There’s been a lot of talk about President Tinubu’s new tax proposals, and here’s my hope, that the taxes will target only the wealthy and big corporations, not the everyday Nigerian. If that happens, it could actually be very good news for the economy.
Why? Because the Nigerian economy is showing signs of recovery. According to government indices, inflation has dropped from a high of 34% in late 2024 to 14% now. That’s still high, but it’s a major improvement. Reports suggest that food prices and services have fallen by around 15–20% (though it would be great if experts could confirm this).
The naira has also held relatively stable, and the stock market had a record-breaking year, delivering around 48% profit for investors.
Here’s the potential benefit: if the government raises more money from taxes on the rich, it could reduce borrowing and stop the excessive printing of money. This, in turn, could drive inflation even lower and make food and services more affordable by the middle of the year.
But there’s a catch. If the taxes end up hitting the poor instead, it would be counterproductive. It would be like giving someone ₦5 only to take ₦10 back—a move that would hurt the very people the economy is supposed to protect.
The hope is that policymakers listen carefully and make a plan that strengthens the economy without burdening ordinary Nigerians.
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