New tax rules put employee perks under fresh scrutiny

Employees who receive company cars, accommodation, and other perks from their employers may face higher taxable income under Nigeria’s new tax regime, even when those benefits never reach their bank accounts as cash.

The implication is that employers may need to consider the tax consequences of how they provide benefits, rather than looking only at the cost of the perk.

‘Although you didn’t receive actual cash, you got something valuable, and this value is what is subject to taxation,’ said Habeeb Alabi, a tax specialist in Nigeria and the UK.

Under Section 14 of the Nigeria Tax Act 2025, an employer-owned asset provided for an employee’s personal use is valued for tax at 5 percent of its acquisition cost or its market value at acquisition, where the cost cannot be determined.

For example, a N40 million company car provided for an employee’s private use would create a N2 million taxable benefit, but if the company pays N600,000 monthly to lease a vehicle for an employee’s private use, the annual taxable benefit would be N7.2 million.

This means the tax treatment of a company car can vary significantly depending on how the employer provides it.

‘The rules are quite simple. If your employer owns the car, you pay 5 percent on the actual cost of the car. However, if your employer rents or leases the car, the taxable benefit will be the actual amount your employer spends to rent or lease the car,’ Alabi said.

Not every company car is taxable

The rules do not mean every vehicle provided by an employer automatically becomes a taxable benefit.

Toheeb Yusuf, a chartered accountant and tax professional, said vehicles used strictly for official duties would not ordinarily be treated as taxable benefits.

‘Official cars used strictly for work purposes with no personal use are not taxed,’ Yusuf said in a LinkedIn post explaining Section 14.

The distinction is whether the employee gets a personal benefit from the asset. An employee who takes a company car home and uses it for private journeys could therefore face different treatment from one whose use is restricted to official duties.

Yusuf said employers would need evidence to show that a vehicle is used exclusively for work, including vehicle-use policies, official trip records and evidence that vehicles are kept at company premises after working hours.

Perks beyond cars

The tax rules extend beyond company vehicles.

For employer-owned assets, the taxable benefit is 5 percent of the acquisition cost or market value at acquisition where the cost cannot be determined. For rented or hired assets, it is the actual annual rent or hire charges paid by the employer.

Perpetual Badejo, an accountant and tax professional, said Section 14 covers situations where employers provide employees with access to assets they own, such as cars, for private use.

Employer-provided accommodation can also create a taxable benefit. Where accommodation is provided free or below its annual rental value, the employee can be assessed on the benefit, subject to a cap of 20 percent of annual gross employment income, excluding the rental value.

However, not every workplace benefit is taxable. The Act excludes provisions including meals in official staff canteens or through meal vouchers, uniforms and protective clothing, work tools and equipment, and qualifying relocation expenses.

What it means for employers

The rules could make the structure of employee compensation more important for businesses.

An employer deciding whether to purchase an asset for an employee, lease one or provide another form of benefit now has to consider both the cost of the perk and its tax treatment.

The difference is particularly clear with company cars. A N40 million employer-owned vehicle could produce a N2 million taxable benefit, while a vehicle leased for N600,000 monthly could produce a N7.2 million benefit.

The employee’s eventual tax bill will depend on their total taxable income and applicable tax rates, but the examples show how a company provides a benefit can influence how much of it becomes taxable.

Employers are also responsible for accounting for taxable benefits when calculating and reporting employment income and PAYE obligations.

For companies, the new rules therefore make employee perks more than a compensation decision. They are now also a tax consideration.

N31trn assets: How Nigeria’s pension funds are building towards private equity opportunity

Nigeria’s pension industry assets currently stand at N31.3 trillion, more than the entire 2024 federal budget, built by 11.27 million working Nigerians contributing toward a retirement most have not yet reached.

That pool has nearly tripled in size since 2019, a quiet but remarkable story of institutional growth in a market many assumed would stay shallow.

Alongside that growth, the regulatory architecture has been moving fast. PenCom has spent the last year actively widening the lane for pension capital to do more, raising equity ceilings, expanding alternative asset allocation rules, and building dedicated frameworks for private equity and infrastructure co-investment. The direction of travel is unmistakable: from an industry built almost entirely around capital preservation, to one the regulator now describes, in its own words, as needing to move ‘from safety and dignity to impact.’

While private equity allocations remain below the maximum threshold permitted by PenCom, reflecting a significant opportunity for future growth rather than a lack of appetite from pension funds. With regulations allowing pension funds to allocate up to 15 percent of their assets to private equity, current utilization underscores the untapped potential within the asset class.

As highlighted in PenCom’s regulatory assessments, the key challenge is not investor willingness but market readiness. The constraint lies in the limited availability of qualifying, investable, and PenCom-compliant private equity funds capable of attracting pension capital. This distinction is important because it shifts the conversation from one of underutilisation to one of ecosystem development.

Strengthening the pipeline of compliant, high-quality investment vehicles could unlock greater participation, enabling pension capital to play a more meaningful role in financing long-term economic growth and private sector development.

The Money That’s Already Moved

This is not a story of pension funds standing still. Rather, it is one of steady portfolio diversification, although private market investments have yet to scale. At the end of 2019, Federal Government securities accounted for 70.8 percent of total pension assets. By mid-2026, that share had declined to the high-50 percent range, even as total industry assets nearly tripled.

Much of the capital reallocated from government securities flowed into domestic equities, now valued at over N6 trillion, and money market instruments, which exceed N3 trillion. This trend demonstrates that Pension Fund Administrators (PFAs) are both willing and capable of reallocating capital when suitable investment opportunities are available.

