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Nigerian Tax Acts 2025: Benefits Beyond The Rhetorics – Joseph Tegbe
Nigerian Tax Acts 2025: Benefits Beyond The Rhetorics – Joseph Tegbe
By: Michael Mike
Nigeria’s ongoing tax reforms have been widely mischaracterised as revenue tricks, mostly through epistemic closure and motivated reasoning, solely focusing on revenue figures, tax rates, and who pays what.
These debates often miss the larger and far more consequential point of the reforms which are primarily about fixing a broken fiscal architecture, and laying the foundations for a modern, well-oiled economy.
What is at stake transcends mere improvement of fiscal space. Rather, it is about whether Nigeria can finally operate like a serious state that is capable of planning, delivering public goods, enforcing rules fairly, and sustaining growth without perpetual crisis management.
As a former Senior Partner and Head of Advisory Services at KPMG in Africa who supported reforms across various levels of Government, both national and subnational levels across Africa, during my career and with benefit of hindsight, I can boldly say that Nigeria’s fiscal failure has never been the absence of wealth. It has been the absence of structure.
For decades, the country ran a structurally weak fiscal system that was over-dependent on volatile oil rents, administrativelyanemic and fragmented, detached from the productive economy and largely disconnected from citizens. This produced a paradoxical state: rich in resources, poor in capacity.
Specifically, taxes were not embedded as a civic obligation or economic stabiliser. Rather, they were episodic, selectivelyenforced, and concentrated on a monolithic formal sector. The informal economy which forms the critical mass of economic activity remained largely outside the system, not by design but by institutional failure.
The result was predictable: weak fiscal planning, chronic deficits, poor service delivery, and a state forced to govern by borrowing rather than by policy. This is the structural dysfunction that the current reforms seek to correct. Thus, the efforts of President Bola Ahmed Tinubu, GCFR; Mr. Wale Edun, the Honorable Minister of Finance and the NRS Chairman, Dr. Zach Adedeji must be commended. They are placing Nigeria on a strong pedestal for growth and development.
At their core, the new tax laws are about rebuilding fiscal order.
Firstly, they seek to reconnect the economy to the state. Nogovernment can plan effectively when it has no reliable map of economic activity. Broadening the tax net is therefore less about extraction and more about visibility and coordination.
Secondly, the reforms aim to standardise and modernise fiscal administration. A system built on manual processes, weak data, and discretionary enforcement cannot support a 21st-century economy that Nigeria desires to attain. Digital compliance, harmonised frameworks, and clearer rules are structural upgrades.
Thirdly, they are about predictability. Investors, businesses, and households do not fear taxes as much as they fear uncertainty. A transparent, rules-based tax system reduces discretion, rent-seeking, and arbitrariness which are long-standing deterrents to investment in Nigeria.
Finally, the reforms are designed to rebalance the fiscal social contract, becoming a tool for accountability. When everyone participates, albeit modestly, the relationship between citizens and the government improves.
Previous fiscal regimes suffered from conceptual ineptitude. They treated taxation as an afterthought, subordinate to oil receipts. When oil prices were high, discipline evaporated. When prices fell, emergency measures replaced strategy.
Prosperous nations have walked this reform road before.These are nations often referenced by “Selectively Empirical Commentators” who want Nigeria to get to their levels but suffer deliberate amnesia when reforms are mentioned. In their numerous rhetorics, the methodologically dishonest analysts often cherry-pick statistics to sustain an oppositional narrative while bypassing deeper and analytical realities of the referenced nations.
South Korea, emerging from war and poverty, deliberately built a strong fiscal state by formalising its economy and enforcing compliance before growth accelerated.
Singapore anchored its development on disciplined taxation, institutional integrity, and strict enforcement, long before it became wealthy.
Even closer to home, Rwanda’s post-conflict recovery was driven not by aid alone, but by a deliberate decision to build a credible tax and public finance system as the backbone of state rebuilding.
In every case, tax reform was not popular but it was foundational. Consistent with the experiences of the nations mentioned above, modern tax policy reforms are no longer blunt instrument for raising funds. Across these nations, other advanced and emerging economies alike, tax reforms are increasingly used to promote economic sustainability and improve fiscal architecture.
