New tax reforms aim to boost fairness and economic growth
A Chartered Accountant, Olayinka Oyebola, has praised the Federal Government’s new tax laws, describing them as a major shift for individuals and businesses. He highlighted that the reforms are designed to promote fairness, growth, and stricter compliance across Nigeria. Oyebola emphasized that the success of these changes will depend on effective implementation and public acceptance. He also warned of increased compliance risks for those unprepared, while proactive taxpayers could benefit from new reliefs and opportunities.
What we know
- Olayinka Oyebola stated that the reforms introduce four new tax acts, fundamentally reshaping Nigeria’s fiscal landscape from 2026 onwards.
- The Nigeria Revenue Service will replace the Federal Inland Revenue Service to enhance professionalism and efficiency in tax collection.
- Mandatory registration and universal use of a Tax Identification Number will be enforced, with penalties for non-compliance.
- Small companies with annual turnover not exceeding N100 million will receive enhanced tax reliefs, while larger firms face a consolidated 4% Development Levy.
- The reforms include a new five percent surcharge on fossil fuel products, with exemptions for household and clean energy use, and a revised VAT sharing formula favoring states and local governments.
