The Chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, has highlighted the benefits of the Nigerian Tax Reform Acts 2025, describing them as a major turning point in the country’s quest for a robust and sustainable economy.

In a statement on Wednesday, Tegbe said the new tax law represents a comprehensive overhaul of Nigeria’s fiscal architecture, designed to create a modern, efficient and transparent tax system that supports economic growth, development and shared prosperity.

Tegbe, who is also the Director-General of the Nigeria-China Strategic Partnership, explained that the reforms are built around four key pillars: reconnecting the economy to the state, standardising and modernising fiscal administration, promoting predictability, and rebalancing the fiscal social contract.

“By broadening the tax net, simplifying rules, and improving administration, we are creating a more predictable fiscal environment that supports businesses and households,” he said.

He noted that the reforms were informed by global best practices, citing examples from South Korea, Singapore and Rwanda, where tax reforms have contributed significantly to economic growth and development.

“These countries have shown that with the right policies, institutions, and leadership, it is possible to transform a nation’s economy and improve the lives of its citizens,” Tegbe stated.

According to him, the tax reforms are designed to protect low-income earners and small businesses through measures such as zero tax rates for individuals earning up to N800,000 and the expansion of zero-rated Value Added Tax items for critical sectors, including healthcare, education and agriculture.

“By taking away the tax burden on small income earners and small businesses, the reforms aim to preserve livelihoods, encourage formal participation, and allow enterprises to grow organically. We recognise that these sectors are critical to our nation’s development, and we are committed to supporting them,” he noted.

The Acts also place strong emphasis on digitalisation and technology-driven tax administration, including the introduction of e-invoicing to improve compliance, enhance transparency and reduce administrative burdens.

Tegbe described this as a significant step towards modernising Nigeria’s tax system and making it more efficient. He stressed that the success of the reforms will depend largely on careful implementation, underscoring the need for sustained engagement with stakeholders to ensure proper understanding and effective execution.

The implementation of the Tax Reform Acts, he said, is expected to stabilise the fiscal environment, support production, protect critical sectors and modernise tax administration in line with global standards.

He added that the reforms would also enhance Nigeria’s ease of doing business, attract foreign investment and generate employment opportunities.

“We are confident that these reforms will unlock new opportunities for businesses, investors, and entrepreneurs, and contribute to the growth and development of our economy,” Tegbe said.