Private equity, infrastructure funds, and Real Estate Investment Trusts (REITs) remain relatively small components of this diversification journey. In a 2022 internal review, PenCom identified private equity as one of the industry’s most underutilised asset classes. However, rather than viewing this as a structural weakness, the regulator responded by introducing a dedicated co-investment framework designed to strengthen the private equity ecosystem. This was followed by further regulatory reforms in September 2025 and February 2026, which broadened the eligibility criteria for investment vehicles and eased allocation requirements. Collectively, these measures signal that the regulatory foundation needed to support greater pension investment in private markets is steadily taking shape.

This trend is not unique to Nigeria; it reflects a broader pattern across Africa’s leading pension markets. According to a 2024 estimate by the African Private Capital Association (AVCA), Nigerian pension funds allocate a larger share of their total assets to private equity (1.7 percent) than their counterparts in South Africa (0.8 percent), Kenya (0.7 percent), and Ghana (0.5 percent).

The same pattern emerges when private equity allocations are assessed relative to each country’s regulatory limit for alternative investments. Nigerian pension funds utilized about 1.7 percent of their 10 percent private equity allocation limit. By comparison, Ghanaian pension funds utilized approximately 1.1 percent of their 25 percent alternatives ceiling, South African funds about 0.8 percent of their 15 percent limit, while Kenyan funds utilized roughly 0.7 percent of their 10 percent limit. These comparisons suggest that the challenge is not unique to Nigeria but reflects a wider continental reality. Across Africa’s major pension systems, regulatory capacity has generally outpaced the availability of investable private market opportunities.

A 2026 joint report by Stears and the African Private Capital Association (AVCA) reinforces this pattern across the four markets. Pension systems have expanded significantly, while the private capital ecosystem is still evolving to match the scale of available institutional capital.

Among its continental peers, Nigeria holds the largest pool of pension assets, positioning it to benefit the most from a deeper private equity market. As the pipeline of qualifying, PenCom-compliant investment funds expand, the country has the potential to unlock substantial pension capital for productive long-term investments, accelerating both private sector growth and broader economic development.

Why pension fund managers move carefully, and why that’s a feature, not a flaw is because pension fund administrators are fiduciaries first. Their core obligation is to ensure that money is there when a contributor needs to retire, to switch funds, to access benefits. Government securities are priced daily and can be sold within days; private equity typically locks up capital for seven to ten years, in a market that doesn’t yet have a deep secondary exit option.

This caution is functioning exactly as intended. PenCom’s governance requirements, a SEC-registered manager, accounts audited by two independent firms, a clearly defined exit strategy before a naira moves, exist precisely so that when pension capital does move into private equity, contributors are protected. The honest constraint right now is that only a limited number of Nigerian private equity fund managers currently meet that bar. That is a market-depth issue with a clear fix: more qualifying funds, not less caution.

Proof that it already works

The infrastructure for pension-eligible private capital exists in Nigeria today, and it is growing. Firms like African Capital Alliance, Verod Capital, Synergy Capital, and Sahel Capital have built real track records investing in Nigerian companies within PenCom-compliant structures. InfraCredit backed by the Nigeria Sovereign Investment Authority and GuarantCo has been cited by Harvard Business School as a model for how guaranteeing infrastructure bonds can unlock pension confidence in instruments they’d otherwise avoid.

Elsewhere on the continent, the model has already scaled meaningfully. South Africa’s Eskom Provident Pension Fund and the Kenya Power Pension Fund jointly committed more than $94 million into the Africa Development Partners III fund and the Everstrong Kenya Infrastructure Fund. South Africa’s Public Investment Corporation the continent’s largest asset manager put $100 million in equity into the Africa Finance Corporation. African pension capital moves into private markets at real scale once the right structures exist. Nigeria has every reason to expect the same trajectory.

Venture Capital: A longer runway, approached the right way

Private equity and venture capital are often discussed together, but they carry different risk profiles. VC backs early-stage companies that fail more often than they succeed, by design, and Nigeria’s exit market trade sales, secondary buyouts listings is still developing the depth that gives institutional capital confidence to commit. Currency mismatches, where startups raise in dollars but earn in naira, add a layer, pension managers reasonably want addressed before committing contributor capital directly.

The more realistic near-term path is indirect. diversified fund-of-funds structures that spread early-stage risk across many companies, sized as a small, deliberate slice within a broader private equity allocation, not direct bets on individual startups. This is a sensible, sequenced approach, rather than a reason to wait.

This is not a gap PenOp is content to describe from the sidelines. Over the years, PenOp has convened knowledge-sharing sessions for member PFAs bringing in private equity fund managers, infrastructure financiers, and regulators to walk through how PenCom-compliant structures actually work, what governance standards a fund needs to meet before it’s investable, and how other African pension markets have approached the same allocation question.

The goal is straightforward: a fund manager cannot commit contributor money to an asset class they haven’t been given the tools to properly evaluate. PenOp’s role, as the industry’s collective voice, is to close that knowledge gap building the in-house underwriting confidence our members need, and creating a structured channel between PFAs and the fund managers seeking pension-eligible capital. We intend to deepen this work: more frequent sessions, deeper technical training on valuation and governance review, and closer engagement with PenCom on the qualified-fund pipeline.

What Happens Next

Three things, already in motion, will determine how quickly this gap closes.

First, Nigeria needs more PenCom-qualified private equity and infrastructure funds and the regulator’s recent reforms, in September 2025 and February 2026, show it is actively working that lever, not waiting for the market to solve it alone.

