Hi,

Happy weekend,

Nigeria is a country persistently under reform. Every new government is ‘reforming’ a failed system, which is ironic considering that if previous reforms were successful, there wouldn’t be anything to reform.

Remember the fuel subsidy removal that was heralded by Tinubu's administration as the solution to all of Nigeria's economic woes? Well, nearly two years later, all the old problems are still with us and have only gotten worse. Instead of the promised economic renaissance, we have only seen crushing economic hardship. The anticipated investment boom has not materialized. The fuel subsidy removal was supposed to free up resources for infrastructure and social programs. But ordinary Nigerians have seen little evidence of these benefits.

And, yes, Nigeria still pays subsidy on fuel imports.

Well, on Thursday last week, while the new coalition were getting into position, the reformer-extraordinaire, President Tinubu signed four tax bills into law. The goal of the new laws was to reform Nigeria's tax system—again! Because apparently, after decades of tax reforms under every previous administration, Nigeria's tax system still needs reforming.

In 2004, for instance, President Obasanjo undertook his own sweeping tax reforms. He established the Federal Inland Revenue Service (FIRS), enacted several tax laws, introduced VAT. Yet, the tax-to-GDP rate remained below 10%.

And in 2019, President Buhari introduced the Finance Act, with the same goal. The most we saw of it was an explosion in bank charges. Yet again, the tax-to-GDP rate remained below 10%, actually, 3.2% of GDP in 2022.

The pattern is so predictable it's almost comical: diagnose the same problems, propose the same solutions with different names, hold signing ceremonies with grand proclamations, then watch as the fundamental issues remain unchanged.

The Reform Paradox

This creates what we might call the "Reform Paradox" or a country that is in a state of perpetually being fixed but never actually works. Each new administration inherits the "reformed" systems of their predecessors, only to declare them broken and in need of further reform.

It's like a mechanic who keeps pretending to fix the same car that never actually runs properly, charging you for each repair while avoiding the fundamental engine problems. Or like the doctor who only treats the symptoms without touching the virus, so you can keep making money for him.

The tax reforms follow this familiar script. The new tax laws promise to simplify the system, boost compliance and generate sustainable revenue - the exact same promises made by every previous tax reform effort.

But the truth is that technical reforms can't solve governance problems. You can't streamline your way out of corruption, digitize your way out of incompetence, or legislate your way out of a fundamental crisis of legitimacy. The new tax laws might look impressive on paper, but they exist within the same dysfunctional political economy that has frustrated every previous reform attempt.

The real problem is Nigeria’s relationship with oil money.

The question isn't whether they're technically sound: they might be. The question is whether they can finally break Nigeria's relationship with oil money (Yep, this is the source of all our problems), and create the new social contract the country desperately needs? Or are we witnessing another cycle of reform theatre, where the real problems remain untouched while our politicians claim credit for "reforms"?

Well, we share the highlights of the new tax laws and an analysis of the deeper issues at play.

The SimplVest Team

How Nigeria’s New Tax Laws Could Potentially Help Strengthen Its Democracy

The stated aims of Nigeria’s new tax laws are to simplify a multi-layered tax structure, boost compliance and generate sustainable revenue for national development.

The underlying issue with taxes in Nigeria, however, is more philosophical than technical. Nigeria needs a new social contract that can lead to increased public participation in governance. The question is: can this new tax regime lead to such a new contract?

👉 Full Story here: How Nigeria’s New Tax Laws Could Potentially Help Strengthen Its Democracy

All You Need to Know About the Tax Administration Act (2025)

On Thursday, June 26, 2025, President Bola Ahmed Tinubu signed into law, the Tax Administration Act (2025). These four new laws represent the most comprehensive overhaul of the country’s tax system in decades.

They consolidate multiple tax laws into a unified and modern framework designed to drive economic growth and improve compliance.

We give a breakdown of the most important changes introduced by the laws.

👉 Full Story here: All You Need to Know About the Tax Administration Act (2025)

First Response Group: How Two Security Guards Built a $100 million Business

In 2007, two immigrant security guards working adjoining buildings in Leeds found themselves sharing more than just their lunch breaks. They discovered they shared a burning frustration with their employers and an unshakeable belief that they could do better.

These casual conversations during their breaks would eventually blossom into First Response Group, a multi-million-pound security and facilities management empire that now employs over 1,200 people across the UK and generates annual revenues exceeding $100 million.

👉 Full Story here: First Response Group: How Two Security Guards Built a $100 million Business

Till Next Saturday,

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