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00:00Oh yes, it's great to have you join us on a fresh episode of the Guardian Talks.
00:04Today we are going to be looking extensively to the Tax Reform View
00:08and of course an explainer to the Tax Calculator Initiative by the President Bola Ahmed
00:13to the administration. Of course, it's no longer news.
00:15It's been signed into law and expected to take effect from January 2026.
00:22I am Oluo Karadeh with Nimo Yuwa.
00:24A short break and I'll be right back to dive into the program.
00:27We go nowhere.
00:30We are glad to know you are still there.
00:39I'm joined in the studio today by amazing people who have insight into what we are trying to talk about today.
00:44I've got Mr. Ademola Rashid, of course, the Executive Director of ANTA Consulting Limited.
00:51He is a fellow of Institute of Chartered Accountants and a graduate of private and commercial law
00:57with extensive experience in business and advisory services.
01:01Good to have you in the studio.
01:03And also here is Mr. Adjulo for Najele, a chartered accountant as well and a master's degree holder
01:11and, of course, working with his PhD in view.
01:15Good to have you in the house today.
01:17Thank you for that.
01:17And I forgot to also mention that he is a partner with ANTA Consulting Nigerian Limited.
01:23So, right, guys, I thank you so much, gentlemen.
01:26We are looking at the Task Reform View.
01:28It's been signed into law, of course, on June 26, 2025 by President Bola Ahmed to Nabo.
01:33So, how important it is, this initiative for us as an initiative?
01:38I will start with you.
01:39Thank you, Ukayode, and good morning, Nigerians.
01:44We have Task Reform Act, and I will pick a word there, reform.
01:51What does reform stand for?
01:53Reform stand for change.
01:55And development comes with change.
01:58No change, no development.
02:02So, the Task Reform Act is for development, it's for change.
02:09And the change that is expected to bring development, to bring the population.
02:16So, we've been having review of tasks a lot for this work.
02:22We have that of 2019, that's Finance Act of 2019, Finance Act of 2021, 22, 23.
02:31And now, we are having Task Reform Act.
02:35And part of this, we've been having different reforms.
02:41All right.
02:42Thank you so much, Mr. Ademola.
02:43So, what makes this particular one of 2025 different from those ones like you mentioned?
02:49This one really approached the task system in a very holistic manner and in an extensive way.
02:59In such a way that at least the Nigerian task landscape can at least have a new pattern and a new face.
03:13So, you are saying that this one looks to tackle the ambiguity in the system?
03:17In the system.
03:18It doesn't.
03:18Thank you so much, Mr. Ademola.
03:20I'll be trying this to Mr. Ademola.
03:22Of course, when you look at the Task Reform, like we said, what impacts will it really have on the citizens and the nation at large?
03:31And, you know, when you look at the economy, right now, we are not so, you know, the standing is not so good.
03:37Does this, is this the initiative we need maybe to kickstart something or change where we are?
03:42Okay, thank you, Koyote.
03:45Actually, the Tax Reform Act is expected to bring a lot of impacts on the economy at large, on corporate bodies, as well as individual.
04:02Yeah.
04:03Nigerians, to be precise.
04:06In what way, if I may ask?
04:08You know?
04:12With the new Tax Reform Act, it is expected that the revenue base of the country is going to be expanding.
04:21In more robust attrition.
04:23Yes.
04:24Don't forget that the Tax Administration Act provided an avenue to digitalize the tax system in Nigeria, which by extension is going to increase the tax net.
04:37Yeah.
04:38And if the tax net is increased, more people will fall in.
04:41Okay.
04:42Bearing in mind, however, that there is a caveat to it.
04:46Yeah.
04:47Now, currently, Nigeria has a tax to GDP ratio of around 13.5.
04:53Hmm.
04:54Last year or years before, we were operating far below 10%.
04:58That's quite low.
05:00Yes.
05:00And the average tax to GDP ratio for African country is 16.1.
05:05Wow.
05:05So, Nigeria is still way beyond.
05:07South Africa, whose population is barely 64 million, is having a tax to GDP ratio of 27.1.
05:15Hmm.
05:15As against Nigeria, with a population of over 200 million, still operating way below 13, as we speak.
05:22Oh.
05:22So, it implies that what tax is fetching us correctly is not what it's supposed to be.
05:29To do.
05:30So, how will it impact us?
05:32By the time the Reform Act is fully implemented, more revenue is coming in.
05:37And when there is more revenue, by extension, there will be more pool of funds, you know,
05:42for the government to use for developmental projects, schools, and all of that.
05:46All right.
05:47I know.
05:48You have really spoken.
05:49You know, I love that.
