As Nigeria awaits to usher in 2026, the country faces tough economic realities. Despite positive growth indicators and reforms, high food prices and inflation continue to strain households. While the government targets supply chain improvements and fiscal oversight, many Nigerians like trader Eucheria Kanu remain hopeful, yet still waiting for these reforms to bring real, tangible relief.
Friday, January 2, 2026
Video - Nigeria's economic reforms aim for recovery and opportunity
As Nigeria awaits to usher in 2026, the country faces tough economic realities. Despite positive growth indicators and reforms, high food prices and inflation continue to strain households. While the government targets supply chain improvements and fiscal oversight, many Nigerians like trader Eucheria Kanu remain hopeful, yet still waiting for these reforms to bring real, tangible relief.
Nigeria kicks off new tax regime vowing relief for low earners
The new system, based on four bills signed into law in June, came into effect despite calls for a delay by the opposition which alleged that the goverment had made unauthorised changes to the tax code.
The four laws -- the Nigeria Tax Law, Nigeria Tax Administration Law, Nigeria Revenue Service (Establishment) Law, and Joint Revenue Board (Establishment) Law -- are a "one-stop shop," simultaneously increasing revenue generation and reducing the tax burden on low-income earners, tax expert Chukwuema Eze told AFP.
Opposition leader Atiku Abubakar accused the government of inserting "illegal and unauthorized alterations" to the laws.
President Bola Tinubu, who has energetically backed the tax reforms, dismissed the claims, calling them "premature" and "reactive", and said the new tax regime was in Nigeria's best interest.
"No substantial issue has been established that warrants a disruption of the reform process," Tinubu said in a statement on Tuesday.
In his New Year message, the president insisted that his tax reforms were "designed to build a fair, competitive, and robust fiscal foundation for Nigeria."
"By harmonising our tax system, we aim to raise revenue sustainably, address fiscal distortions and strengthen our capacity to finance infrastructure and social investments that will deliver shared prosperity," he said.
The west African economic powerhouse has a tax-to-GDP ratio of 13.5 percent, according to government figures, which is below the continental average.
The tax-to-GDP ratio is a measure of a government's capacity to raise money for public services and infrastructure.
By comparison, The EU and US have a tax-to-GDP ratio of over 25 percent.
Nigeria, divided into 36 states, has long struggled to reform its tax system -- with the government saying its new package will "harmonise" levies across the nation.
"This is a significant step toward building a simpler, fairer, and more growth-oriented tax system," Taiwo Oyedele, who heads Tinubu's tax reforms committee, said on X on Thursday.
The four laws -- the Nigeria Tax Law, Nigeria Tax Administration Law, Nigeria Revenue Service (Establishment) Law, and Joint Revenue Board (Establishment) Law -- are a "one-stop shop," simultaneously increasing revenue generation and reducing the tax burden on low-income earners, tax expert Chukwuema Eze told AFP.
Opposition leader Atiku Abubakar accused the government of inserting "illegal and unauthorized alterations" to the laws.
President Bola Tinubu, who has energetically backed the tax reforms, dismissed the claims, calling them "premature" and "reactive", and said the new tax regime was in Nigeria's best interest.
"No substantial issue has been established that warrants a disruption of the reform process," Tinubu said in a statement on Tuesday.
In his New Year message, the president insisted that his tax reforms were "designed to build a fair, competitive, and robust fiscal foundation for Nigeria."
"By harmonising our tax system, we aim to raise revenue sustainably, address fiscal distortions and strengthen our capacity to finance infrastructure and social investments that will deliver shared prosperity," he said.
The west African economic powerhouse has a tax-to-GDP ratio of 13.5 percent, according to government figures, which is below the continental average.
The tax-to-GDP ratio is a measure of a government's capacity to raise money for public services and infrastructure.
By comparison, The EU and US have a tax-to-GDP ratio of over 25 percent.
Nigeria, divided into 36 states, has long struggled to reform its tax system -- with the government saying its new package will "harmonise" levies across the nation.
"This is a significant step toward building a simpler, fairer, and more growth-oriented tax system," Taiwo Oyedele, who heads Tinubu's tax reforms committee, said on X on Thursday.
