Chairman of the National Tax Policy Implementation Committee, NTPIC, Joseph Tegbe, has highlighted the far-reaching benefits of the Nigerian Tax Reform Acts 2025, describing the legislation as a major milestone in Nigeria’s quest for a resilient, transparent, and sustainable economy.
Tegbe said the new tax laws represent a comprehensive overhaul of Nigeria’s fiscal framework, designed to modernise tax administration, improve efficiency, and support inclusive economic growth.
According to him, the reforms are anchored on four key pillars: reconnecting the economy to the state, standardising and modernising fiscal administration, promoting predictability, and rebalancing the fiscal social contract between government and citizens.
“By broadening the tax net, simplifying rules, and improving administration, we are creating a more predictable fiscal environment that supports businesses and households,” Tegbe stated.
The NTPIC Chairman, who also serves as Director-General of the Nigeria-China Strategic Partnership (NCSP), noted that the reforms were informed by global best practices, citing countries such as South Korea, Singapore, and Rwanda, where structured tax reforms have driven economic growth and improved living standards.
“These countries have demonstrated that with the right policies, institutions, and leadership, tax reforms can transform economies and improve citizens’ welfare,” he said.
Tegbe stressed that a key focus of the 2025 Tax Acts is the protection of low-income earners and small businesses. Measures include a zero-tax threshold for individuals earning up to ₦800,000 annually and the expansion of zero-rated Value Added Tax (VAT) items in critical sectors such as healthcare, education, and agriculture.
“By removing the tax burden from small income earners and small businesses, the reforms aim to preserve livelihoods, encourage formal participation, and allow enterprises to grow organically,” he explained, adding that these sectors are vital to national development.
He also highlighted the emphasis on digitalisation and technology-driven tax administration, including the introduction of e-invoicing to enhance compliance, transparency, and efficiency, while reducing administrative bottlenecks.
Tegbe, however, noted that the success of the reforms would depend largely on effective implementation, underscoring the need for continuous stakeholder engagement to ensure broad understanding and compliance.
He said the implementation of the Tax Reform Acts is expected to stabilise Nigeria’s fiscal environment, support production, protect key economic sectors, and align tax administration with global standards.
The reforms, he added, will also improve Nigeria’s ease of doing business, attract foreign investment, and generate employment opportunities.
“We are confident that these reforms will unlock new opportunities for businesses, investors, and entrepreneurs, while contributing significantly to the growth and development of our economy,” Tegbe concluded.
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