Business
ECONOMIC experts have urged clearer communication and sustained public enlightenment to help Nigerians understand benefits of the Nigeria Tax Reform Act 2025 for small businesses and low-income earners.
They made the call at the 14th Anniversary Lecture of the January 9 Collective (J9C) in Ikeja on Friday, themed, ‘Nigeria Tax Reform Act 2025 – Early Realities, Emerging Challenges and the Road Ahead’.
The experts stressed sustained collaboration among government, professionals and stakeholders to ensure the reforms promote inclusive growth, transparency and confidence in the tax system.
Dr Paul Alaje, Chief Economist at SPM Professionals, described the Act as “landmark legislation”, but said critical issues still require urgent attention.
Alaje highlighted the regressive nature of indirect taxes like VAT, asking whether the reforms truly deliver a shift towards progressive taxation.
“The success of these reforms depends on effective implementation, public trust and political stability,” Alaje said.
He warned that insecurity, weak fiscal social contracts and poor coordination across government tiers could undermine confidence and discourage business activity.
Alaje advocated phased digital implementation, stronger state tax authorities and protection of exempt and zero-rated goods to boost compliance.
He also recommended policy reviews within three to five years to address emerging challenges and strengthen the framework.
Alaje called for transparency in tax revenue usage, robust taxpayer education and clearer distinction between tax planning and tax evasion.
He criticised entrenched illegal charges, particularly at local government level, describing them as unnecessary burdens on businesses and citizens.
He urged stronger collaboration among federal, state and local governments to eliminate unauthorised charges and ensure uniform law enforcement.
Mr Wole Adeniyi, Chief Executive of Stanbic IBTC Bank Plc and event chairman, described the Act as “a decisive turning point” in Nigeria’s fiscal evolution.
Adeniyi said the reforms consolidated over 50 fragmented tax laws into a unified framework to modernise administration and strengthen fiscal resilience.
Represented by Mr Abayomi Makinde, a senior officer at IBTC, Adeniyi urged stakeholders to ignore misinformation and focus on opportunities critical to national development.
Mr Kingsley James, Captain of the January 9 Collective, said the group had remained a non-partisan platform for thought leadership for 14 years.
He said the lecture enabled balanced dialogue on governance, security, the economy and citizens’ obligations.
Segun Ajayi Kadir, Director-General of the Manufacturers Association of Nigeria, said the reforms offer major relief to manufacturers previously facing up to 63 taxes.
“Compliant manufacturers have nothing to fear,” Kadir said, pledging MAN’s support to refine the law.
Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, stressed continuous public education, noting that “no reform is perfect at inception”.
Yusuf said the largely unengaged informal sector, employing about 90 per cent of Nigerians, needs targeted inclusion efforts.
Mrs Elizabeth Olaghere, KPMG Partner, said the Act raised exemption thresholds, consolidated VAT and introduced simplified returns for the informal sector.
The Royal Father of the Day, Oba Saheed Ademola Elegushi, called the lecture timely, urging clear explanations and fair implementation of the reforms.
The event featured panel discussions, interactive sessions and the cutting of the anniversary cake. (NAN) (www.nannews.ng)
A.I
Jan. 10, 2025
Tags: Dr Paul Alaje Mr Abayomi Makinde Mr Wole Adeniyi Oba Saheed Ademola Elegushi Segun Ajayi Kadir
