August 02, (THEWILL) — The President and Chairman of Council, Chartered Institute of Taxation of Nigeria, CITN, Mr Innocent Ohagwa, is passionate about Nigeria’s new tax laws which is part of the broader fiscal reform drive of the Federal Government. In this interview with Sam Diala, Ohagwa offers insights into the new tax laws and the benefits they portend for the economy and the tax payers generally if professionally implemented.
Do you see the new tax regime effectively eradicating multiple taxes and levies that Nigerians and SMEs are exposed to, especially at the sub-national and local government levels which has been the major concern among the citizens?
The intention of the new tax regime from the outset is to streamline the tax system and reduce the burden of multiple and overlapping taxes, particularly on SMEs.
The reform has rationalised the multiplicity of taxes into a more coherent and manageable structure, while State Governments are already domesticating the Tax Reform Laws to promote harmonisation at sub-national levels.
With sustained implementation, effective oversight, and continued stakeholder engagement, the framework provides a strong basis for significantly reducing multiple taxation and creating a more business-friendly environment.
Are you concerned that high tax-paying entities like large business organizations might eventually increase the costs of their goods and services, which will be passed to the final consumers?
That is less likely. The framework of the new tax laws has been deliberately designed to moderate cost pressures on businesses through a combination of targeted reliefs, improved efficiency, and a more streamlined tax structure.
The Nigeria Tax Act, 2025 and the Tax Administration Act, 2025 introduce a more strategic incentive framework aimed at easing business costs while supporting investment. Notably, the former Pioneer Status Incentive has been replaced with the Economic Development Incentive (EDI), a more transparent and performance-driven model.
Under this framework, qualifying investments in priority sectors such as manufacturing, energy, and agriculture attract an annual Economic Development Tax Credit (EDTC) of 5% on capital expenditure over a defined period.
In addition, reforms to VAT, particularly clearer input credit rules and more efficient refund mechanisms, reduce the accumulation of unrecoverable tax costs that have historically increased operating expenses for businesses.
The broader effort to streamline and harmonise taxes also reduces duplication and compliance complexity across the system. Taken together, these measures support improved cash flow, lower operating costs, and provide a more stable basis for long-term investment planning.
The overall effect is a reduction in the effective tax burden, achieved through efficiency and targeted reliefs rather than rate adjustments. While pricing decisions remain influenced by broader market dynamics, the structure of the reforms significantly reduces the pressure on businesses to pass costs on to final consumers.
Ultimately, the objective is to create a balanced system that supports business growth, protects consumer interests, and strengthens overall economic stability.
What then do you consider the most crucial aspects of the new tax laws that might pose a challenge in their implementation; and how can they be effectively addressed?
The most crucial aspects relate to the transition from existing practices to a more modern, efficient, and technology-driven tax system. In this regard, key areas requiring focused attention include taxpayer awareness, digital literacy, evolving compliance requirements, the availability of appropriate technological tools, and administrative capacity across institutions.
The new tax laws are designed to transform the system by promoting simplicity, transparency, voluntary compliance, and a more efficient, technology-enabled administration, while also creating a fairer and more predictable business environment.
Effective implementation will depend on sustained public sensitisation, clear and consistent communication, continuous capacity building for taxpayers and practitioners, and investment in digital infrastructure. It will also require strengthened institutional capacity and closer collaboration among government agencies, professional bodies, and the private sector.
With a coordinated and deliberate approach, supported by strong collaboration across stakeholders, including the continued role of institutions such as the Chartered Institute of Taxation of Nigeria in bridging knowledge gaps – these priority areas can be effectively managed to ensure a smooth and successful transition into the new tax regime.
Do you believe the new tax laws would address concerns around transparency in Nigeria’s fiscal environment?
The new tax laws represent a deliberate step towards strengthening transparency, accountability, and consistency within Nigeria’s fiscal framework. A key feature of the reforms is the simplification and standardisation of tax processes, supported by clearer rules, improved reporting structures, and a stronger alignment between policy and administration.
In addition, the deployment of technology—including electronic invoicing, digital reporting systems and enhanced data integration across relevant agencies significantly improves traceability, reduces discretion and promotes real-time visibility within the tax system. The framework is further strengthened by provisions for integrated platforms such as the National Single Window, which serves as a unified interface for trade-related documentation, payments and data exchange. This approach enhances transparency in revenue flows, supports efficiency in cross-border transactions, and ensures that relevant information is captured and accessible within a coordinated system.
Provisions within the Nigeria Tax Administration Act, 2025 also reinforce structured reporting obligations, electronic fiscal systems, and improved information exchange mechanisms, all of which support a more transparent and accountable tax environment. The continued effort to streamline and harmonise taxes contributes further by reducing fragmentation and creating a more coherent system that is easier for taxpayers to understand and comply with.
Taken together, these measures provide a more predictable and accountable environment for both taxpayers and administrators. With sustained implementation and continued stakeholder engagement, the reforms are well positioned to deepen trust, improve compliance, and reinforce confidence in the tax system.
