Nigeria’s 2025 Tax Reforms: Closing the Gap Between Law and Public Trust

When President Bola Ahmed Tinubu signed four landmark tax reform bills into law on June 26, 2025, the announcement was met with widespread concern across the country. Many Nigerians feared the reforms would further strain citizens and businesses already grappling with economic hardship.

Labour unions were among the earliest critics. The Nigeria Labour Congress (NLC) faulted the process, arguing that the laws were passed without adequate consultation with labour groups and without sufficient public briefing after presidential assent. The NLC warned that, if poorly implemented, the reforms could worsen hardship, stifle small businesses and slow economic activity.

Concerns deepened in December 2025 when a member of the House of Representatives, Abdussamad Dasuki (Kebbe/Tambuwal Federal Constituency, Sokoto State), alleged discrepancies between the tax bills passed by the National Assembly and the versions later gazetted and released to the public. Dasuki claimed that documents obtained from the Ministry of Information differed from what lawmakers approved.

Reacting to the controversy, the Chartered Institute of Taxation of Nigeria cautioned that any inconsistency between passed laws and gazetted versions could undermine governance, legal certainty and public confidence. Former presidential candidate Peter Obi also weighed in, highlighting issues of trust, policy clarity and the potential impact of the reforms on citizens’ welfare.

Understanding the Tax Reforms

Naija News reports that the reforms consist of four major laws designed to modernise and simplify Nigeria’s tax system:

Nigeria Tax Act, 2025: Consolidates several taxes, including personal income tax, company income tax and capital gains tax, into a unified framework.

Nigeria Tax Administration Act, 2025: Provides rules for tax assessment, collection, reporting and enforcement.

Nigeria Revenue Service (NRS) Establishment Act, 2025: Creates a new federal revenue authority to replace the Federal Inland Revenue Service (FIRS), with a focus on efficiency and transparency.

Joint Revenue Board (JRB) Establishment Act, 2025: Establishes a coordinating body for federal and state tax authorities to reduce duplication and multiple taxation.


Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has repeatedly assured Nigerians that the reforms are not intended to automatically increase taxes. According to him, the laws are meant to harmonise existing tax regulations, simplify compliance and improve transparency in revenue collection and utilisation.

Speaking on Channels Television, Oyedele dismissed claims of discrepancies between the bills passed by lawmakers and those gazetted, describing some circulating documents as unofficial drafts. He maintained that only the harmonised versions certified by the National Assembly clerks can be considered authoritative.

Persistent Public Doubts

Despite these assurances, scepticism remains widespread. Many traders and small business owners say their fears are rooted less in new taxes and more in how existing ones are enforced and whether tax revenues translate into visible public benefits.

A grocery seller at Lambe Market in Ogun State told Naija News that she now notices stamp duty deductions on bank transfers and faces multiple, inconsistent levies from tax officials. “In my shop, I pay three different taxes, and the amounts are not fixed,” she said, adding that uncertainty persists until the new laws are fully implemented.

Another foodstuff trader complained of rising bank transfer charges, noting sudden deductions that were not previously applied. While acknowledging that taxation is inevitable, he argued that excessive charges place unnecessary pressure on small businesses.

Expert Perspective

Financial analyst Gbenga Onifade explained that the reforms, which took effect on January 1, 2026, are aimed at simplifying Nigeria’s tax structure by replacing several outdated laws with a single, modern code. According to him, the reforms seek to reduce duplication, broaden the tax base and boost revenue without imposing blanket tax increases.

Onifade noted that key features include a global minimum effective tax rate for large multinational companies, reforms to value-added tax administration, digital invoicing, and a new development levy that replaces several existing earmarked taxes.

He added that the transition from FIRS to the Nigeria Revenue Service represents a shift towards a more centralised, technology-driven revenue system. While existing tax rates and filing deadlines largely remain unchanged, the reforms emphasise digital compliance, a unified tax identification system and clearer enforcement rules.

However, Onifade stressed that successful implementation depends heavily on rebuilding public trust. He argued that government must prioritise education and outreach, using mass media, community engagement and local languages to explain the reforms in simple terms.

The Road Ahead

Analysts agree that the 2025 tax reforms represent the most significant overhaul of Nigeria’s tax framework in decades. While the laws are designed to be pro-growth and protective of low-income earners, their success will ultimately depend on transparent implementation, consistent communication and visible improvements in public service delivery.

For many Nigerians, confidence in the reforms will come not from official assurances, but from how the new tax system affects daily life and livelihoods in the months ahead.