Business
Jonathan Urged To Sign Amended Income Tax Law
The Association of Senior Civil Servants of Nigeria, (ASCSN) on Monday, in Abuja, called on President Goodluck Jonathan, to sign the amended personal income tax into law.
Mr Solomon Onaghinon, Secretary-General of the Association, told the newsmen that the call had become necessary due to rumours that the President had been under pressure by some state governors not to sign the bill.
Onaghinon said that this was based on the fact that if the President assented to the bill, it would reduce the quantum of taxation accruing to the state governors from workers’ salaries.
The association had in 2008 presented a memorandum to the Joint National Public Service Negotiating Council (JNPSNC) stressing the need for downward review of the Personal Income Tax to make it worker friendly.
The bill had gone through legislative process in the National Assembly including a public hearing before its approval by both the Senate and House of Representatives.
“But we are beginning to hear that one or two governors are feeling bad about the issue and they don’t want Mr President to sign it into law”.
“So we are saying that Mr President should sign that bill into law as early as possible”.
“They believed that the money they are going to get from personal income tax will reduce and that would really be workers gain”.
“That is the more reason why we are pressing on Mr President to sign it into law and all workers are going to benefit from it”.
“The relief that you are getting now is much higher than what is in the old law, if it is signed into law now, we will get higher relief.
“We find this highly objectionable because the state governors had all the opportunity in the world while the bill was being processed in the National Assembly to make their inputs.’’
Onaghinon said since the 2007, when the Consolidated Salary Structure became operational, the tax burden on civil servants had been very unbearable.
He said prior to the policy, only basic salaries of workers were taxed while allowances were tax-free for most grade levels.
Onaghinon added that since the Consolidated Salary Structure was introduced, middle and even junior government employees paid tax as high as 30 per cent of the consolidated salary.
“Our advice, therefore, is that Mr President should not succumb to such ill-motivated pressure intended to create disaffection between him and the public”.
“We enjoin you to be wary of those pushing you not to sign the new personal income tax act into law because they want to bring you into public ridicule”.
“We urge you to sign the bill into law now to bring relief to millions of civil servants and other Nigerian workers who are groaning and moaning under the weight of the prevailing tax regime.”
Mr Elaigwu John, ASCSN Unit’s Chairman, Federal Inland Revenue Services, told newsmen that the signing of the bill would reduce the tension of workers going on strike.
“We find out that so many institutions, like medical, universities, among others, are going on strike because the tax burden on them is too heavy because the tax law is outdated.
“When your chargeable income is reduced, it means that your tax pay roll is equally reduced; we are appealing to Mr President to sign the bill into law,” he added.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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