The Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, says Nigeria’s Tax Reform Acts are designed to address the high cost and inefficiency of governing the federation, and not merely to increase taxes or boost revenue targets.
The Chairman of the Commission, Dr. Mohammed Shehu made this known at the National Stakeholders’ Discourse convened by the RMAFC in Abuja, as preparations intensify for the implementation of the Nigeria Tax Act, 2025, scheduled to take effect from January 1, 2026.
Dr. Shehu described the reform as a structural reset aimed at reducing waste, duplication, and fragmentation within Nigeria’s fiscal architecture.
He explained that the Nigeria Tax Act, 2025, goes beyond revenue mobilisation to address fiscal efficiency.
“The Nigeria Tax Act, 2025, has not only harmonised Nigeria’s previously fragmented tax laws into a single statute, but has also reduced or eliminated duplication and obsolete provisions while enhancing the ease of doing business. In addition, once it comes into effect in January 2026, it will reduce compliance burdens, create a more coherent and predictable fiscal environment, and eliminate regional disparities in tax administration.”
The RMAFC Chairman also disclosed plans to deepen forensic audits, strengthen collaboration with sub-national governments, and enhance transparency in revenue reporting as the new tax framework takes effect.
“The Commission, pursuant to its mandate to monitor accruals to and disbursement of revenue from the Federation Account, will remain steadfast in safeguarding the federation’s revenue profile through enhanced monitoring of revenue collections, deployment of forensic audits, strengthened collaboration with sub-national governments on non-oil revenue mobilisation, and reforms to deepen transparency in revenue reporting,” he added.
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, said; “the Tax Act, 2025, is designed to make the system fairer, simpler, and more growth-friendly, countering perceptions that the government is piling new levies on citizens.”
He emphasised that the objective of the reforms is to shield the most vulnerable while restoring fairness to the tax system.
Oyedele noted that small businesses are expected to see significant relief, disclosing that micro and small enterprises would be exempt from corporate income tax and several other levies, an initiative aimed at improving survival rates and encouraging more businesses to operate formally.
He also highlighted a critical correction to a long-standing distortion in which businesses faced higher effective tax rates than wealthy individuals.
According to him, companies’ income tax will be reduced from 30 per cent to 25 per cent, while small businesses will pay zero per cent.
The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr. Jani Ibrahim, described the reform as an opportunity to rebuild trust between government and businesses.
“The enactment of the Nigeria Tax Act, 2025, represents a major step towards strengthening revenue mobilisation, improving tax administration, and promoting fiscal sustainability across all tiers of government. As the apex body representing the organised private sector nationwide, with more than 100 city, state, and bilateral chambers of commerce, NACCIMA recognises that a modern, efficient, and equitable tax system is indispensable to economic growth,” he said.
Dr. Ibrahim stressed that clarity, predictability, and digitalisation rather than enforcement alone are what ultimately expand the tax base through economic growth.
“When tax policies are clear, predictable, and business-friendly, enterprises are better positioned to invest, expand, create employment, and contribute more meaningfully to national revenue. These factors are critical for fostering trust and strengthening the long-term partnership between government and the private sector,” he added.
The two-day discourse brought together federal and state fiscal authorities, revenue agencies, regulators, and organised labour, with a clear message: the success of the new tax regime will depend not only on legislation, but also on disciplined implementation, transparency, and cooperation across all levels of government.
Olusola Akintonde