05:50Thank you so much, Mr. Adjulo.
05:51I want to also ask this, you know, of course, we know that as a well-meaning citizen, it
05:57is your right and duty to contribute or pay tax to your government, you know.
06:02But then, on the part of the government, as much as we are clamoring that, you know, the
06:05citizens are not doing enough, how about the dividends for these taxes, you know, on the
06:11part of the government, are the people seeing enough of this, you know?
06:14Let me, permit me to say this in my Yoruba dialect that, you know, sometimes, you know,
06:21how is the government compensating for some of this?
06:24Because I don't think we have, you know, something that substantiates to this.
06:27I will ask you, Mr. Adjulo.
06:29Thank you, Kauravdi.
06:31Sincerely, I want to believe that, come next year, the tax reform will surely, at least,
06:42uh, the, the, the, the, the, the, the, the authority, which will be able to manage and,
06:50uh, implement this at effectively, which what we are having in the heart, we, is highly
06:57progressive.
06:58Yeah.
06:58It breaks into four aspects.
07:00We have Nigeria, we have Nigeria administrative, uh, entity, NTA, yeah.
07:07And we have Nigeria revenue service.
07:09So, with this, and with what is, uh, in it, in the, the agenda, yeah.
07:16If it is managed, if it is well managed effectively, if it is managed effectively, definitely we should
07:24have a good development and the citizen at large will surely see to what the government
07:32are doing with their money.
07:33Okay.
07:33And so, and at the same time, we should believe this, the, um, uh, the task itself,
07:40the physical, uh, physical tools.
07:44Yes.
07:44Use in strengthening and drive the economic development.
07:49Okay.
07:50And if this can be done, definitely we'll be having much to, the government,
07:54we're having much money to spend on developmental projects.
07:59All right.
07:59And at the same time, uh, with this development, with this task reform act, we'll be having,
08:06uh, low income and are paying less or paying nothing.
08:11Mm-hmm.
08:12So, and at the same time, uh, the task reform act, uh, has some, uh, parameters in it that
08:21can, at least in court, that can use as a tool in attracting foreign infest, infestors
08:27into the country.
08:28Thank you so much, Mr. Ademola.
08:30Uh, we're going to get back to that in a brief, but then again, I will say this before we, you
08:34know, it's the task calculator initiative.
08:36As part of the, uh, presidential task reform committee initiative, they came about with
08:42the task calculator in a bid to make it more transparent, you know, so that everyone can
08:47have access to all these things in terms of strengthening the, uh, fiscal, you know, policy
08:53and all that does tax in any way help or can it help in any way to maybe improve the currency
09:01or something?
09:02Yes, definitely.
09:03How, how does it do that?
09:05Okay.
09:06Thank you very much.
09:07Um, one of the key things that weakens, um, the strength, the strength of our currency is
09:15indebtedness.
09:16Hmm.
09:17You know, um, I wouldn't know, um, if you've heard in the news over time that, um, the, the
09:25reserve, the revenue reserve, uh, the foreign reserve of Nigeria is increasing and all of that.
09:31Now, the truth of the matter is this, even as an individual, when you have certain needs
09:37to meet and you don't have the financial capacity to get it done, what do you do?
09:44You borrow.
09:45You borrow.
09:46And these borrowings are majorly in foreign currencies.
09:48And so the more of such we have, the lesser our capacity, you know, in our own base.
09:56Hmm.
09:57Now, so if we can have a system in place that will go get the money where they are hidden,
10:02Oh.
10:03Which is what the tax reform.
10:04In the pockets of everyone.
10:05Yes.
10:06Okay.
10:07So the money comes in and the government relies less on borrowings.
10:11Hmm.
10:12And so we can be able to have organic resources.
10:15Wow.
10:16To finance.
10:17Wow.
10:21So I really get that.
10:22And it's an amazing one from Mr. Agilo there.
10:23Okay.
10:24Now, you know, eating the one we are here majorly for today.
10:26Okay.
10:27So, so this whole task calculates everything.
10:29So what is it about?
10:30Is it, is it an app?
10:32Is it, we log in somewhere?
10:33How does it, how is everything about, you know?
10:36Uh, the, uh, I think, uh, the, um.
10:41The now, Nigerian Revenue Service.
10:43Yes.
10:44Nigerian Revenue Service is looking into how to come up with the recalculator where people
10:49can just even log in.
10:51Okay.
10:52Into there and know what they are to pay.
10:54So, and how will you even calculate that?
10:56That's what I was saying.
10:57That the section of this act, of this new act.
11:00Yeah.
11:01The task reform act is, uh, section, uh, 28 to 32.
