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Tag: tax reform

  • Tax reform is policy not politics

    Tax reform is policy not politics

    • By Arabinrin Aderonke 

    Every administration is ultimately judged by its willingness to confront difficult structural problems. For President Bola Ahmed Tinubu’s government, tax reform represents one such necessary but challenging intervention, designed not for political convenience, but for long-term national stability and economic renewal.

    The recent controversy surrounding the newly enacted tax laws, particularly claims of falsification and lack of transparency, deserves to be addressed with calm, facts, and institutional respect. 

    The leadership of the National Assembly has spoken clearly. Senate President Godswill Akpabio has affirmed that the laws signed by the President reflect what was duly passed by the legislature, while the House of Representatives has taken additional steps to reassure the public through the release of Certified True Copies and the activation of internal review mechanisms. These actions demonstrate a functioning democracy, not a failing one.

    It is important to separate legitimate oversight from unhelpful alarmism. Nigeria’s constitutional system already provides structured avenues for resolving legislative concerns, and those avenues are currently being utilised. To continue to project suspicion while these processes are ongoing risks weakening public confidence in institutions at a time when unity and clarity are required.

    Beyond the political exchanges lies the more important issue: the substance of the reforms. Nigeria’s economy has for decades suffered from weak revenue mobilisation, a narrow tax base, and inefficient administration. 

    The new tax laws are intended to modernise the system, improve coordination among revenue agencies, and reduce leakages, steps that are essential if the country is to fund infrastructure, social services, and economic diversification without unsustainable borrowing.

    President Tinubu has been consistent in his reform agenda, from fiscal policy to broader economic restructuring. These reforms are not without short term discomfort, but history shows that nations that shy away from reform in the face of resistance ultimately pay a higher price.

    Read Also: New federal tax reform to protect low-income earners, says Ebonyi commissioner

    International economic assessments continue to emphasise that fiscal discipline and domestic revenue generation are key to Nigeria’s growth prospects and macroeconomic stability.

    Public debate is healthy, but it must be informed. Much of the current uproar appears driven by speculation rather than careful engagement with the actual provisions of the tax laws. Constructive criticism should be anchored in evidence and proposed improvements, not in narratives that suggest institutional bad faith without proof.

    The tax laws are now operational. The administration has acted within the law, the legislature has exercised its oversight responsibilities and there are no discrepancies. At this point, the national interest is best served by shifting focus from controversy to implementation, ensuring clarity, compliance, and public understanding.

    Governance is not advanced by endless dispute, but by steady, responsible action. The Tinubu administration has made its intentions clear, to place Nigeria on a firmer economic footing through necessary reforms. 

    The task before citizens and leaders alike is to engage constructively, allow institutions to do their work, and support policies that are aimed at securing a more resilient and prosperous Nigeria. The task before us now is to make them work transparently, fairly, and for the benefit of all.

    * Arabinrin Aderonke Atoyebi is the Technical Assistant on Broadcast Media to the Executive Chairman of the Nigeria Revenue Service

  • New federal tax reform to protect low-income earners, says Ebonyi commissioner

    New federal tax reform to protect low-income earners, says Ebonyi commissioner

    The Ebonyi State Commissioner for Finance and Economic Development, Leonard Uguru, has assured Nigerians that the new federal tax reform will ease the financial burden on low-income earners while increasing obligations for high-income individuals.

    Speaking in an interview with reporters in Abakaliki, Uguru described the policy as people-centred and progressive. He explained that under the revised tax regime, individuals earning below ₦1.2 million annually are exempt from Pay-As-You-Earn (PAYE) tax, emphasising that the reform is designed to protect the common citizen.

    “The new tax reform is so flexible that even if you are not earning up to ₦1.2 million annually, you are exempted from tax. The tax is more on those who have much. The rich will pay more tax than the poor,” Uguru said.

    He acknowledged that the reform may initially reduce states’ revenue from personal income tax but noted that the impact would be mitigated through alternative sources such as Value Added Tax (VAT) and electronic money transfer levies, ultimately benefiting citizens.

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    While urging citizens not to panic as the policy is ultimately designed to improve welfare and economic equity across the country, Mr Uguru revealed that the state government would carry out public awareness campaigns on the new tax reform.

    On Ebonyi State’s revenue performance, the commissioner revealed that the state’s Internally Generated Revenue (IGR) has recorded significant improvement under the current administration of Governor Francis Nwifuru.

    According to him, since the government assumed office in June 2023, Ebonyi had never crossed ₦2 billion in monthly IGR until December 2025, when it generated about ₦2.1 billion.

