When President Bola Ahmed Tinubu signed the four new tax reform laws on June 26, 2025, it was celebrated as a major milestone. The government called it a “simplification of Nigeria’s tax system.” Experts described it as “modern” and “forward-looking.”
And truly, the reform is one of the boldest fiscal changes in decades; it merges agencies, raises efficiency, and promises fairness for low-income earners and small businesses.
But beyond the applause and policy papers, there’s a deeper story unfolding, one that affects our daily lives, markets, and the nation’s economic balance.
It’s time we start looking beyond the surface.
1. Our Real Economy We Keep Ignoring ( The Informal Sector)
Nigeria’s real economy lives in the markets, on the streets, and across thousands of small trades, from POS agents and transport workers to tailors, mechanics, and online sellers.
Yet, the ongoing conversations focus mostly on big corporations and registered firms.
If over 60% of our economy is informal, shouldn’t this reform speak more directly to them? Shouldn’t we be asking how the Joint Revenue Board will prevent multiple levies and harassment at markets and motor parks?
Until these questions are answered, the reform will feel distant from the people it claims to protect.
2. The Federal vs State Balance (Power and Fairness)
One of the biggest changes, and perhaps least discussed, is the birth of the Nigeria Revenue Service (NRS). It replaces the FIRS and centralizes revenue collection across several federal agencies.
That’s great for efficiency, but what does it mean for state independence?
Some states rely heavily on PAYE and local taxes to survive. With NRS holding more control, will they lose their financial voice?
The new VAT sharing formula (55% for states, 10% for the federal government, and 35% for local governments) appears favorable, but the real test is whether this balance empowers states or ties them more closely to Abuja.
3. The Politics of the Reform
We often celebrate reforms without asking why now?
Nigeria’s debt is high, and pressure from global lenders like the IMF and World Bank to improve local revenue collection has been increasing. This reform helps close that gap, but it also reveals something about Nigeria’s financial future.
The question isn’t only about what the laws change, it’s about who benefits most, and who adjusts the most.
4. The Everyday Impact
The exemption for people earning ₦800,000 or less is a good start, but let’s be honest: that figure barely covers food and rent in many cities.
Middle-income earners may actually feel more pressure, especially now that the Consolidated Relief Allowance (CRA) has been replaced by itemized deductions that require documentation many people don’t have.
We need to ask, will this reform truly lift the low earners, or will it quietly shift the burden to those in the middle?
5. The Digital Economy and Data Concerns
For the first time, Nigeria is taxing digital and remote income, from influencers to freelancers and crypto traders.
That’s fair. But there’s another side to it. How will the government access these records? Through banks? Through fintechs?
With banks now required to report transactions above ₦25 million, are there enough data privacy safeguards? How do we ensure that technology doesn’t turn into quiet surveillance?
These are conversations worth having now, before the system becomes too powerful to question.
6. It’s Strong but Sensitive
The new NRS can deduct taxes directly from your bank account if it believes you underreported income.
That sounds efficient, but it also sounds risky.
What happens when mistakes occur? When genuine small businesses are wrongly flagged? When people can’t reach the Tax Tribunal or Ombudsman easily?
We should be asking: how can these powers be exercised with transparency, fairness, and humanity?
7. The Knowledge Gap No One Is Filling
Most Nigerians have never filed a tax return. Many don’t know what “withholding” or “capital gains” means.
So while the government talks about e-filing and e-invoicing, who is teaching the people?
There should be town halls, simple videos, translations in local languages, not just legal documents. If the goal is inclusion, then tax education should be as important as tax collection.
8. The Numbers We Haven’t Seen
Every big policy should come with clear projections:
- How much revenue is expected?
- What’s the inflation impact?
- How much will states actually gain?
Right now, we have policy statements but no measurable targets. Without data, we’re walking in the dark.
It’s time for experts, journalists, and economists to push for transparent numbers, not just optimistic speeches.
9. Are We Ready for the Transition?
The reforms assume that by January 2026, all agencies will be digitally ready for real-time reporting and compliance.
But are they?
Many state offices still use manual processes. Infrastructure gaps remain. Even the FIRS portal sometimes struggles.
If technology is the new foundation of our tax system, then readiness should be our biggest national conversation right now.
10. Seeing Nigeria in the Global Picture
Ghana, Kenya, and South Africa have already modernized their tax systems. Nigeria is catching up, but how do we compare in results?
We shouldn’t just copy global models; we should localize them to our realities, where millions still earn a daily income in cash.
Let’s study what works abroad and adapt it to what’s possible here.
Looking Beyond the Headlines
These tax reforms are not just laws; they are a new chapter in how Nigeria earns, spends, and grows.
Yes, they simplify some things and modernize others. But they also raise new questions about fairness, awareness, digital control, and readiness.
As citizens, professionals, and media voices, we must go beyond the headlines. We should keep asking:
- How does this reform affect real people?
- How ready are our systems?
- How do we ensure fairness at every level, from Balogun Market to Abuja?
This isn’t just a government matter; it’s a collective one.
Because if we all understand it better, we can hold leaders accountable, make smarter financial choices, and ensure that reform truly means progress.
