By John Umeh
President Bola Ahmed Tinubu is set to sign a series of crucial tax reform bills into law on Thursday, marking a major milestone in his administration’s efforts to overhaul Nigeria’s tax system and boost revenue generation. The announcement was made by the Presidency on Tuesday, confirming that the signing ceremony will take place at the Presidential Villa in Abuja.
The bills, which were recently passed by the National Assembly, are part of the recommendations made by the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele. They are aimed at simplifying Nigeria’s complex tax architecture, eliminating outdated or redundant taxes, closing loopholes, and improving compliance and collection efficiency across federal and state levels.
A Bold Step Toward Economic Renewal
The tax reform initiative is one of the cornerstones of President Tinubu’s economic agenda, intended to reduce Nigeria’s overdependence on oil revenues and strengthen non-oil revenue sources. By streamlining the tax process and improving the investment climate, the administration hopes to attract more foreign direct investment, enhance transparency, and provide greater support for small and medium-sized enterprises (SMEs).
According to presidential aides, the tax bills also include provisions to address multiple taxation, unify tax authorities under a more coordinated framework, and digitize revenue collection mechanisms. This is expected to ease the burden on businesses, especially those operating in the informal sector, and make Nigeria’s tax environment more business-friendly.
Taiwo Oyedele Reacts
Reacting to the development, Mr. Taiwo Oyedele, who heads the tax reform committee, praised the president’s swift response and commitment to fiscal transformation.
“This is a defining moment for Nigeria. The reforms are not just about raising revenue—they’re about doing so in a way that is fair, equitable, and efficient. These changes will support job creation, economic growth, and national development,” he said.
Oyedele emphasized that the reforms were the result of extensive stakeholder consultations, including with private sector leaders, state governments, civil society, and international tax experts.
What the New Laws Will Cover
While full details of the bills will be made public upon signing, sources close to the process confirm that they include:
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A Consolidated Revenue Code to harmonize taxes across tiers of government
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A revised Value Added Tax (VAT) framework aimed at improving compliance
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Streamlined business registration and tax filing systems
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New incentives for startups, agriculture, and manufacturing sectors
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Enhanced penalties for tax evasion and loophole exploitation
The reforms are expected to be rolled out in phases, with the Federal Inland Revenue Service (FIRS) and Joint Tax Board (JTB) leading implementation efforts at the national and subnational levels.
Economic and Political Implications
With the country grappling with inflation, high public debt, and sluggish growth, the Tinubu administration is under pressure to deliver tangible economic reforms. Analysts view the impending tax legislation as a crucial step in restoring investor confidence and improving government revenue without overburdening citizens.
However, the move may also face resistance from some state governments and business groups wary of losing revenue autonomy or dealing with transitional hurdles.
Nevertheless, supporters argue that coordinated tax reform is long overdue and essential to improving Nigeria’s fiscal stability and reducing its budget deficit.
Looking Ahead
The official signing ceremony on Thursday is expected to be attended by members of the National Assembly, the Presidential Tax Committee, economic advisers, and representatives from the private sector. Once enacted, the new tax laws are anticipated to take effect in the third quarter of 2025, giving relevant agencies time to update systems and sensitize taxpayers.
President Tinubu’s action will likely be remembered as a key turning point in Nigeria’s economic reform journey—signaling his administration’s resolve to modernize governance and place the country on a more sustainable financial path.
