The NIgerian Tax Act 2025 is creating a more predictable fiscal environment that supports businesses and households, the Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has said.
Tegbe said the new tax law, which came into effect in June 2025, marks a significant turning point in the country’s pursuit of a robust and sustainable economy.
Enumerating the benefits of the new tax reform law, Tegbe said it is a comprehensive overhaul of the country’s fiscal architecture, aimed at creating a modern, efficient, and transparent tax system that supports economic growth, development, and prosperity for all Nigerians.
Tegbe, who is also the Director-General of the Nigeria-China Strategic Partnership (NCSP), said that the new tax law was built around four key pillars, namely reconnecting the economy to the state, standardising and modernising fiscal administration, promoting predictability, and re-balancing the fiscal social contract.
“By broadening the tax net, simplifying rules, and improving administration, we are creating a more predictable fiscal environment that supports businesses and households,” he explained.
The NTPIC Chairman cited global best practices that informed the reforms, citing examples from South Korea, Singapore, and Rwanda, where tax reforms have driven economic growth and national development.
These countries, he said, have shown that with the right policies, institutions and leadership, it is possible to transform a nation’s economy and improve the lives of its citizens.
The tax reform, he pointed out, would protect low-income earners and small businesses, with measures such as zero tax rates for those earning up to N800,000 and the expansion of zero-rated value added tax (VAT) items for critical sectors, including healthcare, education, and agriculture.
By taking away the tax burden on small income earners and small businesses, he said the reforms aimed at preserving livelihoods, encouraging formal participation, and allowing enterprises to grow organically.
“We recognise that these sectors are critical to our nation’s development, and we are committed to supporting them,” he noted.
Also, the Act emphasises digitalisation and technology-driven tax administration, with the introduction of e-invoicing to improve compliance, transparency, and reduce administrative burdens, a significant step towards modernising the tax system, thereby making it more efficient.
However, he emphasised that the success of the reform depended on careful implementation, necessitating ongoing engagement with stakeholders to ensure proper understanding.
The implementation of the tax Act, he said, is expected to stabilise the fiscal environment, support production, protect critical sectors, and modernise tax administration in line with global standards and best practices.
Besides, he said the new law would enhance 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, and contribute to the growth and development of our economy,” he added.