Police arrest Joshua’s driver after boxer discharged
The Ogun State Police Command has confirmed the arrest of Kayode Adeniyi, the 47-year-old driver of the ill-fated Lexus SUV that crashed on Monday, killing two of Anthony Joshua’s closest friends, PUNCH Sports Extra reports.
The spokesperson for the state police command, Oluseyi Babaseyi, disclosed this in a statement made available to journalists on Thursday, adding that investigations are ongoing.
Adeniyi, a long-standing member of Joshua’s Nigerian logistics team, was discharged from the hospital in Lagos late on New Year’s Eve and driven two hours north to Abeokuta, the capital of Ogun State, where the fatal crash occurred.
Police sources revealed that Adeniyi is expected to be charged with reckless driving within 48 hours, though the bank holiday may delay proceedings.
“The driver was released after treatment for minor injuries and was then taken to the state police headquarters for questioning. He is in a stable condition and was able to provide us with his version of events that led up to the crash,” a police source told Daily Mail.
Adeniyi was allegedly driving way over the 65mph speed limit for the Lagos-Ibadan Expressway when he lost control after a tyre burst during an overtaking manoeuvre near Danco.
The Lexus, carrying Joshua and two of his training staff, Sina Ghami and Kevin Latif Ayodele, smashed into an illegally parked truck, which was carrying soya beans.
The force of the impact tore the nearside section of the car away. Ghami, 36, a British citizen, and Ayodele, 36, a Nigerian/British citizen, were killed instantly, while Joshua and Adeniyi suffered only minor injuries.
Joshua was sitting behind the driver and escaped death by inches, with local first responders describing his survival as a “miracle”.
The Lagos and Ogun state governments on Wednesday announced the discharge of Anthony Joshua from Lagoon Hospital, Ikoyi, after doctors confirmed he was clinically fit to continue his recuperation from home.
According to a joint statement signed by Mr Kayode Akinmade, the Special Adviser on Information and Strategy to Governor Dapo Abiodun of Ogun State, and Lagos State Commissioner for Information, Mr Gbenga Omotosho, Joshua and his mother visited a funeral home in Lagos on Wednesday to pay their final respects to the two late friends.
The bodies were flown out of Lagos on a Turkish Airlines cargo flight that landed in Istanbul early on New Year’s Day and are expected to fly on to London.
Governors Dapo Abiodun of Ogun State and Babajide Sanwo-Olu of Lagos State expressed deep appreciation to members of the public for the overwhelming concern, prayers and show of love following the sad incident.
They also conveyed their gratitude to President Bola Tinubu for what they described as his fatherly support throughout the period and commended the doctors and medical personnel at Lagoon Hospital for their professionalism.
The two state governments once again commiserated with the families of the deceased, describing the incident as painful and deeply unfortunate.
According to the Daily Mail, the driver of the illegally parked truck has now disappeared, and there is an active police manhunt for him.
Joshua and the two men had arrived in Nigeria on Monday on a Virgin Atlantic flight from London. A baggage handler at arrivals, called Solomon, told reporters, “They were all smiling and laughing and joking as they walked through. I couldn’t believe it when I saw the news a few hours later that he had been involved in a fatal accident.”
Super Eagles stars Victor Osimhen, Wilfred Ndidi and Bright Osayi-Samuel have sent messages of support to Joshua following the crash.
By Peter Akinbo, Punch
The spokesperson for the state police command, Oluseyi Babaseyi, disclosed this in a statement made available to journalists on Thursday, adding that investigations are ongoing.
Adeniyi, a long-standing member of Joshua’s Nigerian logistics team, was discharged from the hospital in Lagos late on New Year’s Eve and driven two hours north to Abeokuta, the capital of Ogun State, where the fatal crash occurred.
Police sources revealed that Adeniyi is expected to be charged with reckless driving within 48 hours, though the bank holiday may delay proceedings.
“The driver was released after treatment for minor injuries and was then taken to the state police headquarters for questioning. He is in a stable condition and was able to provide us with his version of events that led up to the crash,” a police source told Daily Mail.
Adeniyi was allegedly driving way over the 65mph speed limit for the Lagos-Ibadan Expressway when he lost control after a tyre burst during an overtaking manoeuvre near Danco.
