President Bola Tinubu’s signing of four transformative tax reform bills is expected to boost Nigeria’s GDP by 15% within two years, according to government economic projections released this week.
The comprehensive legislation, including the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill, addresses long-standing challenges that have hindered business growth and investment flows into Africa’s largest economy.
Economic analysts predict the reforms could generate approximately ₦8.5 trillion in additional revenue annually while reducing compliance costs for businesses by 40%. The consolidation of Nigeria’s fragmented tax laws into a harmonized framework is particularly significant for small and medium enterprises, which have struggled with multiple taxation across different government levels.
“This represents the most significant fiscal reform in Nigeria’s recent history,” said Dr. Folake Adeniran, a tax policy expert at the Lagos Business School. “By eliminating tax duplication and creating predictable frameworks, we’re essentially removing barriers that have prevented both domestic and foreign investors from maximizing their potential.”
The Nigeria Revenue Service, which replaces the Federal Inland Revenue Service, will operate with expanded autonomy and performance-driven mandates. This institutional restructuring is expected to improve collection efficiency by 35% according to government estimates.
Manufacturing sector representatives have particularly welcomed the Joint Revenue Board establishment, which provides formal governance structures for cooperation between federal, state, and local revenue authorities. Industry data suggests this could reduce business registration timeframes from an average of 90 days to 30 days.
The reforms arrive as Nigeria seeks to diversify its revenue base beyond oil dependencies, with non-oil sectors contributing 92% of GDP growth in recent quarters. Implementation begins immediately, with full operational capacity expected across all commercial centers by December 2025.
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