Mr. Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee (NTPIC), has described the new tax regime which took effect on January 1, 2026, as a fundamental “turnaround” for Nigeria’s fiscal stability.
Speaking on the implementation of the Nigerian Tax Acts 2025, Mr. Tegbe stated that the reforms are designed to overhaul a fractured system that has historically struggled with weak revenue mobilization and an over-dependence on volatile oil rents. He emphasized that the goal is to shift Nigeria from being “resource-rich but institutionally constrained” to becoming a modern, well-oiled economy.
Fixing the Broken System Mr. Tegbe highlighted that the sweeping reforms go beyond mere revenue extraction. The primary policy thrust includes:
Structural Stability: Moving away from fragmented and administratively weak systems toward a predictable fiscal environment that supports local production.
Economic Connection: Effectively reconnecting economic activity to the state to ensure that planning is backed by reliable data and sustainable revenue.
Modern Administration: Streamlining processes to reduce uncertainty and foster a climate conducive to long-term investment.
Safeguarding the Vulnerable and Critical Sectors A cornerstone of the 2025 framework is the deliberate protection of the most vulnerable Nigerians. Key social-economic safeguards include:
Increased Tax Threshold: The tax-free threshold has been raised to N800,000, significantly easing the burden on low-income earners.
Support for SMEs: Small enterprises will benefit from simplified compliance regimes and targeted reliefs to encourage growth and formalization.
Zero-Rated VAT: Healthcare, education, and agriculture have seen an expansion of zero-rated items, easing cost pressures for operators and improving access to essential services for all citizens.
A Proven Global Path Mr. Tegbe noted that Nigeria is following a path similar to successful nations such as South Korea, Singapore, and Rwanda, where tax reform served as the foundation for long-term development.
“The tax reforms are not a blunt instrument for raising funds,” Tegbe stated. “They are carefully calibrated to promote sustainability and support Nigeria’s long-term development goals. By nurturing the ‘seed’ of our economy, we ensure a more prosperous ‘fruit’ for all.”
The NTPIC Chairman reaffirmed the committee’s commitment to transparent engagement with all stakeholders to ensure the transition is orderly and the objectives of the reform are fully realized.