CITN played a remarkable role in the formulation of the tax reform bills that were eventually enacted into Tax Acts. Can you highlight how CITN was able to achieve this feat?
The Institute’s contribution to the reform process was structured and process-driven. CITN was represented on the Presidential Committee on Fiscal Policy and Tax Reforms, which provided an opportunity to contribute directly to the development of the proposals.
In addition, the Institute submitted a comprehensive Memorandum to the Committee, drawing on inputs from its diverse membership base. CITN also actively participated in the public hearing process, where further submissions were made to support clarity, alignment, and practical implementation of the proposed provisions. These engagements ensured that the Institute’s contributions were technically grounded, reflective of professional experience and aligned with the broader objective of strengthening Nigeria’s tax system.
CITN has been partnering with institutions of higher learning in the training of tax practitioners across the country. What has been the experience? What will be the impact on the implementation of the new tax laws?
The experience has been both constructive and encouraging. Over the years, the Chartered Institute of Taxation of Nigeria has sustained partnerships with universities and other tertiary institutions to position taxation as a structured academic discipline at both undergraduate and postgraduate levels.
Today, taxation is offered as a full academic programme across over 30 tertiary institutions in Nigeria, supported by standardised curricula developed in collaboration with relevant regulatory bodies. This has strengthened the quality, consistency, and relevance of tax education, while expanding the pool of trained professionals within the system.
Beyond formal academic collaboration, the Institute continues to complement this through continuous professional development programmes, including webinars, workshops, and targeted training initiatives that enhance practical knowledge and align practitioners with emerging developments in tax administration.
In addition, ongoing efforts to integrate taxation into the broader education framework—particularly at the foundational levels are aimed at strengthening tax awareness, civic responsibility, and long-term compliance culture.
In terms of impact, these combined efforts are particularly significant in the context of the new tax laws. Effective implementation requires a strong base of competent professionals who understand not only the provisions of the law, but also, their practical application within an evolving, technology-driven tax environment.
The Institute’s engagement across academic and professional platforms therefore, ensures a steady pipeline of well-trained individuals equipped with both theoretical grounding and practical orientation. This will support consistency in interpretation, strengthen compliance, and enhance the overall effectiveness of the reform process.
You have appeared on television and other news outlets, in addition to speaking at public lectures, on the new tax laws. What is your central message in these engagements?
The central message in my engagements has been to provide clarity, build understanding, and reinforce confidence in the direction of Nigeria’s tax reforms.
At its core, the reform is structured, necessary, and people-oriented. It introduces a range of incentives designed to support individuals, households, and businesses, while also strengthening the overall framework for compliance in a manner that is fair, transparent, and predictable.
For these opportunities to be fully realised, it is important that stakeholders understand what has changed, why it has changed, and how it affects them. This level of awareness is essential in fostering voluntary compliance and ensuring that the benefits of the reform are widely experienced.
I also emphasise the importance of collaboration. Effective implementation requires a shared commitment. Government, professional bodies, businesses and citizens all have a role to play in supporting a more efficient and responsive tax system.
The Chartered Institute of Taxation of Nigeria therefore encourages all stakeholders – taxpayers, citizens and residents to support the reform process by embracing voluntary compliance, while also promoting transparency and accountability across all levels of governance. This shared responsibility is essential to strengthening trust, improving public service delivery, and ensuring that the full benefits of the reform are realised.
Ultimately, the success of these reforms will be measured by the quality of implementation and their tangible impact on economic activity and the well-being of Nigerians.
The Chartered Institute of Taxation of Nigeria remains committed to supporting this process through professional guidance, capacity development and sustained stakeholder engagement and continuous advocacy.
Do you agree with the view that the implementation of the new tax laws would create a business boom for auditors and tax practitioners like your members?
The implementation of the new tax laws is expected to strengthen the demand for professional tax services, as individuals and businesses align with a more structured, transparent, and technology-driven tax system.
The reforms have clearly elevated the role of tax professionals. For instance, Section 33(1) of the Nigeria Tax Administration Act, 2025 provides that a taxpayer may either represent itself or be represented by a tax agent accredited by the relevant tax authority.
In addition, Section 147 defines a tax agent as a person duly recognised and certified by a professional body in Nigeria to represent taxpayers. These provisions reinforce the importance of professional certification and position qualified practitioners to play a more active role, not only in compliance, but also in advisory, planning, and supporting taxpayers in navigating the evolving tax environment.
For the Chartered Institute of Taxation of Nigeria, the emphasis is not on increased demand alone, but on professional responsibility. Our members are expected to uphold the highest standards of competence, ethics, and integrity in the discharge of their duties.
At the same time, effective implementation will require deliberate efforts to address knowledge and capacity gaps, encourage the right professional and taxpayer attitudes, and support the transition from legacy practices to a more modern compliance culture. This involves continuous learning, unlearning outdated approaches, and embracing new systems and standards.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
