A tax expert, Kolade Yusuf, at the weekend convened a public enlightenment workshop in Ilorin, the Kwara State capital, to educate citizens on key provisions of the new tax law.

Titled “Nigerian Tax Reform 2025”, the Fellow of the Chartered Institute of Taxation of Nigeria (CITN) said the workshop was aimed at dousing the tension expressed by many over the new tax regime by explaining how the changes will affect their income, businesses and overall lifestyle.

Many Nigerians have raised questions about how and where the reforms will impact them and the best ways to adapt to the new tax regime.
It was against this backdrop that the founder of the Regulink Capacity Building Initiative, alongside other resource persons, used the workshop to explain the purpose of the reforms.

According to Yusuf, the tax law is expected to significantly impact business owners, consolidate numerous taxes and levies, provide substantial relief for small companies, and introduce a mandatory digital compliance system.

Speaking at the enlightenment programme, Yusuf, in his presentation titled “Navigating the Nigeria Tax Reform 2025: A Comprehensive Guide for Employees, Employers, Sole Traders and Income Earners on Implications and Practical Navigation Strategies,” analysed the old tax regime and highlighted what the new system brings in terms of efficiency and economic growth.
According to him, Nigeria’s previous tax system was burdened by legacy problems such as multiple taxation, tax poverty and structural inefficiencies, which resulted in a low tax-to-GDP ratio of about eight per cent compared with the global average of 30 per cent.

He said, “the new law focuses on fairness and harmonisation, digital tax administration, expansion of the tax net, and fiscal sustainability aimed at shared prosperity where revenue mobilisation supports economic stability.”
Yusuf explained that the reforms are anchored on four major pillars: the Nigeria Tax Act (NTA), which seeks to simplify the tax landscape and encourage formal business operations; the Nigeria Tax Administration Act (NTTA); the Nigeria Revenue Service Act (NRSA); and the Joint Revenue Board Act (JRBA).

The Kwara State Internal Revenue Service (KWIRS) official stressed that “while the old tax system operated with over 60 different taxes and levies, the new regime has reduced them to fewer than 10.”
He urged Nigerians to seek accurate information about the reforms, stressing that the changes are largely designed to bring relief to taxpayers.

Under the new tax law, priority sectors include agriculture and food, energy and power, as well as the creative and technology industries.

Yusuf stated that Nigeria now offers one of the most competitive tax rates when compared with other African countries. He cited the Value Added Tax (VAT) rates as Nigeria at 7.5 per cent, Kenya at 16 per cent, Ghana at 15 per cent and South Africa at 15 per cent.

For small company tax, Nigeria applies a zero per cent rate, while Kenya, Ghana and South Africa charge three per cent. He said similar competitive advantages apply across other stages of tax payments.

He added that corporate incentive tax now stands at zero per cent, while individuals earning up to ₦800,000 annually are exempt from personal income tax under the new law.