Nigeria to Enforce New Tax Laws as FG Pushes Revenue Expansion

The Federal Government has confirmed that a new set of tax laws will take effect from January 1, marking a major shift in Nigeria’s fiscal policy as authorities seek to expand revenue generation and strengthen public finances.

President Bola Tinubu announced that the reforms would be implemented as scheduled, despite calls from some quarters for a delay. The new tax framework is designed to widen the tax base, improve compliance, and reduce Nigeria’s dependence on borrowing to fund government expenditure.

According to government officials, the reforms are part of broader economic measures aimed at stabilising the economy following recent policy changes in fuel subsidy removal and foreign exchange management. They argue that Nigeria’s tax-to-GDP ratio remains among the lowest globally and must be improved to fund infrastructure, education, and social services.

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However, the planned implementation has generated debate among lawmakers, business leaders, and civil society groups. Critics have raised concerns about certain provisions, including expanded powers granted to tax authorities and the potential impact on small and medium-sized enterprises already grappling with rising operating costs.

Business associations have urged the government to ensure transparency and fairness in enforcement, warning that excessive pressure on businesses could stifle growth and discourage investment. They also called for clearer guidelines to help companies adjust to the new regime.

In response, government representatives have insisted that safeguards are in place to protect businesses and taxpayers, stressing that the reforms are necessary to build a more resilient economy. Officials said extensive stakeholder engagement would continue as implementation begins.

Tax experts note that while the reforms may initially pose challenges, they could lead to long-term benefits if properly managed. Improved revenue collection, they argue, could reduce deficits and create a more predictable business environment.

As Nigeria enters the new tax era, businesses are being advised to review their compliance systems, seek professional guidance, and adapt to the evolving regulatory landscape.