NOA: Tax reforms will shield companies from practices discouraging new investments

By Abubakar Yunusa

The National Orientation Agency (NOA) said the tax reforms will shield larger corporations from numerous tax practices that hinder their growth and deter new investments.

In its weekly publication, Lanre Issa-Onilu, NOA director-general (DG), said the successful passage and signing of the tax reform bills mark a solid foundation laid by the President Bola Tinubu administration for transforming Nigeria’s tax and revenue administration.

“Beyond simplifying, upgrading, modernising and harmonising taxation in Nigeria, the federal government is reducing tax burdens on the vulnerable and SMEs as tax elimination will be beneficial to 90 per cent of workers and small businesses,” he said.

“This is aside the wide range of VAT exemption on essential items. The tax reforms will also protect larger corporations from many tax practices inhibiting their growth and discouraging new investments.

“With the tax reforms awaiting take-off, President Tinubu’s target of 18 percent tax-to-GDP ratio in the next few years looks realisable as the next two years of the President’s first term in office is set to spearhead a sprint of economic consolidation and rapid growth.”

Issa-Onilu said the tax reform bills are revolutionary in content and were intentionally drafted to ease tax burdens on individuals and businesses, particularly low-income earners and small and medium enterprises (SMEs).

“Now known as Tax Reform Acts, the bills were assented to by President Tinubu on June 26, 2025, and were expected to come into force in January, 2026,” he said.

The director-general further said the tax reforms aim to overhaul Nigeria’s tax system, boost economic growth, increase revenue, and improve the business environment.

Issa-Onilu said the reforms would also enhance tax administration, ease the burdens on low-income earners, relieve small businesses of tax burdens, and foster accountability and transparency.