    “We have different strategies on the ground to ensure that we continue to improve on the IGR of the state,” Uguru said, adding that revenue generated in the previous year was sufficient to cater for the state’s budgetary needs up to December 25, 2025.

    He also attributed Ebonyi’s strong showing in financial transparency to robust institutional processes, following the state’s achievement of a 100 percent score in the 2025 Budget Fiscal Transparency League.

    “Everything approved by the government is captured in the budget, and whatever the government does is published on the state’s website. Whether you are in Lagos or California, you can see what is happening in Ebonyi as far as financial management is concerned,” he said.

    Uguru emphasized that prudent financial management has enabled the state to deliver visible infrastructure despite receiving one of the lowest allocations from the Federation Account.

    He added that since May 29, 2023, the state has not borrowed any funds until provisions were made in the 2026 budget for a loan targeted at economic development.

    The proposed borrowing, he explained, is intended for the establishment of a cement factory to create jobs and generate revenue.

    He, however, dismissed fears surrounding the plan, arguing that government involvement is necessary given the huge capital required for such projects.

    Addressing concerns about multiple taxation and revenue leakages, the commissioner acknowledged that while no system is perfect, the government is committed to blocking identified loopholes and ensuring fair taxation to attract investors.

    “We are relaxing some tax rules so that investors will not run away. Ebonyi is still a young state that needs investors to grow,” he said. 

  • Tax reform: Lessons for national health financing

    Tax reform: Lessons for national health financing

    By Oladoja M.O

    Nigeria’s new tax law regime arrives at a moment when questions of domestic resource mobilization have moved decisively from the margins of fiscal discourse to its centre. The reform is ambitious in both scope and intent. It consolidates previously fragmented statutes, modernizes tax administration, strengthens compliance mechanisms, and expands the state’s technical capacity to mobilize revenue in an increasingly constrained macro-economic environment.

    Read on its own terms, the law represents a serious effort to stabilize public finance and reduce long-standing inefficiencies in the tax system. But tax laws, particularly of this magnitude, should not be mere instruments of collection, rather reflections of what a state understands taxation to be for.

    When examined from the perspective of national health financing, Nigeria’s new tax law reveals not hostility to health, or ignorance of its importance, but striking institutional restraint, a deliberate decision to keep taxation largely neutral to the direct financing of public health.

    This neutrality is especially significant because it runs counter to the evolving global understanding of domestic resource mobilization (DRM). In contemporary public finance, DRM is no longer conceived simply as the ability of a state to raise revenue, but as its capacity to do so in a manner that deliberately underwrites social protection, safeguards human capital, and reduces long-term economic vulnerability, where health occupies a central place.

    Ill-health is not a random misfortune but a predictable social risk, one that drives household impoverishment, reduces labour productivity, and places sustained pressure on public finances. For this reason, many countries have increasingly integrated health financing into their tax systems, whether through general taxation, earmarked levies, or hybrid arrangements that link tax administration directly to social insurance and prevention financing.

    It is against this backdrop that Nigeria’s new tax law must be read.

    The law unquestionably strengthens the means of mobilization. A unified tax administration framework, enhanced enforcement powers, clearer compliance obligations, and improved data coordination substantially upgrade the state’s fiscal machinery. In theory, this expanded administrative capacity could support innovative approaches to financing social sectors, including health. In practice, however, the law exercises marked caution. Health appears within the tax framework, but only at the margins, and only in forms that preserve the traditional separation between revenue mobilization and social sector financing.

    This pattern becomes evident when examining how health-related elements are treated across the law. Contributions to the national health insurance scheme are recognised as allowable deductions for personal income tax purposes. This recognition is not insignificant; it affirms health insurance contributions as socially legitimate expenditures deserving of fiscal relief. Yet the logic remains passive. The tax system responds only after individuals have already contributed. It does not actively mobilize resources for health, nor does it deploy its collection infrastructure to expand coverage, pool risk, or subsidize access. The fiscal relationship ends at recognition, not generation.

    A similar logic governs the treatment of consumption taxes. Essential medicines, pharmaceuticals, and certain medical equipment continue to benefit from favorable VAT treatment. These provisions are defensible on equity grounds, particularly in a system where out-of-pocket spending remains high. But from a financing perspective, their effect is limited. They shield households from additional burden, yet they do not generate fiscal space for the health system. Again, health is insulated from taxation, not financed through it.