The Lexus, carrying Joshua and two of his training staff, Sina Ghami and Kevin Latif Ayodele, smashed into an illegally parked truck, which was carrying soya beans.
The force of the impact tore the nearside section of the car away. Ghami, 36, a British citizen, and Ayodele, 36, a Nigerian/British citizen, were killed instantly, while Joshua and Adeniyi suffered only minor injuries.
Joshua was sitting behind the driver and escaped death by inches, with local first responders describing his survival as a “miracle”.
The Lagos and Ogun state governments on Wednesday announced the discharge of Anthony Joshua from Lagoon Hospital, Ikoyi, after doctors confirmed he was clinically fit to continue his recuperation from home.
According to a joint statement signed by Mr Kayode Akinmade, the Special Adviser on Information and Strategy to Governor Dapo Abiodun of Ogun State, and Lagos State Commissioner for Information, Mr Gbenga Omotosho, Joshua and his mother visited a funeral home in Lagos on Wednesday to pay their final respects to the two late friends.
The bodies were flown out of Lagos on a Turkish Airlines cargo flight that landed in Istanbul early on New Year’s Day and are expected to fly on to London.
Governors Dapo Abiodun of Ogun State and Babajide Sanwo-Olu of Lagos State expressed deep appreciation to members of the public for the overwhelming concern, prayers and show of love following the sad incident.
They also conveyed their gratitude to President Bola Tinubu for what they described as his fatherly support throughout the period and commended the doctors and medical personnel at Lagoon Hospital for their professionalism.
The two state governments once again commiserated with the families of the deceased, describing the incident as painful and deeply unfortunate.
According to the Daily Mail, the driver of the illegally parked truck has now disappeared, and there is an active police manhunt for him.
Joshua and the two men had arrived in Nigeria on Monday on a Virgin Atlantic flight from London. A baggage handler at arrivals, called Solomon, told reporters, “They were all smiling and laughing and joking as they walked through. I couldn’t believe it when I saw the news a few hours later that he had been involved in a fatal accident.”
Super Eagles stars Victor Osimhen, Wilfred Ndidi and Bright Osayi-Samuel have sent messages of support to Joshua following the crash.
Nigeria’s private sector shows strong growth at end of 2025
Nigeria’s private sector maintained solid growth momentum at the end of 2025, with the headline Purchasing Managers’ Index (PMI) posting 53.5 in December, slightly down from 53.6 in November.
The latest PMI reading marks the thirteenth consecutive month of business condition improvements, according to data from Stanbic IBTC Bank Nigeria PMI survey compiled by S&P Global.
Growth in December was driven by improved customer demand, which supported a marked increase in new orders. This was the fourteenth consecutive monthly rise in sales, only slightly weaker than November’s increase. Companies responded by expanding output sharply, with agriculture leading growth among the four broad sectors surveyed.
Businesses also increased their purchasing activity and inventory holdings due to stronger customer demand. Employment rose for the sixth consecutive month, though only marginally and at the slowest pace since June 2025.
Inflationary pressures picked up modestly in December but remained close to recent lows. Higher raw material prices led to a marked rise in purchase costs, while staff costs increased as firms paid employees for additional work. In response, companies raised their selling prices, with manufacturing registering the sharpest increase.
Business confidence improved significantly, jumping to a six-month high with nearly 59% of respondents predicting growth. This optimism was largely based on planned investments in business expansions and new branch openings.
Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, commented that while input prices increased sharply in December from November’s near five-year low, the inflation rate remained weaker than the 2025 average. He attributed the pickup in inflationary pressures to higher spending patterns during the festive period.
Oni projected Nigeria’s economy to grow by 3.8% in 2025 and 4.1% in 2026, with both manufacturing and services likely to see higher growth in 2025 compared to 2024 levels.
The latest PMI reading marks the thirteenth consecutive month of business condition improvements, according to data from Stanbic IBTC Bank Nigeria PMI survey compiled by S&P Global.
Growth in December was driven by improved customer demand, which supported a marked increase in new orders. This was the fourteenth consecutive monthly rise in sales, only slightly weaker than November’s increase. Companies responded by expanding output sharply, with agriculture leading growth among the four broad sectors surveyed.
