..Corporate taxes trump oil earnings for first time on record
Although taxes now seem to be the main revenue source of the government, it would need even more attention to become the new oil as the amount generated from the source remains low relative to government spending For the first time in nearly half a century, non-oil revenue usurped petrodollars to become the main source of the Nigerian federal government’s revenue in 2021 and that dominance has grown since then.
So dominant has non-oil revenue become compared to oil that in the recently published financial accounts of the federal government, Corporate Income Tax (CIT), one of the three main sources of non-oil income, eclipsed total earnings from oil in the first four months of 2022.
In the four-month period through April, CIT alone (N298 billion) contributed more to the federal government’s retained revenue than oil revenue at N285.38 billion.
That’s the first time ever that corporate taxes would be higher than revenue from crude oil export, according to data sourced from the country’s budget implementation documents.
When the revenues from other non-oil income sources from Value Added Tax to Customs revenue are added, the total comes to N632.5 billion, more than double the amount generated from oil in the period under review.
The unprecedented turn of events highlights the country’s dwindling oil revenue and the rise in non-oil revenue, even though the former is more significant.
Oil revenues have more than halved from about N4 trillion in 2014 to less than N2 trillion annually and could fall even lower this year as a growing petrol subsidy bill and low production levels eat into the government’s earnings from oil.
The state-owned Nigerian National Petroleum Company Limited (NNPC), which is reported to have recorded a N704 billion deficit within the first six months of 2022, has not made any contribution to the Federation Account this year.
The government expects the expensive petrol subsidy which has become a burden to the NNPC to gulp N4 trillion this year, a quarter of the budget. The World Bank and International Monetary Fund (IMF) think it will be higher and are pegging their estimates at N5 trillion and N6 trillion respectively.
Crude oil production losses have also jumped with the country losing $650.7 million to crude oil losses due to force majeure between April and May 2022.
Taxes have had to fill up part of the huge gap vacated by the slump in oil revenue in monthly allocations to the three tiers of government.
The Federal Inland Revenue Service (FIRS), which collects taxes on behalf of the government, has contributed up to 60 percent of the money distributed by the Federal Account Allocation Committee to the federal, states, and local governments this year.
Last year, the FIRS contributed N5.298 trillion or 59.45 percent of the N8.912 trillion allocated to the three tiers of government.
The rising contribution of the agency is due to improved tax collections and reforms specifically with the 50 percent increase in VAT.
The FIRS has seen its collection rise from N5.26 trillion in 2019 to N6.4 trillion in 2021. Under the leadership of Muhammad Nami, its chairman, the agency is said to be more technology-oriented and there is a renewed focus on plugging leakages in tax collection.
Although taxes now seem to be the main revenue source of the government, it would need even more attention to become the new oil as the amount generated from the source remains low relative to government spending.
“While some of the reforms to improve tax revenues like the VAT increase has helped boost non-oil revenue, the main reason why tax receipts can outpace oil revenues is due primarily to the slump in oil revenues,” said Taiwo Oyedele, a partner at Lagos-based consulting firm PricewaterhouseCoopers.
“We can only say we have successfully replaced oil income with non-oil revenue when the latter can fund the majority of our expenditure,” Oyedele said.
For now, non-oil income can’t fund even a quarter of the government’s expenditure. Last year, the total cash generated from non-oil sources came to only 12 percent of the government’s spending.
In the first four months of 2022, the N632.5 billion generated from non-oil sources was a paltry 13.8 percent of the N4.556 trillion spent by the federal government in the period.
The government has had to rely largely on borrowing to meet its spending obligations, so much so that its debt service cost as a percentage of revenues has now exceeded 100 percent.
Despite the progress made in reforming the country’s tax system, analysts say there’s still more work to be done to further grow tax revenues to the point where the government relies less on oil revenues.
In 2021, the country’s tax to GDP ratio was only 7 percent, according to World Bank data, compared to the frontier market average of 20 percent.
“The FIRS needs adequate funding to be able to deploy technology and generate more revenue for the country as opposed to constant borrowing and to help fund the budgets of the three tiers of government,” a source said.
Abuja, Nigeria – Senator Sadiq Suleiman Umar, representing Kwara North Senatorial District and Chairman of the Senate Committees on Trade & Investment and Rules & Business, has urged young Africans to take the lead in driving the continent’s trade and investment future under the African Continental Free Trade Agreement (AfCFTA).
