Nigeria's economic balancing act: Reforms, tariffs, and green shoots

Welcome to the first edition of 234Digest in 2025. As we step into a new year, Nigeria finds itself at a crossroads, navigating economic reforms, industry challenges, and glimmers of revival. From telecom companies lobbying for tariff hikes to sweeping tax reforms and efforts to revitalize the oil sector, this year promises to be major for Africa's largest oil producer. Let’s dive in.

— Samuel Okocha, Curator and Editor

Word for word

Today’s briefs

Telecoms seek tariff hike amid economic turmoil

Nigerian telecom giants are lobbying to double their tariffs, citing harsh economic conditions. MTN Nigeria's CEO said the industry has requested "approximately a 100% increase" from regulators to maintain service quality. The push comes as Africa's largest economy grapples with 34.6% annual inflation—a near three-decade high—and a weakening naira. The industry aims to relax pricing rules that have been in place for 11 years.

New year, new tax rules

As telecoms seek relief, Nigeria has introduced its own economic salve. The country rang in 2025 with sweeping tax reforms. The 2024 Withholding Tax Regulations, effective January 1st, exempt small businesses with monthly transactions under ₦2m ($1,300) from withholding tax. The changes also offer relief to low-margin industries and introduce stricter anti-evasion measures. Spearheaded by Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the new rules aim to boost compliance and economic growth.

Credit boost for underserved groups

Complementing the tax reforms, President Bola Tinubu announced the launch of the National Credit Guarantee Co., set to begin operations by June. This public-private partnership aims to expand credit access, particularly for underserved groups. It follows the Nigerian Consumer Credit Corp., established with a 100bn naira ($65m) grant, which has been providing loans primarily to government employees.

Oil sector sees green shoots

While the government bolsters financial access, the oil sector is seeing its own revival. Nigeria's long-dormant Warri oil refinery partially resumed operations after nearly a decade. The facility is now running at 60% of its 125,000 barrel-per-day capacity. This development is part of a broader effort to revive the country's refineries, including the recent restart of the Port Harcourt refinery. In a related move, Nigeria's upstream regulator now requires oil license applicants to demonstrate low carbon emissions and renewable energy programmes, aligning with the country's 2060 net-zero goal.

Quote of the Day: "Perseverance is not a long race; it is many short races one after the other." — Walter Elliot

Photo of the day

As we wrap up this edition, I'd like to remind you that 234Digest comes to you thrice weekly, with our Sunday edition featuring a deeper dive into a major news item.

I'm excited to announce our new Sunday special edition, launching this weekend! This addition will explore Nigeria's vibrant creative and cultural sector, covering everything from film and fashion to music, tourism, arts, and culture.

For this Sunday's special, we'll be delving into the evolution of Nigeria's Nollywood industry. I'm thrilled to share that I've interviewed an emerging filmmaker who offers fresh insights and compelling stories about the industry's current landscape and future prospects. This exclusive interview promises to provide a unique perspective on one of Nigeria's most dynamic cultural exports from the viewpoint of a rising talent.

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Until Sunday. Have a great and blessed weekend.