Lagos, Nigeria – June 27, 2025 – Nigeria’s ongoing tax reforms are projected to unlock billions of dollars in both local and foreign investments, while significantly boosting government revenue, according to economic experts and policy analysts.

Under the leadership of the Federal Inland Revenue Service (FIRS) and the Ministry of Finance, the Nigerian government has implemented sweeping tax policy changes aimed at widening the tax base, closing loopholes, simplifying compliance, and improving collection efficiency.

Key measures include the expansion of the digital tax system, enforcement of VAT registration for foreign digital companies, and a new push to formalize the informal sector through targeted incentives and compliance education. These reforms are backed by new legislation and supported by technology-driven platforms such as the TaxPro Max and e-filing systems.

According to projections from the Ministry of Finance, these efforts could increase Nigeria’s annual tax revenue by over ₦5 trillion in the next three years, while positioning the country as a more attractive destination for international investors. Analysts from the World Bank and International Monetary Fund (IMF) have lauded the reforms as essential for achieving economic sustainability and reducing overreliance on oil revenues.

“The reforms are crucial not only for boosting public revenues but also for improving investor confidence,” said Dr. Muktar Usman, an Abuja-based tax policy analyst. “By creating a transparent and business-friendly environment, Nigeria is sending a strong signal to both domestic and international stakeholders.”

The private sector has also welcomed the changes, though some businesses call for more clarity and consistent enforcement to avoid confusion and compliance fatigue.

As Nigeria positions itself as Africa’s largest economy, these tax reforms are seen as a game-changer for fiscal growth, public service delivery, and long-term development.

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