The International Monetary Fund (IMF) has urged Nigeria and other major African economies to strengthen fiscal, monetary and governance reforms as part of efforts to improve economic stability and promote broader-based growth.

In its assessment of reform priorities across eight of the African Union’s largest economies, the IMF identified fiscal reform as a key priority in all but one of the countries reviewed. For Nigeria, the areas highlighted include tax policy, revenue collection, public financial management and more efficient government spending.

The Fund also identified improvements to monetary policy frameworks and policy transmission as priorities for Nigeria, Egypt and Ethiopia. In Nigeria’s case, it said governance reforms should include stronger fiscal transparency, better public financial management and improved anti-corruption measures.

The IMF said stronger domestic revenue mobilisation and more transparent and efficient public spending would help African economies build more resilient institutions. It argued that stronger fiscal and monetary frameworks can support sustainable and inclusive economic growth.

Nigeria’s tax reform agenda

The recommendations come as the Federal Government continues to implement a wide-ranging reform of Nigeria’s tax system. The new framework, which took effect in January 2026, is built around the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act and Joint Revenue Board (Establishment) Act.

The reforms are intended to simplify tax administration, remove overlapping taxes, improve compliance and broaden government revenue. They are also designed to reduce the regulatory and tax burden on smaller businesses.

However, businesses continue to cite taxation as a major operating challenge. The Central Bank of Nigeria’s July 2026 Business Expectations Survey found that 70.8 per cent of respondents identified high and multiple taxation as their biggest constraint, ahead of insecurity and high interest rates.

For the housing and construction sectors, the quality of fiscal policy has direct implications. Developers, contractors and property businesses operate within a wider environment shaped by taxation, public infrastructure spending, interest rates and access to finance. Changes that improve tax administration while reducing unnecessary duplication could affect project costs and investment decisions.

Monetary policy remains a concern

The IMF’s call for stronger monetary policy frameworks follows an aggressive tightening cycle by the Central Bank of Nigeria (CBN) in recent years.

After Olayemi Cardoso became CBN governor in 2023, the bank pursued tighter monetary and liquidity conditions alongside foreign exchange reforms. The measures were aimed at addressing inflationary pressures, strengthening market confidence and improving macroeconomic stability.

The Monetary Policy Rate stood at 18.75 per cent in 2023 before the CBN began raising it in 2024. The benchmark rate increased to 22.75 per cent in February 2024 and eventually reached 27.5 per cent by the end of that year.

The CBN also increased banks’ Cash Reserve Ratio from 32.5 per cent to 45 per cent in early 2024 and later to 50 per cent as part of efforts to reduce excess liquidity.

The policy environment has since moved towards gradual easing as inflationary pressures moderated and economic conditions improved. Presidential aide Tope Fasua has nevertheless argued that the country should reconsider its tight monetary stance, warning that persistently high interest rates could restrict economic expansion without delivering the desired reduction in inflation.

Financing risks and infrastructure

The IMF’s concerns also extend to Nigeria’s approach to sovereign financing. In June, the Fund cautioned the country over plans to raise as much as $5 billion through a derivatives-based financing arrangement with First Abu Dhabi Bank.

The IMF warned that such structures can expose governments to significant risks because their terms may be difficult to evaluate fully.

The Federal Government has also secured about $1.2 billion in financing from the United Arab Emirates for construction of a major section of the Lagos–Calabar Coastal Highway.

Infrastructure financing remains important to Nigeria’s wider development prospects because transport networks and public investment influence access to housing, construction activity, land values and the expansion of urban centres.

For Nigeria, the IMF’s recommendations therefore extend beyond macroeconomic indicators. Stronger public finances, effective monetary policy, transparent governance and disciplined infrastructure financing can shape the operating environment for businesses and determine how effectively public resources support economic and urban development.

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Millions of Nigerians will enjoy from January 2026 as the Federal Government prepares to abolish five widely applied bank charges under its ongoing fiscal reform programme.

