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FG Abolishes Consolidated Relief Allowance Introduces Rent-Based Tax Relief

Fola Badmus2 months ago2 months ago04 mins

By Kamal Yalwa August 1, 2025 The Federal Government has scrapped the longstanding consolidated relief and personal relief allowances under Nigeria’s personal income tax system, replacing them with a new rent-based deduction framework, as introduced in the newly enacted Tax Act. According to the law, an individual’s taxable income will now be computed as the total income minus total deductions, with income sources including profits from business or trade, employment and investment income, as well as capital gains from the disposal of chargeable assets. Previously, tax computation included a consolidated relief of ₦200,000 or 1% of gross income (whichever is higher), plus a 20% personal relief of gross income. Under the new provisions, these have been abolished and replaced with a rent relief formula aimed at providing targeted tax benefits. “Rent relief of 20% of annual rent paid, subject to a maximum of ₦500,000, whichever is lower,” the Act states.The relief is limited to tenants, with no provision made for homeowners. New Relief to Favour Low-Income Earners Speaking to TheCable, tax consultant John Nwokolo explained that the new system is designed to favour lower-income earners, while high-income individuals will pay more under the revised Pay-As-You-Earn (PAYE) framework. “Those earning below ₦25 million annually will benefit more from the new structure,” Nwokolo said, “while those earning above ₦25 million will face higher tax burdens compared to the previous law.” For example, a person earning ₦6 million annually and paying ₦1 million in rent will receive a rent relief of ₦200,000 (20% of rent), making the taxable income ₦5.8 million, and a tax of ₦834,000.Under the old law, with ₦1.2 million in total relief, the taxable income would have been ₦4.6 million, leading to a tax of ₦896,000—₦62,000 more in taxes than under the new law. Key Provisions of the New Tax Act The Federal Inland Revenue Service (FIRS) and state tax authorities are expected to issue further guidance on the implementation of the new tax provisions.

Alleged N90.4m fraud: Former NHIS boss knows fate on bail Feb 27

Fola Badmus7 months ago7 months ago05 mins

Justice Chinyere E. Nwecheonwu of the Federal Capital Territory High Court, Kuchiako, Kuje, Abuja, on Wednesday, 12 February 2025, adjourned till February 27 for ruling on the bail application of former Executive Secretary, National Health Insurance Scheme, Professor Usman Yusuf. Yusuf was arraigned on a five-count bordering on embezzlement, conferring undue advantage, and fraud to the tune of N90,439,178.00 (Ninety Million, Four Hundred and Thirty Nine thousand, One Hundred and Seventy Eight Naira only). Arguing against the application for bail by the defendant, prosecution counsel, Francis Usani in a counter affidavit, informed the court that the offences alleged against the defendant impact on the general well-being of the common man in Nigeria, tarnishing also the image and reputation of the country as a whole and diminishes government’s efforts to sustain development in the country. “The evidence elicited in the course of investigation against the defendant is overwhelming and can lead to the defendant being convicted by the court. I know for a fact that the applicant failed to comply with the administrative bail conditions granted him by the respondent to report regularly and bi-weekly to the respondent’s office while he was under investigation”, he said. Usani further argued that the defendant if granted bail will abscond and will not be available to face his trial as the weight of the evidence against him was very strong and compelling. “It took the respondent’s officers discreet surveillance and high powered intelligence to apprehend the defendant for the purpose of bringing him to court. The defendant has boasted publicly even while in the custody of the respondent that this case will go nowhere as he is highly and politically connected. Usani further informed the court that the prosecution believed that the defendant is still highly connected and has tremendous influence at the NHIS to temper and influence most of the respondent’s witnesses that will come from the NHIS to testify before the court. He further submitted that it was the duty of the defendant to “place cogent, sufficient and compelling facts before the court upon which the court would consider his application for bail. “It is very clear that the affidavit’s evidence deposed to by Bashir Yusuf in support of the application for bail; that the defendant has not supplied materials to persuade this honourable court to grant his prayer, nor ask the respondent to show reason why bail should not be granted.” Counsel to the defendant, O. I. Habeeb, SAN, in a motion on notice informed the court that the defence are praying for an order of the court to admit the defendant on bail pending his trial in the case on such terms and conditions as the court may deem fit to impose. He also prayed for any further order the court may decide to make, adding that the offences for which the defendant is charged are bailable offences and that he has satisfied all the necessary conditions for him to be admitted on bail on liberal terms. Thereafter, Justice Nwecheonwu adjourned the matter for ruling on the bail application to February 27, 2025. The judge still held the order of remanding the defendant in Kuje Correctional Centre pending ruling.