Public anxiety over Nigeria’s new tax reforms is largely the result of misinformation and poor understanding of the laws, according to Sadiq Muhammad Mustapha, Programme Lead at the Tax Justice and Governance Platform. He said the reforms are primarily a review and consolidation of existing tax laws and are intended to ease, rather than increase, the burden on taxpayers, especially low-income earners.
Mustapha explained that many Nigerians are likely to pay less tax under the new framework, contrary to widespread fears. He noted that the reforms bring clarity to the tax system and address long-standing issues such as multiple taxation, which has often led to confusion and excessive charges by different authorities.
According to him, the reforms are anchored on four key laws: the Nigerian Tax Administration Act, which focuses on how taxes are administered and enforced; the Nigerian Tax Act, which consolidates various taxes into a single legal framework; the Nigerian Revenue Service Establishment Act, which replaces the former Federal Inland Revenue Service; and the Joint Revenue Board Establishment Act, which coordinates tax administration across federal and state levels.
He added that the laws also strengthen taxpayer protection by establishing a Tax Appeal Tribunal for dispute resolution and an Office of the Ombudsman to handle complaints. These mechanisms, he said, are designed to ensure fairness, accountability, and transparency in tax administration nationwide.
Addressing calls by organised labour for the suspension of the tax laws, Mustapha maintained that extensive consultations were conducted before their introduction. He stressed that public education remains crucial, noting that clearer understanding of the reforms would significantly reduce fear and resistance as the Federal Government moves ahead with implementation in 2026.
