The 2025 Annual Lecture of the Delta Online Publishers Forum (DOPF) held in Asaba on Thursday, November 27, 2025 brought together policymakers, academics, business leaders, civil society, and the media to dissect one of the most consequential fiscal changes in Nigeria’s history: the new tax law set to take effect on January 1, 2026.
Delivering this year’s lecture, “Nigeria’s New Tax Law: Implications & Opportunities for Businesses and Society,” Associate Professor of Accounting, Dr. Ochuko Benedict Emudainohwo, FCA, offered a sweeping analysis of the reforms signed into law by President Bola Ahmed Tinubu on June 26, 2025. Dr. Emudainohwo, who lectures at the Department of Accounting, Dennis Osadebay University, Asaba, described the new tax framework as “the most comprehensive tax overhaul Nigeria has seen in decades.”
Why Nigeria Needed a New Tax Law
According to him, years of unstable oil revenue, rising public expenditure, inflation pressures, digitalization of the global economy, and Nigeria’s extremely low tax-to-GDP ratio made reform unavoidable.
He noted that while African countries average 16% tax-to-GDP, and nations like Tunisia and South Africa reach 33% and 27% respectively, Nigeria trails far behind at between 5.2% and 9.4%.
“These figures show why government revenue was consistently insufficient despite growing national obligations,” he said, pointing to rising federal capital budgets, from ₦6 trillion in 2020 to almost ₦11 trillion in 2025, without matching revenue growth.
Four New Laws Reshape Nigeria’s Tax System
The lecturer explained that the 2025 tax reform is encapsulated in four new Acts:
- Nigeria Tax Act (NTA)
– Consolidates multiple federal tax laws into a single code. - Nigeria Tax Administration Act (NTAA)
– Modernizes tax filing, payment systems, and digital processes. - Nigeria Revenue Service Act (NRS)
– Strengthens the tax authority and expands its enforcement powers. - Joint Revenue Board Act
– Improves coordination between federal, state, and local tax bodies to eliminate multiple taxation.
He said these laws eliminate the confusion of overlapping statutes, modernize compliance, and align Nigeria with global standards.
Major Changes: Corporate Income Tax (CIT)
Dr. Emudainohwo outlined sharp changes businesses must brace for, including:
- New capital allowance rules with strict documentation requirements.
- Replacement of old allowance methods with straight-line depreciation rates of 10%, 20%, and 25%, depending on asset type.
- Introduction of a 0.5% minimum tax on turnover for all companies.
- A new Economic Development Incentive (EDI) replacing pioneer status, offering 5% annual tax credit for 5 years on qualifying investments.
He stressed that capital allowances will now be accepted only with verifiable VAT receipts, import duty records, and digital invoices.
VAT Remains 7.5%, but Classification is Clearer
The standard VAT rate stays at 7.5%, but the law now provides a clearer categorization:
- Exempt: financial services, residential rent, education, public health, passenger transport.
- Zero-rated: exports, certain foods, medicines, sanitary products.
- Standard-rated: goods and services chargeable at 7.5%.
Digital Compliance Era: Businesses Face Stricter Scrutiny
The accountant warned that the new law ushers businesses into “a digital-first compliance regime.”
Tax authorities can now cross-check taxpayer data with:
- Banks
- CAC records
- Customs
- Telecom operators
- Online platforms and payment gateways
He noted that businesses will no longer survive on manual record-keeping.
“Any company that fails to digitize operations will be flagged automatically. POS data, e-invoices, electronic receipts, and bank records are now central audit evidence,” he said.
Penalties are harsher, scaled to turnover, and many attract daily fines until compliance is achieved.
MSMEs: Bigger Thresholds, Easier Compliance
The law offers significant reliefs and opportunities for small businesses:
- A new definition of “small company”: turnover ≤₦50m and fixed assets ≤₦250m.
- Small companies remain exempt from CIT, CGT, and several levies.
- MSMEs below threshold are not required to file VAT unless they opt in.
- Digital filing will reduce administrative costs and errors.
The lecturer said the reform encourages informal businesses to register, giving them:
- Access to incentives and tax credits
- Better eligibility for loans and grants
- Stronger legal protections
- Improved credibility with customers and partners
- Entry into larger domestic and export markets
Large Corporations: Tightened Controls
Bigger companies must prepare for:
- Stricter transfer-pricing oversight.
- More documentation for offshore payments.
- Taxation of digital and remote services.
- Greater alignment between audited accounts and tax filings.
Benefits for Society
Dr. Emudainohwo emphasized that the reform aims to:
- Boost revenue for social services
- Reduce corruption and leakages
- Improve fairness in burden-sharing
- Strengthen government-citizen trust
- Build long-term economic resilience
What Businesses Should Do Now
He urged businesses to:
- Conduct tax impact assessments
- Review internal controls
- Digitize all compliance processes
- Train staff on new rules
- Seek professional advice early
What Government Must Still Improve
He called on government to simplify complex provisions, strengthen enforcement fairness, invest in taxpayer education, improve digital platforms, and most critically, demonstrate transparency in the use of revenue.
A Reform That Will Define Nigeria’s Economic Future
Closing his lecture, Dr. Emudainohwo said the 2025 tax reforms present both disruption and opportunity.
“This law will shape Nigeria’s economic landscape for the next generation. Those who understand it early will prosper. Those who ignore it will pay a heavy price,” he warned.
The DOPF leadership, including Chairman Emmanuel Enebeli and Secretary-General Shedrack Onitsha, commended the scholar for the clarity and depth of his presentation.
The annual lecture continues to serve as one of Delta State’s most influential platforms for public policy engagement.
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