Lagos: Financial experts have urged taxpayers to understand the goals behind the country’s new tax system, set to take effect on Jan. 1, 2026, to ensure a smooth and beneficial transition for Nigerians. They gave the advice at the American Business Council (ABC) event on Friday in Lagos with the theme: ‘Navigating Nigeria’s New Tax Era’.
According to News Agency of Nigeria, the experts stated that the reforms were designed to simplify tax administration, strengthen compliance, and create a more transparent and efficient revenue system. Mr. Mathew Gbonjubola, Coordinating Director, Compliance and Enforcement Group, Federal Inland Revenue Service (FIRS), said the reforms represented a bold step toward building a simplified, transparent, and technology-driven tax system.
He explained that the reforms would strengthen enforcement capacity, modernise penalty regimes, and promote collaboration among tax authorities through joint audits, information exchange, and coordinated collection efforts. ‘The reform is progressive in nature, it eliminates taxes on capital and investment, reduces the VAT burden, streamlines the withholding tax regime, and introduces targeted incentives to stimulate productive sectors,’ he said.
Gbonjubola advised companies to invest in staff capacity development, engage professionals where necessary, and maintain active communication with FIRS to stay informed and compliant. He emphasised that taxpayers must understand the purpose of the reforms, assess their implications on business models and profitability, and develop robust compliance policies.
While acknowledging challenges such as limited public trust, widespread informality, insecurity, and policy discontinuity, Gbonjubola said the political will behind the reforms and the use of data-driven approaches signalled a new era in Nigeria’s fiscal governance. ‘The objective is to create a fair, efficient, and modern tax system that supports growth, equity, and accountability. The future of taxation in Nigeria is bright,’ he said.
Mr. Adebisi Adeoti, Africa Head of Sustainability and Strategy, and Country Leader, Dow Chemical, West and Central Africa, stated that the new tax law set to take effect in January 2026 was the most comprehensive overhaul in Nigeria’s history. Adeoti, who also chairs the ABC Sustainability Committee, noted that the new tax legislation aimed to simplify, digitise, and harmonise Nigeria’s tax administration system, making compliance easier for both businesses and individuals.
He noted that the new regime, which would be implemented under the Nigerian Tax Act, covers four key areas; Company Income Tax (CIT), Personal Income Tax (PIT), Business Activity Tax (BAT), and Consumption-Based Tax (CBT). According to him, the reform aligns with government efforts to modernise and digitalise the tax compliance process.
Adeoti encouraged participants to take advantage of the session to clarify challenges that might arise as the new law takes effect. He acknowledged that while the transition might initially present challenges, the reform was necessary to improve Nigeria’s fiscal efficiency and competitiveness. ‘Change is the only constant, and this reform is crucial to move our country and continent forward. I am confident that this transformation will benefit Nigeria, businesses, and the wider economy. We urge you to channel your questions and concerns so that we can address potential issues before 2026. Our goal is to ensure that the transition into the new system is seamless for all stakeholders,’ he said.