A University don has described Nigeria’s 2025 tax law as a strategic framework designed to promote inclusive economic growth and diversify the nation’s revenue base.
Ejes Gist News reports that Dr. Ochuko Emudainohwo, Associate Professor of Accounting at Dennis Osadebay University, Asaba, urged businesses, policymakers, and citizens to embrace the reform and contribute to a more accountable and sustainable fiscal environment.
Dr. Emudainohwo delivered his lecture as a guest speaker at the Delta Online Publishers Forum (DOPF) 2025 Lecture Series in Asaba. The session, themed “Nigeria’s New Tax Law: Implications and Opportunities for Businesses and Society,” provided an in-depth analysis of the recently enacted 2025 tax law under President Bola Ahmed Tinubu’s administration.
Context Behind the Tax Reform
The academic emphasised that taxation remains a critical tool for national development. He identified several factors prompting the reform:
- Declining oil revenue: Traditional reliance on oil proceeds has proven insufficient to sustain government expenditure.
- Growing population: Rising demand for public services necessitates a robust revenue system.
- Economic shocks: The COVID-19 pandemic revealed vulnerabilities in Nigeria’s fiscal framework.
“These challenges required the federal government to pursue a more sustainable and inclusive approach to revenue generation,” Dr. Emudainohwo said.
Key Objectives of the 2025 Tax Law
According to Dr. Emudainohwo, the law is structured to strengthen the economy, simplify taxation, and enhance fiscal accountability. The seven principal benefits are:
- Reduced dependence on oil revenue: Encouraging a diversified national economy.
- Streamlined tax administration: Income taxes and company taxes are consolidated into a single framework, reducing bureaucratic complexity.
- Support for SMEs: Companies with an annual turnover below N50 million are exempt from capital-based and corporate income taxes.
- Promotion of entrepreneurship: Reduced tax burdens encourage innovation and business growth.
- Enhanced transparency: Digital tax platforms improve accountability and limit revenue leakages.
- Improved compliance efficiency: Businesses and individuals benefit from simplified filing procedures.
- Strengthened economic resilience: A more robust fiscal framework better withstands external shocks.
“The law is designed to be pro-people, supporting businesses while boosting government revenue,” Dr. Emudainohwo added.
Modernisation and Digital Tax Platforms
The lecture highlighted that the 2025 tax law leverages digital solutions to modernise the revenue system. These platforms facilitate real-time tracking, improve efficiency, and enhance government accountability in revenue collection and expenditure.
Implications for Stakeholders
- Businesses: SMEs gain from exemptions, allowing reinvestment and growth.
- Policymakers: Enhanced revenue streams support developmental projects and infrastructure.
- Citizens: A more accountable tax system aims to improve public service delivery.
Ejes Gist News reports that Dr. Emudainohwo concluded by urging all stakeholders to actively participate in ensuring the law’s successful implementation.
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Dr. Emudainohwo’s lecture underscores the transformative potential of the 2025 tax law, positioning it as a milestone in Nigeria’s effort to build a diversified, resilient, and inclusive economy.
