Tinubu Signs Landmark Tax Reform Bills to Boost Revenue and Ease Business in Nigeria

ABUJA, Nigeria (iNewsAfrica) — June 26, 2025
In a major stride toward overhauling Nigeria’s fiscal architecture, President Bola Ahmed Tinubu has signed into law four groundbreaking tax reform bills aimed at simplifying the tax system, boosting government revenue, and enhancing the ease of doing business.

The new legislation, signed at the Presidential Villa in Abuja, is part of Tinubu’s broader economic reform agenda and is set to take effect on January 1, 2026.

The Four New Tax Laws Include:

1. Nigeria Tax Bill (Ease of Doing Business): Harmonizes multiple existing tax laws into a single, investor-friendly framework.

2. Nigeria Tax Administration Bill: Standardizes tax administration practices across federal, state, and local governments.

3. Nigeria Revenue Service (Establishment) Bill: Establishes a more autonomous and performance-driven Nigeria Revenue Service (NRS), replacing the Federal Inland Revenue Service.

4. Joint Revenue Board (Establishment) Bill: Introduces an intergovernmental revenue body, alongside a Tax Appeal Tribunal and a tax ombudsman for dispute resolution.

Reform Goals

The primary objectives are to:

• Increase Nigeria’s tax-to-GDP ratio, currently at a low 10.8%, toward the target of 18%.

• Streamline compliance and reduce the regulatory burden for businesses.

• Boost revenue collection efficiency and reduce leakages.

“This is a bold step toward a fair, predictable, and transparent tax system,” President Tinubu stated, emphasizing the need for strong institutions to anchor Nigeria’s economic transformation.

Mixed Reactions

While the reforms have been widely praised by economists and international observers, some state governors—particularly from the North—voiced concerns about the revenue-sharing implications. The proposed increase of Value Added Tax (VAT) to 12.5% was rolled back after legislative negotiation, maintaining the current 7.5% rate and exempting essential goods.

What’s Next?

The federal government will begin a nationwide rollout campaign to educate taxpayers and public officials before implementation in 2026. Economic analysts view this as one of Tinubu’s most ambitious policy moves since his fuel subsidy and currency deregulation reforms in 2023.

If successful, the new tax regime could mark a turning point in Nigeria’s journey toward economic stability, fiscal independence, and investor confidence.

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