11:05Okay.
11:06It's saying that at least what you need is just to, uh, certain your earnings.
11:11What is your earnings?
11:13We have earnings.
11:14Your earnings may be from, uh, your self-employed.
11:17If you are self-employed, your self-employment, or if you are salaried.
11:21And now put your, what you are having.
11:24If you have any investment in term of, in form of rent or whatever.
11:28Okay.
11:29Add all this income together.
11:32And there is a relief.
11:33There are some reliefs and deductions stipulated in the act as well.
11:37Mm-hmm.
11:38In the section 30 of the finance, uh, of the tax reform act.
11:42Mm-hmm.
11:43Where, uh, uh, what are these deductions?
11:46You have, you, if you have, uh, uh, if you have any payment you are making for your life as
11:53insurance.
11:54Okay.
11:55You deduct it from it, from your, from the whole of, from the aggregate.
12:00I, I think there's also an exemption of rent and all that.
12:02I'm coming to that.
12:03Okay.
12:04You have housing.
12:05Okay.
12:06You have housing, national housing fund.
12:07If you have anything you are contributing, remove it.
12:10If you are having anything you are contributing in term of national aid, remove it.
12:14If you are having, if you pay rent.
12:16Okay.
12:17The rent is 20% of the actual rent that you pay.
12:21Mm-hmm.
12:22That's a relief of that.
12:23Mm-hmm.
12:24So, 20% of whatever you are earning, uh, you are paying as rent, but with, uh, close.
12:30Okay.
12:31Maximum of 500,000.
12:33Okay.
12:34So, immediately you are able to do that.
12:37You deduct all those, uh, reliefs.
12:40The next thing is that you now place the remaining taxable income on the calculator.
12:46Mm-hmm.
12:47And how it's, the first thing is that if you let take, for example, if you are in 1.8 million
12:55in a, in a year.
12:56In a year.
12:57Which is 150 per month.
12:58Mm-hmm.
12:59So, that's your 1.8 million.
13:01Mm-hmm.
13:02If you pay rent of 500,000.
13:03Okay.
13:04That shows that you have a relief of, like, 20% of my 100,000.
13:11Of that.
13:12Which is around 100,000.
13:13100,000.
13:14Yeah.
13:15So, when you deduct 100,000 from your 1.8, you have 1.7.
13:19Okay.
13:20And when, if you are paying pension, you, you have...
13:23A percentage, yeah.
13:24Of course.
13:25Contribution to pension scheme.
13:27Scheme.
13:28If you have, uh, if you have to pay, you have to pay 8%.
13:31Okay.
13:32This 8% multiplied by your gross income.
13:36Yeah.
13:37Your, your, your salary, which is 1.8.
13:40That's one point, that's around 144.
13:43Mm-hmm.
13:44We also deduct that.
13:45We deduct that.
13:46All right.
13:47And the total of your deduction, if you don't have national aid, if you don't pay on national
13:51aid, you don't pay for, uh, other, the libra solans and the rest.
13:55Mm-hmm.
13:56So, definitely what you'll be having to the, what you'll be having is 244,000 to the dollar.
14:03Out of the 1.8.
14:04Mm-hmm.
14:05Mm-hmm.
14:06And immediately you'll have that.
14:07You'll be having something less than 1.6.
14:10Yeah.
14:11To pay.
14:12So, as your accessible income.
14:13Mm-hmm.
14:14Accessible income.
14:15The first 800,000.
14:17Mm-hmm.
14:18Of 1.5 million.
14:19You have.
14:20Exempted from.
14:21Wow.
14:22Wow.
14:23You get it.
14:24You are not to pay tax on that 800,000.
14:26Ah.
14:27That's the first, that's the, a great relief.
14:30Mm-hmm.
14:31Compared to what we are having currently.
14:33Okay.
14:34You get it.
14:35So, when you now have, ah, when you, the, if you deduct 800 from 1.5.
14:40Mm-hmm.
14:41You will be having something, seven, something.
14:44Seven, yeah.
14:45The remaining 700,000.
14:46Yeah.
14:47100, yeah.
14:48Will now be charged based on 15%.
14:51Mm-hmm.
14:52You pay 15% of that.
14:53On that.
14:54As your, as your tax.
14:55As your tax.
14:56Mm-hmm.
14:57Mm-hmm.
14:58So, the remaining, the, what your, the, your answer will now be divided by 12.
15:02For monthly.
15:03For monthly.
15:04Allocations, deductions.
15:05Wow.
15:06That's it.
15:07Wow.
15:08And that's how it works.
15:09But if you pay, if you don't earn up to 800, if you are at the end of your deduction.
