Experts across financial and legal sectors have shared more light on the new tax reforms bothering many Nigerians as it seems like a threat to their financial landscape.
This is in response to Nigerians across the country that are expressing serious concern over the extent to which the changes will affect their income, businesses, and overall lifestyle.
Many Nigerians have raised questions about how and where the reforms will impact them and the best ways to adapt to the new tax regime. It was against this backdrop that Michael Kolade Yusuf, Founder of the Regulink Capacity Building Initiative, convened a public enlightenment workshop titled ‘Nigerian Tax Reform 2025’ to educate citizens on key provisions of the new tax law.
The workshop aimed to explain the purpose of the reforms, which Yusuf noted are designed to significantly impact business owners, consolidate numerous taxes and levies, provide substantial relief for small companies, and introduce a mandatory digital compliance system.
Speaking at the enlightenment programme held on Thursday in Ilorin, the Kwara State capital, Yusuf, a tax expert and Fellow of the Chartered Institute of Taxation of Nigeria (CITN) delivered a presentation titled “Navigating the Nigeria Tax Reform 2025: A Comprehensive Guide for Employees, Employers, Sole Traders and Income Earners on Implications and Practical Navigation Strategies.” He analysed the old tax regime and highlighted what the new system brings in terms of efficiency and economic growth.
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He noted that Nigeria’s previous tax system was burdened by legacy problems such as multiple taxation, tax poverty, and structural inefficiencies, which resulted 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 harmonisation, digital tax administration, expansion of the tax net, and fiscal sustainability aimed at shared prosperity where revenue mobilisation supports economic stability.
Yusuf explained that the reforms are anchored on four major pillars: the Nigeria Tax Act (NTA), which seeks to simplify the tax landscape and encourage formal business operations; the Nigeria Tax Administration Act (NTTA); the Nigeria Revenue Service Act (NRSA); and the Joint Revenue Board Act (JRBA).
The Kwara State Internal Revenue Service (KWIRS) official further stated that while the old tax system operated with over 60 different taxes and levies, the new regime has reduced them to fewer than 10. He urged Nigerians to seek accurate information about the reforms, stressing that the changes are largely designed to bring relief to taxpayers.
Under the new tax law, priority sectors include agriculture and food, energy and power, as well as the creative and technology industries.
Yusuf noted that Nigeria now offers one of the most competitive tax rates when compared with other African countries. He cited the Value Added Tax (VAT) rates as Nigeria at 7.5 percent, Kenya at 16 percent, Ghana at 15 percent, and South Africa at 15 percent.
For small company tax, Nigeria applies a 0% rate, while Kenya, Ghana, and South Africa charge 3 percent. He said similar competitive advantages apply across other stages of tax payments.
He added that corporate incentive tax now stands at 0 percent, while individuals earning up to ₦800,000 annually are exempt from personal income tax under the new law.
Another penalties, Oluwafunmilola Oyedare, a legal practitioner, spoke on “The Two Pillars of Business Legitimacy,” where she underscored the need for entrepreneurs to register their businesses with the Corporate Affairs Commission (CAC) to ensure proper tax records and documentation.
She added that businesses must consistently meet their statutory tax obligations in order to remain credible, compliant, and sustainable.
On her part, Kikelomo Oyelere, a finance and taxation specialist, tutored participants on “Compliance with the Nigerian Revenue Service,” emphasizing the importance of tax payment for collective national development. She noted that tax payment is a legal obligation, stressing that tax evasion is a criminal offence punishable under Nigeria’s tax administration laws.
Oyelere urged Nigerians to always play their civic role by paying their taxes and, in turn, benefiting from the dividends of good governance.
About 128 people registered and participants cut across business owners, civil servants, youth entrepreneurs among others.