    The clearest illustration of this restrained approach lies in the treatment of excise duties on tobacco, alcohol, and sugar-sweetened beverages. These taxes are frequently framed as “sin taxes,” ostensibly justified by their potential to alter harmful consumption patterns. In principle, excise taxation is meant to operate through a behavioural channel: higher prices reduce consumption, lower consumption reduces disease burden, and reduced disease burden lowers long-term health expenditure. In Nigeria’s case, however, this logic remains largely theoretical.

    First, the excise rates themselves are modest. The levy on sugar-sweetened beverages, for instance, is widely recognised as too low to produce a meaningful price shock capable of altering consumption behaviour. Similar concerns apply to alcohol and tobacco, where cultural entrenchment, affordability, and illicit trade further blunt the intended deterrent effect.

    Second, there is no publicly available evidence demonstrating that consumption of these products has declined since the introduction or adjustment of excise duties. On the contrary, available market indicators and anecdotal trends suggest that consumption has increased. Crucially, the state does not appear perturbed by this outcome. Higher consumption translates into higher excise revenue, and excise duties, in practice, function as reliable inflows to the general federal pool.

    This reveals a deeper truth about how sin taxes are governed in Nigeria. Despite their rhetorical association with public health, excise duties are not treated as health instruments. They are treated as revenue lines. There is no systematic effort to measure behavioural change, no routine publication of consumption data linked to tax policy, and no formal evaluation of health impact. In policy terms, a behavioural instrument that is not measured is indistinguishable from a revenue instrument.

    The absence of evidence of reduced consumption is not merely a data gap; it is an indication that behavioural change is not being actively governed as an objective.

    From a health financing perspective, this has serious implications. Excise taxes generate revenue, yet none of that revenue is structurally linked to health financing. No portion is dedicated to prevention programmes, health insurance subsidies, or system strengthening. The public bears the health consequences of continued consumption, rising non-communicable diseases, increasing treatment costs, and productivity losses, while the fiscal gains accrue centrally, unconnected to the sector that absorbs the burden. In effect, Nigeria taxes harm, tolerates its persistence, and finances neither its prevention nor its consequences through the tax system.

    Read Also: ‘Nigeria ready for front seat in global economy’

    This outcome is unlikely to be accidental. The new tax law is too carefully constructed for its silences to be incidental. Rather, it reflects a broader fiscal philosophy that prioritizes flexibility, central discretion, and revenue pooling over sector-specific commitments. Earmarking, even in its softer forms, constrains the treasury’s freedom to allocate resources across competing priorities. From a public health financing standpoint, this caution is costly. It leaves health structurally dependent on discretionary budgets, weak insurance enforcement, donor support, and household spending, even as the state’s revenue-collection capacity improves.

    The result is a growing asymmetry. Nigeria now possesses an increasingly sophisticated tax apparatus without a correspondingly sophisticated approach to financing social risk. Revenue mobilization is advancing, but allocation logic remains largely unchanged. Health remains acknowledged but peripheral, recognised, accommodated, and indirectly supported, yet excluded from the core architecture of taxation.

    None of this implies that the new tax law should have transformed itself into a health financing statute. No! Tax laws cannot, and should not, bear the full weight of social policy. But in an era where domestic resource mobilization is increasingly framed as a means of financing development rather than merely sustaining government, the continued treatment of health as fiscally incidental is striking. The administrative infrastructure now exists to do more than collect revenue efficiently. What is missing is the institutional decision to deploy that capacity deliberately to protect households from the economic consequences of ill-health.

    The most important lesson of Nigeria’s new tax law for national health financing, therefore, lies not in what it includes, but in what it leaves unresolved. The law strengthens the state’s ability to mobilize resources, yet remains silent on whether that capacity should be harnessed to address one of the most predictable and economically damaging social risks. As Nigeria deepens its commitment to domestic resource mobilization, the critical question will not simply be how much revenue can be raised, but how intentionally that revenue is aligned with protecting human capital. A tax system that grows in efficiency without growing in social purpose, risks becoming technically impressive but socially thin.

    •Oladoja writes from Abuja and can be reached at: mayokunmark@gmail.com

  • Uba Sani, Arewa Think Tank hail tax reform laws, sensitize Kaduna residents

    Uba Sani, Arewa Think Tank hail tax reform laws, sensitize Kaduna residents

    Kaduna State Governor, Uba Sani, and a Northern advocacy group, the Arewa Think Tank, have thrown their weight behind the Tax Reform Laws introduced by President Bola Ahmed Tinubu, urging residents, particularly youths, to embrace the reforms as a pathway to sustainable development.

