Introduction
In a landmark move aimed at overhauling Nigeria’s tax landscape, President Bola Ahmed Tinubu signed into law four major tax reform Acts in June 2025. These Acts – the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act, represent the most comprehensive restructuring of Nigeria’s tax framework in decades.
This article breaks down how each of these laws functions, why they were introduced together, and what this coordinated reform means for businesses, tax professionals, and the Nigerian economy.
1. The Nigeria Tax Act, 2025: Defining What Is Taxed
This Act consolidates various tax statutes into a single, unified legal framework. It provides clarity on: – What is taxable (income, profits, capital gains, VAT, etc.) – Who is taxable (residents, non-residents, individuals, companies) – Sector-specific rules (e.g., petroleum, fintech, manufacturing) – Tax rates, exemptions, and incentives
Key Role: This is the substantive law that determines the tax obligations of individuals and entities in Nigeria.
2. The Nigeria Tax Administration Act, 2025: How Tax Is Administered
This Act introduces a uniform, streamlined tax procedure across all levels of government. It sets out: – Taxpayer registration and identification – Filing of returns, assessments, and payment procedures – Powers of enforcement, audit, and investigation – Use of technology in tax administration.
Key Role: It operationalises the tax rules in the Nigeria Tax Act, providing standard procedures for compliance and enforcement.
3. The Nigeria Revenue Service (Establishment) Act, 2025: Who Collects and Enforces
This Act repeals the Federal Inland Revenue Service (Establishment) Act and establishes the Nigeria Revenue Service (NRS) as the central tax collection authority. Key provisions include: – Broader mandate for the NRS, covering both tax and non-tax revenue – Performance-based management and accountability structures – Enhanced digital capacity and infrastructure
Key Role: The NRS is the engine that executes the procedures under the Tax Admin Act and ensures compliance with the Tax Act.
4. The Joint Revenue Board (Establishment) Act, 2025: Coordinating the System
To reduce conflicts and inconsistencies between federal, state, and local tax authorities, this Act creates: – A unified Joint Revenue Board (JRB) – The Tax Appeal Tribunal – The Office of the Tax Ombud
Key Role: Provides intergovernmental coordination, dispute resolution, and taxpayer rights protection.
Why the Four Acts Were Introduced Together
These Acts are interdependent and were designed to function as a cohesive system. Each law covers a vital part of the tax ecosystem: – The Tax Act defines what is taxed – The Tax Admin Act explains how it is taxed – The NRS Act specifies who enforces it – The JRB Act governs how it is coordinated and contested.
Together, they enable a modern, digital-first, fair, and efficient tax system.
Implications for Businesses and Tax Professionals
- Holistic Compliance Required: Businesses must align not only with the substantive tax laws but also administrative and procedural changes.
- Greater Use of Technology: Tax filings, audits, and payments will increasingly be digital and automated.
- Unified Interface: Expect a more seamless and centralised interaction with tax authorities.
- More Scrutiny and Dispute Mechanisms: With clearer laws and centralised enforcement, non-compliance will be easier to detect—but there are now more formal channels for appeal.
Conclusion
Nigeria’s 2025 tax reform package is not just about new laws, it is about creating a sustainable and efficient tax ecosystem. Understanding how these four Acts work together is key to staying compliant and seizing the opportunities that a transparent, digital-friendly system presents.
Vi-M Professional Solutions stands ready to support your transition with advisory, audit, and custom digital tools tailored to help you stay ahead of the reform curve.
For tailored assistance, contact us via email – clients@vi-m.com. The pdf copy of this write-up is also available here for your download, while the infographic below holistically captures the interplay of the tax reform laws.