Second, fund managers need to keep meeting the reporting and governance standards pension funds are required to demand, and the firms already operating at that bar show is achievable.

Third, pension funds themselves are building deeper in-house expertise to evaluate these investments directly, reducing reliance on a small handful of intermediaries, exactly the kind of capability PenOp’s training sessions are designed to accelerate.

None of these calls for recklessness. Pension money deserves exactly the caution it currently receives. But the regulatory direction, the growing base of compliant fund managers, and the proof points already visible across Africa all point the same way: this is a gap that is actively narrowing, not a permanent feature of the market. PenCom’s leadership has spoken of pension assets approaching over N100 trillion within five years as contributor participation deepens, a scale at which, even modest percentage gains in private equity allocation would represent a transformational flow of long-term capital into the Nigerian economy.

The capital is already there. The frameworks are being built. PenOp’s role through member education, regulatory engagement, and platforms like this one is to help close the remaining distance.

TeamApt gains direct Mastercard network access in strategic payments expansion

TeamApt Limited, a subsidiary of Moniepoint Inc., is expanding its position in Africa’s digital payments market after entering a strategic collaboration with Mastercard that will give the Nigerian payments infrastructure company direct access to Mastercard’s global payments network.

The arrangement will see TeamApt operate on Mastercard’s network as a non-bank acquirer, strengthening its capacity to provide payment acceptance, transaction processing and acquiring services to licensed businesses and financial institutions.

The deal marks a significant step in TeamApt’s expansion from a predominantly domestic payments infrastructure role into a broader network-enabled acquiring business, potentially giving more African merchants access to international card payments.

Under the collaboration, TeamApt will integrate its switching infrastructure with Mastercard’s global network to support high-volume transactions across online, in-store and mobile channels. The company will also be able to onboard credible and licensed entities seeking to offer Mastercard payment acceptance.

The strategic significance of the partnership lies in the combination of Mastercard’s international network and TeamApt’s local payments infrastructure.

For merchants, the expanded infrastructure is expected to make it easier to accept Mastercard cards across multiple channels, while consumers will gain wider access to secure card payments locally and internationally.

The partnership comes as payment acceptance becomes increasingly important to Africa’s small-business economy, particularly in Nigeria, where Mastercard estimates there are more than 40 million micro, small and medium-sized enterprises (MSMEs).

Mastercard’s 2026 SME Confidence Index also found that small businesses increasingly view digital solutions as important to their ability to scale, highlighting the commercial opportunity for payment providers that can extend reliable digital acceptance to businesses outside traditional banking channels.

‘Expanding digital payment acceptance is one of the fastest ways to support small businesses across Africa to compete, grow, and reach more customers,’ said Folasade Femi-Lawal, country manager, West Africa at Mastercard.

She said the partnership would provide MSMEs and informal-sector businesses in Nigeria with infrastructure to process transactions securely across multiple channels, while helping bring more businesses into the digital economy and opening opportunities around growth, access to credit and cross-border trade.

For TeamApt, the Mastercard relationship strengthens its role as a payments infrastructure provider serving banks, fintechs and other financial institutions.

Dennis Ajalie, chief executive officer of TeamApt, said the collaboration was part of the company’s effort to remove barriers in the payments ecosystem.

‘For years, TeamApt has focused on building infrastructure that helps financial institutions and businesses grow with confidence. By working closely with Mastercard, we are extending those capabilities, enabling businesses to accept payments more seamlessly and giving users the freedom to transact securely both locally and internationally,’ Ajalie said.

The arrangement also creates a stronger international dimension for TeamApt’s infrastructure. Mastercard cards supported through the platform will be usable across millions of merchant locations worldwide, allowing businesses connected to the system to serve both domestic customers and international visitors.

Beyond card acceptance, the partnership could deepen competition in Africa’s acquiring market, where banks, fintechs and payment processors are increasingly competing to provide merchants with a single infrastructure for accepting payments across physical and digital channels.

TeamApt’s status as a Central Bank of Nigeria-licensed switching and processing company gives it an established position within Nigeria’s payments ecosystem. Over the past decade, it has built infrastructure supporting transaction processing across multiple payment channels for financial institutions and businesses.

The Mastercard collaboration therefore adds global network connectivity to an infrastructure base that already has significant domestic reach.

That reach is further supported by the wider Moniepoint ecosystem, which operates across all 774 local government areas in Nigeria through its financial services and agent network.

The combination could give the group a broader platform for pushing digital payment adoption among Nigeria’s fragmented small-business and informal sectors, where cash remains an important part of everyday commerce.

For Mastercard, the partnership provides another route into Africa’s rapidly expanding merchant economy by leveraging an established local payments infrastructure rather than relying solely on traditional banking channels.

For TeamApt, meanwhile, direct operation on Mastercard’s global network could expand the addressable market for its acquiring and processing infrastructure beyond local transactions.

The immediate opportunity is merchant payment acceptance, but the longer-term significance could be greater: connecting more African businesses to global payment rails could support cross-border commerce, improve transaction visibility and create a larger digital footprint for businesses seeking access to formal financial services.

As African commerce becomes increasingly digital, the ability to connect local merchants to global payment networks is emerging as a key battleground for payment companies. The Mastercard-TeamApt collaboration places both companies deeper in that race, with Nigeria’s millions of small businesses representing one of the largest immediate markets for expansion.

Corporate support essential to bridge regional funding gap, warns Eremionkhale

Government efforts alone cannot bridge the severe funding gap facing public sector workers and informal enterprise operators, Whitecrust Investment Limited Group Managing Director Kingsley Eremionkhale has warned.

