New Tax Regime To Simplify System, Protect Vulnerable Nigerians
Government Moves to Restructure Nigeria’s Tax System
NIGERIA’S ongoing tax reforms are expected to reduce the burden on low-income earners while simplifying the country’s complex tax structure, according to officials involved in implementing the new framework.
The Chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, made this known during a Tax Reform Conference organised by BusinessDay Media in Abuja.
Tegbe explained that the reforms represent one of the most comprehensive overhauls of Nigeria’s tax system in decades, aimed at improving transparency in revenue administration while protecting vulnerable taxpayers.
Four New Laws Reshape Tax Architecture
At the centre of the reforms is a new tax structure built around four major legislative frameworks.
These include the Nigerian Tax Act 2025, the Nigerian Tax Administration Act, the Nigerian Revenue Service and the Nigerian Revenue Board.
According to Tegbe, the laws consolidate previously scattered tax regulations into a more coordinated structure that improves efficiency and strengthens taxpayer protection.
“What we have tried to do with the reform is to consolidate all these laws and build a new architecture for tax administration in Nigeria,” he said.
He noted that the new structure will also include the creation of a tax ombudsman, a mechanism designed to handle complaints and disputes between taxpayers and tax authorities.
No New Taxes Introduced
Tegbe clarified that the reforms do not introduce new taxes but rather reorganise and streamline existing ones.
“There is no single new tax introduced by this administration,” he said.
Instead, he explained, the reforms aim to simplify the existing system by reducing duplication and making tax obligations easier for individuals and businesses to understand.
Addressing Nigeria’s Weak Fiscal Structure
The overhaul was considered necessary because Nigeria’s fiscal structure has historically been weak, with one of the lowest tax-to-GDP ratios in the world.
Tegbe said Nigeria currently collects between six and 10 percent of its GDP in taxes, compared with about 26 percent in South Africa and roughly 30 percent in many advanced economies.
He added that the reforms seek to correct a situation in which a small number of compliant taxpayers bear most of the burden while large segments of the economy remain outside the tax net.
Under the new framework, most low-income earners and small businesses will either pay less tax or none at all.
Technology to Improve Compliance and Transparency
The Executive Secretary of the Joint Tax Board, Olusegun Adesokan, said the reforms will also rely heavily on digital platforms to improve transparency and efficiency.
He explained that technology would reduce human interaction in tax processes, limit corruption and block revenue leakages.
The reforms are also aligned with the fiscal policies of the administration of Bola Ahmed Tinubu, which aim to support businesses, protect jobs and encourage economic growth.
“Taxes for most Nigerians earning modest incomes will either be significantly reduced or eliminated,” Adesokan said.
Experts Weigh Economic Impact
Economic experts say the reforms could usher Nigeria into a new phase of fiscal governance.
Professor Uche Uwaleke of Nasarawa State University described the tax overhaul as one of the most significant restructuring of Nigeria’s revenue system in decades.
According to him, the reforms aim to modernise tax administration, broaden the tax base and balance revenue generation with economic growth.
“The government needs sustainable revenue to fund development priorities while maintaining a competitive environment for investment and enterprise,” he said.
Building a Sustainable Revenue System
The Acting Executive Chairman of the Federal Capital Territory Internal Revenue Service, Michael Ango, said the reforms were developed through consultations with government agencies, private sector representatives and other stakeholders.
He noted that taxation remains the most reliable source of revenue for governments worldwide and is essential for funding infrastructure such as roads, schools, hospitals and security services.
Ango added that the reforms aim to promote fairness by ensuring that higher-income earners contribute a greater share of taxes.
Stakeholders Seek Greater Clarity
The conference, themed “Navigating the New Tax Reform: What It Means for Your Wallet,” was organised to clarify aspects of the reforms and address public concerns.
Representing the publisher of BusinessDay Media, Frank Aigbogun, Managing Editor North and FCT, John Osadolor said the forum was designed to help businesses and citizens better understand the new system.
Stakeholders at the event noted that stronger compliance under the reforms could lead to improved infrastructure, better public services and increased trust between citizens and government.
