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Asaba — The Chairman of the Senate Committee on Local Content, Senator Joel-Onowakpo Thomas, has outlined the economic impact of Nigeria’s tax reforms and exchange rate unification, describing them as foundational pillars of the Tinubu administration’s efforts to stabilise and rejuvenate the national economy.

Delivering the keynote address at the 2025 NUJ Delta State Annual Press Week presented on his behalf , the senator said the reforms are not “abstract ideas” but deliberate strategies designed to rebuild an economy that “works for all Nigerians.”

From Multiple Taxes to a Simplified System

Senator Joel-Onowakpo reviewed the tax environment inherited by President Bola Tinubu, describing it as congested with multiple, conflicting laws and several collection agencies that made compliance difficult and hindered economic growth.

He listed outdated provisions, inability to tax digital transactions, challenges with refunds, and a large undocumented informal sector as some of the weaknesses of the old order.

Under the new regime, he said, four new tax laws passed in 2025 have simplified the system and consolidated tax administration:

• Nigeria Tax Act (a unified law covering personal, company, petroleum, VAT, capital gains and stamp duties)
• Nigeria Revenue Service Act (establishing a single collection agency to replace multiple bodies)
• Nigeria Tax Administration Act
• Joint Revenue Board Act, which also creates the office of the Tax Ombud.

He congratulated Dr. John Nwabueze on his appointment as Nigeria’s first Tax Ombudsman.

The senator said the new approach emphasises fairness and broader coverage rather than higher burdens. Minimum wage earners are exempt, the first ₦800,000 of income attracts 0% tax, and rent allowance up to ₦500,000 now enjoys a 20% tax allowance.

Incentives for SMEs and Investors

Joel-Onowakpo noted further that the simplified regime allows businesses to plan more efficiently, reduces the cost of compliance, and improves Nigeria’s attractiveness to investors.

The law now provides:

• Zero tax for small companies with revenue of ₦50 million or less,
• Expanded VAT-exempt lists including agriculture, education, and real estate,
• Start-up expense exemptions,
• Inclusion of virtual asset taxation.

He added that transparency measures, including automation and data integration, will improve public trust.

Exchange Rate Unification: “Tough Transition, But Gains Emerging”

The senator said the unification of Nigeria’s multiple exchange rates was the second major structural reform, describing it as “a necessary surgery.”

While acknowledging the initial shock of rising prices and a spike in the exchange rate, he said the policy is now yielding positive results, including:

• Increase in capital importation:
  • $3.95bn (2023)
  • $7.13bn (2024)
  • $5.64bn in Q1 2025
• Higher forex availability,
• Reduced pressure on the CBN,
• Improved investor confidence.

He added that the naira, which had peaked at ₦1,695/$ in September 2024, had strengthened to ₦1,440/$ as of November 16, 2025.

With reduced petroleum importation and improved exports, he projected further stability for the currency.

Senate Support and Local Content Gains

Senator Joel-Onowakpo also highlighted legislative backing for the reforms and listed projects he has championed to strengthen human capacity and support SMEs, particularly in the oil and gas sector.

These include:

• Job creation through enforcement of local content regulations,
• Skill acquisition training for over 100 constituents in technical, vocational, and digital fields,
• Placement of seven young engineers in a two-year NCDMB/PETAN/Renaissance internship,
• Progress on the Federal Oil and Gas Hospital, Benikruku bill, now awaiting presidential assent,
• Advancement of the Oil and Gas Content Development Institute, Emede, to be funded by the NCDMB.

Media Urged to Combat Misinformation

Turning to the theme of the event, Joel-Onowakpo emphasised the media’s central role in shaping public understanding of national policies. He said misinformation — amplified by the unregulated nature of social media — often fuels distrust and undermines government efforts.

He urged journalists to strengthen professionalism, combat negativity, and help the public appreciate the intentions and outcomes of government reforms.

According to him, the press must:

• Reframe public perception of government,
• Improve reporting quality,
• Correct misconceptions,
• Engage constructively with policymakers,
• Tell positive stories where due.

He expressed hope that the NUJ Press Week would lead to improved media practice and better service delivery to the nation.