Emphasising the critical need for corporate intervention in regional economic development, Eremionkhale highlighted that private sector involvement is vital to closing the financial shortfall that public initiatives cannot address independently.

Speaking during an official event marking the expansion of the firm’s operations to Kano, Eremionkhale said the initiative aims to deepen financial inclusion for businesses and artisans across Nigeria’s most populous state.

Kano Expansion Targets 200,000 Indigenes in First Year

According to Eremionkhale, the firm plans to empower over 200,000 Kano indigenes with loans, investment opportunities, and business capital within its first year of operation.

‘Kano public servants, entrepreneurs, investors, and traders need better support, and private businesses must complement the efforts of government,’ he said. ‘We want to leave a lasting legacy, empower people, and create sustainable employment. We cannot achieve this without taking our services closer to the people through active physical expansion.’

Eremionkhale emphasised the company’s commitment to reaching populations that have traditionally lacked structured banking support. ‘Our core mission in coming to Kano is to financially include those that have been excluded from mainstream financial services,’ he stated.

Tailored Products and a Ten-Year Banking Ambition

The managing director stated that the firm had recruited locally and specifically tailored its products to fit Kano’s cultural and religious diversity. Expressing confidence that servicing local businessmen and artisans would proceed seamlessly, he noted that the management team and promoters were seasoned bankers and financial experts equipped to understand the region’s needs. He added that the firm had already been operating for about five years.

Eremionkhale outlined Whitecrust Investment Limited’s long-term vision, pointing to sustainable impact and future institutional growth as central pillars of the company’s expansion agenda.

‘We operate with a focus and a legacy mindset,’ Eremionkhale remarked. ‘We want to leave a legacy, empower people, and create sustainable employment. Looking ahead, in the next 10 years, we should have achieved a full commercial banking licence.’

Court of Appeal upholds foreign jurisdiction clause and lender’s right to repayment in dollars in $25million dispute between AFREXIM and Patnasonic Industries

The Court of Appeal has, in a judgment delivered on July 8, 2026, allowed the Appeal in the case of African Export-Import Bank (‘AFREXIM’) v Patnasonic in a dispute over the repayment of a USD 25,000,000 (Twenty-Five Million United States Dollars) facility.

The dispute arose from a receivables-backed dollar facility of up to USD 25,000,000 (Twenty-Five Million United States Dollars) granted by AFREXIM to Patnasonic Industries Limited under a Loan Agreement in 2012, with Sterling Bank Plc as local administration agent. Following AFREXIM’s demands that Patnasonic repay the outstanding debt in US Dollars rather than Naira, Patnasonic and its Chairman, Chief Patrick Chidolue, sued at the High Court of Lagos State. The court, on June 25, 2024, found in their favour and dismissed AFREXIM’s preliminary objections. AFREXIM appealed, and Sterling Bank filed a related appeal of its own.

In a well-considered judgment, the Court of Appeal agreed with the submissions of Lead Counsel for AFREXIM, Onyemauche Ibezim of KENNA, who argued the appeal and resolved all six issues in AFREXIM’s favour. The Court in resolving the issues on jurisdiction held that the parties were bound by their freely negotiated agreement conferring jurisdiction on the English courts; that AFREXIM enjoyed diplomatic immunity as an international financial institution; and that the initial suit filed by Patnasonic was statute-barred.

For completeness, the Court further pronounced on the substantive issues and held that the facility remained a US Dollar obligation repayable in full in Dollars at the exchange rate prevailing at the date of repayment; that AFREXIM’s demand for repayment was a legitimate exercise of its contractual rights; and that English law, as expressly chosen by the parties, governed the Facility Agreement.

In the related Sterling Bank appeal, the Court also held that the suit was statute-barred and that the trial court had erred in finding the Facility Agreement was tainted by illegality, an issue it had raised on its own initiative. The Court affirmed that the Facility Agreement was valid and enforceable, allowed both appeals, and awarded costs against Patnasonic and Chief Chidolue.

This decision reaffirms the principle that parties are bound by the governing law and dispute resolution clauses in their agreement and relieves AFREXIM of an adverse judgment over a facility of USD 25,000,000.

As the foremost pan-African multilateral trade finance institution, AFREXIM plays a pivotal role in facilitating cross-border trade and investment across the continent. The Court of Appeal’s affirmation of foreign jurisdiction clauses and the enforceability of dollar-denominated obligations bolsters confidence in African markets and strengthens the legal framework that underpins foreign direct investment and cross-border lending in Nigeria and across Africa.

The 1st and 2nd Respondents (Patnasonic Industries Limited and Chief Patrick Chidolue) was represented by Chuks Nwachukwu.

The Court of Appeal has, in a judgment delivered on July 8, 2026, allowed the Appeal in the case of African Export-Import Bank (‘AFREXIM’) v Patnasonic in a dispute over the repayment of a USD 25,000,000 (Twenty-Five Million United States Dollars) facility.

The dispute arose from a receivables-backed dollar facility of up to USD 25,000,000 (Twenty-Five Million United States Dollars) granted by AFREXIM to Patnasonic Industries Limited under a Loan Agreement in 2012, with Sterling Bank Plc as local administration agent. Following AFREXIM’s demands that Patnasonic repay the outstanding debt in US Dollars rather than Naira, Patnasonic and its Chairman, Chief Patrick Chidolue, sued at the High Court of Lagos State. The court, on June 25, 2024, found in their favour and dismissed AFREXIM’s preliminary objections. AFREXIM appealed, and Sterling Bank filed a related appeal of its own.

