Oyedele: Low-income Earners, SMEs to Reap Benefits of Tax Reforms Effective January

•Pension assets, minimum wage earners, capital gains, education, agriculture, others to enjoy exemptions

James Emejo in Abuja

Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has said the new tax laws will provide several reliefs and exemptions for low-income earners, average taxpayers, and small businesses, from January next year.

In general, Oyedele said there were about 50 tax exemptions and reliefs designed to benefit the masses.

He said pension funds and assets under the Pension Reform Act (PRA) were tax-exempt, including pension, gratuity or any retirement benefits granted in line with PRA.

Compensation for loss of employment up to N50 million will also not be liable to tax under the new regime, he said.

In addition, under the Capital Gains Tax (CGT), sale of an owner-occupied house, and personal effects or chattels worth N5 million are tax exempt, he said.

Others, according to Oyedele, included sale of two private vehicles per year, gains on shares below N150 million per year or gains of about N10 million, pension funds, charities, and religious institutions (non-commercial), as well as gains on shares above exemption threshold, if the proceeds were reinvested.

An update by the presidential tax reforms committee further clarified that the new tax dispensation also provided for allowance deductions and reliefs for individuals.

Among others things, pension contribution to Pension Fund Administrators (PFAs), National Health Insurance Scheme, and National Housing Fund contributions will not be subjected to tax.

Similarly, interest on loans for owner-occupied residential housing, life insurance or annuity premiums are tax free.

Also, 20 per cent of annual rent of up to N500,000 will be exempted from tax obligations.

Furthermore, effective January, individuals earning the national minimum wage or less, and annual gross income of N1.2 million (translating to about N800,000 taxable income) are tax exempt.

Oyedele said the reforms further reduced PAYE tax for those earning annual gross income up to N20 million as well as exempted gifts from tax.

Small companies whose turnover are not more than N100 million and total fixed assets N250 million will pay zero tax, while eligible start-ups are tax exempt, he said.

He said there was also compensation relief – 50 per cent additional deduction for salary increases, wage awards, or transport subsidies for low-income workers, as well as employment relief, involving 50 per cent deduction for salaries of new employees hired and retained for at least three years.

Under the proposed tax regime, there is provision for holiday for the first five years for agricultural businesses (crop production, livestock, dairy among others), Oyedele said.

Also free from tax are gains from investment in a labelled start-up by venture capitalist, private equity fund, accelerators or incubators.

Others are exemptions of small companies from four per cent development levy as well as exemptions of manufacturers and agriculture businesses from withholding tax deduction on their income.

Small companies are further exempted from deduction on their payments to suppliers.

Oyedele stressed that the tax reforms also granted zero per cent exemptions on basic food items, rent, education services and materials, health and medical services, and pharmaceutical products.

He said small companies will enjoy VAT exemptions on turnover less than N100 million, diesel, petrol, and solar power equipment among others.

Electronic money transfers below N10,000, salary payments, intra-bank transfers, transfers of government securities or shares and all documents for transfer of stocks and shares are not subject to tax, Oyedele said.

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    At 34, Lee Engineering Trudges On Despite Odds

    At 34, most companies begin to show signs of age as their founding energy begins to soften, their innovative edge blunts, and they settle into the predictable rhythm of corporate adulthood. But this pattern seems inapplicable to Lee Engineering, writes Emmanuel Addeh.

    Lee Engineering, the Nigerian engineering and fabrication group appears to be entering its most dynamic phase yet even after three decades of its establishment, emerging as one of the country’s most ambitious indigenous industrial players, bigger, bolder, and more assertive in a sector long dominated by foreign firms.

    Founded in 1991 by Chief Leemon Ikpea, Lee Engineering began from modest beginnings. From that 40-feet container 34 years ago, it morphed into a small contractor, providing basic engineering support to major oil companies. Its early years were defined by grit, improvisation, and the constant struggle to prove that Nigerian firms could deliver quality work in a field where international oil companies instinctively looked abroad.

