Experts List Benefits Of Tax Reforms

Financial and legal experts yesterday educated residents of Ilorin, Kwara State on the Nigeria’s new tax reforms.

The founder of the Regulink Capacity Building Initiative, Michael Yusuf, convened the 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 tax  reforms which the experts  noted were 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 programme, Michael 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.

According to him, 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 eight percent compared to the global average of 30 per cent.

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).

He 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.

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 per cent, Kenya at 16 per cent, Ghana at 15 per cent, and South Africa at 15 per cent.

“For small company tax, Nigeria applies a zero percent rate, while Kenya, Ghana, and South Africa charge three percent,” he said, adding that similar competitive advantages apply across other stages of tax payments.

He added that corporate incentive tax now stands at zero percent, while individuals earning up to ₦800,000 annually are exempt from personal income tax under the new law.