    The governor spoke through the Executive Chairman of the Kaduna State Internal Revenue Service (KADIRS), Comrade Jerry Adams, who represented him at a sensitization summit organized by the Arewa Think Tank on Tuesday in Kaduna.

    Speaking on the theme, “The Benefits of the Renewed Hope Tax Reform Laws,” Governor Sani explained that the reforms are designed to streamline Nigeria’s multiple revenue sources into nine clearly defined and harmonized revenue lines.

    According to him, the initiative will simplify tax compliance, reduce confusion, and significantly improve the ease of doing business, especially for youth-led enterprises and small businesses.

    Addressing youths from across Northern Nigeria, the governor underscored their critical role in the success of the reforms, describing them as entrepreneurs, innovators, professionals, and community leaders whose understanding, compliance, and demand for accountability would determine the long-term impact of the tax policy.

    “The summit is not merely about sensitisation; it is about empowerment and partnership. Tax reform must translate into tangible outcomes such as better roads, quality education, accessible healthcare, improved security, and expanded economic opportunities,” the governor said.

    He noted that when citizens clearly see the link between taxes paid and development outcomes, public trust grows and voluntary compliance increases.

    Governor Sani urged participants to use the platform to engage constructively, exchange ideas across states, and serve as ambassadors of responsible tax citizenship across the Northern region.

    He also encouraged collective ownership of the development process, stressing that the workshop should deepen understanding and inspire collaboration among all stakeholders.

    The governor reaffirmed the Kaduna State Government’s commitment to progressive tax reforms, youth inclusion, and inter-state collaboration aimed at strengthening governance and economic resilience in Northern Nigeria.

    He expressed appreciation to the Arewa Think Tank, its partners, and participants for choosing Kaduna State as host for the sensitization summit.

    Earlier, the Convener of the Arewa Think Tank, Muhammad Alhaji Yakubu, said the Tax Reform Laws present a unique opportunity for Northern states to become more innovative, economically self-reliant, and competitive.

    According to him, the reforms would particularly enable states to responsibly harness solid minerals and other natural resources to drive development.

    Yakubu noted that the reforms would also promote creativity and meaningful engagement with the Federal Government and the National Assembly on constitutional amendments that support resource-based development.

    He said the reforms hold “huge fortunes and prospects” that would benefit future generations if fully embraced.

    The Arewa Think Tank called on Northern political, traditional, and opinion leaders to patriotically support the reforms, urging state governments to leverage them to diversify their economies, strengthen internally generated revenue, and invest in education, healthcare, agriculture, solid minerals, and infrastructure.

    The group reaffirmed its commitment to standing with President Tinubu on the implementation of the Tax Reform Laws and pledged to intensify public sensitization on the importance of taxation for national development.

    According to the group, tax reform should be seen not as a burden but as an investment in a stronger, fairer, and more prosperous Nigeria.

    Highlights of the event included a solidarity road show by youths who marched with placards bearing inscriptions such as: “On Tax We Stand with Nigeria’s Progress,” “We Stand with President Tinubu,” “Tax Is an Investment,” “Pay Tax, Build Nigeria,” “Tax Today, Better Tomorrow,” “Our Tax, Our Future,” and “Tax Is Progress,” among others.

  • Tax reform panel counters KPMG report

    Tax reform panel counters KPMG report

    Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee has faulted key aspects of a recent publication by KPMG on the country’s newly enacted tax laws.

    The Committee argued that much of the firm’s analysis was based on misunderstandings of policy intent, mischaracterisation of deliberate reforms and the presentation of opinions as facts.

    Chairman of the Committee, Taiwo Oyedele, in a detailed response titled “Response to KPMG: Observations on Nigeria’s New Tax Laws,” said while some of the issues raised by the consulting firm were useful, particularly those relating to implementation risks and clerical or cross-referencing matters, the bulk of the commentary failed to properly situate the reforms within their broader fiscal and economic objectives.

    According to Oyedele, several matters described by KPMG as “errors”, “gaps” or “omissions” were either based on incorrect conclusions, incomplete understanding of the reforms, missed policy context, or reflected preferences for alternative outcomes rather than flaws in the law itself. 

    He said disagreement with policy direction should not be presented as technical errors, noting that other professional firms adopted a more constructive approach by engaging directly with policymakers for clarification and mutual learning.

    Oyedele stressed the new tax laws contain deliberate policy choices designed to meet defined reform objectives, and that it is important to distinguish between such choices and recommendations that merely reflect the preferences of external advisers.

    Addressing concerns around the taxation of shares and the stock market, Oyedele dismissed suggestions that the new chargeable gains provisions would trigger a sell-off. 

