The Independent Media and Policy Initiative (IMPI) has described the recently approved tax reforms as a defining legacy of President Bola Tinubu’s administration, with the potential to reshape Nigeria’s economic landscape for generations.
President Tinubu signs transformative tax reform laws, a move commended by IMPI for its potential to reshape Nigeria’s economy.
In a policy statement signed by its Chairman, Dr. Omoniyi Akinsiju, IMPI emphasized that its evaluation of the Nigeria Tax Act (NTA) 2025 revealed the far-reaching implications of the new fiscal framework. According to the group, the reforms are the most transformative economic policy intervention seen in decades—if properly implemented.
IMPI stated: “After a detailed analysis based on realism, contextual relevance, and policy fit, our verdict is that President Tinubu’s administration has delivered a visionary set of fiscal reforms. These reforms, captured in the four key tax acts, possess the capacity to reposition Nigeria’s economy for inclusive and accelerated growth.”
The four laws assessed by IMPI include:
The Nigeria Tax (Fair Taxation) Act
The Nigeria Tax Administration Act
The Nigeria Revenue Service (Establishment) Act
The Joint Revenue Board (Establishment) Act
According to IMPI, the laws, alongside fuel subsidy removal and the unification of exchange rates, form the foundation of a well-coordinated economic reset. The organization believes the new tax architecture will enhance compliance, stimulate investment, and strengthen public trust in Nigeria’s fiscal system.
“The Tinubu administration has achieved a consolidation of Nigeria’s previously fragmented tax structure, introducing a fair and investor-friendly regime that aligns with global standards,” IMPI noted.
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Highlighting the incentives within the new laws, IMPI drew attention to several key reforms:
The Minimum Effective Tax Rate (ETR) of 15% for multinational corporations with turnover above €750 million or ₦50 billion, ensuring fair taxation without overburdening businesses.
The Economic Development Incentive (EDI), which replaces the former “pioneer” incentive, offers a 5% annual tax credit for five years on qualifying capital expenditure.
A raised capital gains exemption threshold on share sales from ₦100 million to ₦150 million annually, easing business operations.
In addition, IMPI highlighted progressive tax measures designed to promote equity and boost disposable income:
Zero percent company income tax for small businesses with turnover up to ₦100 million and fixed assets not exceeding ₦250 million—a major leap from the ₦25 million threshold in the 2020 Finance Act.
Zero personal income tax for individuals earning up to ₦800,000 annually, benefiting over 5.8 million Nigerian wage earners and increasing consumer purchasing power.
IMPI concluded that these provisions in the NTA 2025 demonstrate a deliberate policy shift toward income redistribution, investment stimulation, and sustainable economic development.
“With the commencement of the implementation in January 2026, Nigeria stands at the brink of a new economic dawn,” IMPI asserted, “and these tax reforms are the catalyst.”
