Business
Why thousands of Nigerian large firms risk sanctions
Thousands of large companies in Nigeria risk regulatory sanctions if they fail to connect their billing systems to the government’s electronic invoicing platform before the end of June, as authorities intensify efforts to modernise tax administration and improve transparency.
The initiative, led by the National Revenue Service, requires businesses to generate and transmit invoices digitally in real time—or near real time—at the point of issuance. Each invoice is authenticated on the platform, creating a verifiable digital trail that enables tax officials to monitor transactions, validate sales, and reconcile them with tax filings.
Speaking during a webinar organised by Stransact and Doftwerks West Africa Limited, Mohammed Bawa, head of product management at the NRS, warned that companies that miss the June deadline will be classified as defaulters under the rollout plan.
“The NRS will have the mandate to apply sanctions for non-compliance,” he said, while noting that timelines could still be adjusted depending on implementation challenges.
The deadline marks a critical compliance milestone for firms with annual turnover above N5 billion. These companies are expected to complete system integration and begin transmitting invoices under the new framework—a shift that could fundamentally change how businesses record sales, file taxes, and manage accounting processes.
Before the introduction of the Merchant Buyer Solution (MBS), companies relied on self-reporting through the Tax Pro Max platform, where invoices were not verified at the point of issuance. Underreporting was typically detected only during periodic audits conducted months later.
The new system adds a real-time verification layer to existing processes, moving compliance away from delayed reconciliation toward continuous monitoring. Authorities say this marks a broader transition from self-declared filings to data-driven tax enforcement.
Currently, about 5,000 large taxpayers fall within the first phase of the rollout. Early adoption has been gradual, with roughly 1,000 firms—around 20 percent—already connected to the system. Notable adopters include MTN Nigeria, IHS Towers, and Huawei Nigeria.
While the initial phase targets large corporations, the government plans to extend the system across other segments. Medium-sized firms with turnover between N1 billion and N5 billion are currently in the engagement phase, with pilot testing expected in the second quarter of 2026. Full implementation for this group is scheduled for July 1, 2026, with enforcement beginning in January 2027.
Smaller businesses will be given a longer transition timeline, with rollout expected from 2027 and enforcement commencing in 2028.
Nigeria’s push toward e-invoicing reflects a wider global trend, where tax systems are increasingly built around structured digital data rather than manual reporting. In regions such as Europe and Latin America, invoices are transmitted in machine-readable formats and often require approval from tax authorities before transactions are finalised.
Experts say the reform could significantly boost transparency, reduce revenue leakages, and align Nigeria with international best practices. However, concerns remain around compliance costs, system readiness, and data security.
“Efficiency is the obvious benefit, but the deeper value lies in assurance,” said Oluyemisi Daramola of Bamidele Daramola & Co, noting that continuous validation can strengthen governance and investor confidence.
Business leaders have also raised questions about increased regulatory visibility and the potential risks associated with real-time reporting. Eben Joels of Stransact highlighted concerns around data privacy and the extent of oversight authorities may gain.
Regulators, however, insist the system will reduce friction between businesses and tax authorities by ensuring both parties work from the same verified data, limiting disputes and the need for intrusive audits.
As the June deadline approaches, the success of the rollout will depend on how effectively authorities balance enforcement with support, ensuring businesses can transition smoothly into Nigeria’s evolving, data-driven tax regime.
Business
North African Airline incurs Nigeria’s wrath
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.
The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.
According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.
The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.
Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.
“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.
He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.
According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.
Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.
He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.
The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).
Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.
He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.
The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).
“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.
The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.
Business
₦10m monthly made from akara and bread business -Umo Eno
Philippine Duru
philippineobetoduru@gmail.com
08034905774
Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.
Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.
According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.
“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.
The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.
Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.
His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.
The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.
Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.
His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.
Business
All share index gains about 0.81% as NGX rebounds
The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.
The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.
With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.
The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.
Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.
Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.
Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.
Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.
As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.
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