Big Money Question: Can Your Pockets Survive Another Tax Increase In This Economy?

A for Apple, B for Ball, T for Taxes, and T-Pain.

Dear Nigerians, we have new words in our lexicon.

Thanks to inflation and these new tax laws, money will be easier to spend and debit alerts will pile in faster than credit lands. If you’re a 9-5er already worried about corporate tax, you may want to add the new 15% tariff increase to your list of complaints. We’ll explain why.

Taxes, on their own, are a fundamental part of every government. They are levies imposed by the government on the people, and used to fund public services and amenities. Think of it as everyone’s small contribution to keeping Nigeria running.

They cut across personal income, goods and services, capital gains, education, stamp, petroleum profit tax and custom duties (which is an extension of the goods and services category).

Today’s big question comes from the recent increase in import duties which affect everything from fuel to roadside pepper and even Mama Risi, whose rice keeps you alive on your tiny budget.

Why Is This Important?

The government just increased the import tariff by 15% in a bid to encourage local refining. The goal is to reduce Nigeria’s dependency on imported fuel and keep more money circulating within the economy, especially as local refineries such as the Dangote refinery and modular refineries in Imo, Delta and Edo state, among others. Right now, Nigeria spends an estimated $10 billion annually importing refined petroleum products $10 billion annually importing refined petroleum products, even though we’re Africa’s biggest crude oil producer. The government believes this new tariff could help redirect that spending into local production, job creation, and foreign exchange savings. For the short-term reality: prices will likely rise again.

Fuel importers will pass those additional costs down the line, and that means higher transport fares, pricier food items, and increased electricity and logistics expenses. Even if you don’t drive, you’ll still feel it when your Bolt trip costs more or when Mummy Ayo raises prices “because transport don cost”.

Sadly we can’t control taxes, and neither can you, but we can help you control how you spend and manage your money.Here’s how to keep things simple and survive the new tax wave:

How To Survive The New Tariff Increase

• Get more money: This is the realest thing we can tell you. It may be time to increase your streams of income if you’re determined to enjoy Detty December, because the price hikes + seasonal December frenzy will leave you in financial regret otherwise. Learn a skill, become a content creator, or try freelance — if this tax palava continues, you’ll need it.
• Keep digital records: Track your income and expenses on Squareme, and if you run a business, Fundr by Squareme is perfect for this. You can also send invoices from the app to help streamline payments and manage business funds in sub-accounts.
• Win cashback and rewards: We can’t directly take out the effect of this tax on your income, but we can help alleviate it. Stay consistent with us, and you’d accrue rewards and bonuses occasionally just for being here.
• Know your subscriptions and deductions: Pension, rent, insurance contributions, work tools, Netflix, Prime, Amazon or even Spotify monthly deductions can reduce your spendable income. Keep them all in check and sorted with your Squareme cards (virtual or physical) and track them via account statements.
• Use money management tools: If our account statements aren’t enough for you 😭, then you should keep track manually and work with strict budgets for the month. You still want to meet your savings budget for the year after all, so less spending, more thinking.

Being proactive doesn’t just help you pay taxes; it enables you to understand your money better.

And remember, economic shifts come and go, but staying on top of your financial game never goes out of style. Play smart, spend wisely, and let Squareme help you keep your money in check, no matter how unpredictable the economy gets.