Professor Olateju Somorin, popularly known as Teju Tax, has hailed Nigeria’s latest tax reforms as the most far-reaching in the nation’s history, describing them as a game-changer for households, businesses, and government revenues.
Somorin, one of Africa’s most respected tax experts and a former director at the Federal Inland Revenue Service (FIRS), told Vanguard that the reforms—captured in the four new Tax Acts 2025—will unify revenue administration, modernize collection processes, and tackle leakages that have long weakened Nigeria’s fiscal system.
She noted that while Nigeria has seen several reform phases since 1957, none matches the scope of the 2025 package, which repealed 10 principal laws, amended 12 others, and consolidated multiple statutes into four major laws:
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Nigerian Tax Act (NTA)
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Nigerian Tax Administration Act (NTAA)
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Nigerian Revenue Service Act (NRSA) — set to replace FIRS by January 2026
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Joint Revenue Board Act (JRBA), which also creates the Office of the Tax Ombuds
“These reforms are landmark. They are out to revolutionize Nigeria’s fiscal landscape, harmonize multiple levies, and make the system simpler and fairer. For the first time, we are seeing sweeping changes that will benefit individuals, businesses, and even the capital market,” she said.
Tax-to-GDP Target and National Policy Update
The reforms are also geared towards raising Nigeria’s tax-to-GDP ratio to 18% by 2026, a move Somorin believes will strengthen fiscal federalism and accelerate economic growth.
She explained that the National Tax Policy, last revised in 2017 under former Finance Minister Kemi Adeosun, is currently being overhauled. The draft 2025 version aims to institutionalize transparency, eliminate inefficiencies across MDAs, and ensure fiscal discipline.
“When passed, the 2025 National Tax Policy will position Nigeria among the top 50 economies globally and deliver sustainable revenue growth,” she noted.
Digital Age and Taxation
Somorin highlighted how digital transformation has reshaped global taxation, with Nigeria already adapting through initiatives like Significant Economic Presence rules and VAT on non-resident companies such as Netflix, Amazon, and Zoom.
“Digital platforms improve efficiency in collection and curb fraud, but they also create new challenges such as cross-border taxation, cryptocurrency regulation, and the impact of AI, since robots don’t pay taxes,” she said.
Building a Tax Value Chain
On compliance, she emphasized the importance of creating a tax value chain—from registration and filing to payment, audits, and dispute resolution—to plug revenue leakages.
“By mapping every stage of compliance and optimizing them, authorities can boost revenues while making it easier for citizens to comply voluntarily,” she explained.
The Case for Tax Education
Somorin, who now serves as Dean of the largest faculty at Caleb University, renewed her call for mainstreaming tax education in schools and communities.
“Many Nigerians don’t understand why they pay taxes. Teaching young people and adults about taxation will reduce ignorance, increase compliance, and empower citizens to know their rights—such as the right to appeal or seek representation,” she said.
She also urged agencies to close the communication gap by pushing tax messages in local languages and Pidgin, especially in rural areas where internet penetration is low.
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Looking Ahead
With over 65% of Nigeria’s workforce in the informal sector, Somorin said the reforms—once fully implemented by January 2026—will broaden the tax net, strengthen trust, and unlock new streams of government revenue.
“These reforms are the boldest step Nigeria has taken since the 1939 Stamp Duties Act. If sustained, they will reshape our fiscal destiny.”
