Call him Mr Talk and Do

Tinubu is doubling down on his 2025 plans

Jan 21, 2025

Good morning, Big Brains. January definitely has beef with the world because why is salary day on a Saturday? I’m hoping my employers draw inspiration from Akwa Ibom’s governor and add something extra as a reward for surviving the financial headache that is January (blows powder).

- Margaret

Word count: ~ 1, 000

Reading time ~ 4 mins

Let’s get into today’s edition:

Tinubu’s controversial tax bill is almost ready
Akwa Ibom is dragging “Best in workers’ welfare” with Lagos and Rivers

The Big Deal

Tinubu’s controversial tax bill is almost ready

Quick question – which of your 2025 resolutions have you started working on? If the answer is nonexistent, you should take lessons from your 72-year-old president. On January 8, we shared a list of policies the president announced that he would implement in 2025 with their proposed implementation timelines. These policies are his version of New Year resolutions, and we’re quite surprised that he’s standing on business despite some opposition.

One of the policies he said he would implement was the controversial tax bill that rocked Nigeria late last year. It’s been a few weeks since he said what he said, and it has been confirmed that the bill will be passed as law in the National Assembly in March 2025. By July 2025, the tax reforms should have taken full effect across the country.

Why is this a big deal?

It’s hard to trust a Tinubu-inspired policy, but these ones seem to have some advantages.

Let’s start with the small wins. If you earn ₦800,000 or less annually, you will no longer pay any income tax once the reform is implemented. That’s money you get to keep, spend, or save—something that feels like a major W in today’s economy. This part of the proposed reforms should make life easier for low-income earners already struggling with the ripple effects of subsidy removal and the rising cost of living.

Then there’s the promise of a simpler tax system. Instead of businesses dealing with a confusing mix of taxes, like the education and development levies, the government plans to combine them into one straightforward payment. Less headache for small businesses means they can focus on growth, and maybe (this is a very optimistic maybe) that growth could translate to more job opportunities down the line.

But like almost every other policy Tinubu has proposed, there are some cons too. One of the things this bill will do is increase VAT from 7.5% to 15% by 2030. Yes, it’s gradual, and they’ve promised to keep essentials like food and education exempt, but higher VAT could still mean paying more for other goods and services. And let’s face it, for many Nigerians, this part might sting.

At its core, if done right, these reforms can have great effects on the economy, especially because they will put more pressure on the pockets of rich people who typically get away with not paying taxes. The government currently charges people who earn ₦3.2 million a year, but with Tinubu’s new tax reform, only the real moneybags—those earning over ₦50 million annually—will be paying the top personal income tax rate of 25%.

We’re keeping our fingers crossed because the average person can’t afford another policy experiment gone wrong.

Akwa Ibom is dragging “Best in workers’ welfare” with Lagos and Rivers

Nobody likes an over-sabi, but Akwa Ibom, Lagos, and Rivers states have proven that doing the most can be a likeable thing too. In July 2024, President Tinubu increased the minimum wage from ₦30,000 to ₦70,000, but these three states have decided to pay their workers above ₦70,000.

While Lagos and Rivers have been paying ₦85,000 since 2024 to help workers adjust to rising costs, Governor Umo Eno of Akwa Ibom announced that his administration will start paying workers ₦80,000 this month but arrears payment from November 2024 will also be processed.

Why Akwa Ibom’s move matters

Akwa Ibom’s decision to raise workers’ pay to ₦80,000 may not be the highest, but it comes with a sweet twist—arrears. The state is not just increasing salaries but also ensuring workers get paid the difference from November 2024. For many workers, this isn’t just good news—it’s rent, school fees, and extra money to keep up with inflation.

Whether it’s about genuinely caring for workers or just trying to secure bragging rights, one thing is clear—Akwa Ibom workers are getting extra money.

This move might also inspire some healthy competition, which could inspire FG to go above its ₦70,000 pay. Don’t hold your breath, though.

This Week’s Big Question

“What's your take on a possible TikTok ban in Nigeria?”

Uchenna’s response - “They shouldn't even think of it because that’s what the youths are using to distract themselves from this T-Pain era.”

You can also share your response here, and if it’s as interesting Uchenna’s , we’ll feature it in the next edition.

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