    He said the tax rate on gains from shares was not a flat 30 per cent, explaining that it ranged from zero to a maximum of 30 per cent, which is expected to reduce to 25 per cent. 

    Oyedele added about 99 per cent of investors qualify for unconditional exemption, while others are eligible subject to reinvestment. 

    “The stock market is currently at an all-time high with increased investment flows, showing that investors understand that the reforms strengthen company fundamentals, profitability and cash flows,” he said, adding that claims of an impending sell-off were not supported by evidence.

    On the commencement date of the new laws, Oyedele argued that proposals to align implementation strictly with the start of an accounting period failed to appreciate the complexity of a wholesale tax reform. 

    He said the changes cut across multiple assessment bases, audit timelines, deductions, credits and penalties, making it impractical to anchor commencement to a single accounting date without leaving critical transition issues unresolved.

    He also defended the inclusion of provisions on the indirect transfer of shares, describing them as consistent with global best practice and international efforts to curb base erosion and profit shifting. 

    According to him, the objective was to close a long-standing loophole exploited by multinational companies and other investors, not to undermine competitiveness. 

    He described claims that the provision could threaten economic stability as misleading.

    On value added tax, Oyedele said calls for an explicit VAT exemption on insurance premiums were unnecessary, noting that insurance premiums do not constitute a taxable supply under Nigerian tax law. 

    “Insurance is about risk transfer, not the supply of goods or services subject to VAT. This has always been the legal and administrative position,” he said.

    Responding to concerns about the inclusion of “community” in the definition of a taxable person, Oyedele said the drafting approach was consistent with modern legislative principles. 

    He explained that statutory definitions apply wherever the defined term is used, unless the context dictates otherwise, adding that comprehensive definitions help streamline operative provisions and avoid repetition.

    He also defended the composition of the Joint Revenue Board, saying its revenue-focused membership was intentional and designed to provide subnational tax perspectives that complement the fiscal policy mandate of the Ministry of Finance. He noted that the structure mirrored that of the former Joint Tax Board, which functioned effectively.

    Clarifying dividend taxation, Oyedele said KPMG appeared to conflate foreign-controlled companies with foreign operations of Nigerian companies.

     He explained that dividends from foreign companies could not be franked because no Nigerian withholding tax would have been deducted, and that different treatment of dividends from Nigerian and foreign companies reflected a deliberate and logical policy distinction.

    On non-resident taxation, he said the assumption that final withholding tax automatically removes the obligation to register or file returns ignored the broader purpose of tax administration. 

    He noted that filing requirements apply even where tax has been finally deducted, both for residents and non-residents, as returns serve compliance and information purposes beyond revenue collection.

    Oyedele also criticised proposals that he said would undermine key reform objectives. 

    He rejected suggestions to exempt foreign insurance companies from tax on premiums written in Nigeria, warning that such a move would disadvantage local insurers in their own market. 

    He also defended the disallowance of tax deductions for foreign exchange sourced from the parallel market at rates above the official window, describing it as a fiscal measure aligned with monetary policy to discourage round-tripping and support naira stability.

    He further explained that linking deductibility of expenses to VAT compliance was an anti-avoidance measure aimed at eliminating the advantage previously enjoyed by businesses that patronised VAT-evading suppliers. 

    According to him, the rule promotes fairness and encourages voluntary compliance, especially given provisions that allow for self-charging of VAT.

    On personal income tax, Oyedele said criticisms of the 25 per cent top marginal rate ignored the fact that effective tax rates for high earners could be significantly lower due to pension contributions and other reliefs. 

    He said the rate compared favourably with those in several African countries and advanced economies, arguing that the structure promotes fairness without eroding competitiveness. 

    He added that the combination of higher rates for top earners and lower corporate tax was intended to ease the tax burden associated with business formalisation.

    He also pointed out factual errors in KPMG’s analysis, including references to the Police Trust Fund, which he said expired in June 2025 following the end of its six-year statutory lifespan. 

    He noted that concerns about the impact of small company tax exemptions on larger firms predated the new laws, as the relevant thresholds were introduced under the Finance Act 2021.

    Oyedele said the publication failed to acknowledge major structural improvements introduced by the reforms, such as tax simplification and harmonisation, the planned reduction in corporate tax rate to 25 per cent, expanded input VAT credits, exemptions for low-income earners and small businesses, the removal of minimum tax on turnover and capital, and stronger investment incentives for priority sectors.

    He said the reforms were the product of extensive consultations and a transparent legislative process that included public hearings and opportunities for professional input.

