The Chairman of the Alliance for Economic Research and Ethics (AERE), Dele Kelvin Oye, has warned that certain provisions of the Nigeria Tax Act (NTA) 2025 may hinder its effective implementation if not reviewed.
Oye identified the ₦500,000 annual cap on rent relief for individual taxpayers and restrictions on foreign exchange (forex) loss deductions as key concerns, describing them as misaligned with Nigeria’s current economic realities.
Speaking in a policy paper titled “The Nigeria Tax Act 2025: A Critical Examination of Consolidation, Implementation Challenges, and Institutional Identity Crisis,” Oye acknowledged that the Act represents the most significant reform of Nigeria’s income tax framework since the return to democracy. However, he said some provisions reflect structural gaps that could undermine its objectives.
According to him, the rent relief threshold is unrealistic in major urban centres such as Lagos, Abuja and Port Harcourt, where housing costs far exceed the stipulated amount. He noted that inflation and currency depreciation have significantly increased rental expenses, making the relief largely ineffective for many taxpayers.
Oye argued that fixed relief thresholds fail to adjust for inflation and regional cost differences, adding that the administrative effort required to claim the relief may outweigh the actual tax savings for most individuals.
On forex deductions, he expressed concern over provisions that prevent businesses from deducting actual foreign exchange losses incurred when sourcing funds outside official windows. He said this places an additional burden on companies operating in a volatile currency environment, particularly manufacturers and service providers reliant on imports or foreign obligations.
Oye also criticised VAT compliance rules that deny expense deductions to businesses if their suppliers fail to remit VAT, describing the policy as unfair to compliant taxpayers and potentially harmful to supply chains, especially for small and medium-sized enterprises.
He called for periodic reviews of the Act to address these concerns, stressing that enforcement responsibilities should rest with the tax authority rather than being transferred to private businesses.
Beyond compliance issues, Oye raised concerns about what he described as an “institutional identity crisis” following the establishment of the Nigeria Revenue Service (NRS) as successor to the Federal Inland Revenue Service. He warned that expanding the NRS’s mandate into investment policy could undermine the roles of specialised investment promotion agencies.
While commending the consolidation of multiple tax laws into a single framework, Oye said successful implementation would depend on aligning policy intent with economic realities, strengthening digital infrastructure, and supporting businesses—particularly SMEs—through the transition.
Fidelity Bank Supports Quality Education Delivery in Makoko
Fidelity Bank Plc has reinforced its commitment to education and community development with the donation of learning materials to schoolchildren in Makoko Community, Yaba, Lagos, under its Fidelity Helping Hands Programme (FHHP).
The outreach, facilitated by the bank’s Legal Services Division, involved the distribution of school bags, exercise books, writing materials, and mathematical sets to pupils of Makoko Anglican Nursery and Primary School, Aiyetoro Nursery and Primary School, and Adekunle Anglican Nursery and Primary School.
Speaking during the event, Kingsley Ohiri, Divisional Head of Legal Services at Fidelity Bank, said the initiative aligns with the bank’s corporate social responsibility focus on education and youth empowerment.
“The Fidelity Helping Hands Programme is our staff volunteer platform that enables employees to initiate and execute impactful community projects,” he said. “Through this programme, we are supporting pupils with essential learning tools to enhance their educational experience.”
Ohiri disclosed that over 500 school bags and more than 2,000 exercise books, alongside other materials, were distributed, noting that the bank aims to improve access to quality education for children in public schools, particularly those from disadvantaged backgrounds.
School administrators and teachers expressed appreciation for the support, describing it as timely and impactful.
The Head Teacher of Adekunle Nursery and Primary School, Mrs. Tinubu Abimbola, said the materials would support academic performance and motivate pupils, especially those recognised for outstanding results.
Similarly, Mr. Laoye Joseph, School Manager of Makoko Anglican Nursery and Primary School, said the donation would ease the financial burden on parents and improve learning outcomes in the community.
Teachers at the event noted that many pupils often attend school without basic supplies, a challenge worsened by rising living costs.
Under the FHHP, Fidelity Bank staff identify community projects and raise funds, which are matched by the bank’s management to expand impact. Fidelity Bank currently serves over 9.1 million customers through its digital platforms, branch network in Nigeria, and its UK subsidiary, FidBank UK Limited.
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