The Chairman of the Senate Committee on Local Content, Distinguished Senator Joel-Onowakpo Thomas, has said Nigeria’s new tax and foreign exchange reforms are “strategic actions to rebuild an economy that works for all”, insisting that the policies are already yielding measurable gains despite initial discomfort.

Represented at the 2025 NUJ Delta State Press Week on Thursday, the Senator delivered a keynote address titled “Tax Regimes and Exchange Rate Unification: Economic Implications and the Media’s Strategic Role”, setting out in detail the Federal Government’s fiscal and monetary overhaul under President Bola Tinubu.

He said the administration had inherited a “cumbersome, unpredictable and oil-dependent tax system” but had since dismantled contradictory laws, streamlined collection agencies and introduced four new tax laws aimed at fairness, simplicity and growth.

“Conflicting, multiple and complex tax laws have been dismantled,” he said. “The result is a predictable tax environment that builds trust and improves compliance.”

According to him, the new Nigeria Tax Act simplifies personal, corporate, petroleum and value-added taxation, while the Nigeria Revenue Service now serves as the sole national revenue authority.

The introduction of a Tax Ombudsman, he added, marks an important milestone in taxpayer protection.

Senator Joel-Onowakpo emphasised that the reforms aim to broaden the tax net without burdening struggling households or businesses.

“The target is increased revenue without creating more hardship. Minimum wage earners are now exempt, while the first N800,000 of income attracts zero tax,” he noted.

He highlighted incentives for SMEs and startups, zero tax brackets for small companies earning ₦50 million or less, and expanded VAT exemptions for agriculture, education, land and buildings.

Turning to the foreign exchange market, the Senator described the decision to float the naira as a “necessary but painful surgery”, arguing that the era of multiple exchange rates had discouraged investors and enabled arbitrage.

He said: “The immediate effect was harsh, but today the market is gaining stability. Capital importation has risen significantly and investor confidence is improving.”

According to him, foreign capital inflows grew from $3.95 billion in 2023 to $7.13 billion in 2024, with $5.64 billion recorded in the first quarter of 2025. He also cited the naira’s recovery from ₦1,695/$ in September 2024 to ₦1,440/$ in November 2025.

He attributed this to reduced importation of petroleum products, improved exports and fewer pressures on the Central Bank.

Senator Joel-Onowakpo reaffirmed that the National Assembly remains committed to supporting reforms that “empower households, strengthen SMEs and promote long-term economic development”.

He also listed interventions facilitated for his Delta South constituents, including job creation through Local Content enforcement, skills training in welding, data science, solar installation and drone operation, and support for young engineers in NCDMB internship schemes.

Additionally, he announced the progress of two major bills—the Federal Oil and Gas Hospital in Benikruku and the Oil and Gas Content Development Institute in Emede—both designed to enhance industry capacity and support host communities.

However, the Senator has charged the media with a “strategic role” in helping citizens understand the benefits of government policy, lamenting the dominance of misinformation on social platforms.

“Social media has made everyone a publisher but not a journalist. Misconception and negativity now spread faster than truth,” he warned.

He urged journalists to strengthen professionalism, “tell our good stories”, and help redefine public perception through accurate reporting and constructive engagement.

The Senator concluded by expressing hope that the NUJ Press Week would “reduce the challenges of media negativity, improve output and encourage national development”.

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