     While acknowledging that clerical inconsistencies could arise in any comprehensive overhaul, he said such issues were already being addressed internally.

    “The success of the new tax laws now depends largely on administrative guidance, clarifications from the tax authority and supporting regulations, pending future amendments,” Oyedele said. 

    He called on stakeholders to move beyond static critique and adopt a more collaborative approach that supports effective implementation and advances Nigeria’s goal of building a self-sustaining and competitive economy.

  • New tax reform implementation won’t lead to tuition fee hike, FG assures students

    New tax reform implementation won’t lead to tuition fee hike, FG assures students

    • …NANS endorses new tax law, calls off January 14 nationwide protest

    The federal government has assured students in tertiary institutions that the tax laws, which took effect last week, will not lead to a hike in tuition.

    This is as the National Association of Nigerian Students (NANS) endorsed the new tax reform law and called off its proposed nationwide protest earlier scheduled for 14th January, 2025, against the implementation of the law.

    Chairman, Presidential Committee on Fiscal Policy and Tax Reform, Taiwo Oyedele, allayed the fears of students at an Expanded National Executive Council (ENEC) meeting and stakeholders’ engagement forum organised by NANS on Tuesday in Abuja.

    Oyedele highlighted significant provisions of the tax law that would directly benefit the students and low-income earners in the country.

    He added that the law aims to make more money available to state governments for investment in the development of education and infrastructure in the country.

    President of NANS, Comrade Olushola Oladoja, used the engagement to announce the suspension of the proposed nationwide protest following the conclusion of the National Assembly’s investigation and clarifications made on the alleged alterations of the tax reform Act.

    Oladoja, who read the communique of the Expanded National Executive Council of NANS, held in Abuja in collaboration with all structural student bodies, said the forum provided a platform for tax experts from the Federal Inland Revenue Service (FIRS) to educate student leaders, clarify grey areas, and respond comprehensively to concerns expressed by the Nigerian masses about the new Tax Reform Law.

    He explained that the Expanded National Executive Council (ENEC) of NANS was convened against the backdrop of widespread public concerns and national discourse surrounding the newly enacted Tax Reform LAW.

    He recalled NANS’ earlier position on the law, following public outcry arising from revelations by some National Assembly members about alleged alterations to the Tax Reform Act, coupled with low public understanding of the Act and its operational guidelines before it was fully passed into law.

    “In response, NANS formally called for the immediate suspension of the implementation of the new Tax Law, pending the conclusion of investigations by the National Assembly around the raised allegations and the conduct of comprehensive and targeted public education about the Law to enhance citizens’ understanding and support to ensure the desired results are achieved through this reform.

    “This position was accompanied by a 14-day ultimatum, after which NANS proposed to mobilize Nigerian students for mass protest actions across the country should the demands not be addressed.

    “Subsequent to this position, the national leadership of NANS was engaged by several government agencies and departments, including but not limited to: the National Assembly; the Department of State Services (DSS); and the Federal Inland Revenue Service (FIRS),” he stated.

    Oladoja added that after extensive deliberations, presentations, and engagements, the Expanded National Executive Council (ENEC) of NANS resolved that the new Tax Reform Law is a deliberate and well-intentioned law aimed at improving Nigeria’s economy, strengthening institutional frameworks for revenue generation, with deliberate provisions to protect low-income earners and vulnerable citizens.

    “Contrary to NANS prior belief, the student body has come to the realisation that the Law does not target the poor; instead, it strengthens social protection while ensuring that higher-income earners contribute more equitably to national revenue, preventing lopsidedness and unnecessary tax burdens on a few,” he said.

    Oladoja added that the students were convinced that the Law provides for centralised revenue generation with a clear and transparent sharing formula across the Federal Government, State Governments, and Local Governments.

    He said NANS has consequently agreed to serve as ambassadors of public enlightenment, committed to educating Nigerians on the purpose, importance, and benefits of the Tax Reform Law to boost citizens’ confidence and trust in the Federal Government during the implementation of this Law

  • Tax reform and the cost of silence

    Tax reform and the cost of silence

    • By Kayode Awojobi

    In recent weeks, Nigeria has been awash with heated debates over the newly introduced tax law. From social media timelines to informal discussions in public spaces, opinions have been freely expressed, often passionately and sometimes angrily. Unfortunately, much of this national conversation has been driven not by facts, but by fear, speculation, and widespread misinformation. 

    Since the announcement of the new tax regime, reactions have poured in from different quarters of the country. Many of these reactions, including those from individuals who parade themselves as professionals or public commentators, reveal a troubling lack of understanding of what the law actually entails. Instead of clarifying issues for the public, these interventions have largely amplified confusion. 