The measures form part of President Bola Ahmed Tinubu’s tax overhaul, signed into law on June 26, 2025, and designed to reduce business costs, boost economic activity and ease household expenses. The reforms are contained in the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA) and the Joint Revenue Board Act (JRBA).

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the changes would simplify tax administration and eliminate several outdated fees that place unnecessary pressure on citizens.

Under the new framework, the ₦50 Electronic Money Transfer Levy (EMTL) charged on electronic transfers exceeding ₦10,000 will be removed entirely. The levy currently affects millions of daily transactions. According to the committee, its cancellation will promote financial inclusion and make low-value digital payments more affordable.

Stamp duty charges on salary transfers will also be abolished. This means workers will receive their full earnings without deductions, while businesses—particularly SMEs—will face lower administrative costs.

Investors in treasury bills, government bonds and equities will receive a boost as stamp duties on these transactions will be phased out. Oyedele noted that the move aims to expand participation in the capital market by reducing investment entry costs.

Stamp duties on documents related to stock or share transfers will equally be discontinued, simplifying the documentation process for brokers and investors.

Additionally, the ₦50 charge on transfers made between accounts in the same bank will no longer apply, allowing customers to move funds more freely without accumulating fees.

Oyedele explained that these reforms stem from new provisions in the Nigeria Tax Act 2025, which introduces clear exemptions to replace earlier rules under the Stamp Duties Act and the Finance Act 2020.

He added that the changes reflect the government’s commitment to reducing avoidable financial strain on Nigerians and creating a more efficient revenue system.

Millions of Nigerians will enjoy financial relief from January 2026 as the Federal Government prepares to abolish five widely applied bank charges under its ongoing fiscal reform programme.

The measures form part of President Bola Ahmed Tinubu’s tax overhaul, signed into law on June 26, 2025, and designed to reduce business costs, boost economic activity and ease household expenses. The reforms are contained in the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA) and the Joint Revenue Board Act (JRBA).

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the changes would simplify tax administration and eliminate several outdated fees that place unnecessary pressure on citizens.

Under the new framework, the ₦50 Electronic Money Transfer Levy (EMTL) charged on electronic transfers exceeding ₦10,000 will be removed entirely. The levy currently affects millions of daily transactions. According to the committee, its cancellation will promote financial inclusion and make low-value digital payments more affordable.

Stamp duty charges on salary transfers will also be abolished. This means workers will receive their full earnings without deductions, while businesses—particularly SMEs—will face lower administrative costs.

Investors in treasury bills, government bonds and equities will receive a boost as stamp duties on these transactions will be phased out. Oyedele noted that the move aims to expand participation in the capital market by reducing investment entry costs.

Stamp duties on documents related to stock or share transfers will equally be discontinued, simplifying the documentation process for brokers and investors.

Additionally, the ₦50 h on transfers made between accounts in the same bank will no longer apply, allowing customers to move funds more freely without accumulating fees.

Oyedele explained that these reforms stem from new provisions in the Nigeria Tax Act 2025, which introduces clear exemptions to replace earlier rules under the Stamp Duties Act and the Finance Act 2020.

He added that the changes reflect the government’s commitment to reducing avoidable financial strain on Nigerians and creating a more efficient revenue system.

Millions of Nigerians will enjoy financial relief from January 2026 as the Federal Government prepares to abolish five widely applied bank charges under its ongoing fiscal reform programme.

The measures form part of President Bola Ahmed Tinubu’s tax overhaul, signed into law on June 26, 2025, and designed to reduce business costs, boost economic activity and ease household expenses. The reforms are contained in the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA) and the Joint Revenue Board Act (JRBA).

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the changes would simplify tax administration and eliminate several outdated fees that place unnecessary pressure on citizens.

Under the new framework, the ₦50 Electronic Money Transfer Levy (EMTL) charged on electronic transfers exceeding ₦10,000 will be removed entirely. The levy currently affects millions of daily transactions. According to the committee, its cancellation will promote financial inclusion and make low-value digital payments more affordable.

