Chairman of the National Tax Policy Implementation Committee (NTPIC), Mr. Joseph Tegbe, has said the Nigerian Tax Reform Acts 2025 will significantly strengthen the economy while protecting citizens, describing the legislation as a major shift toward a more sustainable fiscal framework.
In an article, Tegbe explained that the Acts represent a comprehensive overhaul of Nigeria’s fiscal architecture, designed to create a modern, efficient and transparent tax system capable of supporting long-term economic growth and shared prosperity. According to him, the reforms aim to reconnect the economy to the state, standardise and modernise fiscal administration, promote predictability, and rebalance the fiscal social contract between government and citizens.
He noted that by broadening the tax base, simplifying rules and improving administration, the reforms will create a more predictable environment for businesses and households, thereby encouraging compliance and investment.
Tegbe added that the policy direction aligns with global best practices, citing countries such as South Korea, Singapore and Rwanda, where effective tax reforms have driven development and improved living standards.
A key focus of the Acts, he said, is the protection of low-income earners and small businesses. Measures include zero personal income tax for individuals earning up to N800,000 annually and the expansion of zero-rated Value Added Tax (VAT) items in critical sectors such as healthcare, education and agriculture.
These provisions, he explained, are intended to reduce financial pressure on vulnerable groups, preserve livelihoods and support the organic growth of small enterprises.
The reforms also prioritise digitalisation, with the introduction of technology-driven tools such as e-invoicing to improve compliance, enhance transparency and reduce administrative costs. Tegbe stressed that successful implementation would require sustained stakeholder engagement to ensure understanding and effective execution.
He added that the Acts are expected to stabilise Nigeria’s fiscal environment, boost production, improve ease of doing business, attract foreign investment and generate employment, ultimately unlocking new opportunities across the economy.
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