In a well-considered judgment, the Court of Appeal agreed with the submissions of Lead Counsel for AFREXIM, Onyemauche Ibezim of KENNA, who argued the appeal and resolved all six issues in AFREXIM’s favour. The Court in resolving the issues on jurisdiction held that the parties were bound by their freely negotiated agreement conferring jurisdiction on the English courts; that AFREXIM enjoyed diplomatic immunity as an international financial institution; and that the initial suit filed by Patnasonic was statute-barred.

For completeness, the Court further pronounced on the substantive issues and held that the facility remained a US Dollar obligation repayable in full in Dollars at the exchange rate prevailing at the date of repayment; that AFREXIM’s demand for repayment was a legitimate exercise of its contractual rights; and that English law, as expressly chosen by the parties, governed the Facility Agreement.

In the related Sterling Bank appeal, the Court also held that the suit was statute-barred and that the trial court had erred in finding the Facility Agreement was tainted by illegality, an issue it had raised on its own initiative. The Court affirmed that the Facility Agreement was valid and enforceable, allowed both appeals, and awarded costs against Patnasonic and Chief Chidolue.

This decision reaffirms the principle that parties are bound by the governing law and dispute resolution clauses in their agreement and relieves AFREXIM of an adverse judgment over a facility of USD 25,000,000.

As the foremost pan-African multilateral trade finance institution, AFREXIM plays a pivotal role in facilitating cross-border trade and investment across the continent. The Court of Appeal’s affirmation of foreign jurisdiction clauses and the enforceability of dollar-denominated obligations bolsters confidence in African markets and strengthens the legal framework that underpins foreign direct investment and cross-border lending in Nigeria and across Africa.

The 1st and 2nd Respondents (Patnasonic Industries Limited and Chief Patrick Chidolue) was represented by Chuks Nwachukwu.

Beyond Fighting Corruption: Recalibrating Nigeria’s anti-corruption architecture into a national integrity system

Nigeria has been fighting corruption for a very long time. We have enacted laws, established institutions, launched campaigns, investigated public officers, prosecuted cases and recovered substantial assets. Every administration arrives with a renewed declaration of war against corruption, sometimes accompanied by new slogans, new strategies and new institutional energy.

Yet corruption has proved remarkably resilient.

Perhaps the time has come, therefore, to ask a slightly uncomfortable question. Is the problem simply that Nigeria has not fought corruption hard enough, or could it be that we have concentrated too much attention on fighting corruption after it happens and insufficient attention on the system that makes it possible in the first place?

There is an important difference between the two.

Our anti-corruption architecture becomes most visible after something has gone wrong. Public money disappears, procurement is manipulated, assets are diverted or illicit wealth becomes conspicuous. A petition follows, an investigation begins, arrests may be made, prosecution commences and eventually there may be conviction and recovery.

All of that is necessary. But a country cannot indefinitely prosecute its way out of a governance system that continues to manufacture opportunities for corruption.

Perhaps the next stage of reform should therefore move beyond catching corrupt people towards the more ambitious task of engineering corruption out of government.

And that takes us immediately to an uncomfortable paradox.

How effectively can a country fight corruption if the process through which political power itself is acquired is vulnerable to the same corruption we subsequently expect political leaders to fight?

Elections are expensive. Party nominations are frequently highly monetised. Political campaigns require substantial resources. Vote buying remains part of our electoral conversation, while political financing is still insufficiently transparent. Those who finance political contests do not necessarily cease to have interests the morning after the election.

Political expenditure can consequently become an investment awaiting a return. The financier expects access, the supporter expects appointment, the intermediary expects patronage and the political machinery must somehow remain financed for the next contest.

Before long, public appointments, contracts and access to government can become part of an informal repayment mechanism.

Seen from this perspective, corruption does not necessarily begin when somebody manipulates a procurement process. It may have started much earlier, when political power was being financed and assembled. Worse still, resources extracted from the government can subsequently finance another electoral cycle, creating a self-replenishing relationship between money and political power.

This is why electoral integrity, political finance, party governance and the integrity of public appointments cannot remain intellectually detached from anti-corruption policy. They belong to the same ecosystem.

We cannot sustainably demand integrity in the exercise of public power while remaining indifferent to integrity in its acquisition.

Nigeria certainly does not lack institutions established to fight corruption. The EFCC and ICPC sit alongside the Code of Conduct architecture, financial intelligence mechanisms, audit institutions, procurement regulation, financial regulators and numerous internal control structures. After more than two decades of contemporary anti-corruption enforcement, however, institutional maturity should permit us to ask not merely how active these institutions are, but what value they collectively produce.

Arrests matter. Prosecutions matter. Convictions matter. Recoveries matter. But suppose ?20 billion disappears because of a weakness in a government procurement process, and, after years of investigation and litigation, those responsible are convicted and part of the money recovered. We would understandably describe that as an enforcement success.

There remains, however, a more consequential question: can another ?20 billion disappear tomorrow through exactly the same loophole?

If it can, we have punished the offender while preserving the opportunity.

This is where international experience becomes instructive. Hong Kong’s anti-corruption architecture has long combined enforcement with corruption prevention and community education. Singapore similarly uses lessons from investigations to identify corruption-prone procedures and recommend institutional changes. Botswana has incorporated corruption prevention into the mandate of its anti-corruption machinery, while digitalisation in countries such as South Korea demonstrates how procurement systems themselves can be designed to make transactions more transparent and suspicious patterns easier to detect.

