Journalists have been urged to play a key role in educating the public on Nigeria’s new tax reforms following a training session held at the Ernest Etim Bassey Press Centre in Calabar. The session focused on explaining the major provisions of the new tax framework, including key sections of the law, reforms introduced, taxable income, allowable deductions, penalties, and the responsibilities of taxpayers.
By Victoria Omini.
Facilitators explained that the reform is structured as a four in one framework designed to simplify and strengthen tax administration in the country. According to them, the new law addresses long standing complaints from business owners about multiple taxation where taxpayers often paid similar levies to local governments, state authorities, and in some cases federal agencies. The reform now consolidates several previous tax laws into a single framework known as the Nigerian Tax Act, which replaces earlier laws such as the Personal Income Tax Act, the Companies Income Tax Act, and the Capital Gains Tax Act.
Participants were also introduced to the Nigerian Tax Administration Act, which standardizes tax administration procedures across the country. Under the new system, the process of tax administration will be uniform in every state, ensuring that states follow the same rules in tax enforcement and compliance. States are expected to domesticate the law locally. In Cross River State, this will lead to the development of a new revenue administration law that aligns with the national framework.
Another important component of the reform is the Joint Revenue Board of Nigeria Establishment Act, which introduces stronger protections for taxpayers. The Act creates the Office of the Tax Ombudsman, a platform where taxpayers can report cases of abuse or unfair treatment by tax authorities. The measure is expected to encourage greater accountability among revenue officials and improve trust between taxpayers and tax authorities.
The training also highlighted the restructuring of federal tax collection with the establishment of the Nigerian Revenue Service, which replaces the Federal Inland Revenue Service. The new agency will handle most federal revenue collection, allowing other ministries, departments, and agencies to focus on their core functions rather than collecting taxes independently.
Officials further clarified that taxpayers can now generate their Tax Identification Number online without visiting tax offices. Individuals can create their tax identification using their names, while companies can generate theirs using their Corporate Affairs Commission registration numbers. Government agencies are also required to obtain tax identification numbers and include them on their official letterheads.
Participants were reminded that filing tax returns remains mandatory even for individuals whose annual income is below the taxable threshold of 800,000 naira. Individuals are required to file their annual returns between January and March 31 each year, and failure to do so attracts penalties. Employers are also required to file returns on behalf of their employees, while businesses involved in value added tax transactions must file monthly returns with the Nigerian Revenue Service.
The session emphasized the importance of maintaining proper financial records and books of account for tax purposes. These records help tax authorities determine income levels, allowable deductions, and tax liabilities. Failure to maintain proper records also attracts penalties under the new law.
Journalists were also informed that the new law provides procedures for tax enforcement. Authorities clarified that revenue agencies cannot arbitrarily access taxpayers’ bank accounts. Such action can only occur after due process has been followed, including assessment, notification, and failure by the taxpayer to settle outstanding liabilities over a long period.
The reform also expands the jurisdiction of the Tax Appeal Tribunal, allowing taxpayers to challenge tax related disputes beyond personal income tax matters. Taxpayers who are dissatisfied with assessments or revenue laws can now approach the tribunal rather than going directly to state high courts.
Facilitators encouraged journalists to help disseminate accurate information about the reforms to the public, stressing that improved understanding of the new tax laws will promote voluntary compliance and strengthen Nigeria’s tax system.
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