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Consumption Tax Is Dead, Lagos Still Collects — Inside Nigeria’s New Tax War Over Hotels

Nigeria’s new tax law, signed in 2025 and effective January 1, 2026, expands VAT coverage but makes no reference to consumption tax. A senior national tax controller has told ANGLE 360 that consumption tax is now legally void, while Lagos State insists hotels must keep paying until a harmonised policy emerges. The contradiction has plunged Nigeria’s hospitality sector into regulatory confusion, raising questions about tax legality, federal supremacy, and the future of state revenue powers.

Consumption Tax After January 2026: A Legal Grey Zone Emerges
As Nigeria’s sweeping tax reform takes effect from January 1, 2026, a quiet but consequential battle is unfolding between state governments and hospitality businesses, particularly in Lagos.

At the centre of the dispute is consumption tax, a levy long imposed by some states on hotels, restaurants, and event centres. The problem, industry players argue, is that the new national tax law signed in 2025 does not mention consumption tax at all, even as it expands and restructures Value Added Tax administration.

According to ANGLE 360 findings, this omission has triggered conflicting interpretations between federal tax experts, state revenue agencies, and business operators, leaving hotels caught in the middle.

What the New Tax Law Actually Changed
Nigeria’s updated tax framework consolidated VAT administration and clarified taxable supplies, enforcement mechanisms, and revenue sharing structures. Crucially, it reasserted VAT as a federally governed tax, collected centrally and distributed to states.

However, consumption tax, as a separate levy, was neither redefined nor preserved in the new legislation.

This silence has become the fault line.

Some state governments, Lagos inclusive, argue that consumption tax remains valid under existing state laws until expressly repealed. Others say the absence of consumption tax in the new regime effectively renders it unenforceable.

Inside View: National Tax Controller Breaks Ranks
In an exclusive conversation with ANGLE 360, a senior Nigeria Revenue Service (NRS) official, a tax controller and policy expert, offers a stark interpretation.

Speaking anonymously because he was not authorised to comment publicly, the official said consumption tax has no legal standing from January 1, 2026.

He argued that Nigeria now operates under one overriding tax framework, and that any tax not recognised under the new law is legally defective.

According to him, “If consumption tax was not mentioned or preserved in the expanded tax law, then it has become null, void, and unenforceable.”

The official accused Lagos State of what he described as aggressive revenue expansion beyond legal limits, adding that hospitality businesses should not comply blindly.

He advised hotel owners to demand legal justification from any enforcement officer and to challenge the levy in court if necessary.

Importantly, he clarified that his views reflected professional tax interpretation, not an official NRS position.

Lagos State’s Position: Pay Until Policy Is Harmonised
Hotel owners who spoke to ANGLE 360 painted a very different picture of reality on the ground.

According to multiple operators, Lagos State tax officials have instructed hospitality businesses to continue paying consumption tax pending the release of what they described as a “harmonised policy statement.”

One hotel executive said officials warned that non-payment could attract sanctions, audits, or operational disruptions.

This has created what industry players describe as a compliance dilemma: obey state demands and risk double taxation, or resist and face enforcement pressure.

Lagos State has not formally announced the abolition of consumption tax, and its internal position appears to be that state laws remain valid unless expressly overridden.

Hospitality Sector Caught in the Middle
The result is uncertainty rippling across the hospitality value chain.

Hotel operators told ANGLE 360 that pricing, accounting systems, and tax planning have all been disrupted. Some fear that continuing to collect consumption tax could later expose them to legal claims from customers or regulators if the levy is ruled illegal.

Others worry that refusal to comply with state directives could trigger closures or penalties.

An industry source summed it up bluntly: “We are being asked to choose between federal law interpretation and state enforcement power.”

Legal Reality: Who Ultimately Has the Upper Hand?
Tax lawyers contacted by ANGLE 360 say the issue will likely be settled only through judicial interpretation or a clear federal-state harmonisation directive.