The lesson is not that Nigeria should copy Hong Kong, Singapore, Botswana or South Korea. Countries differ in history, scale, political economy and institutional culture. The lesson is simpler: successful anti-corruption systems increasingly recognise that catching the thief is only half the job. The other half is redesigning the door through which the thief entered.

Every major corruption investigation in Nigeria should therefore leave behind two legacies. There should, where the evidence warrants it, be accountability for the individual. But there should also be institutional correction. The investigation should tell the government what weakness was exploited, why existing controls failed and what must change to prevent recurrence.

In other words, we should not merely close corruption cases. We should close corruption opportunities.

Technology makes this increasingly possible. Public procurement can be digitally traceable from conception to payment. Beneficial ownership information can be connected with government contracting. Revenue transactions can leave auditable trails. Data analytics can identify unusual prices, repeated awards to related entities, contract splitting and suspicious payment patterns. Artificial intelligence increasingly offers the possibility of identifying anomalies that would previously have required a petition or a particularly observant auditor.

Why, in the twenty-first century, should every corruption investigation have to wait for somebody to write a petition?

The system itself should increasingly be capable of asking questions.

But technology cannot resolve the more difficult problem of political interference.

Nigeria’s anti-corruption institutions have periodically faced allegations and public perceptions of selective investigation and prosecution. Whether every allegation is justified is not the central point. Institutions depend upon legitimacy, and legitimacy suffers when citizens believe that proximity to political power determines the intensity with which the law is applied.

An agency may successfully prosecute ten genuinely corrupt people and still damage public confidence if society reasonably believes that ten comparable cases are being ignored.

The proper standard should therefore be almost boring in its simplicity: comparable conduct should attract comparable scrutiny, whoever is involved and whichever political party happens to be in government.

Yet protecting anti-corruption institutions from political interference creates another paradox. These agencies possess formidable powers. They investigate, arrest, obtain sensitive financial information, seek freezing orders, seize assets and can profoundly affect reputations even before guilt has been judicially established.

If they are too politically controlled, they cannot effectively investigate power. If they are completely unaccountable, however, they may themselves abuse power.

So who watches the watchdog?

That question should sit at the heart of any serious recalibration of Nigeria’s anti-corruption architecture.

The answer cannot simply be the executive, because executive control could undermine precisely the independence we seek to protect. Nor can parliamentary oversight alone provide the answer, since legislators themselves may legitimately become subjects of investigation.

What Nigeria needs is accountability without political control. Operational decisions must remain insulated from interference, but the governance of anti-corruption institutions cannot be beyond scrutiny. Their finances, procurement, management of seized and recovered assets, conflicts of interest, internal discipline and treatment of complaints against their own officers must be subject to credible independent oversight.

The watchdog must be strong enough to investigate the powerful but transparent enough to investigate itself.

This is especially important because allegations of corruption within an anti-corruption institution do more damage than ordinary administrative misconduct. They attack the moral authority upon which the institution depends. Those who police integrity should therefore be held to an even higher standard of integrity.

There is another weakness in our anti-corruption conversation that receives considerably less attention. We have become reasonably proficient at condemning corruption but remarkably poor at celebrating integrity.

Human beings respond not only to punishment but also to reputation, recognition and social standing. If a public servant spends thirty-five years protecting public resources and retires quietly, while someone displaying unexplained wealth receives society’s loudest applause, we should not be surprised by the incentives younger people observe.

Nigeria should consciously make integrity socially valuable.

There are public servants who have refused improper instructions, officials who have protected public resources at considerable personal cost, institutions that have maintained exemplary standards and professionals whose reputations for integrity survived proximity to enormous opportunities for enrichment. Their stories should matter.

Recognition, however, must itself possess integrity. A national integrity recognition system that becomes another avenue for patronage would merely add irony to the problem it was created to solve. Any such recognition must therefore rest on independently verifiable records rather than political recommendation.

The broader point is that anti-Corruption cannot be outsourced to EFCC and ICPC. Families, schools, universities, professional bodies, traditional and religious institutions, businesses and the media participate in determining what society admires and what it condemns.

If unexplained wealth commands greater social respect than honest service, the anti-corruption agencies are effectively swimming against the cultural tide.

Perhaps, therefore, Nigeria’s next reform should not principally be about creating another agency. We already have enough institutions. What is missing is a coherent national integrity architecture connecting the way political power is acquired, the way public officials are appointed, the manner in which public resources are managed, the mechanisms through which wrongdoing is detected and punished, the accountability of the institutions doing the policing, and the values society chooses to reward.

That also requires us to reconsider how success is measured.

It is useful to know how many people were arrested, how many prosecutions commenced and how much money was recovered. But those numbers tell us mainly what happened after corruption occurred.

We should increasingly want to know how many vulnerabilities were discovered and permanently closed, how much potential public loss was prevented, how many government processes were redesigned following investigations, whether comparable cases received comparable treatment, and whether recovered assets actually returned transparently to public benefit.

There is a paradox here worth contemplating.

The most successful anti-corruption agency should eventually become less busy.

If arrests, prosecutions and recoveries must continue rising indefinitely, that may demonstrate energetic enforcement. But it may equally demonstrate that the machinery of government continues manufacturing corruption faster than the agencies can suppress it.

The ultimate objective should not be a country perpetually celebrating record recoveries. It should be a country from which there is progressively less to recover.

After decades of fighting corruption, perhaps Nigeria is ready for that larger conversation.

The question is no longer simply how to strengthen EFCC or ICPC. It is how to build a governance ecosystem in which corruption becomes progressively harder to commit, easier to detect, less profitable and more consistently punished, while integrity becomes safer, more respected and more rewarding.

