Tax Reforms Drive Nigeria’s Economic Growth: Experts Highlight Opportunities and Challenges
Analysts and tax professionals at the 20th Annual Tax Week have hailed Nigeria’s 2025 tax reforms as a key driver for economic growth. The conference, themed “Nigeria’s Evolving Tax Landscape: Understanding the Impact, Managing Risk, and Strategic Planning,” examined the implications of four landmark statutes: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board of Nigeria (Establishment) Act. Experts stressed that these reforms mark the most significant shift in the country’s tax landscape in decades.
Adewale Ajayi, Partner and Head of Tax, Regulatory, and People Services at KPMG Africa, noted that while businesses may face initial challenges, the new framework creates opportunities for strategic growth. “Organisations that adopt a proactive approach can transform compliance from a burden into a competitive advantage,” Ajayi said, adding that digital integration will play a critical role, with near real-time reporting and automated filings becoming the new norm.
Olamide Obajimi, Partner at Olaniwun Ajayi LP and Chairman of the Tax Appeals Tribunal (Lagos Panel 2), described the reforms as a modernising force for Nigeria’s tax system. “These Acts broaden the tax base, strengthen compliance, and preserve Nigeria’s appeal as an investment destination,” Obajimi explained. She cautioned, however, that expanded obligations and higher compliance costs mean businesses must stay informed to avoid penalties.
Chartered tax practitioner Busayo Olawole highlighted the enforcement-focused approach of the Nigeria Tax Administration Act 2025. He emphasised that automation and transparency reduce discretion, making compliance non-negotiable. “Success under the new regime will depend on how quickly both taxpayers and authorities adapt to a digital, data-driven system,” Olawole said, urging immediate action from businesses.
Balancing enforcement with protections for taxpayers was another key focus. Deloitte Partner Ibironke Orhiunu reminded attendees that overpayments are refundable or creditable and praised the role of the Tax Ombudsman as an independent mediator. She concluded that, when properly managed, the reforms can boost business efficiency, strengthen reputations, and contribute to national development, signalling a new era of growth in Nigeria’s economy.
source: punch