CAPITALDIGEST DAILYNEWS, 09/02/2026

TAXES, FUEL HIKE SLOW BUSINESS GROWTH IN JANUARY – NESG REPORT

The report showed that the Current Business Performance Index declined to 105.8 points in January from 112.0 points in December 2025, marking its weakest level in the past six months, though it remained above the 100-point threshold that separates expansion from contraction. NESG attributed the slowdown to heightened cost pressures, weak post-festive consumer demand and the combined impact of new tax measures and higher energy costs on business operations. A sectoral analysis indicated that business activity weakened across most segments of the economy. Agriculture and Trade slipped into contraction territory, recording 99.5 points and 92.7 points respectively, down sharply from 112.9 points and 123.8 points in December. Manufacturing and Services remained in expansion at 115.8 points and 102.1 points, but both posted weaker growth compared with the previous month, while the Non-manufacturing sector emerged as the only segment that sustained a relatively stronger expansionary momentum. NESG noted that all major BCM sub-indices—including general business situation, production, demand conditions, investment, financial conditions, supply orders, trade stockpiling, access to credit and cash flow—declined compared with December 2025. This broad-based moderation, the NESG said, reflected a typical slowdown after the festive season, compounded by persistent structural challenges facing businesses. Cost pressures intensified significantly during the period under review, with the cost of doing business index surging to 90.5 points in January from 54.7 points in December 2025. Similarly, the input prices index jumped to 96.9 points, up from 68.9 points in the previous month. NESG described the situation as a “perfect storm” driven by new tax reforms, fuel price adjustments and the lagged effects of inflation, all of which eroded margins and constrained business activity. According to the report, businesses continued to grapple with limited access to finance, irregular power supply and rising commercial property costs, factors that dampened investment decisions and weighed on overall performance across sectors. These challenges, NESG said, have heightened operating risks and reduced firms’ capacity to expand production and employment. Meanwhile, the Future Business Expectation Index, which measures near-term business outlook over one to three months, moderated to 124.7 points in January from 132.6 points in December 2025, marking the second consecutive month of declining confidence. Despite the slowdown, all sectors remained optimistic about future conditions, albeit at varying degrees.

NEW TAX LAW: NTPIC EMPHASISES NEED FOR CLEAR COMMUNICATION, PUBLIC TRUST

The National Tax Policy Implementation Committee (NTPIC) has continued its stakeholder engagement programme, convening a high-level consultative session with leading tax advisory firms, professional bodies and institutional representatives to support the effective implementation of Nigeria’s newly enacted tax laws. The institutions were represented by their national presidents, while the advisory firms were represented by their leading tax partners. Addressing the session, the Chairman of the NTPIC, Mr Joseph Tegbe, noted that the success of the reforms would depend largely on effective change management rather than policy design alone. He emphasised the importance of clear communication and public trust. He reaffirmed the Committee’s commitment to engaging sub-national governments through the Joint Revenue Board and other institutions to harmonise interpretation, build capacity and ensure alignment across federal and state tax administrations. Participants broadly welcomed the reforms, describing them as timely and structural, and aimed at strengthening Nigeria’s fiscal framework rather than driving short-term revenue gains. Discussions were situated within the Federal Government’s broader reform objective of improving long-term fiscal sustainability. While acknowledging the robustness of the legislative framework, participants stressed the need for consistent interpretation across institutions and clear operational guidelines to prevent fragmented enforcement. They advised that implementation should be supported by deliberate, coordinated and simplified public education strategies that clearly distinguish the impact of the reforms on individuals, small businesses and corporates, while reinforcing principles of fairness, proportionality and national development.

