The Chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, has described the Nigerian Tax Reform Acts 2025 as a landmark shift capable of reshaping the country’s economic future. According to him, the new laws mark a decisive step toward building a fairer, more inclusive and sustainable economy.
In a statement released on Wednesday, Tegbe said the reforms represent a comprehensive overhaul of Nigeria’s fiscal framework, designed to deliver a modern, transparent and efficient tax system. He explained that the new tax laws are structured around four core pillars: reconnecting the economy to the state, standardising and modernising fiscal administration, promoting predictability, and rebalancing the fiscal social contract between government and citizens.
Tegbe, who also serves as Director-General of the Nigeria-China Strategic Partnership, noted that the reforms were inspired by global best practices. He cited countries such as South Korea, Singapore and Rwanda, where well-designed tax systems have played a critical role in driving economic growth, improving governance and raising living standards.
A major feature of the reforms, he said, is the deliberate protection of low-income earners and small businesses. Measures include a zero tax rate for individuals earning up to ₦800,000 annually and the expansion of zero-rated Value Added Tax items for essential sectors such as healthcare, education and agriculture. According to Tegbe, easing the tax burden on these groups will help preserve livelihoods, encourage formal participation and allow small enterprises to grow sustainably.
The Tax Reform Acts also prioritise digitalisation and technology-driven tax administration, including the introduction of e-invoicing to improve compliance, enhance transparency and reduce administrative bottlenecks. Tegbe stressed that effective implementation and continuous stakeholder engagement would be crucial to achieving the reforms’ objectives, adding that the changes are expected to stabilise the fiscal environment, attract foreign investment, boost ease of doing business and generate employment across the economy.
source: punch