The Nigerian Tax Acts 2025 follow this well-tested global direction. By simplifying rules, improving administration, and broadening participation in a measured way, the Tax Acts seek to create a more predictable fiscal environment. This predictability is essential for businesses making long-term investment decisions and for households planning their economic futures.
A defining feature of a credible tax reform is the protection of those least able to absorb economic shocks. In many jurisdictions, tax systems are deliberately structured to shield low-income earners and small businesses, recognizing their central role in employment, innovation, and social stability.
Globally, this is achieved through higher tax-free thresholds, simplified compliance regimes, and targeted reliefs for small enterprises. These measures ensure that taxation does not discourage entrepreneurship or push informal activity further into the shadows.
The Nigerian Tax Acts 2025 reflect these principles. By taking away the tax burden on small income earners and small businesses, the reforms aim to preserve livelihoods, encourage formal participation, and allow enterprises to grow organically. Economies grow when small businesses are given the space to survive, adapt, and scale. For example, those who earned N300,000 in 2024 paid taxes at 7% while the new Acts provide for 0% tax rate for those earning up to N800,000.
As the saying goes in tax policy, one does not tax the seed, one nurtures it to blossom. This maxim lies at the heart of the Tax Reform Acts.
Another clear signal of the intent behind the reforms is the deliberate protection of critical sectors such as healthcare, education, and agriculture through the expansion of zerorated VAT items.
Around the world, governments recognize that these sectors are foundational to longterm development. Healthcare and education underpin human capital, while agriculture supports food security, rural employment, and price stability. As a result, many jurisdictions either exempt or zero-rate essential goods and services within these sectors to keep them affordable.
By extending the list of zerorated VAT items to include the critical sectors listed above, the Nigeria tax reforms aim to reduce cost pressures on businesses operating within these critical sectors as well as support access to essential materialsneeded for the wellbeing of Nigerians.
Perhaps, the most forward-looking aspect of the Tax Reform Acts is the emphasis on digitalization and technologydriven tax administration. Across the globe, tax authorities are embracing digital tools to improve compliance, enhance transparency, and reduce administrative burdens for taxpayers.
Innovative solutions such as einvoicing have become standard features of efficient tax systems globally. Einvoicing, has helped many countries improve VAT compliance, reduce fraud, and generate reliable, realtime data for fiscal planning.
Nigeria’s move in this direction signals a commitment to modern governance. A digital tax system is not only more efficient; it is fairer and more transparent. It lowers the cost of compliance, improves accuracy, and builds trust between taxpayers and the government. Over time, it also strengthens the quality of economic data available to policymakers, supporting more effective fiscal and monetary decisionmaking.
Conclusion: A Reform for the Long Term
The Tax Reform Acts are best understood as part of Nigeria’s longterm economic strategy. They are designed to stabilize the fiscal environment, support production, protect critical sectors, and modernize tax administration in line with global standards.
As with all meaningful reforms, their success will depend on careful, transparent, consultative and collaborative implementation. Government remains committed to ongoing engagement with stakeholders to ensure that the transition is orderly and that the objectives of the reforms are fully realized. This requirement sits at the core of the responsibilities of the National Tax Policy Implementation Committee (NTPIC). As earlier stated by President Nola Tinubu, these tax reforms will be implemented with human face and full consideration of the Nigerian citizenry.
Ultimately, strong tax systems are not built overnight, nor are their benefits immediately visible. But over time, they form the backbone of stable economies, credible institutions, and shared prosperity.
Joseph Tegbe, FCA, FCIT is the Chairman of the National Tax Policy Implementation Committee (NTPIC), and the Director-General and Global Liaison, Nigeria-China Strategic Partnership (NCSP).
Nigerian Tax Acts 2025: Benefits Beyond The Rhetorics – Joseph Tegbe
National News
Reps Hearing: Ojukwu, Stakeholders Push for Stronger NHRC, Legal Shield for Human Rights Defenders
Reps Hearing: Ojukwu, Stakeholders Push for Stronger NHRC, Legal Shield for Human Rights Defenders
By: Michael Mike
A coalition of government officials, lawmakers and civil society leaders have rallied behind sweeping reforms to strengthen Nigeria’s human rights architecture, as the House of Representatives held a public hearing on two key bills aimed at reinforcing the mandate and independence of the National Human Rights Commission (NHRC).
