Tax reforms under Tinubu most transformative in decades — IMPI

The Independent Media and Policy Initiative (IMPI) has described President Bola Tinubu’s newly enacted tax reforms as the most transformative economic policies introduced in Nigeria in a generation.

In a statement signed by its chairman, Dr. Omoniyi Akinsiju, the group said its review of the Nigeria Tax Act (NTA) 2025 shows that the reforms, if effectively implemented, have the potential to reset the economy and drive inclusive growth.

The four tax laws under review include the Nigeria Tax (Fair Taxation) Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act. According to IMPI, these laws meet all fiscal conditions required for accelerated economic growth.

IMPI praised the adoption of the Minimum Effective Tax Rate (ETR), which mandates a 15% tax on the net income of large Nigerian companies within multinational groups, aiming to reduce double taxation and attract foreign capital.

It also highlighted the new Economic Development Incentive (EDI), which replaces the previous “pioneer” tax holiday. Under the EDI, eligible companies can receive a 5% tax credit annually for five years on qualifying capital expenditures.

Another provision increases the exemption threshold for share sales in Nigerian companies to ₦150 million, provided gains do not exceed ₦10 million within 12 months—intended to ease the business climate for investors.

The Act further exempts companies with annual turnover of ₦100 million or less and total fixed assets under ₦250 million from Company Income Tax, up from a previous threshold of ₦25 million.

Perhaps most notable, the law introduces a zero tax charge on the personal income of Nigerians earning ₦800,000 or less annually—impacting an estimated 5.8 million workers and reflecting the progressive nature of the reforms.