ECONOMIC ACTIVITY EXPANDS 55.7 INDEX POINTS IN JANUARY

Stakeholders in Nigeria’s oil and gas industry have said recent fiscal reforms, particularly the Nigeria Tax Act 2025, hold significant potential to unlock value across the country’s energy value chain if effectively implemented. They made this known at the 2026 Oil and Gas Symposium organised by the Nigerian Institution of Petroleum Engineers in Abuja, where industry players converged to examine how tax reforms, innovation, and engineering efficiency can reposition Nigeria’s energy sector for sustainable growth. In a statement, the National Chairman of NIPetE, Dr Yetunde Aladeitan, was quoted as saying that Nigeria’s energy future must move decisively away from crude oil dependency towards value-driven, innovation-led growth. Aladeitan, an associate professor of petroleum engineering and Director of the Energy Research Centre at the University of Abuja, spoke while hosting the symposium, noting that her leadership of the institution had given her deeper insight into what she described as “a promising future” for Nigeria’s oil and gas sector. She, however, urged industry stakeholders to align with global trends and best practices in the sector, stressing that innovation and value optimisation must take precedence over reliance on crude exports. The high-level virtual symposium, themed ‘Beyond the Barrel: Tax Reforms, Value Chain Optimization, and the Future of Nigerian Energy’, brought together engineers, policymakers, fiscal experts, and industry practitioners to interrogate Nigeria’s evolving oil and gas landscape and identify sustainable pathways for long-term value creation. The Chairman of the occasion and President of the Nigerian Society of Engineers, Ali Rabiu, represented by the Deputy President, Valerie Agberagba, described the theme of the symposium as timely and critical. He stressed that Nigeria must urgently move away from over-dependence on crude oil revenues and instead pursue an innovation-driven and diversified energy ecosystem anchored on sound fiscal policies, gas development, and value-chain efficiency. Delivering the keynote address, Abudukerimu Sule, speaking on behalf of Mr Momoh Oyarekhua, provided insights into investment opportunities embedded in the Nigeria Tax Act 2025. He highlighted how tax reforms could stimulate upstream efficiency, attract both foreign and local investment, and strengthen Nigeria’s competitiveness in the global energy market. A panel session followed, featuring industry experts including Ehimhen Okoh-Agunloye, Bukola Olusola, Adesola Adebawo, Mrs Eyono Fatai-Williams, and Mr Abayomi Abiona. Discussions reportedly covered gas transition strategies, upstream and midstream optimisation, fiscal incentives, and the role of engineering innovation in driving sustainable energy development. Beyond the technical discussions, participants noted that the symposium reinforced Aladeitan’s long-standing position that Nigeria’s energy sector must focus on translating policy reforms into practical, measurable outcomes.

FG, IFC SEAL DEAL TO DRIVE BANKABLE INFRASTRUCTURE, ATTRACT PRIVATE CAPITAL

The Federal Government (FG) has signed a cooperation agreement with the International Finance Corporation (IFC) to speed up the delivery of bankable infrastructure projects and mobilise private capital critical to Nigeria’s economic transformation. The agreement, signed in Abuja on Wednesday, had the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu; the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun; the Minister of Health and Coordinating Minister of Social Welfare, Dr Ali Pate; senior government officials and top executives of the World Bank Group and IFC. According to a statement by the Budget Ministry, Senator Abubakar Atiku Bagudu, said that the partnership would help Nigeria close its infrastructure gap by preparing credible, investment-ready projects capable of attracting private investors. “Nigeria is a country brimming with opportunities. With a population of over 230 million, our needs in rail, energy, water security, healthcare, and digital infrastructure are extensive. This agreement aims to ensure that we prepare projects adequately so investors can have confidence and clarity on where to allocate capital,” he said. Bagudu noted that the agreement supports President Bola Ahmed Tinubu’s reform agenda, which focuses on macroeconomic stability, predictability and private sector-led growth anchored on Nigeria’s Agenda 2050. Speaking for IFC, its Vice President for Africa, Mr Ethiopis Tafara, described the agreement as the outcome of a year-long collaboration built on a shared vision for Nigeria’s future. He said the cooperation would strengthen project and budget preparation by improving the identification, structuring and delivery of high-impact projects across key sectors. Also speaking, IFC Regional Director for Central Africa and Anglophone West Africa, Ms Dahlia Khalifa, said the agreement marked a major milestone in Nigeria’s development journey. She said Nigeria’s ongoing reforms and youthful population offer strong growth prospects that can only be unlocked through robust infrastructure and effective public-private partnerships.

NEC: SHETTIMA TO CONVENE CONFERENCE TO STRENGTHEN NIGERIA’S ECONOMIC COORDINATION

The Federal Government will on Monday convene the National Economic Council (NEC) Conference to strengthen Nigeria’s economic coordination and accelerate inclusive growth across all states of the federation. Mr Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, Office of the Vice-President, made this known in a statement on Sunday. Nkwocha said governors of the 36 states and key national stakeholders will attend the conference from Feb. 9 and 10, at the Banquet Hall of the Presidential Villa, Abuja. He said that Vice-President Kashim Shettima, who chairs the NEC, will preside over the two-day summit, which will feature deliberations on fiscal coordination, investment mobilisation, and shared development strategies between the federal and state governments. He also said that President Bola Tinubu will serve as the Special Guest of Honour, while other top government officials, development partners, and private-sector leaders are expected to participate in the conference. The Presidential aide added that the conference is being convened by the Minister of Budget and Economic Planning, Sen. Abubakar Bagudu. Nkwocha explained that the conference is expected to produce far-reaching policy direction for the states as they align with the Federal Government’s long-term economic agenda. The theme of the conference is “Delivering Inclusive Growth and Sustainable Development: The Renewed Hope National Development Plan.” Dr Deborah Odo, Permanent Secretary, Federal Ministry of Budget and Economic Planning and Secretary of the NEC, said the conference will address pressing macroeconomic priorities. “The conference will focus on national economic issues aimed at encouraging economic growth and development across the country,” she said.