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Revolutionizing Taxation: Transforming Opportunities for SMEs in Nigeria

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Revolutionizing Taxation: Transforming Opportunities for SMEs in Nigeria

Revolutionizing Taxation: Transforming Opportunities for SMEs in Nigeria

Introduction

Small and Medium Enterprises (SMEs) serve as the backbone of Nigeria’s economy, driving innovation, creating employment, and contributing to economic growth. With over 80% of employment and nearly 50% of the nation’s GDP attributed to these enterprises, their role in Nigeria’s socio-economic development is undeniable (SMEDAN, 2021). However, an overly complex and burdensome tax system has historically hindered their growth, limiting their potential to scale and compete.

Revolutionizing Taxation: Transforming Opportunities for SMEs in Nigeria

Nigeria’s tax regime has long been characterized by inefficiencies, overlapping levies from federal, state, and local governments, and high compliance costs. These issues discourage many businesses from formalizing their operations, impeding their ability to expand and innovate (Oyedele, 2024). In response to these challenges, the new tax reform bill aims to create a more conducive fiscal environment for SMEs. By reducing financial burdens, streamlining tax administration, and introducing targeted incentives, the reform paves the way for sustainable development and economic prosperity.

Challenges Facing SMEs in Nigeria’s Tax System

The current tax system in Nigeria presents significant obstacles to SME growth and sustainability:

  1. Overlapping Tax Obligations
    SMEs face numerous taxes, including corporate income tax, value-added tax (VAT), and various local levies. These overlapping demands lead to double taxation and drain resources, leaving businesses with little capital to reinvest in operations (Presidential Fiscal Policy and Tax Reforms Committee, 2024).
  2. Low Exemption Thresholds
    The previous exemption threshold for company income tax—set at ₦25 million in annual turnover—excluded many SMEs from tax relief. This left many modestly-sized businesses burdened by taxes, stifling their growth potential (Oyedele, 2024).
  3. Administrative Inefficiencies
    VAT administration is fraught with delays and complexities. Businesses often face liquidity issues due to prolonged refund processing times, discouraging compliance and pushing many SMEs into the informal sector.
  4. High Compliance Costs
    Limited resources and expertise make it difficult for SMEs to navigate the tax system. Expenses related to bookkeeping, audits, and interactions with multiple tax agencies divert resources from business operations (Oyedele, 2024).

Key Provisions of the Tax Reform Bill

The new tax reform bill addresses these challenges through innovative measures:

  1. Elimination of Nuisance Taxes
    Low-yield levies such as market taxes and signage fees have been removed, reducing financial strain on SMEs. For example, businesses no longer need to pay for displaying their branding or face exorbitant fees on rural lands.
  2. Increased Tax Exemption Thresholds
    The company income tax exemption threshold has been raised from ₦25 million to ₦50 million in annual turnover. This adjustment allows more SMEs to operate tax-free, enabling them to reinvest in growth and innovation.
  3. Simplified VAT Regulations
    Over 97% of SMEs are now exempt from charging VAT. Additionally, businesses can claim input VAT credits on assets and services, reducing production costs and enhancing profitability.
  4. Harmonization of Taxes
    The consolidation of multiple levies into a single-digit framework simplifies compliance, ensuring fewer disruptions and greater predictability in financial planning for SMEs.
  5. Technological Innovations
    Electronic invoicing and fiscalization systems streamline VAT administration, enabling real-time filing and reconciliation. These systems reduce errors, delays, and compliance costs.
  6. Faster VAT Refunds
    SMEs will benefit from expedited VAT refunds without the need for extensive audits, improving cash flow and operational efficiency.
  7. Targeted Tax Incentives
    Incentives for research and development (R&D) and support for high-impact sectors like agriculture and technology encourage innovation and sector-wide growth.
  8. Transparent Revenue Sharing
    A new revenue-sharing model ensures that states with active SME ecosystems receive adequate funding for infrastructure and services, benefiting local businesses.

Benefits for SMEs

The reforms offer numerous advantages that address key pain points for SMEs:

  • Cost Reductions: The elimination of nuisance taxes and simplified VAT processes reduce financial and administrative burdens.
  • Increased Profitability: Higher tax exemption thresholds allow SMEs to retain more earnings for reinvestment and growth.
  • Enhanced Liquidity: Faster VAT refunds ease cash flow constraints, enabling businesses to meet obligations and explore growth opportunities.
  • Improved Competitiveness: Lower production costs and targeted incentives empower SMEs to enhance quality, scale operations, and expand into new markets.
  • Infrastructural Support: Equitable revenue sharing fosters improved infrastructure, reducing logistical challenges and operational costs.
  • Incentivized Formalization: Simplified compliance encourages informal businesses to register, unlocking access to credit, government support, and broader markets.

Conclusion

The new tax reform bill marks a transformative step toward creating a supportive fiscal environment for SMEs in Nigeria. By addressing systemic inefficiencies, eliminating excessive levies, and introducing progressive incentives, the reforms empower SMEs to thrive and contribute meaningfully to national development.