Stamp duty charges on salary transfers will also be abolished. This means workers will receive their full earnings without deductions, while businesses—particularly SMEs—will face lower administrative costs.

Investors in treasury bills, government bonds and equities will receive a boost as stamp duties on these transactions will be phased out. Oyedele noted that the move aims to expand participation in the capital market by reducing investment entry costs.

Stamp duties on documents related to stock or share transfers will equally be discontinued, simplifying the documentation process for brokers and investors.

Additionally, the ₦50 charge on transfers made between accounts in the same bank will no longer apply, allowing customers to move funds more freely without accumulating fees.

Oyedele explained that these reforms stem from new provisions in the Nigeria Tax Act 2025, which introduces clear exemptions to replace earlier rules under the Stamp Duties Act and the Finance Act 2020.

He added that the changes reflect the government’s commitment to reducing avoidable financial strain on Nigerians and creating a more efficient revenue system.

The post FG to Scrap Five Bank Charges by January 2026 appeared first on Housing TV Africa.

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has welcomed S&P Global Ratings’ recent upgrade of Nigeria’s economic outlook from “Stable” to “Positive.” Speaking at a strategic session in Abuja, Cardoso described the revision as clear recognition of the success of CBN’s policy reforms.

He highlighted that over the past year, the CBN has implemented deliberate measures to stabilize the macroeconomic environment, rebuild investor confidence, and restore credibility to Nigeria’s monetary framework.

“This recognition further validates the progress we have made,” Cardoso said. “The Central Bank has brought stability to the economy and is fast becoming a beacon of hope for financial markets and the nation at large.”

Sustaining Economic Confidence

Cardoso emphasized that the CBN remains committed to disciplined and transparent policy implementation, aimed at strengthening the financial system, curbing inflation, and supporting sustainable economic growth.

He assured stakeholders that the upgrade signals brighter prospects for investment, improved market confidence, and a firmer foundation for long-term development.

S&P’s assessment comes amid Nigeria’s ongoing economic reforms, which include the removal of the petrol subsidy, liberalization of currency trading, and other fiscal and monetary initiatives launched under President Bola Tinubu.

The rating agency reaffirmed Nigeria’s sovereign rating at B-/B, noting that these reforms are expected to deliver medium-term benefits.

Global credit rating agencies have also highlighted Nigeria’s improved economic stance.

In May, Moody’s upgraded the country’s rating to B3 from Caa1, while Fitch maintained Nigeria’s B rating with a stable outlook.

Analysts believe that sustained reforms, combined with debt management strategies such as the recent $2.35bn Eurobond issuance, could underpin long-term economic expansion despite potential risks from global oil price volatility.

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International investors have expressed disappointment after a virtual call with Taiwo Oyedele, head of the Presidential Committee on Fiscal Policy and Tax Reforms, over Nigeria’s new Capital Gains Tax (CGT) policy.

The meeting, organised by Standard Chartered, was meant to clarify the reforms but left many uneasy. Some investors described Oyedele’s tone as “ideological,” saying his comments seemed unfriendly to markets.

Oyedele explained that the new CGT is progressive and aligns with practices in the U.S., U.K., and South Africa, replacing the old flat 10% rate. However, several participants said the policy could hurt Nigeria’s competitiveness and investor confidence.

Others criticised the lack of clarity between how OMO holders and equity investors will be taxed. “If they want CGT, they should apply it uniformly,” one fund manager said.

Still, some analysts believe the reform could attract longer-term investment and reduce speculative inflows.

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Nigeria has been left out of the International Monetary Fund’s (IMF) list of Africa’s fastest-growing economies, with Benin Republic, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda emerging as the continent’s top performers.

The IMF said these five countries are now among the world’s fastest-expanding economies, driven by sustained reforms, better fiscal management, and increased investment in infrastructure and manufacturing.

Abebe Selassie, Director of the IMF’s African Department, revealed this during the launch of the latest Regional Economic Outlook for Sub-Saharan Africa on Thursday. He noted that the region’s growth is expected to stabilise at 4.1% in 2025, supported by ongoing reforms and macroeconomic stabilisation efforts.

