Nigerian Tax Reform Acts 2025 Will Drive Sustainable Growth — NTPIC Chairman, Tegbe

 

Nigerian Tax Reform Acts 2025 Will Drive Sustainable Growth — NTPIC Chairman, Tegbe

Chairman of the National Tax Policy Implementation Committee (NTPIC), Mr. Joseph Tegbe, has highlighted the wide-ranging benefits of the Nigerian Tax Reform Acts 2025, describing the legislation as a major turning point in Nigeria’s quest for a resilient and sustainable economy.

In an article published across several national newspapers, Tegbe said the new tax laws represent a comprehensive overhaul of Nigeria’s fiscal framework, designed to deliver a modern, efficient and transparent tax system capable of supporting economic growth, national development and shared prosperity.

According to him, the reforms are anchored on four strategic pillars: reconnecting the economy to the state, standardising and modernising fiscal administration, promoting predictability, and rebalancing the fiscal social contract between government and citizens.

“By broadening the tax net, simplifying tax rules and strengthening administration, the reforms are creating a more predictable fiscal environment that supports businesses and households alike,” Tegbe stated.

The NTPIC chairman, who also serves as Director-General of the Nigeria-China Strategic Partnership (NCSP), noted that the reforms were informed by global best practices, drawing lessons from countries such as South Korea, Singapore and Rwanda, where tax reforms have played a key role in driving economic growth and improving living standards.

“These countries demonstrate that with the right policies, institutions and leadership, tax reform can transform economies and improve citizens’ welfare,” he said.

Tegbe explained that a major focus of the Acts is the protection of low-income earners and small businesses. Measures include a zero personal income tax rate for individuals earning up to ₦800,000 annually, as well as the expansion of zero-rated Value Added Tax (VAT) items for critical sectors such as healthcare, education and agriculture.

“By removing the tax burden on small income earners and micro and small enterprises, the reforms aim to protect livelihoods, encourage formal sector participation and enable businesses to grow organically. These sectors are vital to national development, and the government is committed to supporting them,” he added.

The Acts also place strong emphasis on digitalisation and technology-driven tax administration. Tegbe pointed to the introduction of e-invoicing as a key innovation that will enhance compliance, improve transparency and reduce administrative burdens, marking a significant step towards modernising Nigeria’s tax system.

He stressed, however, that the success of the reforms will depend largely on effective implementation, underscoring the need for continuous engagement with stakeholders to ensure clarity, understanding and buy-in.

When fully implemented, Tegbe said the Tax Reform Acts are expected to stabilise Nigeria’s fiscal environment, support local production, protect critical sectors and align tax administration with global standards.

He added that the reforms would also improve Nigeria’s ease of doing business, attract foreign direct investment and stimulate job creation.

“We are confident that these reforms will unlock new opportunities for businesses, investors and entrepreneurs, while contributing meaningfully to the growth and long-term development of the Nigerian economy,” Tegbe concluded.