Abuja, June 19, 2025 – Nigeria is set to usher in a new era of fiscal policy as a comprehensive tax regime, anchored on a series of Tax Reform Bills recently passed by the National Assembly, awaits final approval from the Presidency. If signed into law, the new framework will come into force in January 2026.
The reform package is a key component of the Federal Government’s long-term strategy to improve revenue generation, streamline tax administration, and promote economic equity. It introduces significant changes to the country’s tax structure, including adjustments to personal and corporate income taxes, indirect taxes, and the introduction of new compliance measures aimed at widening the tax net.
According to officials familiar with the legislative process, the Tax Reform Bills are the product of extensive consultations involving the Presidential Committee on Fiscal Policy and Tax Reforms, the Federal Inland Revenue Service (FIRS), and key stakeholders across the public and private sectors.
The proposed regime also aims to reduce reliance on oil revenues by enhancing non-oil revenue streams, improving taxpayer accountability, and encouraging voluntary compliance. Key highlights include the harmonisation of multiple tax codes, the digitisation of tax processes, and stricter enforcement mechanisms for tax evasion and under-reporting.
Economic analysts have welcomed the reforms as a step in the right direction, though they caution that effective implementation and public enlightenment will be critical to avoid disruptions and ensure broad-based support.
Once the bills receive presidential assent, the Federal Government is expected to roll out an awareness campaign to educate businesses and citizens about their responsibilities under the new system. The reforms are also expected to strengthen subnational tax administration, offering state governments clearer authority and improved tools to collect internally generated revenue.
As Nigeria grapples with budgetary pressures and developmental needs, the incoming tax regime is being positioned as a foundational tool for long-term fiscal sustainability and inclusive growth.
