Tax Justice for Nigerians: Tinubu’s Bold Reforms Win Public Praise, Deliver What Past Leaders Feared~ Finance Exper
By: civicpulse.net.ng
June 27, 2025
In what has been described as a bold and transformative stride, President Bola Ahmed Tinubu has signed into law four landmark tax reform bills, igniting widespread reactions across the country and earning commendation from economic experts, entrepreneurs, and political stakeholders.
Financial expert and APC chieftain from Boluwaduro/Ila/Ifedayo Federal Constituency, Mr. Victor Alalade, hailed the development in a statement posted on his official Facebook page. He described the reforms as “a lifeline for millions” and a sign of leadership that listens.
“For too long, our tax system was outdated, inequitable, and a barrier to prosperity. These reforms are not just policy changes—they represent the kind of bold governance we’ve yearned for,” Alalade wrote.
A Historic Turning Point
The newly enacted tax reforms are aimed at simplifying Nigeria’s tax regime, easing the burden on low-income earners and small businesses, and creating a more conducive environment for investment and economic growth. The move marks a significant shift in fiscal policy and signals the Tinubu administration’s readiness to reposition Nigeria’s economy on a more sustainable path.
For years, Nigeria’s tax system has been criticized as overly complex, regressive, and discouraging for entrepreneurship. President Tinubu’s intervention, observers note, breaks with the past and introduces clarity, fairness, and opportunity.
Key Highlights of the Reforms
1. Protection for Low-Income Earners and Small Businesses
Workers earning up to ₦1 million annually are now exempt from personal income tax, bolstered by a ₦200,000 rent relief that reduces taxable income.
Micro, small, and medium enterprises (MSMEs) with annual turnover below ₦50 million are exempt from company income tax.
Essential items such as food, education, transport, and healthcare are now exempt from Value Added Tax (VAT).
2. Improved Business Climate
A phased reduction in corporate tax rates from 30% to 25% promises relief for larger companies.
Over 50 overlapping taxes and levies have been eliminated, removing longstanding bureaucratic hurdles.
Businesses can now reclaim VAT on qualified expenses, boosting cash flow and profitability.
3. Stronger, More Efficient Institutions
The outdated Federal Inland Revenue Service (FIRS) has been replaced with the more autonomous and streamlined Nigeria Revenue Service (NRS).
A newly established Joint Revenue Board aims to harmonize taxation efforts across federal, state, and local governments.
The introduction of the Tax Ombudsman and a reformed Tax Appeal Tribunal ensures protection for taxpayers and reduces arbitrary enforcement.
Leadership and Political Will
Alalade praised the courage and foresight of the Tinubu administration, noting that past governments failed to take the bold steps needed to reform the system.
“Leadership isn’t about pleasing everyone—it’s about making difficult choices for long-term prosperity. President Tinubu has shown the courage others lacked,” he said.
Experts agree that the reforms are also a strategic effort to increase Nigeria’s low tax-to-GDP ratio, which currently stands at 10%, well below the African average of 16–18%. Broader tax coverage, coupled with targeted exemptions, could boost government revenue without harming the vulnerable.
Implementation: The True Test
Despite the positive outlook, Alalade emphasized that the success of the reforms hinges on effective implementation. “Authorities must prioritize transparency and fairness. These reforms must not be derailed by overzealous enforcement or administrative bottlenecks,” he cautioned.
Economists like Dr. Nongomin Joshua echoed these concerns, warning that systemic corruption and institutional inefficiency remain risks to the reform agenda’s success.
A Pact with the People
In conclusion, Alalade stated that the reforms signal a new social contract between the government and its citizens. “For the first time in years, Nigerians can see a tax system designed for them, not against them. That’s worth celebrating.”
With the legal groundwork laid, attention now shifts to execution. If properly managed, these tax reforms may go down in history as one of the most consequential achievements of the Tinubu administration.
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Source: Victor Alalade’s Facebook Page
Additional insights compiled from official government documents and expert commentary.
