Experts in the financial and legal sectors have shed more light on the new tax reforms that are troubling many Nigerians as it seems to threaten their financial landscape.
This is in response to Nigerians across the country who are expressing serious concerns over the extent to which the changes will affect their incomes, businesses and overall lifestyle.
Many Nigerians have raised questions about how and where the reforms will impact them and what would be the best ways to adapt to the new tax regime. It is against this backdrop that Michael Kolade Yusuf, Founder of Regulalink Capacity Building Initiative, convened a public knowledge workshop titled ‘Nigerian Tax Reform 2025’ to educate citizens on key provisions of the new tax law.
The workshop was aimed at explaining the objective of the reforms, Yousuf said, adding that these are designed to have a significant impact on business owners, consolidate multiple taxes and levies, provide substantial relief for small companies and introduce a mandatory digital compliance system.
Speaking at the enlightenment program held on Thursday in Ilorin, the Kwara State capital, Yusuf, a tax expert and Fellow of the Chartered Institute of Taxation of Nigeria (CITN), gave a presentation titled “Navigating the Nigeria Tax Reform 2025: A Comprehensive Guide on Implications and Practical Navigation Strategies for Employees, Employers, Sole Traders and Income Earners”. He analyzed the old tax system and highlighted what the new system brings in terms of efficiency and economic growth.
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He said Nigeria's previous tax system was burdened with legacy problems such as multiple taxation, tax poverty and structural inefficiencies, resulting in a low tax-to-GDP ratio of about 8% compared to the global average of 30%.
He explained that the new law focuses on fairness and cohesion, digital tax administration, expansion of the tax net and fiscal stability, with the aim of shared prosperity where revenue mobilization supports economic stability.
Yusuf explained that the reforms are based on four key pillars: the Nigeria Tax Act (NTA), which seeks to simplify the tax landscape and encourage formal business operations; Nigeria Tax Administration Act (NTTA); Nigeria Revenue Service Act (NRSA); and Joint Board of Revenue Act (JRBA).
The Kwara State Internal Revenue Service (KWIRS) official further said that while the old tax system operated with over 60 different taxes and levies, the new system has reduced them to less than 10. He urged Nigerians to get accurate information about the reforms, stressing that the changes are largely designed to provide relief to taxpayers.
Under the new tax law, priority sectors include agriculture and food, energy and power, as well as creative and technology industries.
Yusuf said Nigeria now offers one of the most competitive tax rates compared to other African countries. Citing value added tax (VAT) rates, he said it is 7.5 per cent in Nigeria, 16 per cent in Kenya, 15 per cent in Ghana and 15 per cent in South Africa.
For small company tax, Nigeria applies a 0% rate, while Kenya, Ghana and South Africa charge 3 percent. He said the same competitive advantages apply to other stages of tax payment as well.
He said the corporate incentive tax is now 0 per cent, while individuals earning up to ₦800,000 annually are exempted from personal income tax under the new law.
Another punter, Oluwafunmilola Oyedare, a legal practitioner, spoke on the “Two Pillars of Business Legality” where he stressed the need for entrepreneurs to register their businesses with the Corporate Affairs Commission (CAC) to ensure proper tax records and documentation.
He said businesses must consistently meet their statutory tax obligations to remain credible, compliant and sustainable.
On his part, Finance and Taxation expert Kikelomo Oyelere lectured the participants on “Compliance with the Nigerian Revenue Service”, stressing the importance of tax payment for collective national development. He said tax payment is a legal obligation, stressing that tax evasion is a criminal offense punishable under Nigeria's tax administration laws.
Oyelere urged Nigerians to always play their civic role by paying their taxes and in turn, benefit from the dividends of good governance.
About 128 people registered and participants included business owners, civil servants, young entrepreneurs among others.