At the centre of deliberations were the National Human Rights Commission Act (Repeal and Re-Enactment) Bill, 2025 and the Human Rights Defenders Protection Bill, 2024 — proposals advocates say could redefine institutional safeguards for rights protection in the country.
Leading the charge was the Executive Secretary of the NHRC, Tony Ojukwu, who argued that the existing legal framework no longer sufficiently addresses emerging human rights realities.
He maintained that the repeal and re-enactment of the Commission’s Act would entrench greater operational independence, improve oversight functions and guarantee sustainable funding.
According to Ojukwu, the proposed legislation clearly identifies funding streams for a National Human Rights Fund, designed to ensure financial autonomy and enable rapid response in emergencies. He noted that the bill would formally incorporate the National Preventive Mechanism within the Commission, strengthening independent monitoring of detention facilities and reinforcing safeguards against torture and inhumane treatment.
He also said the bill would provide statutory backing for the National Action Plan on Business and Human Rights, a move aimed at holding corporate actors accountable for rights violations and promoting responsible business conduct.
In a significant institutional reform, the bill proposes that the Executive Secretary of the Commission must emerge from within its directorate cadre, rather than being appointed externally. Ojukwu said the measure would preserve professionalism and continuity in the Commission’s leadership.
On the Human Rights Defenders Protection Bill, he stressed that individuals and groups advocating for justice often operate under threats, harassment and intimidation. The proposed law, he explained, would create legal protections and response mechanisms to shield them from reprisals.
Speaker of the House, Tajudeen Abbas, represented by Hon. Useni Jalo, reaffirmed the legislature’s commitment to strengthening democratic institutions through progressive lawmaking. He described the hearing as part of broader efforts to consolidate citizens’ trust in governance.
International partners also signalled support. The United Nations Resident and Humanitarian Coordinator in Nigeria, Mohammed Fall, represented by Ms. Ajuwa Kufour, said passage of the bills would further align Nigeria’s human rights institution with the Paris Principles, the global benchmark for national human rights bodies.
Chairman of the House Committee on Human Rights, Hon. Abiola Makinde, assured stakeholders that the legislative process would remain transparent and inclusive, pledging sustained engagement with civil society and government agencies.
However, dissenting views emerged from the Federal Ministry of Justice. Imarha Reuben, representing the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, cautioned against what he described as legislative proliferation. He argued that Nigeria already possesses adequate legal frameworks and urged lawmakers to focus on harmonising and effectively implementing existing laws rather than enacting new ones.
Despite the differing perspectives, stakeholders broadly agreed that strengthening the NHRC’s legal and institutional framework remains critical to advancing accountability, safeguarding dignity and deepening Nigeria’s democratic culture.
The hearing closed with renewed calls for collaboration between the legislature, executive and civil society to ensure that reforms translate into meaningful protection for ordinary Nigerians.
Reps Hearing: Ojukwu, Stakeholders Push for Stronger NHRC, Legal Shield for Human Rights Defenders
Shehu Dikko Endorses President Tinubu for Second Term
By Comrade Philip Ikodor
Abuja, Nigeria – The Chairman of the National Sports Commission (NSC), Shehu Dikko, has called on Nigerians to support President Bola Ahmed Tinubu’s bid for a second term in office come 2027. Dikko made this assertion at the Grand Endorsement event of President Tinubu’s re-election, organized by the National Progressive Hub (NPH), a prominent support group of the All Progressives Congress (APC), held at the Shehu Yaradua Center in Abuja.
Dikko, who hosted the event, highlighted the achievements of the Tinubu administration, including the establishment of the National Sports Commission, which has driven reforms and innovations in sports administration in Nigeria. He also commended the President’s industrial revolution drive, which has led to economic stability and development.
“President Bola Ahmed Tinubu is a great leader committed to positioning Nigeria as a leading nation. His bold economic policies and interventions have yielded positive results,” Dikko said. He also praised the President’s recent executive bill, which mandates key institutions to remit generated revenue directly to government coffers, calling it a significant step towards economic development.
