Nigeria’s new tax reforms have been described as a watershed moment in the nation’s fiscal history, with stakeholders warning that their success will depend on effective implementation and collaboration between the government and the private sector.
Speaking, yesterday, at the Lagos Chamber of Commerce and Industry (LCCI) Stakeholders’ Forum on ‘Emerging Tax Matters’, the Executive Chairman of the Lagos State Internal Revenue Service (LIRS), Ayodele Subair, said the enactment of the four new tax laws by President Bola Ahmed Tinubu represented a turning point for fiscal policy and a test of Nigeria’s commitment to simplifying its complex tax environment.
Subair explained that the new laws, which are the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service Act 2025 and the Joint Revenue Board Act 2025, were designed to streamline tax procedures, reduce multiple taxation and strengthen digital infrastructure for registration, filing and payments.
He stressed that Lagos, which contributes over 30 per cent of Nigeria’s GDP, carries a special responsibility to demonstrate how efficient tax administration can foster growth and sustain public confidence.
On enforcement, Subair noted that the laws grant tax authorities greater investigative powers and impose stricter penalties for non-compliance, while also strengthening taxpayer protections. The upgraded Tax Appeal Tribunal and the newly created Office of the Tax Ombud, he said, would deliver quicker resolutions, faster refunds and clearer timelines for appeals, while whistleblower protections have now been entrenched in law.
He assured that LIRS would prioritise transparency and stakeholder engagement, deploy user-friendly platforms and strengthen support services to ensure a seamless transition.
Backing the view, the Federal Inland Revenue Service (FIRS) said the reforms will create a friendlier compliance environment, boost voluntary tax adherence, and reduce opportunities for evasion.
The Executive Chairman of FIRS, Dr. Zacchaeus Adediji who was represented by the Acting Director, Large Taxpayers Department (Oil and Gas), Stella Okahbuzor, said the reforms introduce simplified rules, consolidated filing dates, reduced income tax rates for small businesses, and incentives for critical sectors such as agriculture, oil and gas, manufacturing, and technology.
According to him, the measures are expected to encourage investment inflows, spur the growth of small businesses, and contribute to poverty reduction. He added that the agency had already begun sensitising staff and would embark on nationwide taxpayer education ahead of the commencement of the new regime in January 2026.
In his welcome address, the LCCI President, Gabriel Idahosa, described taxation as the backbone of the social contract between the state and its citizens.
Idahosa, who was represented by his Deputy, Leye Kupoluyi, said the Nigeria Tax Reform Act 2025, described as the most comprehensive overhaul in over a decade, offered a unique opportunity to drive competitiveness if implemented transparently and collaboratively.
He acknowledged progress already made by both the FIRS and LIRS in digitising compliance and unifying tax identification numbers, but warned that reforms must deliver tangible value for taxpayers.
He urged policymakers and administrators to ensure that the reforms reduce friction for businesses and stimulate industrialisation, job creation, and diversification.
