TAX AND REVENUE REFORM
Nigeria’s tax system has undergone one of the most significant transformations under the Tinubu administration. Rather than simply increasing taxes, the administration embarked on a comprehensive effort to simplify the tax system, modernise revenue administration and create a framework that supports businesses, protects lower-income earners and broadens the country’s revenue base.
At the heart of the reform is a simple principle: a stronger revenue system should make it easier to do business, not harder. The new framework seeks to bring more economic activity into the formal tax system while providing meaningful relief to individuals and businesses at the lower end of the income spectrum.
What changed? The Federal Government enacted four major tax reform laws, including the Nigeria Tax Act (NTA) 2025, consolidating and modernising key elements of Nigeria’s fiscal architecture into a more coherent and contemporary framework.
When did it happen? 26 June 2025.
What existed before Tinubu? Nigeria’s tax system was spread across numerous laws and administrative frameworks developed at different points in the country’s economic history. The reform brought these elements together into a simpler and more coordinated structure designed to improve clarity, efficiency and compliance.
What problem was the reform intended to solve? The reform was designed to broaden Nigeria’s tax base while reducing the tax burden on small businesses, low-income earners and other vulnerable segments of the economy. It also sought to make tax administration simpler, more predictable and more supportive of investment and enterprise.
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