Coordinating Director, Compliance and Enforcement Group, Federal Inland Revenue Service (FIRS) Matthew Gbonjubola, has disclosed that the new tax system set to take effect on January 1st, 2026, would strengthen compliance and create a more transparent and efficient revenue system.
Speaking at the American Business Council (ABC) meeting in Lagos, he posited that the imperative of an efficient tax system cannot be overemphasised.
Themed: “Navigating Nigeria’s new tax era,” he added that the reforms represented a bold step toward building a simplified, transparent, and technology-driven tax system.
To him, the reforms are anchored on creating a friendlier compliance environment and an efficient legal and administrative framework to boost voluntary compliance.
Specifically, he noted the reforms would strengthen enforcement capacity, modernise penalty regimes, and encourage collaboration among tax authorities through joint audits, information exchange, and coordinated collection efforts.
He stated, “The reform is progressive in nature, it eliminates taxes on capital and investment, reduces the VAT burden, streamlines the withholding tax regime, and introduces targeted incentives to stimulate productive sectors.”
To this end, Gbonjubola advised taxpayers to review their internal systems, identify new compliance requirements, and ensure their accounting and reporting structures meet the revised standards, including e-invoicing and VAT-geographical reporting.
Gbonjubola also suggested firms should invest in staff capacity development, engage professionals where necessary, and maintain active communication with FIRS to stay informed and compliant.
Saying taxpayers must understand the purpose of the reforms, assess their implications on business models and profitability, he added that they must also develop robust compliance policies.
He, however, identified gaps as limited public trust, widespread informality, insecurity, and policy discontinuity.
He further assured that the political will behind the reforms and use of data-driven approaches signalled a new era in the nation’s fiscal governance.
He stated: “The objective is to create a fair, efficient, and modern tax system that supports growth, equity, and accountability. The future of taxation in Nigeria is bright.”
On his part, Africa Head of Sustainability and Strategy, and Country Leader, Dow Chemical, West and Central Africa, Adebisi Adeoti, argued the new tax law was the most comprehensive overhaul in the nation’s history.
Adeoti, who is also the chair ABC Sustainability Committee, revealed that the new regime, would be implemented under the Nigerian Tax Act, covering four key areas: Company Income Tax (CIT), Personal Income Tax (PIT), Business Activity Tax (BAT), and Consumption-Based Tax (CBT).
