By Ayomide Otitoju
Akinola, Technical Assistant (Media) to the Executive Chairman of the Federal Inland Revenue Service, has commended President Bola Tinubu’s new tax laws, describing them as a bold step toward correcting Nigeria’s ailing economy and strengthening fiscal federalism.
Drawing from decades of experience studying Nigeria’s fiscal policies—from the oil boom of the 1980s to the debt relief era of the mid-2000s—Akinola asserted that the latest tax reforms were both progressive in design and deliberate in execution.
He noted that the revised Value Added Tax (VAT) sharing formula, which increases the states’ share from 50% to 55% while reducing the Federal Government’s allocation from 15% to 10%, marks a significant shift in resource distribution. “This is a rare but commendable sacrifice in Nigeria’s often politically charged reform climate,” he said.
Akinola praised the reforms for improving fiscal autonomy at the subnational level, adding that this development ranks among the most important victories for fiscal federalism, second only to the Supreme Court’s ruling on local government autonomy.
He further highlighted the reforms’ emphasis on formalising the informal sector, which accounts for over 57% of GDP and 80% of employment but contributes minimally to tax revenue. The new tax laws exempt micro-businesses with an annual turnover under ₦50 million and fixed assets under ₦250 million from major taxes, while also consolidating all tax provisions under the new Nigeria Tax Act.
Additional provisions include a withholding tax waiver for transactions below ₦2 million tied to valid Tax Identification Numbers, and a personal income tax exemption for individuals earning less than ₦800,000 annually.
“These policies are proof that Tinubu’s ‘Let the poor breathe’ promise was more than political rhetoric,” Akinola added.
The law also introduces mechanisms to strengthen taxpayer rights, including an Independent Tax Ombudsman and a digitalised Tax Appeal Tribunal with mandatory timelines for rulings, which Akinola described as “just and long-overdue.”