As these measures are implemented, collaboration between government, businesses, and stakeholders will be vital to ensure the reforms achieve their intended impact. With a more inclusive tax system, Nigeria’s SMEs are well-positioned to drive sustainable economic growth, innovation, and prosperity.

References

  • SMEDAN (2021). Small and Medium Enterprises (SMEs) in Nigeria: Contributions and Challenges.
  • Oyedele, T. (2024). Presidential Fiscal Policy and Tax Reforms Committee Report.
  • Presidential Fiscal Policy and Tax Reforms Committee (2024). Overview of Tax Reform Bills.

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FORENSIC INVESTIGATION REVEALS FABRICATED X ACCOUNT TARGETING INEC CHAIRMAN – CPS

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FORENSIC INVESTIGATION REVEALS FABRICATED X ACCOUNT TARGETING INEC CHAIRMAN – CPS

 

The Chief Press Secretary (CPS) to the Chairman of the Independent National Electoral Commission (INEC), Mr. Adedayo Oketola, has said that a purported X (formerly Twitter) account attributed to the Commission’s Chairman, Prof. Joash Ojo Amupitan, SAN, is fake and part of a coordinated disinformation campaign.

 

In a public statement issued on Monday in Abuja, Mr. Oketola disclosed that a comprehensive, multi-layered forensic investigation conducted by independent cybersecurity experts has conclusively established that the INEC Chairman does not operate any personal X account.

 

He said, “The Independent National Electoral Commission (INEC) , committed to a full forensic investigation, commissioned an independent forensic cybersecurity expert, who conducted a multi-layered forensic and digital investigation using X platform data, internet archive records, OSINT tools, identity forensics and cross-platform analysis.”

 

Oketola stressed that all posts, replies, and screenshots linking him to the handle @joashamupitan are fraudulent, forensically unverifiable, and technically impossible.

 

The controversy began on April 10, 2026, when viral social media posts alleged that the Chairman made a partisan comment — “Victory is sure” — in response to another user, supported by screenshots and purported digital records.

 

However, the CPS said the forensic investigation uncovered clear evidence of fabrication and impersonation, highlighting the following key findings:

 

· No Digital Linkage: There is no connection between the disputed X account and Prof. Amupitan’s verified email addresses or phone numbers, as multiple recovery and verification attempts failed to establish any link.

 

· False BVN/OPay Claims: Data used to suggest ownership of the account only confirms identity and does not establish control of any social media handle, making such claims a logical fallacy.

 

· Timestamp Manipulation: The alleged reply “Victory is sure” was posted 13 minutes before the original tweet it responded to—an occurrence that is technically impossible and definitive proof of fabrication.

 

· No Historical Record: Searches on the Internet Archive’s Wayback Machine showed zero evidence of the account or its alleged activity prior to April 2026.

 

· Non-Existence on X Platform: Live checks confirmed that the alleged reply does not exist and has never existed on the platform.

 

· Account Renaming Pattern: On the same day the screenshots went viral, the account was renamed @sundayvibe00, set to private, and labelled a “parody account,” indicating deliberate impersonation and damage control.

 

· Coordinated Multi-Platform Impersonation: At least seven fake accounts across Facebook and Instagram using the Chairman’s identity were identified, pointing to a sustained disinformation effort.

 

“The forensic evidence is comprehensive, multi-sourced, and unambiguous. The posts attributed to Prof. Joash Ojo Amupitan on X are fabricated. The account is a clear case of impersonation,” Mr. Oketola said.

 

Quoting one of the independent investigators, he described the development as “a coordinated digital impersonation and disinformation campaign,” warning that advances in artificial intelligence had made it easier to fabricate misleading content.

 

He urged the public to avoid sharing unverified information, noting that “the fact that content goes viral does not make it authentic,” and called on media organisations to prioritise accuracy over speed.

 

Mr. Oketola said the independent forensic report had been referred to the law enforcement agencies for necessary action. He also appealed to law enforcement agencies to investigate the origin of the fake account and prosecute those responsible under the Cybercrimes (Prohibition, Prevention, etc.) Act.

 

He said, “Media organisations, in particular, have a duty to apply strict forensic verification standards to social media posts and screenshots before publishing them, especially when such content implicates public officials or carries serious consequences for public trust and institutional credibility. Accuracy, not speed, must guide reporting in matters of this nature.”

 

He reiterated that all official communications from INEC are disseminated exclusively through its verified platforms, including its website (www.inecnigeria.org), verified X account (@inecnigeria), official Facebook page, online news portal (www.inecnews.com), formal press statements from its headquarters in Abuja, and official media briefings. Any account purporting to represent the INEC Chairman in a personal capacity, he said, should be treated as fraudulent unless formally verified by the Commission.

