President Bola Tinubu and Saint Lucia’s Prime Minister, Philip J. Pierre, have agreed to establish formal diplomatic relations between Nigeria and the Caribbean nation.

The agreement was reached during President Tinubu’s courtesy visit to Prime Minister Pierre’s official residence in Castries, on the second day of his state visit to Saint Lucia.

During their discussions, President Tinubu highlighted the deep-rooted historical and cultural ties shared between Africa and the Caribbean, referring to the people of Saint Lucia as “vauled friends and brothers”

He underscored the need to enhance collaboration between both nations in key sectors including trade, investment, tourism, education, and cultural exchange.

“Our two nations are bound by history, culture, and common aspirations. We are determined to nurture and expand this relationship,” Tinubu said in a statement released by Bayo Onanuga, his Special Adviser (Information & Strategy).

“This is a bridge between Africa and the Caribbean—a pathway to deepen economic ties and foster mutual understanding.”

He also affirmed Nigeria’s willingness to work with Saint Lucia on global matters of mutual concern, such as climate change, disaster readiness, and financing for sustainable development. Tinubu reaffirmed Nigeria’s commitment to advocating for the interests of Small Island Developing States (SIDS) at the international level.

Prime Minister Pierre, in his remarks, welcomed the dialogue and voiced hope for a deeper relationship between the two countries. He pointed to the historical connection between Saint Lucia and Nigeria, noting the legacy of Saint Lucian-born Sir Darnley Alexander, who served as Nigeria’s Chief Justice from 1975 to 1979.

Pierre outlined key sectors for possible cooperation, such as tourism, education, agriculture, healthcare, and infrastructure development. He also emphasized the cultural affinities between the two nations and drew attention to the international acclaim of Saint Lucia’s creative industry, showcased through events like the Saint Lucia Jazz and Arts Festival.

“There is an incredible potential for people-to-people exchange,” he said. “Saint Lucia is now a global centre for cultural festivals, and we see value in sharing with Nigeria as it builds its global entertainment footprint.”

The Prime Minister commended Nigeria’s progress in higher education and highlighted a mutual interest in fostering academic collaborations.

He stated that his administration is committed to the goal of having at least one university graduate in every household across Saint Lucia.

He also spoke about the evolving global landscape and stressed the importance of enhancing South-South cooperation. “There is a growing uncertainty about the integrity of friendships and alliances in international relationships. Countries in the Global South must create and deepen cooperative ties,” he remarked.

President Tinubu later visited Governor-General Cyril Charles at the Government House, where they discussed areas of Commonwealth collaboration, with a focus on joint efforts to address climate change and socioeconomic issues.

The President reaffirmed Nigeria’s dedication to assisting smaller nations and stated that his government would seek ways to strengthen trade and economic ties with Saint Lucia, especially in sectors such as agriculture, tourism, and manufacturing.

This visit forms part of President Tinubu’s broader diplomatic mission to expand Nigeria’s relations with countries across the Caribbean and South America.

On Thursday, June 26, 2025, President Bola Ahmed Tinubu signed four major tax reform bills into law, describing the laws as pivotal to the success of the administration’s reforms and the country’s prosperity.

The bills are the Nigeria Tax Bill (Ease of Doing Business), Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill.

These new laws are designed to streamline Nigeria’s fragmented tax framework, consolidate multiple taxes, and create a unified, transparent tax administration under a single revenue agency.

As part of the administration’s broader push for fiscal reform, these bills will include measures like exempting minimum wage earners from income tax, maintaining VAT at 7.5%, rolling out a global minimum tax for multinationals, and establishing coordination structures across federal and state governments.

The reforms, recommended by the Presidential Committee on Fiscal Policy and Tax Reforms, aim to simplify compliance, incentivize investment, and ensure fairness; they will take effect from January 2026.

Tax Reforms Committee Comments On The Tax Laws

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, emphasized that Nigerians earning ₦250,000 or less monthly will no longer be required to pay personal income tax under the newly enacted tax laws.

His remarks followed shortly after President Tinubu’s assent to the new tax bills at the Presidential Villa in Abuja.

Oyedele clarified that the revised policies are part of a broader push to boost the economy, protect vulnerable populations, and enhance tax equity and compliance.

“This tax law will not put cash in your pocket, but at least it won’t take cash away from you if you are poor,”
Oyedele said.
He explained that the ₦250,000 monthly threshold was set as the poverty line in the Nigerian context after detailed deliberations that considered local realities, household sizes, and living conditions.

“We debated extensively to determine who should be classified as poor in Nigeria.

The World Bank might say $2.15 per day per person, but in reality, there are people who live in villages, produce their own food, and don’t spend much on transportation or utilities. So, we adjusted our poverty line based on the Nigerian context.


If a household earns ₦250,000 or less, they can only cover basic needs. They are considered poor, and they should not be taxed.”

The tax committee, established in July 2023, is tasked with modernizing Nigeria’s tax system to improve revenue generation without overburdening citizens.

Oyedele noted that middle-income earners, especially those making between ₦1.8 million and ₦2 million monthly would enjoy tax relief, while high-income earners would face a modest increase in their tax obligations.

“The middle class will enjoy some relief,” he said. “But those at the top of the income ladder will see a modest increase. That’s part of the fairness we’re trying to achieve.”

He further revealed that Nigeria currently collects only 30% of its potential tax revenue, and the new laws are expected to close the 70% shortfall by improving efficiency and ensuring that wealthier individuals and entities pay their fair share.

How Will The Tax Laws Affect You?

The impact is expected to be significant especially for low-income earners, small businesses and informal traders.

For people earning up to 1m naira ($650; £470) a year, a rent relief of 200,000 naira ($130) will be applied, effectively reducing their taxable income to 800,000 naira ($520).

This means they will no longer pay income tax, according to Andersen Nigeria, a tax and business advisory firm.

Sellers of essential goods and services such as food, healthcare, education, rent, power, and baby products will no longer have to charge a Value Added Tax (VAT), helping families better afford their basic needs.

Small businesses with annual turnover below 50m naira ($32,400) will no longer pay company income tax. They will also be allowed to file simpler returns, without needing audited accounts.

Large businesses will benefit from reduced corporate tax rates, dropping from 30% to 27.5% in 2025 and 25% in subsequent years.

They will also now be able to claim tax credits for VAT paid on expenses and assets, meaning they can get back the 7.5% that would have been paid as VAT.

There are also tax incentives for charitable groups, co-operatives, educational and religious organisations, provided their earnings do not come from commercial activities.

The new tax laws promises real benefits starting with more money in your pocket and improved public services.

By exempting essential goods such as food, healthcare, and education from VAT, the cost of living could drop significantly for many.

The success of this tax laws lies in its execution, if the government delivers on improved revenue use and fairness, most Nigerians could gain. But shortfalls in VAT collection, unequal revenue distribution, or failure to curb inflation could diminish these gains.