New tax laws will boost citizen’s purchasing power, says Wale Edun as PepsiCo expands production line

Wale Edun, minister of finance and coordinating minister of the economy, says the new tax laws will boost the purchasing power of Nigerians.

Edun spoke on Wednesday in Lagos at the launch of a distribution partnership between PepsiCo and DP World — a multinational logistics company based in Dubai, United Arab Emirates

The two companies announced the expansion of their collaboration with WaterAid in Nigeria to drive inclusive and sustainable value to communities.

As part of the initiative, the organisations will roll out a climate-resilient water, sanitation and hygiene (WASH) programme in Lagos, targeted at improving living conditions for more than 6,500 people in underserved communities.

The event followed a ribbon-cutting ceremony at PepsiCo’s expanded Lagos snacks manufacturing facility, marking the expansion of its production line.

Speaking at the event, Edun said the tax reforms, which will take effect from January 1, 2026, will improve business growth.

“Landmark tax reforms have been signed into law and will be implemented from January 1, and what those do, among other improvements, they put more money, more purchasing power in the hands of those who are at the lower end of the scale,” the minister said.

“Of course, that is good for business as well. People need the purchasing power to be able to buy the goods.

“…this partnership is a signal to investors at home and abroad that Nigeria is not only open for business, but reforming to help to accelerate the growth and the success of business.”

‘LIBERALISED FX, MARKET PRICING ATTRACTING INVESTMENTS’

He said the broader objective of President Bola Tinubu’s economic policy is to foster a macroeconomic environment where private businesses can thrive, while also ensuring sustainable government revenues.

According to the minister, key reforms — including the removal of petrol and foreign exchange subsidies — have helped correct structural distortions that plagued Nigeria’s economy for decades.

“With the liberalisation of the foreign exchange, the correction of the distortion, the implementation of market pricing, it is that new liquid and predictable environment that led directly to the investment that we saw today,” he said.

The minister described the PepsiCo and DP World partnership as timely, saying it sends a clear signal to both local and international investors that Nigeria is not only open for business but also reforming to accelerate business growth and success.

‘PARTNERSHIP WILL ALLEVIATE POVERTY’

Also speaking, Babajide Sanwo-Olu, Lagos state governor, described the collaboration as “far-reaching” in its potential impact.

The governor, represented by Folashade Ambrose-Medebem, state commissioner of commerce, cooperatives, trade, and investment, noted that the socio-economic impact will extend across sectors, from logistics and transportation to sales and marketing, creating jobs and boosting livelihoods for thousands of Lagosians.

“On the social front, the increased economic activity driven by this partnership will contribute to alleviating poverty and fostering inclusive growth,” Sanwo-Olu said.

Speaking on the partnership, Ahmed El-Sheikh, president of the Middle East, North Africa and Pakistan, and Ethiopia and Nigeria Foods at PepsiCo, said the initiative represents more than a project but a shared commitment to unlocking human potential.

“Together with our partners, we are creating lasting change, ensuring safe water, sanitation, and hygiene are no longer out of reach for communities across Nigeria,” he said.

He called on other companies to join in building transformative partnerships that combine the strengths of government, business, and civil society.

Mohammed Akoojee, chief executive officer (CEO) and managing director (MD), Sub-Saharan Africa region for DP World, expressed pride in the company’s participation, affirming that its dedication to Nigeria is long-term, diversified, and transformational.

He said as Nigeria advances toward its goal of becoming a $1 trillion economy, DP World will continue to be a committed partner — enabling smart, integrated trade, and inclusive growth.