    But over three decades later, the company stands as a testament to persistence and long-term vision. With a sprawling world-class fabrication complex in Warri, hundreds of high-skilled engineers across Nigeria, and a growing portfolio stretching from oil and gas to industrial manufacturing, Lee Engineering has steadily transformed into one of the most consequential indigenous engineering firms in West Africa.

    “Our story remains one of vision, persistence, and purpose. From our humble beginnings to our current position as a leading indigenous engineering group, we have shown that integrity, innovation, and teamwork are the true foundations of enduring success”, Chairman and Chief Executive of Lee Engineering Group and Allied Companies Limited, Ikpea, said recently while speaking at the 34th Anniversary Town Hall meeting of the company.

    While 34 years is long enough for a company to lose its hunger, instead, Lee Engineering’s story has been marked by reinvention. Over the last decade in particular, its leadership has pursued a strategic transition from a service-based contractor into a manufacturing-driven industrial powerhouse.

    Nowhere is that ambition clearer than in the company’s flagship manufacturing and fabrication complex in Ekpan, near Warri, Delta State. Spread across several hectares, the facility houses pressure vessel manufacturing lines, valve assembly units, machining workshops, NDT laboratories, and specialist welding institutes. It is the kind of facility that, until recently, only international firms were trusted to operate in Nigeria.

    But for Lee Engineering, it is both a symbol and a strategy, an industrial base built to demonstrate that Nigerians can design, fabricate, assemble, and deploy complex engineering materials to international standards.

    Over the years, the facility has become the heart of the company’s transformation. Its pressure vessel plant, one of the largest indigenous setups in the region, produces equipment used in refineries, gas plants, petrochemical systems, and process industries. In the past, such equipment was almost exclusively imported, often at considerable cost.

    “As we celebrate this 34th anniversary, we must also look to the future with renewed commitment. The future belongs to those who plan for it. This is why our focus remains firmly on: Building profitable and sustainable growth across all subsidiaries ensuring efficiency, competitiveness, and operational excellence,” Ikpea added.

    This technical capacity which Lee Engineering has today, did not materialise overnight. It was the product of years of investing in human capital. One of Lee Engineering’s most defining attributes is its commitment to developing local talent.

    Long before the phrase “local content” became fashionable in Nigeria, the company prioritised sending young Nigerian engineers to international training centres, partnering with global equipment manufacturers, and establishing in-house training programmes that exposed technicians to contemporary industrial practices.

    This early investment later paid off when Nigeria’s Local Content Act in 2010 elevated the need for indigenous technical capability. By that time, Lee Engineering was not scrambling to catch up; it had already built a foundation.

    The result is a workforce today that blends decades of experience with a youthful, technically grounded pipeline of professionals across engineering, procurement, fabrication, and project management. For a company operating in a sector notorious for skills gaps, this has become one of its greatest competitive advantages.

    “(We are) strengthening corporate governance to secure the long-term leadership and stability of the Group. In line with this, the Board has recently approved the appointment of new COOs for some of our subsidiaries, while empowering existing COOs to take greater ownership and responsibility for driving their businesses under the  umbrella of the Group.

    “This marks a deliberate step in nurturing the next generation of leaders, fostering accountability, and ensuring that Lee Engineering continues to thrive well into the future. (We are) preparing for the future of the Lee Group — including exploring pathways that will, in the decades ahead, position the company to go public, while preserving our ownership philosophy and values,” he stated.

    Beyond capacity building, one of the most remarkable aspects of Lee Engineering’s 34-year journey is its consistency in delivery. In a sector where project delays and contractual disputes are common, the company has built a reputation for reliability.

    Over the years, it has executed projects for virtually every major oil and gas company in Nigeria. These projects range from maintenance services to complex EPC (Engineering, Procurement and Construction) works. The company’s footprint now stretches across the Niger Delta to the entire country

    But Lee Engineering’s story is not simply about technical achievement or commercial growth. It is also a story of resilience. The Nigerian oil and gas industry is volatile. Exchange rate instability, regulatory uncertainty, security challenges, and global energy transitions pose constant risks. Yet, through recessions, oil price collapses, and operational disruptions, the company has remained grounded.

