By Emmanuel Enebeli
LAGOS/Nigeria: The Presidential Fiscal Policy and Tax Reforms Committee has reassured Nigerians that the nation’s new tax reform laws are designed to reduce burdens on ordinary citizens, promote business growth, and strengthen long-term economic stability. The assurance came during an interactive session held on Friday for journalists, influencers, and public analysts at Lagos, where Taiwo Oyedele, the Committee’s Chairman, addressed widespread misconceptions about the reforms.
Oyedele emphasized that while misunderstanding of tax reforms is common globally, deliberate misreporting and uninformed analyses undermine collective national interest. “The objectives of the reforms have been clear from the very beginning , reduce the tax burden on the masses, harmonize and simplify tax rules, and promote a modern, business-friendly, globally competitive tax system,” he said.
Key highlights of the reforms include a personal income tax structure that exempts low-income earners, including those on minimum wage, while higher earners contribute progressively up to 25% — a rate lower than top brackets in Ghana (35%) and South Africa (45%). Value Added Tax (VAT) reforms expand input credits for businesses and exempt essential items such as food, education, and health services, effectively reducing consumer costs.
The reforms also aim to formalize the informal sector. Small companies with annual turnover below ₦100 million are exempted from corporate income tax, VAT, and withholding tax, easing operational burdens for businesses that constitute the largest share of employment and GDP.
Oyedele clarified that no new taxes have been imposed on individuals previously untaxed. Activities such as content creation or income from virtual assets were already subject to taxation under existing laws. The new measures only provide clarity, fairness, and the ability to deduct losses where applicable.
The Committee highlighted ongoing tax harmonization, which reduces over 60 different taxes and levies to fewer than 10, curbing the proliferation of multiple charges and simplifying compliance. Some levies introduced by previous administrations, including excise taxes on vehicles, carbon taxes on single-use plastics, and levies on airtime and data, have been reversed or suspended.
“The poor are not being taxed, and the average citizen will pay less, not more,” Oyedele said. “Businesses will save costs through harmonization, faster refunds, and lower corporate rates. The reforms are pro-people, pro-growth, and ensure a level playing field for honest taxpayers.”
The Committee concluded by urging Nigerians to seek credible information and participate constructively in the implementation process, pledging continuous engagement with stakeholders to ensure transparency and smooth transition.
