Tax experts have called for proactive compliance and strategic adaptation as Nigeria’s evolving tax reforms reshape the country’s fiscal framework, warning that businesses and individuals must adjust quickly.
The experts spoke during separate presentations examining the implications of the tax reform laws signed in June 2025, describing the changes as a significant shift aimed at promoting transparency, expanding the tax base and aligning Nigeria’s revenue administration with global standards.
Partner and Head of Tax Regulatory and People Services at KPMG Africa, Adewale Ajayi, said the reforms represent a deliberate transition from revenue extraction toward economic growth, compliance efficiency and investment promotion.
He noted that businesses would face stricter compliance obligations, enhanced audit mechanisms and increased accountability for finance executives, urging organisations to strengthen internal controls, upgrade systems and align operational processes with the new legal provisions to avoid penalties and regulatory risks.
Ajayi also noted changes affecting individuals, including revised personal income tax bands and expanded allowable deductions intended to improve fairness and compliance.
Similarly, Partner at Olaniwun Ajayi LP and Chairman of the Tax Appeals Tribunal, Lagos Panel 2, Olamide Obajimi, described the reforms as Nigeria’s most extensive tax overhaul in decades, with far-reaching implications for taxpayer obligations, compliance costs and business operations.
He said the legislation establishes a consolidated fiscal framework and positions the Nigeria Revenue Service as the country’s primary federal tax authority while introducing institutional mechanisms to improve coordination among tax authorities and strengthen taxpayer protection.
Obajimi explained that the Nigeria Tax Act introduces a uniform companies income tax rate of 30 per cent for all non-small companies, expands eligibility thresholds for small company exemptions and integrates capital gains into chargeable income.
He added that the reforms introduce a four per cent development levy, streamline capital allowance claims and tighten rules governing deductible expenses, requiring taxes linked to expenses to be settled before deductions can be claimed.
Associate Director, EY Tax Services, Joy Chijioke, also urged taxpayers and organisations to embrace proactive compliance, stressing that the technology-driven framework requires proper registration, accurate record-keeping, full income declaration and timely engagement with tax authorities.
She noted that the reforms, effective from January 2026, introduce stronger monitoring capabilities that make non-compliance easier to detect.
Chijioke advised organisations to strengthen internal governance structures, update accounting systems and invest in staff training to meet new compliance expectations, adding that early adaptation would determine how successfully businesses navigate Nigeria’s changing tax environment.
The experts agreed that while the reforms introduce stricter obligations, they also present opportunities for improved efficiency, stronger governance and enhanced investor confidence for organisations willing to align with the evolving tax landscape.
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