The Chairman of the National Tax Policy Implementation Committee (NTPIC), Mr. Joseph Tegbe, has described the newly enacted Nigerian Tax Reform Acts 2025 as a transformative step toward a sustainable and transparent fiscal system that strengthens the economy while safeguarding citizens.
In a detailed statement, Tegbe explained that the reforms represent a comprehensive overhaul of Nigeria’s fiscal framework, aimed at creating a modern and efficient tax system capable of supporting long-term growth and shared prosperity. He noted that the legislation seeks to standardise fiscal administration, promote predictability, and rebalance the social contract between the government and citizens.
According to Tegbe, broadening the tax base, simplifying rules, and improving administration will foster a more predictable environment for businesses and households, encouraging compliance and investment. He also highlighted that the policy aligns with global best practices, citing examples from South Korea, Singapore, and Rwanda, where effective tax reforms have spurred development and improved living standards.
A major focus of the Acts is the protection of low-income earners and small businesses. Notable 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 essential sectors such as healthcare, education, and agriculture. These provisions are intended to reduce financial pressure on vulnerable groups, preserve livelihoods, and support small enterprise growth.
The reforms also prioritise digitalisation, introducing technology-driven tools such as e-invoicing to enhance compliance, transparency, and reduce administrative costs. Tegbe emphasised that effective implementation would require active engagement with stakeholders to ensure understanding and smooth execution.
He concluded that the Tax Reform Acts 2025 are expected to stabilise Nigeria’s fiscal environment, boost production, improve ease of doing business, attract foreign investment, and generate employment, ultimately unlocking new economic opportunities nationwide.
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