By John Imeh
In a decisive move to strengthen Nigeria’s fiscal framework, President Bola Ahmed Tinubu has officially signed four major tax reform bills into law, marking a new phase in the country’s efforts to streamline revenue collection, close tax loopholes, and create a more business-friendly economic environment. The legislation, aimed at modernizing Nigeria’s tax regime, comes amid growing demands for economic reforms and efficient public finance management.
The four newly enacted laws include:
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The Value Added Tax (Amendment) Act
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The Federal Inland Revenue Service (Establishment) Act (Amendment)
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The Companies Income Tax (Amendment) Act
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The Capital Gains Tax (Amendment) Act
These bills were part of the recommendations by the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by renowned tax expert Taiwo Oyedele. The committee was inaugurated by the President in 2023 to help overhaul Nigeria’s complex and inefficient tax system.
Speaking through his spokesperson, President Tinubu reaffirmed his administration’s commitment to building a robust, equitable, and transparent tax system that encourages compliance and supports national development. “These reforms will help broaden the tax base, reduce multiplicity of taxes, eliminate leakages, and ensure that government generates more revenue without overburdening individuals or businesses,” he said.
Key highlights of the reforms include simplification of tax procedures, stronger enforcement mechanisms, digitalization of tax operations, and incentives for small and medium-sized enterprises. The reforms also aim to harmonize overlapping tax jurisdictions and eliminate arbitrary levies that have long discouraged investment.
Finance Minister Wale Edun welcomed the move, describing the laws as “a turning point for Nigeria’s economy,” and stated that the new framework would drive domestic resource mobilization while aligning Nigeria with international best practices.
Reactions have poured in from the private sector and tax analysts, with many praising the Tinubu administration’s focus on tax reform as critical for reducing Nigeria’s reliance on oil revenue and promoting a more sustainable economic model. However, some cautioned that the success of the reforms will depend heavily on their implementation at both federal and sub-national levels.
As the country grapples with rising debt, inflation, and public expenditure pressures, these tax laws signal a clear intent by the Tinubu administration to take bold, structural steps toward long-term economic stability.