    At the centre of the controversy are exaggerated claims about bank transactions, increased taxation on the poor, and alleged attempts by government to squeeze already struggling Nigerians. These claims, repeated often and loudly, have taken root in public consciousness. In the absence of timely and authoritative clarification, misinformation has spread unchecked, exhausting citizens and distorting public perception.

    A sober examination of the new tax law, however, tells a different story.

    The reform represents one of the most comprehensive overhauls of Nigeria’s tax system in decades. It consolidates multiple outdated and overlapping tax laws into a more coherent framework designed to simplify compliance, improve efficiency, and promote fairness. Far from being a blanket burden on the masses, the law introduces progressive measures intended to protect low-income earners while ensuring that higher earners and large corporations contribute more equitably. 

    Crucially, the new law removes the burden of Value Added Tax (VAT) from the most essential pillars of daily life: food, healthcare, and education are now VAT-exempt. This is a direct intervention to protect the purchasing power of the average Nigerian. Furthermore, one of the most significant provisions is the exemption of individuals earning up to N800,000 annually from personal income tax. This single measure offers relief to millions of Nigerians within the low-income bracket. 

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    To further ease the minds of the banking public, it must be clarified that this tax reform has absolutely nothing to do with bank transaction narrations. There are no “auto-debits” authorized by this law; taxes are paid yearly through a transparent system of self-assessment. The law also expands allowable reliefs and deductions, including rent relief, to ease pressure on households grappling with rising living costs. 

    Small and medium-scale enterprises stand to benefit as well. Businesses below specified turnover and asset thresholds are exempt from certain major taxes, giving them room to grow without being stifled at infancy. For larger corporations, the law simplifies obligations by replacing multiple overlapping levies with a unified development levy, reducing complexity while maintaining revenue generation. 

    Beyond revenue collection, the reform seeks to modernise tax administration. Digital filing systems, clearer compliance rules, and a restructured revenue authority are intended to reduce leakages, improve transparency, and build confidence in the system. 

    If these are the provisions of the law, then the question must be asked: Why has public perception been so overwhelmingly negative?

    The answer lies in communication failure. From the outset, relevant government agencies failed to take control of the narrative. Institutions constitutionally mandated to inform and orientate the public, such as the National Orientation Agency and the Ministry of Information, were largely absent at a critical moment. In their silence, rumours thrived and misinformation flourished.

    This failure is particularly unfortunate in a country with no shortage of communication professionals, scholars, civil society organisations, and public institutions specifically tasked with public enlightenment. Nigeria should not be a fertile ground for policy-related rumours, especially on an issue as sensitive as taxation.

    Public policies do not exist in a vacuum. Their success depends not only on intent but also on public understanding and trust. When citizens are left to rely on hearsay, even the most well-meaning reforms are bound to be resisted.

    The way forward is clear. Government agencies, tax authorities, professional bodies, the media, and civil society must urgently rise to their responsibilities. Nigerians deserve clear, consistent, and accessible explanations of what the new tax law entails, who is affected, who is exempt, and what benefits it offers.

    Public sensitisation must go beyond press releases. It should involve deliberate communication strategies that reach communities in simple language and, where necessary, local dialects. Town hall meetings, media engagements, simplified guides, and stakeholder forums should replace ambiguity and fear.

    Misinformation thrives where clarity is absent. If Nigeria must make progress, policies must be accompanied by transparency, engagement, and trust-building. The new tax law should not become another example of a sound policy undermined by poor communication. It is not too late for relevant stakeholders to act, reclaim the narrative, and restore public confidence.

    •Awojobi a  broadcast journalist, writes from Ago-Iwoye, Ogun State.

  • Reps panel on Tax reform discrepancies pledges swift report submission

    Reps panel on Tax reform discrepancies pledges swift report submission

    The House of Representatives’ ad-hoc committee investigating alleged discrepancies in the gazetted Tax Reform Acts has pledged to conclude its assignment and submit its report to the House as quickly as possible.

    The committee, chaired by Hon. Muktar Aliyu Betara, held its inaugural meeting on Tuesday, December 23, 2025, to deliberate on a Privilege Matter raised at plenary concerning inconsistencies between the laws passed by the National Assembly and their gazetted versions.

    During the session, members resolved to complete the investigation promptly and report back to the House to uphold legislative integrity, due process, and public confidence in the lawmaking process.