“Benin, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda are among the fastest-growing economies globally,” Selassie said. “Despite global headwinds—softer commodity prices, weaker demand, and tighter financial conditions these countries have sustained strong growth through prudent reforms.”

Although Nigeria’s growth outlook has been revised upward to 3.9% in 2025, the IMF said this remains below its potential. The Fund attributed Nigeria’s modest improvement to higher oil output, fiscal policy adjustments, and improved investor confidence.

Data from Nigeria’s National Bureau of Statistics showed GDP growth of 4.23% year-on-year in Q2 2025, up from 3.48% in the same period of 2024 reflecting gains from increased oil production and recovery in non-oil sectors.

However, Selassie warned that structural weaknesses, high inflation, unreliable power supply, and overreliance on oil revenue continue to constrain Nigeria’s long-term growth prospects. He urged the government to deepen fiscal reforms, expand non-oil revenue, and strengthen electricity and infrastructure systems.

The IMF also raised concern over rising financial vulnerabilities in several African countries, including Nigeria, as governments increasingly depend on domestic banks for borrowing. About half of public debt in the region is now held by local financial institutions, heightening risks to banking stability.

“While domestic borrowing has helped sustain spending, it also exposes banks to sovereign risk, especially where debt levels and interest rates are high,” Selassie cautioned.

To bolster resilience, the IMF recommended two key policy actions domestic revenue mobilisation through tax reforms and digitalisation, and stronger debt transparency and management to reduce borrowing costs.

Speaking specifically on Nigeria, the IMF noted that inflation has begun to ease following tighter monetary policy and exchange rate reforms, though prices remain elevated. The Fund described Nigeria’s current fiscal stance as “neutral,” supporting efforts to control inflation without stifling growth.

IMF officials praised the government’s reforms in tax administration and public expenditure, citing improved efficiency, reduced waste, and greater transparency.

Tobias Adrian, Director of the IMF’s Monetary and Capital Markets Department, said Nigeria’s recent exchange rate adjustments and tighter monetary policy have enhanced policy credibility and strengthened foreign reserves. “A flexible exchange rate helps cushion shocks and restore equilibrium,” he noted.

Assistant Director Jason Wu added that Nigeria’s revenue collection and FX reserve management have improved, helping lower inflation from above 30% last year to about 23% this year.

Despite these gains, the IMF warned that Sub-Saharan Africa remains exposed to global uncertainties, including fluctuating commodity prices and volatile capital flows.

Selassie concluded that countries must sustain fiscal discipline, strengthen institutions, and deepen regional trade to unlock Africa’s full growth potential.

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Nigeria’s foreign exchange turnover has grown by 56.4%, reaching $8.6 billion in 2025, up from $5.5 billion in 2024, according to Mohammed Abdullahi, Deputy Governor for Economic Policy at the Central Bank of Nigeria (CBN).

He said the increase reflects ongoing monetary and fiscal reforms aimed at boosting liquidity, transparency, and investor confidence. “Average net FX flows between January 2023 and July have doubled,” Abdullahi noted at the Nigeria Investors Forum during the IMF/World Bank Meetings.

CBN reforms, including an order-based quotation system and remittance policy changes, have raised foreign reserves to $43.4 billion, covering 11 months of imports. The bank also released $13 billion to domestic and international banks to support liquidity.

CBN Governor Olayemi Cardoso said the reforms are rebuilding investor trust and positioning Nigeria as a leading investment destination. “The rise in reserves shows renewed confidence and stronger fundamentals,” he said.

Presidential Adviser Sanyade Okoli projected 7% GDP growth by 2027–2028, citing diversification and strong sectoral performance. “Oil now accounts for just 4% of GDP, down from 8% in 2021,” she said, adding that PPPs in roads, power, and digital infrastructure are driving expansion.

Cardoso also revealed that Nigeria’s trade surplus now stands at 6% of GDP, reflecting improved resilience and policy stability.

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