Implementation of New Tax Laws Will Be Monitored to Ensure Fairness, Equity – Edun

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has assured Nigerians that the implementation of the country’s new tax laws will be carefully monitored to guarantee fairness, transparency, and equity across the tax system.

Edun stated that the federal government will closely supervise the application of the new tax laws to ensure they are implemented fairly and consistently nationwide. The monitoring process, he explained, is aimed at preventing abuse and ensuring that taxpayers are treated equally under the new framework.

As part of the reforms, the government has introduced a presumptive tax system targeted mainly at businesses in the informal sector. Under this system, taxes are assessed based on observable business activities rather than formal financial records, making it easier for informal businesses to comply with tax obligations.

To protect small businesses, the government announced that enterprises with an annual turnover of ₦12 million or less will be exempt from the presumptive tax. This measure is intended to shield nano and small-scale businesses from additional financial burdens while encouraging their growth.

For other informal businesses that exceed the exemption threshold, a 1 percent tax on turnover has been introduced. The policy is designed to broaden the country’s tax base by bringing more participants in the informal sector into the tax system, rather than increasing existing tax rates.

In addition, the government has banned cash tax collection and roadside tax enforcement, practices that were often associated with harassment and irregularities. The new approach aims to promote transparency and reduce opportunities for corruption in the tax collection process.

To further ensure fairness, an independent oversight mechanism (ombudsman) has been established to address complaints and monitor the implementation of the tax laws.

Edun explained that the reforms are part of the federal government’s broader strategy to strengthen Nigeria’s revenue system. The objectives include expanding the tax net, improving coordination among federal, state, and local tax authorities, and promoting transparency in tax administration.

Ultimately, the reforms are expected to support economic growth and contribute to Nigeria’s ambition of building a $1 trillion economy by 2030.

In summary, the new tax laws are designed to make Nigeria’s tax system simpler, fairer, and more transparent, while integrating more participants particularly those in the informal sector into the tax framework and protecting very small businesses.