…Fear Systematic Corruption May Hinder Successful Implementation
…Stress Need For Accountability In Government Institutions
…FCT IJ & GP Lauds Assent, Says It’s Milestone In Fiscal Reforms
Several experts and activists have expressed deep concerns on whether the new Tax Reform Acts can pave the way for good governance and economic stability with the current level of corruption in the Nigerian system.
However, they agree that if well implemented, the new tax laws will boost the government’s revenue and by extension, the nation’s Gross Domestic Product (GDP).
Professor John Ebhomien, an economist and former World Bank/International Monetary Fund (IMF) consultant said the recent introduction of the new Tax Reform Acts holds significant promise for Nigeria’s governance and economic landscape.
“If effectively implemented, these reforms could be a turning point in promoting transparency, accountability, and fiscal responsibility.
“However, the success of this initiative hinges on the establishment of robust mechanisms that ensure checks and balances, prevent corruption, and foster a culture of accountability within government institutions.”
According to him, the potential benefits of the Tax Reform Act are substantial, adding that by streamlining tax policies and procedures, the government can create a more favorable business environment, stimulate economic growth, and increase revenue generation.
Ebhomien, an All Progressives Congress (APC) chieftain, stressed: “Moreover, a well-designed tax system can help reduce income inequality, promote social justice, and enhance the overall welfare of citizens.
“Nevertheless, the implementation of these reforms faces significant challenges. Corruption, a pervasive issue in Nigeria’s governance structure, poses a major threat to the success of the Tax Reform Acts.
“If left unchecked, corruption can undermine the good intentions of the government and divert public resources for personal gain.
“Therefore, the government must take decisive actions to nip corruption in the bud and ensure that public officials are held accountable for their actions.
“To achieve this, the government at all levels must demonstrate a strong commitment to sound fiscal discipline and responsible governance.
“This can be accomplished by: establishing transparent and accountable financial management systems; strengthening institutions and frameworks for oversight and accountability.
Others are promoting a culture of transparency and citizen participation in governance; ensuring that public officials are held accountable for their actions and decisions
Ebhomien continued: “Nigerians must cooperate with the government’s efforts to fully implement the Tax Reform Acts.
“This can be achieved through staying informed about the reforms and their implications, and providing feedback and suggestions to improve the implementation process.”
He also stressed the need to hold public officials accountable for their actions and decisions and supporting initiatives that promote transparency and accountability in governance.
According to Ebhomien, “By working together, the government and citizens can ensure that the Tax Reform Acts achieve their intended objectives and contribute to a more stable and prosperous economy.
“Ultimately, the success of these reforms will depend on the government’s ability to demonstrate strong leadership, commitment, and accountability, as well as the willingness of citizens to engage in the process and hold their leaders accountable.
“In conclusion, the new Tax Reform Acts have the potential to drive positive change in Nigeria’s governance and economic landscape.
“However, their success will depend on the effective implementation of transparency and accountability mechanisms, sound fiscal discipline, and citizen cooperation.
“By prioritising these elements, Nigeria can unlock the full potential of the Tax Reform Acts and create a brighter future for its citizens.”
Challenges Of Corruption
Dr Benneth Eze, the deputy governorship candidate of the African Action Congress (AAC) in Lagos State in the 2023 election, said the new Tax Reform Acts have the potential to pave the way for good governance and economic stability, but the challenge is the high level of corruption in the country.
Eze, a lecturer in the Department of Business Administration in one of Nigeria’s universities, said, “Therefore, addressing the high level of corruption is key.
“While the reforms aim to streamline the tax system, reduce the number of taxes, and improve compliance, corruption can still undermine these efforts.
“Furthermore, it is necessary for the government to provide the enabling environment for businesses to thrive.
“For example, the nation’s interest rate is not business friendly. The high level of insecurity is also a serious challenge in the country.”
Bishop Herbert Ekechukwu, an economist, and cleric, said: “The Nigerian new Tax Reform Acts were signed into law by President Bola Tinubu on June 26, 2025 with its aim of modernising the country tax system, boost revenue, generate and support economic growth.
“The new tax system consolidates over 50 overlapping taxes into a single code simplifying Ease of Doing Business.
“VAT exemption, essential goods and services are zero rated, thus reducing cost for low income groups.
“Businesses with annual turnover of less than N50 million are exempted from company income tax, capital gain tax and new development levies.
“The new Tax Reform Acts introduced modern technology driven with e-law. The new tax system will increase tax to GDP ratio. There will be more revenue generation.
“The Acts will support low income households and enhance Ease of Doing Business. They are digitalised and enhance efficiency and reduce corruption.”
Tola Oresanwo, an activist, said the new Tax Reform Acts in Nigeria have the potential to contribute significantly to good governance and economic stability, but the success largely depends on the integrity, will power and effectiveness of implementation.
Oresanwo, Director of Programes and Administration, Centre for Anti-Corruption and Open Leadership (CACOL), stated: “The major challenges that will hinder the effectiveness of the Tax Reform Acts are as follows:
“Corruption and leakages: Without addressing systemic corruption, the increased revenue from tax reforms risks being diverted or mismanaged.
“Public distrust: Citizens are less likely to comply with tax obligations if they believe their contributions will not be used effectively or transparently.
“Weak institutions: Institutions responsible for enforcement and oversight often lack the independence or capacity to resist political interference or hold violators accountable.
“While the Tax Reform Acts are steps in the right direction, their impact on governance and economic stability will be limited, unless accompanied by strong anti-corruption measures, institutional strengthening, and civic engagements to ensure accountability.
“Reform without integrity may only reinforce the status quo.”
Kunle Wizeman Ajayi, an activist and General Secretary, United Action for Democracy (UAD), and former governorship candidate of African Action Congress (AAC) in Ondo State, stated: “For me, the new Tax Reform Acts are only meant to privatise the more the collection of revenues.
“While they create a new balancing geographically, they are not meant to improve good governance, rather, they only advance the purse of the current government such that there will be a larger pool of internal revenue to loot!”
Milestone In Fiscal Reform
Contributing, the FCT Tax Justice and Governance Platform (TJ&GP), welcomed the passage and presidential assent to the tax reform bills.
Botti Isaac, FCT IJ & GP Chapter coordinator, said the signing into law the tax reform bills represented a critical development which marks a significant milestone in Nigeria’s fiscal reform agenda and demonstrates a commendable commitment to building a more transparent, equitable, investors-friendly and development-oriented tax system.
Mr. Botti however said that laws alone do not bring about transformation. Their success will depend on sustained commitment, inter-agency coordination, institutional capacity, and, most importantly, the active participation of all stakeholders, including government institutions, civil society, private sector actors, and citizens.
“We recognize that these new tax laws, if implemented effectively, have the potential to boost non-oil revenue, improve tax compliance, broaden the tax base, and enhance the delivery of public services, especially in areas such as education, healthcare, infrastructure, and social protection for the most vulnerable segments of the population.
“We call on all tiers government to demonstrate political will and leadership in the transparent and inclusive implementation of these reforms,” Mr. Botti said.
SOURCE: independent.ng