The Chartered Institute of Taxation of Nigeria (CITN) said the implementation of Nigeria’s new tax laws may face a serious setback in achieving a harmonised tax regime, saying some states are yet to regularise their compliance with the provisions.

President of the CITN, Innocent Ohagwa, stated this during the investiture of the 20th Chairman of the institute’s Lagos and District Society (LDS), Yetunde Olowofoyeku, at the weekend.

Ohagwa said initial concerns over the impact of the tax reform had largely subsided.
He said the reform had reduced or eliminated tax liabilities for lower-income earners, thereby increasing their disposable income, while exemptions had also been provided for small and micro enterprises (SMEs).

According to him, provisions have equally been made to bring more operators in the informal sector into the tax system.

Ohagwa added that harmonisation of taxes across states and local governments had also commenced, although some states were yet to regularise their position under the new framework.

His comments highlight a potential implementation gap in the tax reform, particularly as one of its objectives is to reduce the burden of multiple taxes and create a more predictable environment for taxpayers and businesses.
The Deputy Vice President of CITN and Chairman of the Joint District Society, Dr Titilayo Fowokan, said the reform was long overdue, following a significant gap in the country’s tax laws.

Fowokan, however, said the new legislation should not be regarded as a final product, stressing that taxation was dynamic and would require periodic reviews to address emerging issues.

She disclosed that plans were underway for a first Finance Act in 2027 following the enactment of the new tax laws.

“We may not say we have a perfect law at the moment. There’s currently going to be reviews. Tax is dynamic. So, things will keep changing, reviews will keep happening,” she said.

Fowokan said some areas had already been identified for review, including modification orders that had become obsolete following the tax reforms.

The Executive Chairman of the Lagos State Internal Revenue Service (LIRS), Ayodele Subair, said the reform was designed to shift more of the tax burden towards those with greater capacity to pay.

Subair said the new system had introduced waivers for lower-income earners, adding that people earning about N800,000 are not expected to pay tax.

He said the revenue implications of the reliefs would be addressed by increased focus on high-net-worth individuals.

“People in the middle end will pay lower taxes, people at the lowest end will not pay any taxes, while the tax burden is supposed to shift a little bit to the people who can afford it,” he said.

Subair said the LIRS had initially been concerned about the revenue implications of the reform but had reviewed its collection templates and strategies ahead of the implementation.

He said the strategies were already yielding results, adding that the agency was performing well in revenue collection.

The LIRS chairman also said the reform would promote digitalisation and reduce human interaction in tax administration, citing the state’s e-tax platform as an example.

He added that harmonisation of taxes would help address complaints over multiplicity of levies and improve the ease of doing business.

Also speaking, President of the Nigerian Bar Association (NBA), Oyinkansola Badejo-Okusanya, urged CITN and its district societies to take a more active role in expanding the tax base by helping to bring unbanked and undertaxed Nigerians into the formal tax system.

She said professional bodies should not leave the responsibility entirely to tax authorities, urging CITN societies to engage communities through markets and town hall meetings and educate citizens on taxation.

“I think institutes like this, you must come up with public service initiatives to bring those largely unbanked, undertaxed, into the net. Not just relying on the organisations whose responsibility it is,” she said.

Badejo-Okusanya said expanding the tax base was critical to strengthening government revenue and improving citizens’ ability to demand accountability from public officials.

The newly inaugurated chairman of the Lagos and District Society, Yetunde Olorunleke Olowofoyeku, said her administration would focus on strengthening members’ professional competence through monthly meetings, technical clinics and capacity-building programmes.