The Nigerian Economic Summit Group (NESG) has thrown its weight behind ‘The 2025 Nigerian Tax Reform Acts’, saying these laws aim to simplify the tax system, among other advantages.
The Group in its latest publication on Tuesday titled: ‘The 2025 Nigerian Tax Reform Acts: Taxing the Fruits, Not the Seed’, the NESG enumerated the objectives of the new tax laws.
The NESG said that together, these laws aim to simplify the tax system, broaden the base, protect vulnerable groups, and improve tax collection and accountability.
“In specific terms, the newly enacted tax reform laws pursue several policy, institutional and economic goals: Increase Domestic Revenue Mobilisation: Raise Nigeria’s tax-to-GDP ratio to 18 per cent within five years, reducing reliance on oil revenue and debt financing,” the NESG said.
It added that the tax laws in Nigeria, “Simplify and harmonise the tax system: Merge fragmented tax laws into a coherent framework and make compliance easy for individuals and
businesses. Modernise tax administration: Establish the Nigeria Revenue Service (NRS) with the mandate to collect and account for all revenues accruing to the federation.”
In addition, the NESG highlighted that the digitalisation of all aspects of tax administration aims to improve efficiency and curb leakages; enhance transparency and taxpayer confidence via the introduction of a Tax
Tribunal and Tax Ombudsman to resolve disputes and protect taxpayer rights.
The NESG pointed out that the new tax laws promote fairness and equity by exempting essentials like food and medicine from VAT, and also simplify compliance for micro and small businesses earning under N50 million annually.
Furthermore, the tax laws, it noted, seek to strengthen intergovernmental coordination by setting up a Joint Revenue Board to align Federal, State, and Local tax policies, and also, revise revenue-sharing mechanisms to reward productivity while preserving equity.
The NESG averred that the tax laws equally aim at supporting economic competitiveness and growth, and lower compliance costs to attract investment.