At JCI AMESA 2025, Senator Umar Calls for Youth Leadership in Africa’s Trade Revolution
Delivering the keynote address at the 2025 Africa and Middle East Senate Association (AMESA) Summit hosted by Junior Chamber International (JCI) in Abuja, Senator Umar commended JCI’s global role in raising leaders and promoting active citizenship.
He emphasized Africa’s demographic advantage, stating:
“With 1.4 billion people and 60% under the age of 25, Africa holds the key to the future of global trade and innovation.”
Referencing World Bank statistics, Umar highlighted that AfCFTA could lift 30 million Africans out of poverty and increase incomes by $450 billion by 2035, provided countries commit to cross-border collaboration, trade missions, and youth-driven entrepreneurship.
On Nigeria’s role, he described the nation as a “gateway for investment and innovation”, citing its 220 million population, dynamic entrepreneurial ecosystem, and recent policy reforms under President Bola Ahmed Tinubu’s administration.
He further noted that Nigeria’s fintech sector has attracted over $2 billion in foreign investment within the last five years.
The Senator urged African governments and businesses to prioritize agriculture, renewable energy, digital trade, and infrastructure, stressing that trade must be viewed beyond goods and services.
“Trade is not just about goods and services; it is about the movement of ideas, opportunities, and hope,” he declared.
Senator Umar closed by reaffirming the Nigerian Legislature’s commitment to policies that unlock Africa’s untapped potential, challenging young Africans to lead with integrity, innovation, and service.
The four-day summit, themed “Rediscovering Africa’s Untapped Potential Through Regional Collaboration & Partnerships,” runs from September 18 to 21, 2025.
Organizers say AMESA 2025 promises to be a transformative event, serving as a platform for influential figures to drive progress, explore opportunities, and shape the future of Africa and the Middle East through united efforts and strategic cooperation.
Throughout the summit, participants will engage in dynamic discussions, exchange best practices, and build actionable frameworks aimed at fostering sustainable development, regional integration, and stronger partnerships.
By the end of the gathering, stakeholders are expected to outline a collaborative blueprint to unlock growth and innovation across Africa and the Middle East.
JCI Senate Africa and Middle East Summit. (AMESA Summit) happening in Abuja.
The U.S. Department of Justice has charged two Nigerians, Christopher Falade, 62, and his son, Emmanuel Falade, 32, alongside six others, for their alleged roles in a $2.2 million housing stabilization fraud scheme in Minnesota.
The indictment, announced Thursday, according to PEOPLES GAZETTE accuses the defendants of defrauding the Housing Stabilization Services (HSS) Programme by inflating reimbursement claims and diverting funds meant to support vulnerable residents.
According to prosecutors, the Falades operated Faladcare Inc., a registered HSS provider tasked with offering housing consulting, transition, and support services. Instead, they allegedly created fraudulent claims for about 100 beneficiaries, siphoning program payments far above the value of services delivered.
“Over the course of years, the Falades and their conspirators created and submitted Program reimbursement claims that were inflated and fraudulent,” the DoJ stated. “By doing so, Faladcare received Program payments far exceeding the HSS services they had actually provided.”
Investigators allege that much of the fraud proceeds were distributed among their co-conspirators and Faladcare employees.
Others charged in the case include Moktar Hassan Aden (30), Mustafa Dayib Ali (29), Khalid Ahmed Dayib (26), Abdifitah Mohamud Mohamed (27), Asad Ahmed Adow (26), and Anwar Ahmed Adow (25).
Acting U.S. Attorney Joseph H. Thompson described the charges as “the first wave” in an ongoing probe into widespread fraud draining Minnesota’s social programs.
“It feels never ending,” Mr Thompson said. “I have spent my career as a fraud prosecutor, and the depth of the fraud in Minnesota takes my breath away. The fraud must be stopped.”
Minister of the Federal Capital Territory (FCT), Nyesom Wike, has strongly criticized activist and politician Omoyele Sowore for labeling President Bola Tinubu a “criminal.”
Speaking on Thursday during the flag-off of the construction of Arterial Road N1 from Wuye District to Ring Road II, Abuja, Wike said Sowore was “lucky” that Tinubu respects the rule of law, warning that not all leaders would tolerate such remarks.
“You Are Lucky,” Wike Tells Sowore
According to Wike:
“This is a country where somebody will go on social media and say Mr. President is a criminal and nothing will happen.