Full text of Senator Joel Onowakpor’s address:

THE 2025 NUJ DELTA STATE ANNUAL PRESS WEEK TAX REGIMES AND EXCHANGE RATE UNIFICATION:

ECONOMIC IMPLICATIONS AND THE MEDIA’S STRATEGIC ROLE

KEYNOTE ADDRESS DELIVERED BY DISTINGUISHED SENATOR

JOEL-ONOWAKPO THOMAS FCA, FCIT, CHAIRMAN, SENATE COMMITTEE ON LOCAL CONTENT

Your Excellency,

Rt. Hon Sheriff Oborevwori

Executive Governor of Delta State,

All other protocols observed

It is with humility and privilege that I am assigned to

represent my principal, Distinguished Senator Joel-

Onowakpo Thomas, FCA, FCIT, and deliver his keynote

address to you and initiate the discourse on the economic

implications of Tax Regimes and Exchange Rate Unification

and the Media’s Strategic Role.

Please, permit me to present his address to you.

Tax Reforms and Exchange Rate Unification are central

pillars of a broader agenda of President Bola Ahmed

Tinubu’s administration to stabilise and grow our economy.

These reforms are not abstract ideas; they are strategic

actions to rebuild an economy that works for all.

1Tax Regimes constitute the laws, regulations and policies

that regulate the imposition, collection and enforcement of

taxes in a country. These describes how government

generate its revenue from the people and economy. In

simple terms, the laws that govern how government collects

money from people and businesses within the country.

The implication on the economy is huge and could result in

positive or negative economic outcomes. For instance, a

slim tax net, ineffective collection, high sales tax, unfair tax

rates, multiple taxes will reduce government revenue and

ability to fund projects, discourage economic activities and

slow down investment. On the other hand, a broad tax net,

clear and fair tax rate, simplified tax laws, effective and

efficient collection would create a positive impact and

growth experience.

Determining these outcomes places an enormous

responsibility on government, especially where there is need

for a transition that requires sacrifices, building trust and

altering attitudes.

Let me highlight the Pre-Tinubu Administration Tax Regime

and the President Tibubu’s improvement efforts, to initiate a

Tax Regime that guarantee a positive economic effect.

2Pre-Tinubu Tax Regimes:

– Multiple tax laws: CITA, PITA, PPTA, VATA, CGTA,

Stamp Duties Act

– Multiple Collection Agencies: FIRS, NCS, NPA,

NIMASA

– Unable to Tax Digital Transaction Income:

Cryptocurrency, Computer App sales, other digital

assets

– Difficulty in processing Tax Refund

– Complex and Outdated Laws:

– Large undocumented informal sector

The President Tinubu Tax Regime

For years, Nigeria confronted a situation where the tax

system was cumbersome, unpredictable, and relied heavily

on a small fraction of our productive population, and

blinded by oil revenue.

President Tinubu recognized that no nation can truly

progress with a narrow tax base and a system that hinders

business growth. Thus the tax reform began almost

immediately his assumption of office. The results are the four

new Tax Laws 2025. The new tax regime is anchored on the

following:

1 Simple and Clear Tax Regime

Conflicting, multiple and complex tax laws and the many

collection agencies were dismantled. The result is a simple

and clear tax laws and procedures with a predictable tax

environment that gives individuals and businesses the

3confidence and consistency that build trust which will

improve compliance.

– The Nigeria Tax Act: comprehensive tax act

comprises of Taxes for Personal Income, Company

Income, Petroleum Income, Value Added, Capital

Gains, Stamp duty levies, and others.

– The Nigeria Revenue Service (Establishment) Act:

rename the Federal Inland Revenue Service with

Nigeria Revenue Service making it the sole agency

that collects Nigeria taxes and revenue.

– The Nigeria Tax Administration Act: detailing the

administration of the tax process.

