By The North Journals Staff Writer
In a bold move to reshape Nigeria’s fiscal landscape, President Bola Ahmed Tinubu has signed into law four sweeping tax reform bills that promise to simplify taxation, improve compliance, and attract investment while easing pressure on low-income earners.
Speaking at the signing ceremony on Wednesday, President Tinubu described the reforms as “pro-people, pro-business and tailored for a modern, ambitious Nigeria.” He emphasized that the new legal framework would promote transparency and efficiency in tax administration, ultimately fostering inclusive economic growth.
The newly signed laws include:
- Nigeria Tax Bill
- Nigeria Tax Administration Bill
- Nigeria Revenue Service (Establishment) Bill
- Joint Revenue Board Bill
Together, these legislations represent a significant overhaul of Nigeria’s tax system, which has long been criticized for being fragmented, opaque, and burdensome—especially for micro, small, and medium enterprises (MSMEs) and vulnerable citizens.
A Unified and Transparent Framework
Under the new legal architecture, the country’s multiple and often conflicting tax codes will now be harmonized into a single, coherent system. This unification is expected to eliminate redundancies, close loopholes, and align tax practices with global standards.
“The goal is to eliminate the confusion that businesses—both local and international—face when navigating our tax system,” said a senior official from the Federal Ministry of Finance who was part of the drafting committee.
Investor Confidence and Ease of Doing Business
Analysts and industry players are hailing the reforms as a major win for Nigeria’s investment environment. By creating a predictable and transparent fiscal regime, the reforms are expected to enhance investor confidence and reduce the cost of doing business.
“The new laws send a powerful message to the world: Nigeria is open for business—and serious about it,” said Dr. Ifeoma Nwosu, an economic policy analyst based in Abuja.
Pro-People Approach
Critically, the reforms place a strong emphasis on protecting low-income earners. The Nigeria Tax Bill introduces thresholds that shield small earners from excessive taxation, while creating targeted incentives for job creation and digital innovation.
“We finally have a system that doesn’t punish the poor for being poor,” said Musa Ibrahim, a Lagos-based tax consultant. “This is a shift toward equity in taxation.”
Institutional Strengthening
The Nigeria Revenue Service (Establishment) Bill lays the groundwork for a restructured, independent tax authority that will replace the current Federal Inland Revenue Service (FIRS). The new agency will have expanded powers and autonomy, but also greater accountability to the public.
Meanwhile, the Joint Revenue Board Bill creates a collaborative framework between federal, state, and local tax authorities to reduce overlapping mandates and foster data-sharing—key to curbing tax evasion and increasing revenue generation.
Economic Outlook
With Nigeria seeking to wean itself off oil dependency and broaden its revenue base, the Tinubu administration sees tax reform as central to sustainable growth.
“These reforms are not just technical fixes—they are a statement of intent,” President Tinubu said. “We are building a fiscal house that can support a 21st-century economy.”
Observers note that while the road to full implementation will require institutional capacity building and public education, the legal foundation laid by the new bills marks a historic turning point.
