Mr Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee has outlined some of the inherent benefits of the Nigeria Tax Reform Act 2025, saying the new tax policy serves as a major shift to ease tax burdens, stimulate economic growth and ensure fiscal sustainability.
He spoke on Friday at a workshop on Nigeria’s ongoing tax reforms and their implications for businesses, households and government finances.
According to him, the reform will significantly reduce business risks by lowering tax rates, harmonising multiple taxes and easing compliance. He noted that businesses will benefit from a reduced withholding tax (WHT) regime, faster tax refunds and a more predictable tax environment that supports investment and growth.
In his words: “For businesses, the focus is on reducing uncertainty, lowering the tax burden and creating a system that encourages productivity rather than punishes it,” Oyedele stated.
Oye dele further said households will also experience direct economic relief under the reform and these include wage awards, transport subsidies, tax waivers on food imports and temporary tax suspension on fuel-related products to cushion the impact of rising living costs.
On personal taxation, Oyedele disclosed that low-income earners will be exempted from income tax, while the middle class will enjoy reduced tax rates. In addition, value-added tax (VAT) will be zero-rated or exempted on selected essential goods and services to protect vulnerable Nigerians.
For government finances, the committee chairman said the reform is expected to drive economic growth and stability, improve Nigeria’s credit rating, reduce fiscal deficits and lower the cost of public debt. He added that stronger revenue mobilisation will be achieved through an improved tax-to-GDP ratio, enhanced non-oil revenue performance and better efficiency in tax collection.
“The goal is not just to raise revenue, but to optimise it in a way that supports fiscal sustainability and a healthy fiscal balance,” he said, adding that the reform will also address distortions and ensure harmonisation of revenue streams across the economy”.
According to him, the core priorities of the reform include fairness, ease of doing business, economic stability and sustainable growth.
