Taxation
By Yunus Yusuf
Lagos, Jan. 7, 2026 (NAN) The Coalition for Affordable and Regular Electricity (CARE) has urged the Federal Government to impose heavier taxes on wealthy Nigerians while shielding low-income earners from proposed tax reforms.
CARE’s National Coordinator, Mr Chinedu Bosah, made the call during an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.
Bosah said any new tax regime must be equitable, transparent and democratically managed to protect the interests of workers and the poor.
He welcomed proposals to exempt individuals earning below ₦250,000 monthly, describing the measure as “a step in the right direction”.
However, Bosah said such exemptions would only be meaningful if tax revenues were transparently deployed to improve living conditions for ordinary Nigerians.
According to him, properly managed tax proceeds could deliver basic amenities, mass job creation and industrial development across the country.
He warned, however, that the current taxation approach risks deepening economic hardship for already struggling households.
“The new tax laws will undermine purchasing power and raise revenue that may only sustain the wasteful lifestyle of the ruling elite,” Bosah said.
He argued that although tax policies may not directly affect electricity supply, they would reduce electricity consumption as consumers struggle to pay bills.
Bosah noted that the tax laws neither increase operational costs nor boost investment in power generation, transmission or distribution.
“Power companies are enjoying various tax incentives, with no new taxes imposed on them,” he said.
Citing Section 187(j) of the Nigeria Tax Act, Bosah said major electricity businesses are VAT-exempt, while consumers continue to pay VAT.
“There is no justification for exempting big power companies while taxing consumers,” he said.
He criticised provisions granting large corporations tax holidays of up to 20 years, while poor Nigerians are compelled to pay. (NAN) (www.nannews.ng)
YO/KTO
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Edited by Kamal Tayo Oropo