No matter how you see people criticize Trump, have you ever seen any Nigerian citizen on social media or in public say our president is a criminal? Have you ever heard that?
You are lucky you have a president that believes in the rule of law.
You are lucky, continue to be lucky because there are those you will meet and you won’t be lucky again.”
The minister argued that the ability of citizens to openly criticize Tinubu demonstrates the level of freedom in Nigeria compared to other countries, including the United States.
His comments come amid growing political tensions, with Sowore and other critics frequently attacking the administration over governance, economy, and democracy.
Shoprite shuts down outlets in Ibadan and Ilorin as shelves go empty in Lagos and Abuja. Nigerians react to the retail giant’s struggles amid inflation and rising competition.
Shoprite’s Struggles in Nigeria Deepen
Shoprite’s operations in Nigeria appear to be in crisis, four years after the South African retail giant exited the supermarket business.
Reports by Daily Trust confirm that outlets in Ibadan and Ilorin have closed, while stores still operating in Lagos, Abuja, and other major cities now have largely empty shelves.
From Expansion to Decline
Since opening its first Nigerian outlet in Lagos in 2005, Shoprite became a household name, growing into more than 25 stores across eight states and the Federal Capital Territory. At its peak, the chain directly employed over 2,000 workers and supported hundreds of local suppliers, particularly farmers.
But rising inflation, supply chain disruptions, and growing competition from local supermarkets have steadily weakened its dominance, pushing the brand into financial distress.
In 2021, Shoprite Holdings Limited sold its Nigerian business to local investors after retreating from several African markets including Ghana, Kenya, and Uganda—citing harsh operating conditions.
Nigerians React on Social Media
The closures have sparked a wave of reactions across social media, where Nigerians expressed a mix of nostalgia, disappointment, and calls for stronger homegrown supermarket chains.
On X (formerly Twitter), hashtags such as #ShopriteNigeria, #ShopriteClosure, and #NigerianRetail began trending:
“Shoprite shutting down is an end of an era. That place was our mini mall culture in the 2000s.” – @lagos_girl
“This should be a wake-up call. We need to support Nigerian-owned supermarkets like Justrite, Hubmart, and Ebeano.” – @naija_economist
“No more weekend hangouts at Shoprite. Sad, but not surprising with the way inflation is going.” – @femiwrites
“Shoprite was not just a supermarket, it was a social spot. I met my wife there in 2012. This hits different.” – @deji_lagos
“If Shoprite can’t survive here, it tells you everything about Nigeria’s business environment.” – @uchechukwu_onyi
What’s Next for Retail in Nigeria?
While many lament the decline of Shoprite, others see opportunity for local supermarkets to step into the gap. Brands like Justrite, Hubmart, Ebeano, and Spar could potentially take advantage of the vacuum.
With Shoprite’s uncertain future, the question remains: will Nigeria’s supermarket culture fade with its departure—or will indigenous brands reinvent it?
The Rivers State House of Assembly on Thursday reconvened for plenary, marking its first session since the expiration of the six-month state of emergency imposed by President Bola Tinubu.
The sitting, presided over by Speaker Martins Amaewhule, held at the legislative quarters in Port Harcourt, comes just a day after Tinubu lifted emergency rule at midnight on September 17.
The emergency had been declared on March 18, 2025, following a constitutional impasse between Governor Siminalayi Fubara and the Assembly that crippled governance.
Before resumption, the outgone state administrator, Ibok-Ete Ibas, officially handed over to Governor Fubara and, in his farewell address, urged Rivers people to support the reinstated governor.
At Thursday’s plenary, the House passed two key resolutions: calling on Governor Fubara to immediately forward a list of Commissioner-nominees for screening and confirmation, and urging him to initiate the process of drafting an Appropriation Law for the remainder of the year.
Speaker Amaewhule stressed that these steps are vital for stabilising governance and ensuring effective service delivery. Lawmakers say the resolutions are aimed at normalising the state’s administration and addressing urgent citizen needs after months of political turbulence.
Meanwhile, former Vice President Atiku Abubakar criticised the suspension and reinstatement of Governor Fubara and the Assembly, describing Tinubu’s actions as “unconstitutional, illegal, and a clear sign of dictatorship.”
Governor Fubara is yet to respond publicly to the House’s resolutions.