Tax Expert Backs New Tax Reform Act, Says It Will Boost Investment, Ensure Fairness

A tax expert, Uzoma Kelechi, has said the recently enacted Tax Reform Act will enhance investment and promote fairness in Nigeria’s tax system.

Kelechi made this known during a capacity-building workshop organised by the Tax Justice and Governance Platform, Federal Capital Territory (FCT), in collaboration with the Civil Society Legislative Advocacy Centre (CISLAC).

The virtual event, themed “New Tax Laws and Informal Sector Taxation”, explored the transformative potential of the reforms.

According to Kelechi, Nigeria’s previous tax system was overly complex, placing undue burdens on ordinary citizens while leaving large sections of the informal and corporate sectors outside the tax net.

“In the past, the tax system was narrow and regressive, placing a heavier burden on everyday Nigerians,” she said. “The new tax laws, introduced through recent Finance Acts and the 2025 Tax Reform Bills, mark a deliberate shift towards a progressive, pro-poor framework.”

She explained that the legislation seeks to broaden the tax base by ensuring that wealthy individuals, big corporations, and luxury consumption contribute a fairer share.

“For citizens, this means a simpler, fairer, and more inclusive system that still generates the revenue needed to reduce reliance on oil, while protecting the most vulnerable. With the new law, the poor will breathe,” Kelechi added.

She also commended President Bola Tinubu for championing the reforms, noting that the changes would provide relief for low-income earners.

Also speaking at the workshop, CISLAC’s Programme Gender Officer, Dolapo Asaolu, said the session was designed to strengthen the capacity of civil society members, particularly those from the FCT Chapter of the Tax Justice and Governance Platform.

“There is a clear knowledge gap regarding the new tax laws,” Asaolu noted. “If civil society organisations are to effectively advocate and educate the public, we must first understand the laws ourselves.”

Asaolu added that although the new reforms primarily address the formal sector, their long-term goal is to ensure that all sectors, including the informal economy, contribute equitably.

“When everyone understands their tax obligations and pays their fair share, it promotes transparency, strengthens accountability, and boosts public revenue. This will translate into better budgeting and improved social service delivery,” she explained.

In his remarks, Mr. Botti Isaac of Social Action and Host of the FCT Tax Justice Platform, emphasised the need to link the new tax reforms directly to the informal sector.

“Our objective is to understand how the reforms affect operators in the informal economy and to develop advocacy strategies that will improve implementation,” Isaac said.

The workshop concluded with a call for sustained public education, transparency, and equitable enforcement of the new laws to ensure that all Nigerians, particularly those in the informal sector, benefit from the reforms.