Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, has stepped forward to clarify another contentious issue surrounding the proposed tax reform bills being debated in Nigeria’s National Assembly and discussed widely across the nation.

In recent days, reports and speculations have circulated claiming that the tax reform bills include provisions for an inheritance tax—a levy imposed on the wealth or assets bequeathed by deceased individuals to their heirs. However, Oyedele has categorically dismissed these claims as false.

In a statement addressing the controversy, Oyedele emphasized that no provision for inheritance tax exists within the current bills under review. He explained that the misconception likely stems from misinterpretations of the legislative documents or deliberate misinformation aimed at undermining the reforms.

“There is no inheritance tax in the proposed tax reform bills,” Oyedele stated firmly. He added that the purpose of these reforms is to simplify Nigeria’s tax system, make it more equitable, and ensure the government collects revenue efficiently without overburdening individuals or businesses.

The uproar surrounding the alleged inheritance tax underlines a broader concern among Nigerians about the impact of fiscal reforms on personal and business finances. Many citizens and businesses fear that additional taxes could compound the existing economic pressures in a country grappling with inflation, unemployment, and rising living costs.

Many argue that introducing an inheritance tax—if it were true—would disincentivize wealth creation and disproportionately affect families already struggling with generational wealth gaps. However, Oyedele’s clarification seeks to allay these fears, reinforcing that the committee’s goal is to streamline tax policies rather than introduce punitive measures.

According to him, the guiding principles of the reforms include:

• Simplification of tax laws to make compliance easier.
• Elimination of multiple taxation.
• Improving equity by ensuring the tax burden aligns with taxpayers’ ability to pay.
• Enhancing transparency and accountability in revenue allocation and utilization.

He thus provided an explainer to clarify the issue of inheritance tax.

Question 1: Some people have expressed the view that the tax reform bills seek to impose a tax on inheritance. Is this true?

Answer No 1:  There is no such provision contained in the tax reform bills, either directly or indirectly. The inheritance tax was abolished in Nigeria in 1996 when the Capital Transfer Tax Decree was abrogated.

Question 2: What then is the essence of this provision under section 4(3) of the Nigeria Tax Bill – “Income of a family recognized under any law or custom in Nigeria as family income in which the several interests of individual members of the family cannot be separately determined.”

Answer 2: Inheritance is a one-time wealth transfer as a gift during the lifetime of the giver or at death. Unlike inheritance tax which is applicable once, the family income covered under the tax bills is expected to recur from time to time.

Section 4 of the Nigeria Tax Bill stipulates all incomes that are chargeable to tax. Section 4(3) covers taxable income earned by a family, not their inheritance. This is a standard provision under the imposition of income tax which has always been in our tax laws. Currently, it is provided for under section 2(5) of the Personal Income Tax Act LFN 2004 as amended, viz:

“In the case of income of a family recognized under any law or custom in Nigeria as families income, in which the several interests of individual members of the family are indeterminate or uncertain, tax may be imposed only by the territory in which the member of that family who customarily receives that income in the first instance in Nigeria usually resides.”

Question 3: Why is the provision necessary?

Answer 3: If an individual earns an income, they will be taxed accordingly. Where a group of individuals such as a partnership, community, or family jointly earn a taxable income, they cannot be exempted just because they operate as a group of persons. The income will therefore be taxed in the hands of individual members where their respective shares can be determined otherwise the group will be collectively taxed. This ensures equity and prevents a potential loophole in the tax law.

Visit our website http://fiscalreforms.ng and social media accounts for more information including copies of the tax reform bills.

Persistent Misinformation

This is not the first time Oyedele has had to address misinformation surrounding the reforms. Since the committee’s inception, he has actively used media platforms to clarify details, rebut inaccuracies, and engage with citizens on the committee’s objectives.

In a recent appearance before the National Assembly, Oyedele reiterated that the reforms are designed to promote fairness and simplicity, ensuring that Nigeria’s tax policies align with global best practices while addressing the unique challenges of the local economy.

The tax reform bills form part of a broader initiative by the Nigerian government to overhaul the country’s fiscal policies. These reforms aim to address inefficiencies in revenue collection, reduce tax evasion, and expand the tax net to include the informal sector.

The Nigerian Naira has experienced a significant rebound against the U.S. dollar in recent weeks, a development attributed to improved external reserves and strategic interventions by the Central Bank of Nigeria (CBN).

The Naira appreciated by N127, closing at N1,535 per dollar on Friday, compared to N1,660 at the start of last week.

In a statement issued on Sunday, Muda Yusuf, Director of the Centre for Promotion of Private Enterprise (CPPE), emphasized that a combination of factors, including an increase in Nigeria’s external reserves and reforms in the FX market, has bolstered the currency’s performance.

Yusuf explained that Nigeria’s external reserves recently crossed the $40 billion threshold, which has given the CBN greater leverage to stabilize the market through targeted interventions.

“An improvement in our reserves, reaching $40 billion, implies that the CBN has more power to intervene in the market,” Yusuf said. “In truth, the CBN has been intervening to stabilize the currency.”

Beyond reserve strength, Yusuf noted that the Naira’s appreciation reflects enhanced investor confidence, fueled by the federal government’s fiscal and monetary reforms.

“Now, we are beginning to see a strengthening of the currency, so the level of our reserves has contributed to this as it elevates the confidence of foreign investors,” he added.

