Tinubu Tax Reform Bill

The new tax reform bill brings several benefits to the masses, as outlined in the document: 

Support for Remote Work and Digital Economy: Changes to income tax laws will facilitate remote work opportunities for Nigerians, empowering youths in the global digital economy.

Promotion of Exports: Zero-rated VAT and other incentives aim to encourage exports in goods, services, and intellectual property.

Relief for Small Businesses: Small businesses with an annual turnover of ₦50 million or less will benefit from tax exemptions, including withholding tax, VAT, and a 0% corporate income tax rate.

Reduced Personal Tax Burden: Minimum wage earners will be exempt from PAYE, and over 90% of workers in the private and public sectors will experience reduced tax burdens. 

Essential Goods Exemptions: VAT exemptions on food, education, healthcare, rent, public transportation, fuel products, and renewable energy will alleviate the cost of living, especially for low-income households.

Corporate Tax Relief: Corporate income tax rates will reduce from 30% to 25% over two years, and loss-making companies will no longer face minimum tax. 

Harmonized Tax System: Earmarked taxes on companies will be eliminated, replaced by a unified, lower single levy.

Enhanced Business Investment: Businesses will receive input VAT credits on assets and services, enhancing investment competitiveness and reducing costs.

Equitable Revenue Sharing: VAT revenue sharing will be more equitable to ensure fair treatment of states with fewer headquarter companies.

Simplified Compliance: Allowing taxes on foreign currency transactions to be paid in naira reduces exchange rate pressures and simplifies compliance.

Economic Contributions Rewarded: The rationalization of tax incentives aims to provide a level playing field and reward states' economic contributions.

New National Fiscal Policy: The policy emphasizes fair taxation, responsible borrowing, and sustainable spending.

These reforms aim to create a more inclusive, equitable, and competitive economic environment for all citizens.

Spotlight on Night Markets (Oja-Ale)

In many societies, night markets (locally known as Oja-Ale) have become a vibrant hub for economic activities, catering to diverse needs ranging from food and fashion to entertainment and essential services. The extension of business hours into the night provides several economic benefits, fostering growth and development for both individuals and the broader economy. However, for night markets to thrive, the government must ensure adequate infrastructure, particularly street lighting and security.

Economic Benefits of Long Economic Activities and Night Markets

Increased Revenue for Businesses
Operating late into the night allows businesses to serve a wider customer base, including those who may be unavailable during regular business hours. Vendors and traders in Oja-Ale benefit from the opportunity to generate more income, which, in turn, improves their living standards and contributes to the local economy.

Job Creation
Extended business hours create additional employment opportunities for people such as security personnel, cleaners, transport operators, and vendors. This is particularly significant in urban areas with high unemployment rates.

Boosting Tourism
Night markets are often cultural attractions, drawing tourists who seek unique experiences. They offer a blend of local cuisine, art, and entertainment, enhancing the region's appeal and generating foreign exchange.

Promoting Informal Economy
Night markets often serve as an entry point for small-scale entrepreneurs who lack the resources to establish formal businesses. This supports grassroots economic activities and contributes to financial inclusion.

Reduced Congestion in Day Markets
By spreading economic activities across longer hours, night markets help reduce the overcrowding and stress associated with daytime markets, creating a more balanced and accessible trading environment.

The Role of Government in Supporting Night Markets

For night markets to fully realize their potential, the government has a critical role in creating an enabling environment. Two primary areas of intervention are provision of street lighting and enhanced security.

Provision of Street Lighting
Well-lit environments are critical for night-time economic activities. Street lights:

Enhance visibility, making it easier for buyers and sellers to interact.

Reduce accidents and improve overall navigation within market areas.

Discourage criminal activities, creating a sense of safety for all participants.

Investment in solar-powered street lights can provide an affordable, sustainable, and reliable solution for areas prone to electricity shortages.

Enhanced Security Measures
Safety concerns are one of the major deterrents to night-time economic activities. Governments can address this by:

Deploying trained security personnel to patrol market areas.

Establishing surveillance systems such as CCTV cameras.

Encouraging community policing initiatives to foster trust and cooperation between traders and law enforcement.

Conclusion

The economic benefits of extended business hours and night markets are undeniable. They stimulate commerce, create jobs, and enhance the cultural and social fabric of a community. However, these benefits can only be maximized if governments prioritize the provision of essential infrastructure such as street lighting and security. By doing so, night markets like Oja-Ale can flourish, contributing significantly to the economic resilience and vibrancy of cities and towns.