– The Joint Revenue Board (Establishment) Act:

processes and guidelines for inter governmental

administration and creating the office of Tax Ombud

to handle tax payer complaints. Let me

congratulate own Dr John Nwabueze appointed first

Tax Ombudsman of Nigeria by President Bola Ahmed

Tinubu

2 Fair, Broad, People-Centered Tax System

The target is increased revenue, without creating more tax

burden for households and business, while encouraging

improved documentation of low income earners, the idea is

let those who should pay tax, pay a fair rate.

The tax net would be expanded efficiently. It is the goal of

government to achieve improved income generating

activities, thereby improving revenue of businesses and

individuals:

4- tax exempt Minimum wage earners

– increased tax allowances:

– 0% tax for first N800,000

– 20% annual rent allowance (up to a maximum of

N500,000)

3. Economic Growth Incentive and Attract Investment

With clarity and simplified tax system, businesses are able to

plan better, reduce stress and cost of doing business, at the

same time improves ease of compliance.

In addition, the increase of list of tax exempt and zero tax

business activities makes Nigeria competitively attractive to

investment, job creation and economic growth.

– Start-up expense exempts

– Zero tax brackets for Small companies, known to the

act as generating N50m or less in Revenue and having

N250m Assets.

– Increase on list of VAT Exempt/Zero Tax: Agricultural,

Education, Land and Building, etc

– Inclusion Virtual Asset and Transaction taxes

54. Transparency and Accountability

Citizens want to know how government revenue is

collected; the amount collected and see where their

money goes. Through automation, data integration, and

reduced human discretion, the reforms help to curb

corruption and improve trust in public institutions. A

transparent tax ecosystem fosters a healthier relationship

between citizens and government.

EXCHANGE RATE UNIFICATION

Floating the exchange rate was the second policy that

performed surgery on our economy. Before President

Tinubu’s administration, Nigeria operated multiple

exchange rates which do not encourage foreign

investment nor strengthen local production, rather it

created confusion, discouraged investors, reduced

purchasing power, allowed arbitrage to flourish and for

government it reduce efficiency of resource allocation.

The exchange rate unification policy is aimed at reversing

these narratives. However, the immediate effect was a

devastating sharp increases in exchange rates and general

price of goods and services. But today, the economy has

begun to witness gains:

6- Higher capital Importation: $3.95b in 2023, $7.13b

in 2024 and $5.64b in 1st Qtr, 2025

– Increased availability of Foreign Exchange

(eliminating the propensity to hoard):

– Reduce pressure on the Central Bank

– Increased Investors Confidence

The joy we have is the market control over the exchange

rates, resulting in decline from a peak of N1695/$1 US Dollar

in Sept 2024 to N1440 per US Dollar as at Nov 16 2025.

With the positive balance of payment from drastic

reduction in importation of petroleum products, and

improvement in exports, the stress on the Naira will further

reduce. This will translate to more improvement in value of

our Naira in the coming days and months.

In my opinion, the thrust and objective of the twin policies of

Tax Reform and Exchange Rate unification can be

summarized as follows:

– Economically viable citizens should earn and be able

to save

– Increased household earnings above tax bracket

should pay fair tax at progressive rate.

– Household Savings could fund SME Capital

7- SMEs should be supported to operate, earn,

encouraged to retain earnings and be able to reinvest

their earnings

– Availability of Foreign Exchange

– Easy access to Foreign Exchange improves access to

capital goods.

– Improved SME production lead to increased earning

and faster economic growth

SUPPORT OF THE SENATE

In formulating these policies and addressing our

depreciating economic capabilities, the President Tinubu’s

Administration was focussed on enabling the average

economic active citizens, fuel resilience of SMEs and

jumpstart our economic development trajectory.

At the National assembly, we have taken a position of

giving every possible support to achieve the recovery that

will position Nigeria for a long-term economic growth. The

goal is economic development, and the target is

empowered human capital and Small and Medium

Enterprises.

As Senator representing my good people of Delta South

Senatorial District and Chairman of Senate Committee on

Local Content, I have facilitated the following to foster self-

reliance, improve industry fit workforce and properly position

Nigerians and constituents in particular for various

opportunities in the Oil and Gas industry

81. JOB CREATION OPPORTUNITIES: Through driving compliance of

Local Content regulations through oversight functions and

advocacy, I ensure that more jobs opportunities are available

for Nigerians. We engage on National drive enforce

compliance with Local Content laws and regulations by

sanctioning erring companies, organizations and agencies that

are bypassing the Nigeria Oil and Gas Industry Content

Development (NOGICD) Act 2010 , the Executive Order No. 5

and the Nigerian First Policy.

