Concerns Lingers as Multiple Taxation After Reforms
Stakeholders have expressed fears that the issue of multiple taxation may not be over despite the 2025 Tax Reform Law, emphasizing the need for effective implementation when it comes into force in 2026.
It would be recalled that President Bola Tinubu signed four Tax Reform Bills into law aimed at restructuring the tax system, saying the new laws would harmonize revenue collection, reduce the tax burden on citizens and businesses, and promote economic growth.
The four new laws are the Nigeria Tax Act, Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act. The Nigeria Tax Bill, in particular, seeks to consolidate Nigeria’s fragmented tax laws into a harmonized statute by reducing multiplicity, eliminating duplication, and enhancing the ease of doing business.
New Tax Law May Not Curb Multiple Taxes
Despite the harmonization potential of the Nigeria Tax Bill, the President of the Council of the Chartered Institute of Directors Nigeria (CoID), Adetunji Oyebanji, expressed concern over fairness in both the application and effect of the new tax regime.
Oyebanji, who gave a goodwill speech at a private sector stakeholders’ forum on emerging tax matters, themed: “A New Tax Regime: Fostering Collaboration for Economic Growth,” stressed that the new law may not curb the persistence of multiple taxes and levies at the state and local government levels.
“While we applaud the consolidation of some levies into a new Development Levy, there is lingering uncertainty that the new regime may not fully eliminate the problem of multiple taxation at the state and local government levels. Directors of companies operating across different states are often confronted with a myriad of levies that stifle growth and complicate compliance,” he said.
He emphasized the need for the Joint Revenue Board to be strengthened to discharge its mandate to enforce a single tax collection system, describing a harmonized tax structure as a major boost for investors.
“A harmonized and transparent tax structure is not merely a convenience; it is a fundamental requirement for boosting investor confidence and easing the cost of doing business. We must ensure that the Joint Revenue Board is empowered and effective in its mandate to enforce a single, seamless tax collection system.
“We believe that the successful implementation of this new tax regime hinges on an established understanding of its potential impacts on businesses, particularly on small and medium-sized enterprises (SMEs), and on our collective ability to maintain a favourable investment climate,” he said.
He added that the introduction of e-invoicing to ensure tax compliance may be burdensome for SMEs, citing the cost of digital infrastructure.
“Thirdly, we must shine a spotlight on the burden of compliance. While the new laws rightly aim for a more digital and streamlined tax administration, many businesses, particularly SMEs, may struggle to cope with the new reporting requirements and the cost of digital infrastructure.
“Without adequate support, this could drive more firms into informality, undermining the very objective of broadening the tax net. It then becomes imperative that the government provides adequate support, training, and a grace period for businesses to transition smoothly. The process should not be more cumbersome than the tax itself,” he said.
He described the sharp increase in the corporate Capital Gains Tax (CGT) rate from 10 percent to 30 percent as a concern, saying the timing and scale of this adjustment could discourage capital-intensive investment, corporate restructuring, and business expansion.
“At a time when companies are struggling with high costs and fragile margins, such a steep hike risks slowing growth and reducing the tax base over the medium term. A more gradual approach would allow businesses to adjust while still achieving government revenue objectives,” he said.
Call for Effective Implementation of the New Tax Law
The President of the Lagos Chamber of Commerce & Industry, Gabriel Idahosa, harped on the effective administration of tax, stressing the need for proper implementation of the Nigeria Tax Reform Act 2025.
He added that proper tax administration would aid revenue collection, describing taxation as a powerful instrument of transformation when it is equitable and efficiently administered.
“Taxation is far more than a mechanism for raising government revenue; it is the backbone of a credible social contract between the state and its citizens. For business owners and investors, tax policy shapes decisions on capital allocation, employment, and innovation.
“The government provides the fiscal space to invest in infrastructure, education, healthcare, and security. The 2025 Act, with its sweeping provisions on digital taxation, unified filing systems, and incentives for green and export-oriented industries, offers a bold opportunity to strengthen that social contract. Yet bold legislation alone is not enough; effective and collaborative implementation will determine whether we unlock the inclusive prosperity we all seek,” he said.
He urged that the implementation of the Nigeria Tax Reform Act 2025 should align with the fiscal aspirations of the country’s entrepreneurial drive, ensuring that its objectives translate into predictable, transparent, and business-friendly outcomes.
“We must interrogate how the new Act will operate, ensuring its laudable objectives translate into predictable, transparent, and business-friendly outcomes. Let us seize this moment to craft a tax environment that enables businesses to thrive, citizens to prosper, and government to deliver.
“Our task is not merely to analyse the Nigeria Tax Reform Act 2025 but to shape its implementation so that it supports industrialisation, job creation, and the diversification of our economy,” he said.
Idahosa commended progress achieved by the Federal Inland Revenue Service (FIRS) and the Lagos State Internal Revenue Service, especially in digitalizing compliance, unifying Tax Identification Numbers, and promoting greater transparency.
“These initiatives align well with the 2025 Acts’ emphasis on technology-driven administration. But as commerce becomes more digital, cross-border, and innovation-intensive, the tax environment must remain adaptive. The private sector’s experience at the frontlines of production and trade offers practical insights into how the Act can be implemented with minimal friction and maximum growth impact,” he said.
He expressed the association’s commitment to collaborate and utilise recommendations aimed at economic development.
“We owe it to our members and the Nigerian economy to ensure that this landmark legislation becomes a genuine catalyst for competitiveness rather than a new layer of complexity,” he said.
FIRS Allays Fears of New Tax Reform
The Executive Chairman, Federal Inland Revenue Service (FIRS), allayed fears over the new tax reforms, saying they are aimed at improving tax administration and encouraging voluntary compliance.
The Chairman, represented by the agency’s Acting Director, Large Taxpayers Department (Oil and Gas), Stella Okahbuzor, noted that the agency had embarked on taxpayers’ sensitization to keep them abreast of the changes.
“The benefit of these new tax reforms is to ensure efficient tax administration, encourage voluntary compliance, and grow the economy. They are also intended to protect expected benefits through a productive tax incentive regime, progressive taxation, new investment inflows, small business growth, and poverty reduction.
“I don’t think there is anything for them to worry about. It’s still the same tax system that we are operating, only that it has been made easier. Many tax laws that we had before have now been compacted, simplified, and made easier to understand.
“Then, business measures have greatly reduced tax burdens for most employers. We also now have reduced opportunities for non-compliance because we will be introducing a friendly compliance environment suitable under both legal and administrative frameworks. Furthermore, the tax authority will now have enhanced capacity to enforce compliance, supported by a stronger and more deterrent penalty regime,” he said.