15:14Maybe be a petty, petty trader.
15:15I don't know that.
15:16Yes.
15:17You may not even pay anything.
15:18Mm-hmm.
15:19And that's the reason why, you know, majority of, ah, employees fall between that.
15:24Yeah.
15:25Because.
15:26That's the reason why.
15:27The minimum wage is 70 of a day.
15:28Yes.
15:29Yes.
15:30Mr. Taiwo Yedeli said it, said that.
15:33Mm-hmm.
15:34We have even less than, we, we have up to, ah, most of our, these, our employees.
15:41Yeah.
15:42Collect below.
15:43And they may.
15:44Yeah.
15:45Likely not be.
15:46Mm-hmm.
15:47Anything.
15:48So that's it.
15:49Okay.
15:50Thank you so much.
15:51I think I get, you know, the explanation from why you've run it down.
15:53So from the look of your explanation, does it look, it looks like the tax reform at 2025
15:59have people in mind?
16:01Yes.
16:02For sure.
16:03Because, sorry, compared to what we have on social media, you know, people are
16:06clamoring that easy.
16:07Is this not, you know, another burden on the people considering the fact that the economy
16:11has, is already straining us, you know?
16:13Well, with this explanation, it looks as if they have, they have.
16:16Let me, let me call me kind of disorder.
16:18And you know, one thing is that this particular act, I call it a regime.
16:24Okay.
16:25It's another regime.
16:26Mentally.
16:27The only thing is that people, ah, more people will be brought to net, to trust net.
16:33Mm-hmm.
16:34People have not been painters.
16:35And these are the big ones.
16:38We are talking of big ones.
16:39Corporate bodies and all that.
16:40Corporate bodies, mm-hmm.
16:41They are, they have different will of, different ways of.
16:44Boycotting.
16:45Boycotting.
16:46And painting tasks.
16:47Mm-hmm.
16:48So, that's, and if they are collecting more from the rich one, definitely those one,
16:53the, the amount so collected, mm-hmm, will be used to at least provide necessary
16:58development.
16:59Wow.
17:00Wow.
17:02Yeah.
17:03And the mass, the, the less low income earners will surely get more disposable income.
17:08Mm-hmm.
17:09They will have more.
17:10To spend.
17:11Mm-hmm.
17:12And they will have more savings.
17:13Mm-hmm.
17:14While the, the, the, the, the rich will be, like, you know, as they should.
17:20As they should.
17:21As they should.
17:22That's it.
17:23Of course.
17:24Thank you so much, Mr. Ademola Rashid.
17:25You've actually, you know, given us an explanation that I loved so much.
17:28Uh, before we leave the studio, you know, Mr. Adjulo.
17:31Now, what, as a, as a, let me say, people are across all spheres of life.
17:37Many people don't have enough knowledge on fiscal policy, monetary, and all that.
17:42You, as a tax consultant, can I just walk to firms like yours at ANTA, you know, and you,
17:49okay, I need knowledge of, how do I go about it?
17:51Or is it just corporate bodies that need to, you know, have access to consultants?
17:55Uh, no, obviously not.
17:57Um, ANTA Consulting Unitec is a consulting home that is open to, um, everyone, both corporates,
18:05individuals, and, um, persons, like you and I.
18:09Okay.
18:10So, because taxpayers are true.
18:12You are either a taxpayer as a corporate body, or you are a taxpayer as an individual.
18:18And, uh, because we don't expect everyone to just have the full knowledge of what it's
18:24all about, we exist to enlighten people, to assist people, and even to mediate between
18:31tax authority and where matters.
18:35Wow.
18:36Awesome.
18:37Awesome.
18:38Thank you so much.
18:39It's good to have you in the studio, and I wish we can, you know, talk beyond this,
18:40but, you know, time is always a constraint we have whenever we are on the show.
18:43Um, viewers at home, thank you for being part of our world today on Guardian Talks.
18:48You've listened, you've, you know, seen how to calculate your taxes, which is going to
18:52be implemented from January 2026.
18:55For any progressive nation, for any nation at all, to actually make the next step to the
19:00next level.
19:01It is imperative that every citizen pay taxes.
19:04I must say, once again, thank you, Mr. Ademola Rashid.
19:07Uh, that's this executive director of Anta Consulting, uh, Limited.
19:11Of course, the partner right here, Mr. Adjulo Olajide.
19:13Thank you for honoring our call.
19:15Uh, until next time on the show, I am Olukayode Olumuywa.
19:19Leaving you in the hands of God, of course.
19:20I'll see you next time.
19:21Bye.
19:22Bye.
19:23Bye.
19:24Bye.
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