Joseph Tegbe says 2025 tax reforms mark shift toward sustainable, people-focused fiscal framework
The Chairman of the National Tax Policy Implementation Committee (NTPIC), Joseph Tegbe, has said the Nigerian Tax Reform Acts 2025 will significantly strengthen the country’s economy while safeguarding citizens, describing the legislation as a decisive move toward a more sustainable and inclusive fiscal system.
In a policy article, Tegbe explained that the new tax laws represent a fundamental restructuring of Nigeria’s fiscal framework, aimed at building a modern, transparent and efficient tax system capable of supporting long-term economic growth and shared prosperity.
According to him, the reforms are designed to reconnect the economy to the state, standardise and modernise tax administration, improve predictability in fiscal policy, and rebalance the fiscal relationship between government and citizens.
He noted that by broadening the tax base, simplifying tax rules, and strengthening administration, the Acts would create a more stable and predictable environment for businesses and households, thereby encouraging voluntary compliance and stimulating investment.
Tegbe said the policy direction mirrors global best practices, pointing to countries such as South Korea, Singapore and Rwanda, where well-executed tax reforms have played a critical role in driving economic development and improving living standards.
A central element of the reforms, he said, is the protection of low-income earners and small businesses. Measures embedded in the Acts include zero personal income tax for individuals earning up to ₦800,000 annually, as well as the expansion of zero-rated Value Added Tax (VAT) on essential goods and services in sectors such as healthcare, education and agriculture.
According to Tegbe, these provisions are intended to ease financial pressure on vulnerable households, preserve jobs and livelihoods, and support the natural growth of small and medium-sized enterprises.
The reforms also place strong emphasis on digitalisation, with the deployment of technology-driven solutions such as e-invoicing to improve tax compliance, enhance transparency and lower administrative costs.
Tegbe stressed that effective implementation of the Acts would depend on continuous stakeholder engagement, noting that broad understanding and cooperation would be essential to achieving the intended outcomes.
He added that the Tax Reform Acts are expected to stabilise Nigeria’s fiscal environment, boost productivity, improve the ease of doing business, attract foreign investment and create jobs, ultimately unlocking new opportunities across the economy.