That requires us to look upstream towards political finance and the acquisition of power; inward towards the integrity and accountability of the watchdogs themselves; forward towards technology and prevention; and outward towards the social values that determine whom and what Nigerians celebrate.

Because ultimately, we cannot sustainably fight corruption in the exercise of political power while ignoring corruption in the acquisition of that power.

We cannot demand accountability from the government while leaving the institutions established to enforce accountability insufficiently accountable themselves.

We cannot celebrate unexplained wealth and simultaneously expect society to embrace integrity.

And perhaps most importantly, we should stop congratulating ourselves solely for recovering billions of naira without asking the much more uncomfortable question:

Why was it so easy to steal the billions in the first place?

That may be where the next generation of Nigeria’s anti-corruption reform should begin.

Nigeria’s improving investor pitch runs into a tax problem

Uncertainty over Nigeria’s capital gains tax is emerging as a major concern for offshore investors, threatening to undermine improved sentiment towards the country’s economic reforms, according to Cordros Securities.

The investment firm said foreign fund managers it met during a recent weeklong engagement were significantly more positive about Nigeria than they were in 2023, but raised concerns about the lack of clarity surrounding the administration of the capital gains tax.

‘The issue is no longer about whether it was the right thing or at the right time,’ Cordros said in a market note on Wednesday.

‘It is now about both the lack of communication since the tax became effective this year and the opacity around its implementation.’

Africa’s most populous country has tripled its capital gains tax from 10 percent to 30 percent, following a major tax overhaul that came into effect on the 1st of January, 2026.

That move has since created anxiety amongst foreign equity investors and saw the stock market shed its biggest losses since 2010 in November.

The concerns highlight a growing divide between investors’ improved assessment of Nigeria’s broader economic reforms and their uncertainty over how individual policies will be implemented.

Cordros said investors now broadly regard Nigeria as being ahead of other African and frontier markets in ‘doing the right things’, marking a significant shift from the scepticism it encountered during its previous meetings with fund managers in 2023.

Yet many foreign funds remain undecided about returning to Nigeria.

Most of the investors Cordros met were still net sellers of Nigerian equities, with only a few having bought stocks recently, revealing their sentiments on the tax policy even though the market has returned nearly 60 percent year-to-date.

The investors also questioned whether the current reform momentum can be sustained beyond President Bola Tinubu’s administration, with the 2027 elections featuring prominently in their discussions.

Banks face regulatory concerns

Tax uncertainty was not the only policy concern raised by investors.

Cordros said offshore fund managers also viewed Nigerian banks as being subject to excessive regulation, citing the windfall tax on banks’ foreign-exchange revenues, the Central Bank of Nigeria’s directive on holding-company recapitalisation and a 45 percent cash reserve requirement.

Investors considered the holding-company recapitalisation directive unnecessary except for banks presenting the greatest risks, while describing the 45 percent cash reserve ratio as too high.

They questioned the compatibility of such a high reserve requirement with the recent banking recapitalisation exercise and the government’s ambition to build a $1 trillion economy.

Despite the concerns, foreign investors said they did not consider Nigerian equities overvalued and acknowledged that corporate earnings had broadly kept pace with share-price gains.

Banks, telecommunications companies, oil and gas firms and consumer companies were among the sectors attracting interest, while investors also sought information on Dangote Refinery’s operations and its planned initial public offering, as well as the wider pipeline of Nigerian IPOs.

Cordros said the re-inclusion of Nigerian equities in frontier-market indexes should also stimulate foreign buying interest.

The investment firm said investors were impressed by the resilience of domestic investors, who have sustained the equity market despite the reduced role of foreign portfolio investors.

The findings suggest that Nigeria’s challenge is increasingly shifting from convincing investors that reforms are necessary to providing sufficient clarity and predictability for foreign capital to return.

Cordros said the improved reception of Nigeria’s reforms was clear, but many funds had yet to make up their minds about returning to the market.

US clamps down on midwives, travel advisors encouraging birth tourism

The United States (US) Department of Homeland Security has established a specialized interagency unit aimed at curbing birth tourism.

The policy shift directly targets a lucrative commercial infrastructure built around birth tourism. These include facilitators what often operate under the guise of doulas, midwives, or travel advisors, offering all-inclusive packages that feature visa coaching, forged medical records, and coordinated hospital stays.

Others are those involved in marketing campaigns openly pitch US childbirth as a pathway to global mobility and long-term residency options for parents.

Federal investigators report that clients are frequently coached to misrepresent their travel plans to border officials and bypass medical bills, creating significant financial liabilities for domestic healthcare providers.

Spearheaded under the direction of Donald Trump and Marco Rubio, secretary of state, a newly formed Birth Tourism Prevention Task Force will mark a coordinated effort between the State Department and the Department of Homeland Security to disrupt networks exploiting nonimmigrant visas to secure automatic US citizenship for foreign-born children.

Operating on a global scale, the

Birth Tourism Prevention Task Force

unit will be actively involved in analyzing travel histories and visa records across federal databases to uncover systemic deception.

The crackdown has already yielded immediate operational results, with federal authorities revoking more than 600 travel visas issued to foreign nationals.

The administration emphasizes that nonimmigrant visas are legally restricted to temporary, specified purposes, rejecting the commercialization of American citizenship as an entry product for foreign travelers.

What some documented cases reveal

Investigative patterns released by the Bureau of Consular Affairs highlight widespread misrepresentation across diverse geographic regions.

Documented cases include foreign couples using trade conferences or shopping trips as pretextual travel to deliver children in the US as well as a foreign government official who utilized a one-week official travel visa to undergo a three-month stay for childbirth.

