The Federal Government on Tuesday moved to bring millions of small and informal businesses into the formal economy with the signing of a new presumptive tax framework. This policy represents a significant shift in the government's approach to revenue generation and economic inclusion. By targeting the vast informal sector, the framework aims to create a more structured and accountable business environment, potentially broadening the nation's tax base. The move is seen as a critical step towards formalising economic activities that have long operated outside the regulatory purview.
This major policy announcement comes at a time when Nigerian households and businesses are grappling with sharp increases in energy costs. The price of gas, a crucial commodity for many small enterprises and households, increased to N1,200 per kilogram from N1,000 per kg. This 20% rise adds significant pressure to operational costs, particularly for businesses in catering, manufacturing, and other sectors reliant on gas for power and production.
Further compounding the economic strain, the price of diesel, which powers generators for countless businesses and industries, increased to N1,300 per litre from N1,200 per litre. This increase directly impacts transportation, logistics, and the cost of goods and services across the country. Simultaneously, the price of fuel or Premium Motor Spirit (PMS) rose to N939 per litre from N837 per litre, yesterday, marking another substantial hike that affects every Nigerian who relies on petrol for transportation and power.
The domestic fuel price surge is occurring against a backdrop of rising global oil prices. Crude oil price rose to $84 from $75 per barrel last week in the global oil market. While this increase could benefit government revenue from oil exports, it also contributes to the upward pressure on refined product prices locally. This complex situation presents a challenging economic landscape for the new presumptive tax framework, which seeks to formalise businesses that are already facing heightened operational expenses.
Amid these economic developments, a political crisis is unfolding within the ruling All Progressives Congress (APC) in Benue State. The crisis arising from the parallel state congresses of the All Progressives Congress in Benue State on March 3, 2026 has gone beyond an internal party disagreement. This indicates that the factional dispute has escalated, potentially threatening party cohesion and governance in the state. The situation requires careful management to prevent further destabilisation.
A key point of contention in the Benue APC crisis is the status of the party's leadership. It is now established that the tenure of the Agada-led executive expired on February 8, 2026. This expiration date is central to the legitimacy of the competing factions that held parallel congresses. The failure to manage a smooth transition has evidently led to the current impasse, highlighting internal governance challenges within the party structure at the state level.
In a separate sector, the Nigerian Communications Commission (NCC), the telecommunications industry regulator, believes licensing more Internet Service Providers (ISPs) will boost internet access in the country. This regulatory stance aims to foster greater competition and improve digital inclusion. When it announced licenses for two multinational companies early in 2026, the NCC said it was to boost competition in connectivity and take services to underserved and unserved areas of the country via satellite. This initiative represents a parallel effort to use policy to drive formal economic participation and bridge the digital divide.
The confluence of these events—a new tax policy, soaring energy prices, political instability within the ruling party, and regulatory moves in the tech sector—paints a picture of a nation at a complex juncture. The government's attempt to formalise small businesses through the presumptive tax framework is a long-term economic strategy. However, its success may be influenced by the immediate pressures of rising costs for essentials like fuel and gas, as well as the need for political stability to create a conducive environment for policy implementation and business growth.
