Misinformation Meets Tax Reform
The ink is barely dry on President Bola Tinubu’s four new tax Acts, yet social media is already awash with ominous predictions. One viral thread from a Twitter user dubbed “Biggest Mack” warned that the reforms spell “the end of you and your business.” But a fact-check of the gazetted text tells a calmer story, Punch Newspapers reports (link).
The Big Picture: Nigeria is attempting its most ambitious tax overhaul in decades, consolidating fragmented laws, widening the base, and digitising compliance. For a clear overview of current changes in the tax landscape, readers may refer to Introduction To Nigerian Tax Laws. Getting public buy-in is critical, and misinformation could sink that effort before the first return is filed.
The Details:
- The new framework exempts micro-businesses with turnover up to ₦100 million and assets under ₦250 million from Company Income Tax, Capital Gains Tax, and the fresh Development Levy, directly contradicting claims that “every deposit is taxed.”
- Only business profits, not every bank inflow, fall under the revamped Electronic Transfer Levy.
Why It Matters: The reaction was swift from the organised private sector. The Nigeria Employers’ Consultative Association (NECA) told Daily Trust that overlapping agency levies could still derail the promised tax relief. With clarity scarce and online outrage abundant, taxpayers risk either over-paying or under-complying, both costly mistakes.
AROUND THE TAX WORLD
- E-Invoicing Countdown: FIRS says 20 % of large taxpayers, about 1,000 companies, are already onboarded to its Merchant Buyer Solution ahead of the 1 Nov 2025 go-live date.
- Fin-tech Boost: The DigiTax platform just snagged FIRS accreditation as an Access Point Provider, tapping Olumide Akinsola to run Nigerian ops and smooth e-invoicing adoption.
- Policy Advice from the Top: FIRS chairman Zacch Adedeji urged “technology-driven reforms” to match Nigeria’s economic realities during a recent policy forum.
- Industrial Headwinds: Manufacturers warn that raw-material shortages and insecurity could blunt the tax-driven “Nigeria First” industrial push, potentially shrinking the CIT base the reforms hope to grow.
- Research for Revenue: FIRS used its inaugural Research Day to unveil studies aimed at “evidence-based tax administration,” signalling more data-heavy audits ahead.
BY THE NUMBERS
Tax Stat of the Day: 1,000, the number of large companies already plugged into FIRS’s e-invoicing system, representing 20 % of the target group (Daily Trust).
LOOKING AHEAD
All eyes are on 1 November 2025, when mandatory e-invoicing kicks in. Expect a late-October scramble as the remaining 4,000 large taxpayers race to get connected.
Prepared by MyTax - mytax.com.ng