New Tax Implementation to Ease Compliance Pressure — RMAFC Chairman

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Shehu, has disclosed that the rollout of Nigeria’s newly enacted tax laws will significantly lessen the burden faced by taxpayers and businesses across the country. According to him, the reforms are designed to simplify tax obligations while ensuring a more stable and predictable fiscal framework for both the public and private sectors.

Dr. Shehu explained that the implementation of these tax reforms is scheduled to commence on January 1, 2026, allowing adequate time for stakeholders to understand the new framework and prepare for a smooth transition. He emphasized that the objective of the new tax system is to improve efficiency, encourage voluntary compliance, and reduce the complexities that have historically characterized tax administration in Nigeria.

The RMAFC chairman made these remarks during the National Stakeholders’ Discourse held in Abuja. The event was themed “Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025” and brought together key players in the fiscal and revenue ecosystem. The forum served as a platform to deliberate on how the new tax laws can strengthen revenue generation while maintaining fairness and transparency.

According to Dr. Shehu, the reforms are expected to provide clarity in tax administration and remove overlapping processes that often lead to confusion among taxpayers. By streamlining procedures and establishing clearer guidelines, the new laws aim to foster confidence in Nigeria’s fiscal system and promote sustainable economic planning.

He further highlighted that the tax reform package consists of four major legislative instruments, all of which are central to reshaping Nigeria’s revenue architecture. These Acts are structured to work together in improving coordination, accountability, and efficiency across revenue-collecting institutions.

The four laws covered under the reform include the Nigeria Tax Act, 2025, the Nigeria Tax Administration Act, 2025, the Nigeria Revenue Service (Establishment) Act, 2025, and the Joint Revenue Board (Establishment) Act, 2025. Collectively, these Acts are intended to modernize tax administration, strengthen institutional roles, and enhance cooperation among revenue authorities at different levels of government.

Dr. Shehu noted that once fully operational, the reforms would help reduce unnecessary compliance costs for individuals and organizations, while also improving revenue growth through better enforcement and transparency. He stressed that a predictable fiscal environment is crucial for attracting investment and ensuring long-term economic stability.