religious, or partisan has slowed Nigeria’s growth for decades. In the digital age, collaboration is the new power. Youth from different regions can co-found tech companies, build joint advocacy platforms, and share resources to solve national problems.

The internet has given us a level playing field now we must use it to bridge divides, amplify each other’s voices, and create networks of mutual growth.

Taking Ownership of the Future

The truth is simple; No one will build the Nigeria we want except us. While we must hold leaders accountable, we cannot wait endlessly for political change before acting. Development is not a spectator sport it requires participation.

We must: Invest in self-education and continuous learning. Practice integrity and accountability in our personal and professional lives. Use our digital influence to inspire progress, not spread misinformation.

Conclusion

“Nigeria Beyond Politics” is not a call to abandon political engagement it is a reminder that politics is only one gear in the engine of national development. As youth, our most potent power lies in our creativity, adaptability, and unity especially in this digital era where a single idea can change millions of lives.

The world is watching. The future is calling. And the time for Nigerian youth to rise beyond politics and build the nation we dream of is now.


Bonaventure Asonye Nwankama is a Digital Media Entrepreneur and Publisher BONA NAIJA (www.bonanaija.com.ng). He is a Digital Transformation Advocate & Trainer. Reach him via email: bonaventure.bc@gmail.com

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