Overzealous implementation by tax authorities could undermine the government’s good intentions.
President Bola Tinubu has signed four significant fiscal reform laws aimed at simplifying Nigeria’s tax structure, improving revenue generation, and easing burdens on low-income earners and small businesses.
The new laws include the Nigeria Tax Act, which consolidates over 50 overlapping taxes into a single code; the Tax Administration Act, ensuring uniform tax collection across federal, state, and local levels; the Nigeria Revenue Service Act, which replaces the Federal Inland Revenue Service with a more autonomous body; and the Joint Revenue Board Act, establishing a Tax Ombudsman and Appeal Tribunal.
A major highlight is the exemption of individuals earning less than ₦1 million annually from income tax. Additionally, businesses with turnover below ₦50 million are no longer liable for company income tax.
Value Added Tax exemptions on essential goods and services—such as food, healthcare, housing, education, and transport—are also expected to ease cost of living.
However, concerns linger. An economist warned that “overzealous implementation by tax authorities could undermine the government’s good intentions.”