The Federal Inland Revenue Service (FIRS) is set to usher in sweeping tax reforms from January next year, promising a more business-friendly and taxpayer-centric system, according to Zacch Adedeji, Chairman of the agency.
Reflecting on his two-year tenure, Adedeji highlighted the significant strides in Nigeria’s fiscal landscape. “For the first time, the three tiers of government shared a record monthly allocation exceeding ₦2 trillion, with nearly 70% derived from FIRS-collected taxes,” he said, attributing the progress to President Bola Ahmed Tinubu’s reforms, including subsidy removal on petrol and consolidation of exchange rate windows.
The new tax laws, the Chairman explained, consolidate multiple tax statutes into a single document, reducing bureaucratic hurdles and ensuring easier compliance. More than 80% of Nigerians stand to benefit, with essential sectors such as food, education, agriculture, and shared transportation now VAT-exempt. Additionally, small businesses with annual turnover below ₦50 million will be exempt from tax, and low-income earners will see adjustments to personal income tax.
“President Tinubu has created a compassionate, business-friendly environment. We have streamlined tax collection into a one-stop shop, categorizing taxpayers by turnover, making it simpler for businesses to comply,” Adedeji added.
Non-oil revenue has surged, and the agency has surpassed its oil and gas tax targets, buoyed by improved national security and investment confidence. FIRS aims to raise Nigeria’s tax-to-GDP ratio from 13.5% to 18% by 2027, exceeding Africa’s average.
The reforms coincide with wider economic measures, including the compressed natural gas initiative for vehicles, crude-for-naira access for local refiners, and significant debt repayment. Federal allocations to states and local governments continue to grow, funding infrastructure projects that open new economic corridors nationwide.
Adedeji concluded that while short-term disruptions followed subsidy removal and currency adjustments, the reforms lay the foundation for sustainable growth and greater fiscal stability, signaling a transformative era for Nigeria’s economy.
FIRS Chairman Zacch Adedeji outlines major tax reforms starting January, including VAT exemptions, simplified tax laws, and support for small businesses, promising a more business-friendly environment and stronger fiscal stability in Nigeria.
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