The Lead Story
A sweeping reboot for Nigeria’s tax playbook
The Big Picture: Nigeria just hit refresh on its entire tax operating system. President Bola Tinubu signed four reform bills on June 26, promising a friendlier business climate and fatter government coffers.
The Details: The new Nigeria Tax Act, Tax Administration Act, Revenue Service Act, and Joint Revenue Board Act form a package the administration says will “catalyze economic growth and bolster revenue,” CNBC Africa reports. Central to the overhaul is a revamped Nigeria Revenue Service (formerly FIRS) that will lean hard on tech—think real-time VAT fiscalisation and a single, cloud-based filing portal.
The Nigerian Economic Summit Group adds that the framework folds fragmented laws into one coherent code, exempts essentials such as food and medicine from VAT, and gifts micro-businesses under ₦50 million in annual turnover a simplified compliance regime (Tribune Online). NESG’s white paper projects the changes could lift the tax-to-GDP ratio to 18 % within five years—roughly double today’s level.
Why It Matters / What They’re Saying: PwC partner Esiri Agbeyi told CNBC Africa the package “finally aligns Nigeria with OECD principles” while widening pioneer-status tax holidays to cover emerging industries. Tax pros are upbeat, but many will be watching whether the shiny new Revenue Service can deliver seamless digital filing—fast.
Around the Tax World
• FIRS rolls out the red carpet for compliant MSMEs. Raw Food and Beauty Research Ltd. drove off with a brand-new car plus ₦2 million as the top winner at this year’s tax-compliance awards, a move FIRS says encourages voluntary filing (Businessday NG).
• $140k refund fraud lands Nigerian musician in U.S. prison. A Texas court handed Onomen Uduebor 40 months for filing 150 bogus returns in a W-2 phishing scam (Punch Newspapers).
• Shipping levy backlash. Nigeria warned that a proposed global shipping tax could sap African trade competitiveness, urging a continental front against the measure (News Central TV).
By the Numbers
Tax Stat of the Day: 18 % – the ambitious tax-to-GDP target the new laws are chasing, up from roughly 10 % today (Tribune Online).
Looking Ahead
All eyes now turn to the Nigeria Revenue Service, which is expected to release the first batch of digital-platform guidelines before the end of Q3. Smooth rollout could be the difference between headline-grabbing promise and real-world revenue.
Prepared by MyTax - mytax.com.ng