The role of the CBN’s recent introduction of the Electronic Foreign Exchange Matching System (EFEMS) has been lauded. Designed to bring transparency and efficiency to Nigeria’s FX market, EFEMS has been touted as a transformative tool for stabilizing the Naira. The initiative aims to eliminate market distortions that have historically plagued Nigeria’s FX ecosystem by matching buyers and sellers of foreign exchange in a more structured and transparent environment.

The system launched as part of the broader FX market reforms initiated in June 2023, has been described as a potential game-changer for Nigeria’s forex market. It represents a shift from the opaque processes that previously characterized the market, which were often criticized for enabling arbitrage and speculative trading.

Under EFEMS, transactions are conducted electronically, with market players gaining access to real-time pricing, fostering greater transparency and accountability.

The CBN has positioned EFEMS as a cornerstone of its efforts to attract autonomous inflows and boost market confidence. According to analysts, the system has already begun to bear fruit, with increased inflows from international money transfer operators and exporters adding to the market’s liquidity.

Yusuf observed that the recent success of the Naira is also linked to reforms in the foreign exchange market that have encouraged inflows from independent sources.

“In the last few months, as a result of reforms in the foreign exchange market, we are seeing a consistent improvement in autonomous foreign exchange inflow in the country, especially from the international money transfer operators,” he noted.

In addition to the rise in reserves and the implementation of EFEMS, Nigeria’s recent success in the international financial market has played a role in bolstering the Naira. Economic experts have highlighted the federal government’s Eurobond issuance, which raised $2.2 billion, as a key contributor to the Naira’s appreciation. This influx of foreign capital has reduced pressure on the FX market and provided a buffer for currency stabilization efforts.

However, other benefits of the naira’s gain are yet to be realized. A stronger currency is expected to alleviate inflationary pressures, particularly by reducing the cost of imported goods and services. It also enhances Nigeria’s attractiveness to foreign investors, who view currency stability as a critical factor in making investment decisions.

There is also concern about sustaining the momentum, which analysts say requires consistent policy implementation and further diversification of the country’s revenue sources. Yusuf cautioned that while the gains are encouraging, they must be built upon through continued reforms and measures to attract foreign exchange inflows.

He indicated that the CBN must continue with reforms and maintain a steady improvement in foreign exchange inflows to sustain this positive trend.

For now, the Naira’s resurgence offers a potential measure of relief for Nigerians facing economic pressures. However, the path to long-term stability will require sustained efforts to ensure that these gains are not only preserved but also amplified to support broader economic growth.

Chappal Energies has finalized the acquisition of Equinor Nigeria Energy Company (ENEC), marking a significant reshaping of Nigeria’s oil and gas industry.

The deal, announced in 2023, faced delays but reached completion on December 6, 2025.

The acquisition, valued at approximately $1.2 billion, includes a $710 million purchase price and contingent payments making up the remainder. The transaction underscores Chappal Energies’ ambitions in the Nigerian energy sector and Equinor ASA’s exit from a market where it has operated for more than three decades.

Details of the Deal

Equinor Nigeria confirmed on November 29, 2023, that ENEC, holding a 54% stake in the OML 128 oil and gas lease, was sold to Chappal Energies. Regulators approved the transaction in November 2024, paving the way for the completion of the deal under Project Odinmim, a special-purpose vehicle owned by Chappal Energies.

The acquisition grants Chappal Energies a controlling interest in ENEC, including a 20.2% stake in the Chevron-operated Agbami oil field and operatorship of OML 129. The Agbami field, one of Nigeria’s most prolific deep-water oil fields, has produced over a billion barrels of oil since its inception in 2008.

In a statement, Equinor Nigeria said: “As part of the transaction, all of Equinor’s assets in Nigeria have been transferred to Chappal Energies. Local employees will remain with the newly transferred company under its new ownership, marking a complete exit of Equinor from Nigeria.”

This acquisition is a pivotal moment for Chappal Energies, which now assumes responsibility for Equinor’s former assets and operations in Nigeria. The deal positions the Mauritius-registered company as a significant player in Nigeria’s offshore oil sector, leveraging key assets to strengthen its foothold in the market.

Rand Merchant Bank, a division of South Africa’s First Rand Bank Limited, served as the exclusive financial adviser to Chappal Energies, highlighting the strategic and financial planning behind the acquisition.

Equinor, for its part, sees the sale as part of a broader strategy to optimize its global portfolio. A spokesperson for the Norwegian energy giant noted: “This transaction allows Equinor to sharpen its focus on core areas of operation and streamline its international oil and gas portfolio.”

The Backstory of Equinor’s Journey in Nigeria

Equinor’s involvement in Nigeria dates back to 1992, and the company has played a transformative role in the country’s energy sector. Its development of the Agbami field, Nigeria’s largest deep-water oil field, has been a cornerstone of its operations.

Despite its early successes, Equinor signaled its intention to divest from Nigerian offshore operations in January 2023. At the time, the company had invested over $3.5 billion in its 20.21% stake in the Agbami oilfield.

Production from the Agbami field, once a key contributor to Nigeria’s oil output, has declined in recent years. Output fell from 36,000 barrels of oil equivalent per day (boepd) in 2019 to 29,000 boepd in 2020. These challenges, coupled with Equinor’s broader strategy to focus on more profitable assets, led to its decision to exit the Nigerian market.

With Equinor’s complete exit, Chappal Energies inherits a complex but potentially lucrative portfolio of assets. This acquisition not only reshapes Nigeria’s energy sector but also reflects shifting priorities within the global oil and gas industry.