    Reaffirming the committee’s commitment to transparency and thoroughness, Chairman Betara assured on Wednesday that the findings and recommendations would be presented promptly upon conclusion of the investigation.

    The ad-hoc committee was constituted to ensure clarity, accuracy, and full conformity between legislation passed by the National Assembly and the gazetted tax reforms, in line with constitutional provisions and established legislative standards.

  • NBA calls for suspension of Tax Reform Acts

    NBA calls for suspension of Tax Reform Acts

    The Nigerian Bar Association (NBA) has called for the immediate suspension of the implementation of the recently enacted Tax Reform Acts 

    Citing controversies that it said cast serious doubt on the sanctity of Nigeria’s lawmaking process.

    The association said the circumstances surrounding the passage of the laws have raised grave concerns about the integrity, transparency and credibility of the legislative process, warning that the developments strike at the heart of constitutional governance in the country.

    In a statement signed by its President, Mazi Afam Osigwe, the NBA stressed that the issues surrounding the Tax Reform Acts called into question whether due process and established legislative procedures were strictly followed in a democratic society.

    The NBA urged that a comprehensive, open and transparent investigation be carried out to clarify the circumstances under which the laws were enacted and to restore public confidence in the National Assembly.

    “Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” He said.

    According to the NBA, the legal and policy uncertainty generated by the controversy poses serious risks to economic stability. 

    They further noted that the lack of clarity could unsettle the business environment, erode investor confidence and create unpredictability for individuals, businesses and institutions expected to comply with the new tax regime.

    The association warned that uncertainty of such magnitude is incompatible with the rule of law and could have far-reaching consequences for the economy if left unaddressed. 

    The NBA emphasised that laws with profound economic and social implications must emerge from processes that are transparent, accountable and beyond reproach.

    “Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests,” the statement said.

    The NBA therefore called on all relevant authorities to act swiftly and responsibly to address the controversy, in the overriding interest of constitutional order, economic stability and the preservation of the rule of law.

  • Tinubu’s tax reform designed to protect, not punish Nigerians – Ekiti IRS boss

    Tinubu’s tax reform designed to protect, not punish Nigerians – Ekiti IRS boss

    The Chairman of the Ekiti State Internal Revenue Service (EKIRS), Olaniran Olatona, has assured Nigerians that the new tax reform introduced by President Bola Ahmed Tinubu is not designed to punish Nigerians but strengthen the economy and promote fairness in tax administration.

    Olatona gave the assurance in Ado-Ekiti, the state capital, on Wednesday while speaking with journalists, dismissing fears that the reform scheduled to take effect in January 2026 would result in arbitrary deductions from individuals’ bank accounts.

    The EKIRS boss said that the tax reform forms part of President Tinubu’s broader economic agenda aimed at modernising Nigeria’s tax system, improving revenue generation, and ensuring equity across all sectors of the economy.

    Olatona allayed widespread fears that the new tax laws would empower tax authorities to make arbitrary deductions from personal bank accounts, stressing that the legal framework does not give tax authorities the power to withdraw money from personal bank accounts without due process.

    Olatona explained that the reform seeks to broaden the tax base, encourage voluntary compliance, eliminate multiple taxation, and plug revenue leakages, while creating an enabling environment for businesses to grow and contribute meaningfully to national development.

    He also debunked reports suggesting that Nigerians without Tax Identification Numbers would have their accounts frozen or be penalised, noting that the focus of the reform is to regularise and issue TINs to enhance efficiency in tax administration, not to victimise citizens.

    He further clarified that the reform does not imply an increase in taxes, adding that low-income earners are protected under the new framework and would only become liable when they attain the required income threshold.

    The EKIRS boss advised Nigerians to ensure accurate descriptions when carrying out bank transfers to avoid misinterpretation or unnecessary tax concerns under the new system.

    He cautioned traders and service providers against arbitrary increases in the prices of goods and services, saying the tax reform is expected to help reduce the cost of food and essential commodities rather than worsen economic hardship.

    While urging Nigerians to ignore misinformation, Olatona said EKIRS would continue to engage stakeholders and sensitise the public on the provisions and benefits of the reform to ensure smooth implementation.

    He commended President Tinubu’s economic reforms, which he said have helped stabilise the economy, and called on Nigerians to support the initiative by cooperating with tax authorities in the overall interest of sustainable national development.

    The EKIRS boss disclosed that EKIRS has commenced strategic engagements with traditional rulers, bank executives, and other stakeholders in Ekiti State, adding that artisans, small business owners, and private school proprietors would be engaged to sensitise them on the provisions and benefits of the reform to ensure successful implementation.