Businesses also increased their purchasing activity and inventory holdings due to stronger customer demand. Employment rose for the sixth consecutive month, though only marginally and at the slowest pace since June 2025.
Inflationary pressures picked up modestly in December but remained close to recent lows. Higher raw material prices led to a marked rise in purchase costs, while staff costs increased as firms paid employees for additional work. In response, companies raised their selling prices, with manufacturing registering the sharpest increase.
Business confidence improved significantly, jumping to a six-month high with nearly 59% of respondents predicting growth. This optimism was largely based on planned investments in business expansions and new branch openings.
Muyiwa Oni, Head of Equity Research West Africa at Stanbic IBTC Bank, commented that while input prices increased sharply in December from November’s near five-year low, the inflation rate remained weaker than the 2025 average. He attributed the pickup in inflationary pressures to higher spending patterns during the festive period.
Oni projected Nigeria’s economy to grow by 3.8% in 2025 and 4.1% in 2026, with both manufacturing and services likely to see higher growth in 2025 compared to 2024 levels.
Nigeria’s NNPC Boosts Oil Production to 1.6 Million Bpd
Nigeria’s state-owned oil and gas company NNPC this week reported crude oil and condensate production of 1.6 million barrels per day (bpd) for November 2025, up by 1.3% from October levels.
Natural gas output fell slightly to 6.97 million standard cubic feet per day (mscfd) in November, compared with 6.99 mscfd for the previous month.
NNPC’s profit after tax and revenues rose in November from October.
Going forward, the company plans to “Intensify collaboration with our partners through year-end and into 2026 to ensure improved production performance, maximise infrastructure uptime, and maintain high facility maintenance standards across all our assets.”
NNPC is set to increase oil production to 2 million bpd over the next two years, its executive vice president for upstream, Udy Ntia, said in November 2025. By 2030, NNPC will be pumping 3 million barrels daily, according to the official.
Nigeria has been pumping more crude and drilling more new wells than it has in years, thanks to reforms under President Bola Tinubu that are finally leading to more cash flowing into the upstream industry. Daily output has climbed to between 1.7 million and 1.83 million barrels, while active rigs surged from 31 in January to 50 by July.
The revival of Nigeria’s oil industry is seen as a result of President Tinubu’s “Project One Million Barrels” and the long-awaited new law for the energy industry that should make the country’s investment environment more predictable to bring international oil majors back. Earlier this month, oil minister Heineken Lokpobiri said recent investment decisions by oil operators could result in a production boost of 200,000 barrels daily.
In the natural gas sector, NNPC and local producer Heirs Energies last month signed a deal to capture and use the gas flared at their onshore OML 17 joint venture near Port Harcourt in a bid to monetize the resource and reduce flaring.
By Tsvetana Paraskova, Oilprice.com
Natural gas output fell slightly to 6.97 million standard cubic feet per day (mscfd) in November, compared with 6.99 mscfd for the previous month.
NNPC’s profit after tax and revenues rose in November from October.
Going forward, the company plans to “Intensify collaboration with our partners through year-end and into 2026 to ensure improved production performance, maximise infrastructure uptime, and maintain high facility maintenance standards across all our assets.”
NNPC is set to increase oil production to 2 million bpd over the next two years, its executive vice president for upstream, Udy Ntia, said in November 2025. By 2030, NNPC will be pumping 3 million barrels daily, according to the official.
Nigeria has been pumping more crude and drilling more new wells than it has in years, thanks to reforms under President Bola Tinubu that are finally leading to more cash flowing into the upstream industry. Daily output has climbed to between 1.7 million and 1.83 million barrels, while active rigs surged from 31 in January to 50 by July.
The revival of Nigeria’s oil industry is seen as a result of President Tinubu’s “Project One Million Barrels” and the long-awaited new law for the energy industry that should make the country’s investment environment more predictable to bring international oil majors back. Earlier this month, oil minister Heineken Lokpobiri said recent investment decisions by oil operators could result in a production boost of 200,000 barrels daily.
In the natural gas sector, NNPC and local producer Heirs Energies last month signed a deal to capture and use the gas flared at their onshore OML 17 joint venture near Port Harcourt in a bid to monetize the resource and reduce flaring.