Under current federal guidelines, foreign nationals who willfully misrepresent their travel motives face immediate visa revocations, potential permanent inadmissibility to the United States, and broader legal exposure for facilitating networks.

UniAbuja launches Africa’s first enterprise university initiative to check unemployment

The University of Abuja (UniAbuja), now Yakubu Gowon University, has launched Africa’s first Enterprise University, an initiative designed to transform university education by moving students beyond classroom learning into practical entrepreneurship, innovation, research commercialisation and enterprise creation.

Launched under the theme ‘Innovative Agriculture as a Tool for Sustainable Enterprise Growth and Youth Empowerment’, the programme was organised through the University of Abuja’s Centre for Entrepreneurship Development and Students Mentorship (CEDSM) and brought together representatives of government, development partners, academia and the private sector.

Speaking at the event, Hakeem Babatunde Fawehinmi, Professor and Vice-Chancellor, University of Abuja, described the initiative as a significant milestone in the university’s effort to make education more responsive to the needs of society and the economy.

Fawehinmi noted that the university has enormous potential across disciplines, particularly in science, technology, agriculture and the social and management sciences, to generate solutions to Nigeria’s development challenges.

He said the Enterprise University would provide a platform for students to translate knowledge acquired in the classroom into practical solutions and businesses capable of creating value.

The VC, on behalf of the institution, promised to support 10 students who are able to provide convincing concept notes.

Earlier, Adeniran Lateef Ariyo, Professor and Director of CEDSM, said Africa’s Enterprise University initiative was established to bridge the gap between what students learn in the classroom and what is required in the marketplace.

Ariyo said the university had considerable intellectual resources capable of solving real-world problems and creating businesses, adding that the Enterprise University was designed to provide a structured platform for turning such knowledge into sustainable enterprises.

Representing Kingsley Tochukwu Udeh, Minister of Innovation, Science and Technology, and the Deputy Director in the Ministry, Okoro Nkechinyere, said the Enterprise University model was consistent with the Federal Government’s efforts to promote innovation, industrialisation, domestic production and job creation.

She said modern universities must move beyond traditional teaching and research to become institutions where research is converted into innovation, innovation into commercialisation, and commercialisation into enterprises and jobs.

She said Nigeria could no longer afford a situation where research findings remained within academic publications without being translated into products and services.

Presenting the keynote address, Markus Wagner, Country Director of the Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) in Nigeria and ECOWAS, represented by GIZ Team Lead for the Entrepreneurship Ecosystem under its Sustainable and Inclusive Economic Development and Decent Employment (SEDIN) programme, Baba Femi Oyederin, said the initiative could help reshape entrepreneurship education in Nigeria.

Oyederin said entrepreneurship was particularly important given the significant role of micro, small and medium enterprises in Nigeria’s economy and labour market.

He said while many Nigerian universities had introduced entrepreneurship education, there was a need to move from teaching entrepreneurship as a theoretical subject to creating environments where students could actually practise it.

Ojulari hails Tinubu, says deep offshore order will boost fiscal certainty, attract new investments

Bashir Ojulari, Group Chief Executive Officer of Nigerian National Petroleum Company (NNPC) Limited has commended president Tinubu’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing it as a landmark reform that significantly enhances Nigeria’s competitiveness for deep offshore investment and strengthens the nation’s pathway towards achieving its 3 million barrels of oil per day (MMbopd) production ambition by 2030.

According Ojulari, the new Order establishes a transparent, predictable and globally competitive fiscal framework for qualifying greenfield deep offshore developments.

He said that the order provides the certainty required to unlock long-term capital, accelerate Final Investment Decisions (FIDs), and maximise value from Nigeria’s offshore resources.

‘This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development. Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought.

‘For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets. It strengthens our confidence in achieving our strategic production ambition of 3 MMbopd while creating greater value for our shareholders and the Nigerian economy,’ he said.

The GCEO noted that recent reforms across the petroleum sector have already stimulated more than US$34 billion in new investment commitments adding that the deep offshore incentives order is expected to build on that momentum by enabling timely FIDs on strategic offshore developments.

He applauded the president’s leadership and unwavering commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through several Presidential Executive Orders which have strengthened the nation’s oil and gas sector.

‘This milestone reinforces NNPC Limited’s commitment to driving sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation,’ he added.

Bonga South West is expected to be the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008.

The new fiscal incentive regime for deep offshore oil and gas projects, signed on August 6, 2026 and published in the Federal Government Official Gazette on August 10, offer production tax credits of up to $11.50 per barrel for qualifying oil developments.

The framework, which reinforces Nigeria’s position as one of the world’s attractive destinations for deep offshore oil and gas development, is expected to unlock over $50 billion in new investments, including major projects starting with Bonga South-West which was approved in March 2026, and the Zabazaba and Owowo Deep Offshore projects.

The Order states that the Standard PTC is intended to ‘incentivise investments in the deep offshore developments’ and to ‘exclusively benefit parties to a production sharing contract who are directly providing the funding for developments that lead to production.’

For crude oil projects with producible reserves not exceeding 400 million barrels of crude oil equivalent, the government will provide a production tax credit of $3 per barrel or 20 per cent of the fiscal oil price, whichever is lower, up to cumulative production of 150 million barrels.

The Order further provides an additional $1 per barrel Standard PTC for future leases from commencement of production up to the applicable cumulative production threshold.

However, where the fiscal oil price for a qualifying project falls below $50 per barrel in a particular month, the tax credit incentives for that month will apply at 50 percent of the applicable rate.