Europe has taken a significant step toward financial independence by accelerating plans to establish its own digital payment infrastructure, reducing reliance on American companies such as Visa, Mastercard, PayPal, and China’s Alipay.

The President of the European Central Bank (ECB), Christine Lagarde, recently warned that nearly all European card and mobile payment transactions currently pass through non-European infrastructure. Speaking to Irish radio, she stressed the urgent need for a sovereign European alternative, citing concerns over data control, strategic autonomy, and economic security.

In a major development, the European Payments Initiative (EPI) and the EuroPA Alliance signed an agreement on February 2 to build an interoperable, pan-European payment network. The collaboration aims to connect approximately 130 million users across 13 countries.

At the heart of the initiative is Wero, a digital wallet designed to enable cross-border payments and money transfers entirely within European infrastructure without routing transactions through American-controlled networks.

If successful, the move could reshape the global payments landscape, challenge the dominance of the U.S. financial technology firms, and redefine digital financial sovereignty within Europe.

Analysts say the initiative could potentially impact transaction flows estimated at $24 trillion annually, marking one of the most ambitious financial independence projects in the continent’s modern history.

The Presidential Fiscal Policy and Tax Reforms Committee has dismissed claims circulating in a viral video that the Nigeria Tax Act 2025 will introduce a 25 per cent tax on building materials, construction funds, or business transactions.

The committee clarified that the Act has already commenced and does not impose any such levy, contrary to assertions that it will only take effect in 2027.

In a statement issued to counter what it described as misinformation capable of causing public anxiety, the committee stressed that the law contains provisions aimed at reducing the cost of housing, encouraging real estate development, and supporting small businesses and low-income earners.

According to the committee, the Act exempts land and buildings from Value Added Tax (VAT), including rent payments. Contractors are also allowed to recover input VAT on materials and services used in construction, a move expected to lower overall building costs.

The withholding tax rate on construction contracts has been reduced to 2 per cent to ease cash flow pressures on developers.

In addition, individuals constructing owner-occupied residential houses can deduct mortgage interest from their taxable income, while property owners earning rental income are permitted to deduct expenses such as repairs, insurance and agency fees.

The Act introduces rent relief of up to ₦500,000 or 20 per cent of annual rent, whichever is lower, to increase disposable income for low and middle-income earners.

Lease agreements valued below ₦10 million annually, or 10 times the annual minimum wage, are also exempt from stamp duty.

Incentives for Investors and Developers

Individuals are exempted from Capital Gains Tax when disposing of a dwelling house. Real Estate Investment Trusts (REITs) are granted Companies Income Tax exemptions where they distribute at least 75 per cent of rental or dividend income within 12 months after the financial year.

The law also provides incentives for manufacturers of building materials such as iron and steel under an economic development incentive scheme that may grant tax exemptions for up to 10 years.

There is also scope for reducing Companies Income Tax for large businesses from 30 per cent to 25 per cent.

Protection for Workers and Small Businesses

Employer-provided accommodation will have its taxable value capped at 20 per cent of an employee’s annual gross income, excluding the rental value.

Small companies benefit from zero per cent Companies Income Tax, exemption from charging VAT, and no withholding tax deductions on invoices and payments.

The committee emphasised that the Nigeria Tax Act 2025 does not:

Tax money in bank accounts

Impose a levy on transfers used to purchase building materials

Introduce a 25 per cent construction or business cost tax.

It urged the public to rely on verified information and consult the law directly when confronted with alarming claims.

According to the committee, the overarching objective of the new tax framework is to make housing more affordable, stimulate real estate investment, and strengthen support for small businesses and tenants, not to introduce additional financial burdens.

The Federal Government of Nigeria has reaffirmed its commitment to industrial transformation, export competitiveness, and strong public-private collaboration. This was highlighted by the inauguration of key governing boards under the Federal Ministry of Industry, Trade and Investment and a high-level engagement with the organised private sector in Abuja.

The series of activities commenced with the inauguration of the Governing Board of the Oil and Gas Free Zones Authority (OGFZA). The Permanent Secretary of the Ministry, Amb. Nura Abba Rimi, delivered opening remarks, underscoring the importance of institutional leadership and effective governance in advancing national economic objectives.

Inaugurating the Board, the Honourable Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, described oil and gas free zones as strategic instruments for industrialisation. She said, “They are for investment attraction and value chain development under the Renewed Hope Agenda of President Bola Ahmed Tinubu.” She emphasised the Board’s responsibility to provide direction and oversight, ensuring that government incentives translate into tangible economic value.

The Honourable Minister of State for Industry, Senator John Owan Enoh, noted the inauguration marked a critical governance milestone. He stressed, “Export processing zones must function as effective engines of production, employment and foreign exchange generation. Government expectations now centre on performance, accountability and measurable outcomes.”

The Chairman of the OGFZA Governing Board, Mrs. Lydia Kalat Musa, in her acceptance, pledged a commitment to responsible leadership and the effective discharge of the Authority’s statutory mandate.

The second event was the inauguration of the Governing Board of the Nigeria Export Processing Zones Authority (NEPZA). Amb. Nura Abba Rimi reiterated the Ministry’s commitment to strengthening institutional frameworks for industrial growth.

Dr. Oduwole reaffirmed the government’s resolve to reposition export processing zones as drivers of non-oil exports. Senator Enoh emphasised that NEPZA’s mandate is central to Nigeria’s industrial competitiveness, noting that effective governance is essential to unlocking the full potential of the zones.

The Chairman of the NEPZA Governing Board, Senator Tijani Yahaya Laura, pledged to work collectively to advance the Authority’s objectives in line with national priorities.

The final inauguration was that of the Council of the Standards Organisation of Nigeria (SON). Amb. Rimi highlighted the importance of adherence to international best practices in strengthening Nigeria’s standards.

Addressing the Council, Dr. Oduwole described standards as a cornerstone of economic transformation, noting their critical role in protecting consumers and supporting local industries. Senator Enoh reinforced the strategic importance of effective standardisation for investor confidence.

The Chairman of the SON Governing Council, Honourable Yahuzu Ado Inuwa, pledged to advance quality assurance and strengthen compliance mechanisms.

Earlier, the Honourable Minister hosted a delegation from the Lagos Chamber of Commerce and Industry (LCCI). Dr. Oduwole reaffirmed the government’s commitment to deepening public-private sector collaboration as a critical driver of investment.

The LCCI delegation was led by its President, Engr. Leye Kupoluyi, who described the visit as an opportunity to align private sector priorities with ongoing reforms. He said, “We commend the Ministry’s efforts to reposition Nigeria as a competitive destination for trade and investment.” He highlighted key policy initiatives and business challenges, proposing enhanced dialogue and regulatory reforms. Kupoluyi also congratulated the Minister on Nigeria’s successful bid to host the Intra-African Trade Fair (IATF) 2027 in Lagos.

The engagements collectively underscored the Federal Government’s renewed focus on institutional strengthening, quality assurance, and sustained partnership with the private sector as central pillars of Nigeria’s industrial and economic transformation drive.