 

FORENSIC INVESTIGATION REVEALS FABRICATED X ACCOUNT TARGETING INEC CHAIRMAN – CPS

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How FirstBank is investing in Its People and Building Future Leaders

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FirstBank Set to Launch Tailored Financial Services for Blind and Physically Challenged Customers  

How FirstBank is investing in Its People and Building Future Leaders

For an average 9-5er, having a job isn’t enough. You want a career that grows with you, gives you stability, and opens doors to bigger opportunities. People everywhere are looking for workplaces that don’t just pay salaries but actually invest in their staff, helping them learn, lead, and succeed.

That’s exactly what FirstBank is doing. The Bank is building a future where every employee has the opportunity to grow, lead, and thrive. Through its human capital management and development agenda, FirstBank is creating numerous pathways for staff to transform their careers and become tomorrow’s leaders.

Conversion Programme: Turning Opportunities Into Careers

Needless to say that there is no desire for the 9-5er to remain in a temporary role when they can secure a full-time career. With FirstBank’s Conversion Programme, eligible non-core employees who have served for at least one year can transition into permanent positions. This initiative ensures that hardworking staff are rewarded with stability, growth, and the chance to contribute more meaningfully to the Bank’s success.

Leadership Programmes: Grooming the Next Generation

FirstBank has designed three flagship programmes to identify and nurture high-potential talents:

  • FirstBank Management Associate Programme (FMAP): A 24-month fast-track initiative that grooms future middle managers. Upon completion, participants are promoted to Assistant Manager grade, regardless of their previous grade.
  • Leadership Acceleration Programme (LAP): Focused on preparing internal middle-management talents for leadership responsibilities, ensuring the Bank’s succession pipeline remains strong.
  • Senior Management Development Programme (SMDP): A programme for senior managers who are proven leaders in their functions and critical to the Bank’s succession plan.

These programmes are not just training—they are career accelerators, designed to put staff on the fast lane to leadership.

FirstAcademy: Learning With Global Standards

Backing these initiatives is FirstAcademy, FirstBank’s corporate university, accredited by the Chartered Institute of Bankers of Nigeria (CIBN).

Staff also benefit from partnerships with institutions like Rome Business School and Association of Chartered Certified Accountants (ACCA), gaining access to world-class training—often at discounted rates

A Workplace That Values People

FirstBank’s parent company, First HoldCo PLC, was named second in the Best Workplaces in Financial Services in Nigeria. The Bank remains firmly committed to responsible employment practices, ensuring that all colleagues are treated with dignity, fairness, and respect.

The Future Is Human

With these initiatives, FirstBank is showing that its greatest investment is its people. By empowering staff through various growth opportunities, the Bank is not just building a workforce, it is cultivating leaders who will shape the future of banking in Nigeria and beyond.

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FirstBank Partners Ekiti State Government on Launch of Innovation Enterprise Support Fund

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FirstBank Partners Ekiti State Government on Launch of Innovation Enterprise Support Fund

 

Lagos, 10 April 2025 – FirstBank, West Africa’s premier financial institution and the leading financial inclusion service provider, is proud to announce its partnership with the Ekiti State Government in launching the Innovation Enterprise Support Fund, a groundbreaking initiative designed to empower startups, scale tech-enabled businesses, and accelerate innovation-driven economic growth across the state.

 

The programme provides funding, mentorship, and market access to high-potential enterprises, with a focus on strengthening Ekiti’s innovation ecosystem, creating jobs, and supporting youth, women, and underserved communities. Notably, at least 40 percent of the fund has been reserved for female-led enterprises.

 

The Innovation Enterprise Support Fund Initiative is structured as a three-phase programme covering ideation, pre-acceleration, and acceleration for about 60 startups. Each enterprise will receive financial support ranging from ₦150,000 to ₦1,200,000, enabling job creation, revenue generation, and market-ready product launches.

 

Speaking on the partnership, the Managing Director/Chief Executive Officer, FirstBank Group, Olusegun Alebiosu, said “Entrepreneurship and Innovation are two of our core values at FirstBank. We believe MSMEs are enablers of economic growth and for 132 years, we have stood beside Nigerian businesses through every phase of growth, transition and transformation. We have remained committed to building stronger business through improved access to finance and capacity building; we created the SME Connect Platform to serve as a digital hub where Nigerian entrepreneurs find the resources to move from vision to value. We are excited about this partnership, and we see more than startups. We see future industry leaders, employers of labour, and perhaps our next big partners.”

 

 

 

The partnership aligns with FirstBank’s longstanding commitment to financial inclusion, SME development, and youth empowerment, with an emphasis on supporting women entrepreneurs, who represent 35% of Nigeria’s startup cohort.

 

FirstBank has been a consistent promoter and supporter of the innovation ecosystem and SMEs in Nigeria, providing notable interventions to help them scale their platforms and businesses. The Bank has designed multiple digital platforms for its SME customers to leverage on for business growth and expansion.

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