The Nigeria Tax Act 2025 is a major reform that repeals several existing tax laws and brings them together into one unified law. This consolidation is designed to simplify Nigeriaโs tax system, reduce confusion, and improve how taxes are managed across the country.
By merging all tax rules into a single document, the Act aims to eliminate overlapping and conflicting provisions that often cause uncertainty. It provides a clearer and more transparent view of the tax system, making it easier for both taxpayers and authorities to understand and apply the law.
A key goal of the Nigeria Tax Act 2025 is to streamline the tax structure by reducing the number of taxes to a single-digit figure. This move is expected to boost revenue, simplify compliance, and reduce regional differences in tax administration.
One of the most important changes is the removal of โnuisance taxesโ โ those that generate little income, are expensive to manage, and often place a heavy burden on small businesses and low-income earners. Instead, the government will focus on taxes that are easier to collect and bring in more revenue.
The Act also merges similar taxes and levies to reduce duplication and waste. By institutionalising tax harmonisation, it ensures that this simplified structure can work effectively across all levels of government in the long term.
While the reform has been welcomed for its potential to modernise Nigeriaโs tax system, it has also raised questions about its economic and social impact.
Click here to download the Nigeria Tax Act 2025 for detailed look at the document