    In many ways, its stability reflects a gradual transition from founder-led leadership to institutional leadership.

    In the same vein, Ikpea noted that the company was expanding its frontiers, explaining that the subsidiaries — Lee Engineering and Construction Company Ltd, Lee International Machinery and Services Ltd, Trebet Aviation Ltd, Trebet Travels and Tours Ltd, and KIZI Oil and Gas Services Ltd continue to create value, contribute to national development, and sustain its reputation for quality and innovation.

    The Amaniba Oil Field Project being handled by KIZI, among others, he explained, stands as a testament to overall capacity and bold vision to break new grounds in the Nigerian business environment.

    Yet, even as the Group grows, he maintained that it must never lose sight of the principles that brought it this far, hinged on hard work, unity, discipline, and faith in God. These, he said, remain the enduring pillars of the Lee Engineering brand.

    “As I gradually take a back seat in the day-to-day operations of our businesses, my greatest joy lies in seeing the structures we have built become stronger, and the next generation taking up the mantle with renewed vigour.

    “Leadership succession is not about stepping aside; it is about ensuring continuity — about building something that will outlive us all. Let us, therefore, continue to sustain excellence, deepen our legacy, and shape our shared future together,” Ikpea stated.

    At 34, the firm is also repositioning itself for a new kind of energy future. Nigeria’s energy landscape is changing. Lee Engineering is moving accordingly. At 34, there seems to be no stopping this giant of a firm.

    Despite the challenges, if the past three decades are any indicator, Lee Engineering has a history of thriving through disruption. Its growth has always been tied to its ability to anticipate industry shifts. When the market needed local content, it invested early in manufacturing. When professional competence became essential, it built training pipelines. When global standards became necessary, it secured international certifications. Every major transition in the sector has met a prepared company.

    As Lee Engineering celebrates its 34th year, it stands as one of the few indigenous engineering firms that combine history with ambition. The story of the company is not merely a corporate success narrative; it mirrors Nigeria’s wider struggle for industrial self-reliance. In many ways, Lee Engineering is the prototype for what Nigeria’s future engineering landscape could become: Competent, locally grounded, globally certified, and strategically relevant.

    The next decade will be decisive. If Nigeria succeeds in building a competitive industrial base, companies like Lee Engineering will play central roles. Their ability to manufacture locally, train local talent, and execute complex industrial projects could transform not just the oil and gas sector but the entire engineering ecosystem. But for today, it’s 34 cheers to one of Nigeria’s most resilient companies.

    ​  

    At 34, most companies begin to show signs of age as their founding energy begins to soften, their innovative edge blunts, and they settle into the predictable rhythm of corporate

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    7GI Unveils New Model for Family Governance, Continental Prosperity

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    Oriarehu Bonny

    The 7 Generations Institute (7GI) continued its Pan-Africa Family Office Awareness and Engagement Tour with a high-level convening in Lagos, marking the next step in Africa’s first coordinated movement to redefine how families and institutions mobilise private wealth for development.

    Held at the United Nations Development Programme Innovation Centre in collaboration with the UNDP Regional Bureau for Africa, Africa Prosperity Summit, African Philanthropy Forum, and Rockefeller Philanthropy Advisors, the Lagos gathering brought together leading families, business executives, investment institutions, philanthropic actors, development partners, and policymakers.

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    “A True Family Office is a governance system that strengthens the family’s relationships, values, decision-making, well-being, next-generation readiness, and the many forms of non-financial capital that ultimately determine how financial capital is created, preserved, and used,” said Barry Johnson, Founder and Executive Chairman of 7 Generations Africa and 7GI. “When families govern these domains well, their money becomes better governed. Well-governed capital then becomes catalytic, supporting entrepreneurs, strengthening national systems, and advancing the continent’s development priorities.”

    Speakers also addressed obstacles to Family Office formation in the region, including a lack of awareness and expert guidance, limited public understanding, regulatory ambiguity, and the historical export of African wealth to offshore financial centres.

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