Nigeria’s New Tax Law Faces Heat
The Big Picture. January was meant to mark a fresh start: new tax codes, a new-named Nigeria Revenue Service (NRS), and a promise of steady income for the treasury. Instead, the launch has stirred a storm over who really pays and whether the rules were even passed in the form now printed.
The Details. The reform bundle, part of the sweeping Nigerian Tax Laws 2025, keeps VAT at 7.5%, yet price tags are already creeping up, a burden falling first on kiosks and corner shops. Turnover-based exemptions exist on paper, but many small owners fear the wider net will still catch them, Independent Nigeria reports. At the same time, the Centre for the Promotion of Private Enterprise warns that trust is running thin; past promises rarely showed up in roads or power, so skeptics doubt the new laws will, either, according to Finance in Africa.
Then came the paperwork shock. Lawmakers released Certified True Copies (CTCs) after whispers of edits between what they passed and what the Gazette printed, Guardian Nigeria writes. For a reform pitched on transparency, the episode cut deep.
Outside Abuja, business leaders hear a different alarm. The AYRIN president, Abdul-Lateef Ajadi, says steeper charges could "trigger job losses and shut doors," PM News Nigeria notes. He argues the public will keep resisting until they see tax naira at work.
Meanwhile, the former FIRS staff now wearing NRS badges face their own test: can they enforce the broader code without choking commerce? Their readiness will decide whether the reforms raise cash or just raise anger, according to a separate Guardian analysis.
Why It Matters. Nigeria needs revenue, but it also needs jobs. Tax too hard, and you gain naira while losing payroll. Tax too soft, and coffers stay bare. The sweet spot lies in clear rules, clean books, and visible public goods.
Around the Tax World
• SME Shield, or Sieve? Independent Nigeria says turnover thresholds aim to spare micro firms, yet owners still brace for hidden cost hikes.
• Trust Deficit. Finance in Africa finds scepticism rising as reforms roll out before service delivery improves, fuelling doubt.
• CTC Drama. Guardian Nigeria’s CTC release exposes gaps between passed and printed laws, transparency hangs on line.
• Job-Loss Warning. Ajadi tells PM News that higher levies could close shops and cut workers, and pressure mounts.
• FIRS ➜ NRS. Guardian’s business desk tracks how the new agency must merge systems fast, or miss targets.
Tax Stat of the Day
₦50 trillion. That’s the extra annual revenue policymakers say the reforms could unlock, if compliance follows intent.
Looking Ahead
The rules are live. The CTCs are public. The real test begins when NRS visits the first shop, the first market, the first bank. All eyes are on enforcement. All eyes are on trust. For a primer on tax basics, see Introduction To Nigerian Tax Laws.