Under Nigeria’s constitutional framework, VAT has repeatedly been affirmed as a federal tax, while states retain limited powers to impose levies that do not conflict with national legislation.

If a court determines that consumption tax substantially overlaps with VAT under the new regime, enforcement could be struck down.

Until then, Lagos State’s position rests more on administrative power than settled law.

Why This Fight Matters Beyond Hotels
This dispute is not just about hotels or restaurants.

It touches on broader questions about fiscal federalism, the limits of state taxation, and investor confidence in Nigeria’s reform agenda.

If tax reforms meant to simplify business end up creating new layers of uncertainty, the cost will be borne by consumers, investors, and state economies alike.

SOURCE: https://angle360ng.com/consumption-tax-is-dead-lagos-still-collects/

VERY SERIAL news platform has obtained the exchange rate of the dollar to naira black market today, August 27th, 2023 in Nigeria, including the official CBN rate.

As of Saturday August 26th, 2023, the dollar to naira exchange rate is 1 USD to 915 NGN at the parallel market popularly called black market. Buyers reported buying one US dollar for ₦915. Bureaux De Change (BDC) operators say the buying rate of the greenback is N900 while the selling price is N915 per dollar, leaving a N15 profit margin.

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https://www.veryserial.com/dollar-to-naira-black-market-exchange-rate/

VERY SERIAL news platform has obtained the exchange rate of the dollar to naira black market today, August 25th, 2023 in Nigeria. This includes the black market rates obtained from Bureau De Change (BDC) operators in Lagos and Abuja and the CBN rate.

The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N900 and sell at N920 on Thursday, 24th August 2023, according to data obtained by VERY SERIAL from Bureau De Change (BDC) operators.

How much is dollar to naira today in black market August 25th, 2023?

The naira on Thursday, 24th August, 2023 crashed in value by 4.54 per cent against the United States dollar at the black market to trade at N920/$ as against N880/$ it traded on Wedneday. This is according to data obtained by VERY SERIAL from Bureau De Change (BDC) operators in Lagos and Abuja and from other media sources. This means 1 USD is purchased at N900 at the black market and sold at N920, resulting to a profit of N20 per dollar.

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate 900
Selling Rate 920

SOURCE: https://www.veryserial.com/dollar-to-naira-black-market-exchange-rate/

The Central Bank of Nigeria says it is set to take new far reaching economic policy measures to curb the naira free fall and stabilise the currency exchange rate against the dollar.

Acting Governor of the CBN, Folasodun Sonubi, made the statement in a press interview to State House Correspondents after briefing President Bola Tinubu on what the bank was doing to stop the persistent depreciation of the naira on Monday at the State House.

Folasodun Sonubi says President Tinubu expressed his concern about the impact of recent developments in the foreign exchange market, particularly on ordinary citizens.

READ MORE:
https://www.veryserial.com/central-bank-of-nigeria-curb-naira-free-fall/

The Overseer of the Citadel Global Community Church, Pastor Tunde Bakare, says it is clear President Bola Tinubu has decided to impose hardship on Nigerians through his policy reforms but have ignored the subsidy thieves, government officials and corrupts powerful individuals who plunged Nigeria into mass suffering and economic deprivation.

Bakare, a former presidential aspirant of the All Progressive Congress (APC) made the revelation on Sunday during a press conference at his church in Lagos.

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https://www.veryserial.com/tinubu-hardship-nigerians-ignoring-subsidy-thieves/

The Nigerian naira continues to exchange at N950 to one US Dollar after its freefall and continued depreciation in the parallel market, otherwise called black markey in the last few days of the past week.

On Friday it closed at N950 to a dollar, after weakening by a whopping N50 than the N900 it closed on Wdnesday and Thursday.

The figure represents a N50 or 5.55 percent depreciation compared to the N900 it traded in the first week days of the last week. Bureaux De Change (BDC) operators in Lagos and across Nigeria claim there is high demand for foreign currency in the street market.