Citizens across the country are encouraged to report violations

and non-compliance to the Senate Committee on Local

Content through the following channels:

Portal: www.senatechairmanlocalcontent.ng

Emails:- Formal/Official Reports:

complaints@senatechairmanlocalcontent.ng

Whistle blowing:

whistleblower@senatechairmanlocalcontent.ng

Call:s 1. 08050934767 2. 08051022462

2. SKILL ACQUISITION AND TRAINING:

Training and empowerment of over 100 constituents by

Nigeria Content Development and Monitoring Board to

foster self-reliance and properly position for various

opportunities in the Oil and Gas Industry in the following

skill sets:

9o Liquefied Petroleum Gas (LPG) operations,

o Floating Production Storage and Offloading (FPSO)

systems,

o Welding and Fabrication

o Electrical Transformer Repair

o Solar Panel Installation

o Data Science

o Drone Operation and Cinematography

o Barbing, Makeup Artistry, Pedicure and Manicure

o Automation and Control Instrumentation

Also, seven (7) young Engineers have been assisted

into the ongoing NCDMB/PETAN/RENAISSANCE

Internship training, a two years (2025-2027) period of

intensive training program in different Oil and Gas

and Engineering firms across the country to give our

young graduates the experience and expertise they

need to thrive.

3. FEDERAL OIL AND GAS HOSPITAL BENIKRUKRU

(ESTABLISHMENT) BILL 2025 – This bill has been passed

by the Senate and has undergone concurrence by the

House of Representatives. The hospital, which shall fully

be built by the Nigeria Content Development and

Monitoring Board (NCDMB) after being signed into law

by President Bola Ahmed Tinubu, will offer

comprehensive and specialized medical services to

workers in the oil and gas industry and to residents of

10host communities who bear the brunt of oil spillages,

environmental degradation, and other hazards

associated with crude oil exploration. It will improve

emergency response, reduce health risks, and minimize

downtime losses in Nigeria’s oil and gas sector.

4. OIL AND GAS CONTENT DEVELOPMENT INSTITUTE, EMEDE,

DELTA STATE (ESTABLISHMENT) BILL 2025 – This institute,

when established, is poised to play a pivotal role in

advancing the economic and industrial development

of our region and Nigeria at large. It will serve as a

specialized training and research hub for local content

development, equipping individuals with the skills and

expertise needed to thrive in the oil and gas sector.

The institute will foster innovation, promote local

content development, and create opportunities for our

youth, thereby contributing to job creation and

sustainable economic growth. When signed into law,

this mega project will be financed by the NCDMB.

THE STRATEGIC MEDIA ROLE

The beauty of these policy initiatives is in their impact to the

people. The first impact is acceptance and appreciation of

the expectations, the second is the positive effect of the

implementation.

11This is where the media has a strategic role to play. The

absence of the first impact through misconceptions, open a

people to chaos and rejection attitudes which are enablers

of policy failures.

For instance proper presentation of the rigorous bill scrutiny

processes, public hearing, assessment of executive request

etc by the National Assembly would build public trust and

reinforce their confidence in the government efforts.

Unfortunately, with the social media almost becoming the

mainstream media, the Media seem to have outgrown

control, especially its outputs. Social media has made

everyone a publisher and but not journalists. The propensity

for misconception, misinformation and negativity against

government good initiatives widens daily. And that is scary.

This world is about branding and marketing. The media is

the major marketer of government and its people.

It is our expectation that this press week will achieve the

following

a. Construct ideas that will reduce the challenges of

media to control negativity

b. Improve professional output

c. Redefine our people’s perception about government.

d. Constructively review our shortcomings and engage

the government.

e. Tell our good stories

We are hopeful that this discourse will lead to improvement

and more beneficial service to our dear country.