Nigeria Revenue Service addresses tax reform concerns and inflation

The Nigeria Revenue Service (NRS) has addressed public anxiety regarding new tax reforms in the Jigawa, Kano, and Katsina states. Ismail Abdullahi, the NRS state administrator, clarified that obtaining a Tax Identification Number (Tax ID) does not grant authority for automatic deductions from personal bank accounts. He emphasized that any tax recovery must adhere to established legal procedures and that the standard Value Added Tax (VAT) rate remains at 7.5 percent.

Stakeholders raised concerns about whether borrowed funds or money received from relatives would be classified as taxable income, as well as the potential burden on small businesses. Abdullahi stated that the agency is focused on engagement to correct misconceptions and encourage voluntary compliance.

Separately, traders in Yenagoa, Bayelsa State, are reporting significant price increases for staple goods due to cost-push inflation. Rising fuel prices have driven up transportation costs, subsequently increasing the price of commodities such as rice, beans, garri, and vegetable oil. For example, the price of a bag of beans has risen from approximately N120,000–N130,000 to N140,000–N145,000.