*As FG Gazettes New Tax Laws
THE Federal Government has officially published the recently enacted new tax reform laws assented to by President Bola Tinubu on June 2, in the official gazette.
According to a statement signed by the Personal Assistant on Special Duties to the President, Kamorudeen Yusuf, on Wednesday, September 10, the reforms introduce four legislations- the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025, and Joint Revenue Board (Establishment) Act 2025.
The gazette reiyerated that “small businesses with turnover under N100million and assets below N250million are exempted from corporate tax,” while “corporate tax rate for large firms may be cut from 30 per cent to 25 per cent at the President’s discretion.”
In addition, the top-up tax thresholds is N50billion for local firms and €750millio for multinationals, with five per cent annual tax credit is introduced for eligible priority-sector projects, while companies transacting in foreign currency may now pay taxes in naira at official exchange rates.
While the Nigeria Tax Act and Nigeria Tax Administration Act will take effect from January 1, next year, the Nigeria Revenue Service Act and Joint Revenue Board Act will become effective from June 26, next year.
The statement stated that the reforms aim to simplify Nigeria’s tax system, support small businesses, attract investment and strengthen fiscal stability, in alignment with President Tinubu’s Renewed Hope Agenda to diversify revenue away from oil.
Meanwhile, following public outcry over the fuel tax, Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, while defending the decision, insisted it is not a new tax, but an existing law that has been dormant since 2007 and intended to be used it to fix roads, saying it was not implemented because government was paying subsidy.
The proceeds, he said, are to be shared between the federal and state governments on a 40-60 per cent ration.
In an interview with Trust Television, Oyedele said the real problem is not the surcharge itself, but the terrible state of our road network, which is why moving goods around in Nigeria and travelling is a nightmare.
“This was meant to be a way of addressing that problem. Globally, including in many African countries, between 20 and 80 per cent of the pump price of petrol goes into charges and levies used to repair and maintain roads. Ours is even lower.”
He admitted Nigerians’ distrust of government to use the funds well as a legitimate concern, but added that the solution is to create a governance structure that ensures transparency and accountability, adding: “Let’s publish how much you’ve collected and the road you are fixing. Put videos, put photos and let us track it together. That is how we can build trust.”
On implementation date, Oyedele stated: “The law requires a commencement date to be announced and gazetted by the Minister of Finance before it can take effect.
“So, it cannot just be implemented arbitrarily. In fact, government can even time it, so that pump prices do not rise.
“For example, when the naira appreciates or crude oil prices fall, if you add the surcharge then, the price remains the same. That is the sensible way to go.”
Confronted that government appears to increasing the tax burden on Nigerians, He said: “That is not correct. One of the first executive orders the President signed suspended four taxes. So, it is unfair when people accuse this government of introducing new ones.
“I challenge anyone to give me an example of a new tax this administration has introduced. There is none.”
Reminded that the organised Labour has threatened to embark on strike over this, Oyedele said he was disappointed with the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) for asking that the entire tax reform Bill to be withdrawn some months ago.
“That was shocking, because this bill clearly benefits workers. If they don’t like a provision of the law, the proper way is to sponsor an amendment in the National Assembly. It is not by strike; we need to respect processes,” he noted.
He clarified that the top-up tax is targeted only at very large companies with turnover above N50billion or multinationals paying less than 15 per cent effective tax, saying if your effective tax is below 15 per cent, you must top it up, as is the global standard, to protect our tax base.
On capital gains, he explained: “Previously, everyone paid a flat 10 per cent. That was unfair. Now, we have moved to a progressive structure, with low-income earners pay nothing, the middle class pay less and only high-net-worth individuals paying up to 25 per cent. That is fairness.
“We also provided exemptions, for the sale of a primary residence, up to two cars, and shares not exceeding N150million in a year.”
Asked how this affects personal income tax, the tax expert explained: “Before now, the exemption was only N3,000 a year. We have moved it forward to say if you earn up to N100,000 a month, you should not be paying tax at all. That means N1.2 million annually is exempt.
“So, the poor and middle class will pay less. But the very wealthy, those earning above N60million annually, will pay up to 25 per cent. That is how to make the system fairer.
“Some experts have said Nigeria’s tax laws are too fragmented. That was part of the problem we addressed. The reforms harmonised multiple conflicting provisions into four acts.
“We also ensured that 100 per cent of stamp duty revenue now goes to the states. In the mining sector, we are not rushing to tax, instead, we are giving incentives, including tax holidays, so that mining can grow into a sector bigger than oil and gas in the future.
“Also, misinformation has been a big challenge. Bad news sells very fast. If you put something false and negative, it goes viral. If you put something positive, nobody shares it.
“The laws are written in black and white; Nigerians should read them instead of relying on social media influencers who are not experts.”
Oyedele stressed that he is not discouraged by the backlash, saying: “Everywhere in the world, reforms are hard. The government should understand that and hold the obligation to explain to the people, be sincere with them, and be consistent. Over time, people will appreciate that the government means well for them.”
Also defending the tax reforms, especially the fuel tax, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, dismissed reports that the Tax Administration Act 2025 introduces a new five per cent fuel surcharge, insisting the levy is not new, but only harmonised under the law.
Speaking at a press conference in Abuja on Tuesday, September 9, Edun said the inclusion of the surcharge in the Act was part of efforts to consolidate and streamline existing tax laws for clarity and ease of compliance, not an automatic introduction of a new tax or fresh taxation.
Edun explained that the new law will only take effect from January 1, next year, and even then, implementation would require a commencement order issued by the Finance minister and published in an official gazette.
“There is a whole formal process involved, and as of today, no order has been issued, none is being prepared and there is no plan. There is no immediate plan to implement any surcharge,” he said, even as he defended government’s broader tax reform efforts, which he described as a long-overdue.