The event also featured the formal inauguration of the 36 state coordinators and the FCT of the National Progressive Hub (NPH) and the unveiling of the Roadmap Framework for strategic grassroots engagement towards the APC’s victory in 2027.
The NPH, a leading APC support group, has thrown its weight behind President Tinubu’s re-election bid, citing his remarkable achievements and commitment to Nigeria’s development. The group is set to mobilize support for the President across the country, leveraging its extensive network and grassroots presence to ensure a landslide victory for the APC in 2027.
The NPH’s endorsement is seen as a significant boost to the President’s re-election campaign, and a testament to his growing popularity and influence among Nigerians.
Shehu Dikko Endorses President Tinubu for Second Term
FG Moves To Democratise Credit Access, Inaugurates CREDICORP Board
We’re targeting 50% of working population by 2030, says VP Shettima
By: Our Reporter
The Vice President, Senator Kashim Shettima, has inaugurated the Board of the Nigerian Consumer Credit Corporation (CREDICORP), saying access to consumer credit is critical to Nigeria’s ambition of becoming a one-trillion-dollar economy.
According to him, President Bola Ahmed Tinubu established the CREDICORP to build a trusted credit infrastructure, provide catalytic capital to lower borrowing costs, and help Nigerians overcome long-standing cultural resistance to credit.
Speaking on Thursday in Abuja when he inaugurated the Board on behalf of the President, the Vice President said that the quality of life of Nigerians cannot improve without closing the gap between access to capital and human dignity.
“A civil servant who earns honestly does not have to chase sudden wealth just to buy a vehicle, or save for ten years to buy one. A young professional should not remain in darkness simply because solar power must be paid for all at once,” the Vice President said.
VP Shettima disclosed that in just one year of operations, CREDICORP has disbursed over ₦37 billion in consumer credit to more than 200,000 Nigerians, with over half of them accessing formal credit for the first time.
The Vice President said the organisation is specifically tasked with building credit infrastructure to bridge the trust gap between lenders and borrowers, providing wholesale capital and credit guarantees through its portfolio company.
“Ultimately, these critical jobs of CREDICORP will enable access to consumer credit to at least 50 per cent of working Nigerians by 2030,” he said.
The Vice President explained that the new board’s role is not ceremonial as they are custodians of the organisation’s mission, adding that the long-term strength of the institution would depend on their “vigilance, integrity, sacrifice, and commitment.”
He directed Board members to uphold Public Service Rules, the Board Charter, and all applicable governance frameworks, warning that accountability and stewardship of public resources were non-negotiable.
Earlier, Chairman of CREDICORP, Otunba Aderemi Abdul, expressed appreciation to President Tinubu for his vision behind the formation of CREDICORP and for the confidence reposed in them, noting that the establishment of Corporation marked an important step towards strengthening the nation’s financial architecture.
He assured President Tinubu that the board understands its responsibility and will guide the institution to deliver meaningful benefits to Nigerians.
For his part, Engr. Uzoma Nwagba, Managing Director/CEO of CREDICORP, recalled watching President Tinubu saying 20 years ago that consumer credit is one of the major tools that will improve the lives of Nigerians.
He noted that over the past 18 months, the institution has benefited more than 200,000 Nigerians, including students.
He assured that the presidential vision behind CREDICORP would not be taken lightly, as the team considers their appointments a unique, once-in-a-lifetime opportunity.
Other members of the board inaugurated include Olanike Kolawole, Executive Director, Operations; Aisha Abdullahi, Executive Director, Credit and Portfolio Management; Dr. Armstrong Ume-Takang (MD, MoFI), Representative of MoFI; Engr. Bisoye Coke-Odusote (DG, NIMC), Representative of NIMC; and Mohammed Naziru Abbas, Representative of FMITI.
Others are Marvin Nadah, Representative of FCCPC; Chinonyelum Ndidi, Representative of the Federal Ministry of Finance; Mohammed Abbas Jega, Independent Director; and Toyin Adeniji, Independent Director.
FG Moves To Democratise Credit Access, Inaugurates CREDICORP Board
Troops score major victory against terrorists in Kadam Forest, Sokoto
NEDC finance director takes development to improve living conditions of people in Yobe
Police neutralise three bandits in Benue , rescue senator after attack on convoy
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