READ MORE:
https://www.veryserial.com/naira-n950-to-us-dollar-losing-n50/

Economists have outlined several strategies to counter the depreciation of the Nigerian naira and address the scarcity of US dollars. One key recommendation is to secure balance of payment facilities from multilateral institutions, which could inject foreign currency into the economy. Another crucial step is to enhance the export of goods and services to increase dollar inflow.

The naira has faced a significant decline, losing approximately 25.65% and 65.65% of its value against the dollar within two months in both the parallel market and the official market, respectively. The liberalization of the foreign exchange market has contributed to this decline.

READ ON: https://www.veryserial.com/economists-propose-strategies-to-increase-dollar-inflow/

Fupay stands out as a novel addition to Australia’s Buy Now, Pay Later (BNPL) applications, distinguishing itself with a broader purpose. Its compelling tagline, “empower your lifestyle while maintaining control,” underscores a philosophy that empowers patrons to manage their expenditures judiciously, factoring in the impact of each transaction on their financial flow and future aspirations.

The platform operates as a steadfast ally to Australian workers who meet its stringent loan criteria. By offering a “spotting” mechanism, Fupay ensures timely rent payments and prevents individuals from slipping into arrears. To access this aid, customers need to link their bank account details. This link enables Fupay to assess eligibility and ascertain if the loan aligns with their financial capacity.

What is Fupay?
Fupay is a mobile application that offers Buy Now, Pay Later (BNPL) services to its customers, going beyond the conventional realm of transactions by presenting users with a holistic financial management solution. By integrating users’ bank account data, Fupay Australia offers a comprehensive overview of customer financial landscape, analyzing income, invoices, and historical transactions to predict future expenses, set savings goals, and meticulously monitor spending habits.

The app boasts three distinctive BNPL features: Fu Card, Fu Cash, and Fu Bills. Fu Card, a digital card, can be preloaded with a customizable amount ranging from $20 to $500, enabling flexible spending across diverse outlets. Fu Cash allows users to store up to $200, affording them versatile spending options. Meanwhile, Fu Bills extends its scope to cover bills up to $500 using the convenience of BPAY, further enhancing financial freedom.

READ MORE: https://www.veryserial.com/fupay-app-review-australia/

UPDATED: Nigerian Senators Illegally Shared N228m, N3m for each 10 Principal Officers and N2m for 99 Floor Members

Exclusive report just reaching VERY SERIAL indicates that the 10 Principal Officers of the Nigerian Senate actually received N3million each while the 99 other floor members received N2million each as ‘vacation allowance’, bringing the total disbursement to N228million and not N218million as was earlier reported.

The President of the Nigerian Senate, Mr Godswill Akpabio publicly announced on the floor of their chamber on Monday that a particular amount of money had been sent to their accounts to enjoy their vacation.

According to Premium Times, each floor member senator received a minimum of N2 million as “vacation allowance” before proceeding on seven weeks of vacation. However the 10 principal officers of the Senate received N3million each, according to exclusive report obtained by VERY SERIAL. A senator confided to the online Newspaper that all the 109 senators in the upper chamber were paid the allowance for the vacation, which commenced on Monday and ends on 26 September.

read on
https://www.veryserial.com/nigeria-lawmakers-shared-n228m-vacation-allowance/

Today I will be taking you through the top 10 best accounting software for small businesses in Nigeria in 2023. Accounting Software has become one of the most important emerging issues in accounting and financial processes development in 2023.

According to a recent report by Cloud Accounting Platform – Xero™ titled “Make or Break? An investigation into what separates successful entrepreneurs from those who fail”, 14% of small businesses who did not use software to manage their finances failed.

Also online accounting platform, Sage One, has hinged the high rate of failure of small businesses especially before the second year of startup, on poor book-keeping as well as inadequate researches and lack of insight by business owners.

With the advent of computer and digital technology, businesses do no longer have to burden themselves or their accountants with endless manual systems of recording their daily financial operations.

CONTINUE READING
https://www.veryserial.com/accounting-software-for-small-businesses-in-nigeria/