2 hours ago
1
Sadiq Muhammad Mustapha, Programme Lead at the Tax Justice and Governance Platform (TJ&GP), has said public fear surrounding Nigeria’s new tax reforms is largely driven by misinformation and poor understanding of the laws.
Mustapha said this in an exclusive interview with DAILYPOST on Saturday, where he explained that the reforms are mainly a review and consolidation of existing tax laws and are designed to reduce, not increase, the burden on taxpayers especially low-income earners.
“People are getting scared because of misinformation. They don’t really understand the provisions of the new laws,” he said.
“In fact, many people are expected to pay much less than they used to, particularly those earning less.”
He explained that the tax reforms are made up of four key laws, each addressing different aspects of Nigeria’s tax system.
According to him, the first is the Nigerian Tax Administration Act (NTAA), which focuses on how tax policies, systems, and procedures should be managed.
“In simple terms, the NTAA talks about tax administration, how taxes should be handled, collected, and enforced,” Mustapha said.
The second law is the Nigerian Tax Act (NTA), which he described as a major reform aimed at ending multiple taxation.
“This law brings all Nigerian taxes into a single framework. So instead of having different Acts for VAT, personal income tax, company income tax, stamp duties, and others, everything is now under one law. It clearly states who should be taxed, when they should be taxed, and how much they should pay.”
Mustapha said this consolidation will help reduce confusion and prevent taxpayers from being taxed multiple times by different authorities.
The third reform is the Nigerian Revenue Service (NRS) Establishment Act, which replaces and upgrades the former Federal Inland Revenue Service (FIRS).
“This law reviews, upgrades, and rebrands FIRS into the Nigerian Revenue Service, “It clearly defines the institution’s structure, responsibilities, and mandate,” he said.
He said the fourth law is the Joint Revenue Board (JRB) Establishment Act, which focuses on coordination and protection of taxpayers’ rights.
“The Joint Revenue Board is made up of the chairmen of the Internal Revenue Services of the 36 states and the FCT, the secretary of the board, and the chairman of the FIRS, now NRS,” Mustapha said.
“Their job is to coordinate tax administration, collection, and enforcement across the country, ensuring consistency and preventing overlap of duties.”
He added that the law also ensures taxpayers are not overburdened while promoting clarity in the tax system.
Mustapha further revealed that the reforms establish a Tax Appeal Tribunal, which allows taxpayers to take their complaints to an independent body for investigation and fair hearing.
“It is a quasi-judicial body where taxpayers can escalate their grievances,” he said.
In addition, he said the law creates an Office of the Ombudsman, with a chairman at the national level and commissioners in each zone.
“They are responsible for resolving taxpayers’ complaints. Think of it as a grievance redress mechanism for tax issues,” he explained.
On calls by organised labour for the suspension of the tax laws, Mustapha disagreed, saying there had been enough consultations before the reforms were introduced.
“I don’t believe the laws should be suspended, the claim that private sector workers were not given the opportunity to contribute is entirely false. There have been several public consultations.”
He also addressed concerns around bank transfers and tax assessments, noting that simply adding narrations to transfers does not stop tax authorities from assessing income.
“Stating a narration on your transfer will not prevent tax authorities from assessing and collecting tax,” he said.
“People need to learn how to properly file their tax returns so the authorities can distinguish between taxable and non-taxable income.”
Mustapha stressed that public education is key to making the reforms work.
“Information is very important. Once people understand the law, a lot of this fear will disappear.”
Recall that the presidency has faced strong criticism over claims of changes and inconsistencies between the tax laws approved by the National Assembly and the versions later gazetted and released to the public, with many calling for the suspension of their implementation.
The Federal Government however insisted it would proceed with the January 1, 2026, implementation of the Nigeria Tax Act and Tax Administration Act.
The Nigeria Labour Congress (NLC) has criticised the Nigerian government’s new tax laws, describing them as unfair and harmful to workers and low-income Nigerians.
Labour leader Joe Ajaero said the new tax laws were introduced without proper consultation with workers in both the public and private sectors, even though they make up the largest group of taxpayers in the country.
He described the laws as regressive and said they place additional burden on people who are already struggling to survive.
New tax laws: Nigerians afraid due to misinformation – Mustapha
