By Ayomide Otitoju
Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee (NTPIC), has highlighted the benefits of the Nigerian Tax Reform Acts 2025, describing it as a milestone in the country’s pursuit of a robust and sustainable economy.
In a series of articles published nationally, Tegbe said the new law represents a comprehensive overhaul of Nigeria’s fiscal framework, designed to create a modern, efficient, and transparent tax system that fosters economic growth and prosperity.
The reforms are built around four key pillars: reconnecting the economy to the state, standardising and modernising fiscal administration, promoting predictability, and rebalancing the fiscal social contract. “By broadening the tax net, simplifying rules, and improving administration, we are creating a more predictable fiscal environment that supports businesses and households,” Tegbe explained.
He noted that the reforms draw on global best practices from countries such as South Korea, Singapore, and Rwanda, where similar measures have successfully driven economic growth.
The Acts include measures to protect low-income earners and small businesses, such as zero tax rates for incomes up to N800,000 and the expansion of zero-rated VAT items in critical sectors including healthcare, education, and agriculture. “By taking away the tax burden on small income earners and small businesses, the reforms aim to preserve livelihoods, encourage formal participation, and allow enterprises to grow organically,” Tegbe said.
Digitalisation is a key feature of the new system, with the introduction of e-invoicing to improve compliance, transparency, and administrative efficiency.
Tegbe emphasised that the success of the reforms will depend on careful implementation and ongoing engagement with stakeholders to ensure understanding and compliance.
He concluded that the Acts will stabilise Nigeria’s fiscal environment, support production, modernise tax administration, enhance ease of doing business, attract foreign investment, and generate employment opportunities. “We are confident these reforms will unlock new opportunities for businesses, investors, and entrepreneurs, and contribute to the growth and development of our economy,” he added.
