The Chartered Institute of Taxation of Nigeria (CITN) has endorsed the country’s new tax regime, saying the reforms provide significant reliefs for workers, households and small businesses while promoting economic growth.
Speaking during a tax awareness campaign in Abuja, CITN President, Innocent Ohagwa, said the new tax framework offers several incentives aimed at reducing the financial burden on Nigerians and encouraging investment.
According to him, employees can now enjoy a tax relief equivalent to 20 per cent of their annual rent, capped at N500,000.
Ohagwa also said essential goods and services, including food, education, healthcare, electricity transmission and non-oil exports, have been granted zero-rated Value Added Tax (VAT) status.
He explained that the measure is expected to lower household costs while supporting economic activity across key sectors.
In addition, compensation paid for loss of employment or personal injury now attracts higher tax exemption thresholds, providing stronger financial protection for affected individuals.
The CITN president described the reforms as transformative for small businesses.
He said companies with an annual turnover of not more than N100 million and fixed assets valued at no more than N250 million are now exempt from Companies Income Tax (CIT), Capital Gains Tax (CGT) and the development levy.
According to him, the exemptions will allow thousands of small businesses to reinvest in expansion, create jobs and drive innovation.
Ohagwa added that targeted tax incentives have also been introduced for strategic sectors, including agriculture, aquaculture, dairy production, cocoa processing and animal feed manufacturing.
He said the incentives are designed to boost food security and attract greater investment into the agricultural value chain.
While welcoming the reforms, Ohagwa stressed that taxpayers must understand their obligations to fully benefit from the incentives.
“While these reforms provide significant opportunities, taxpayers must also understand that enjoying these benefits comes with responsibilities,” he said.
The CITN president expressed concern over the widespread misconceptions surrounding the new tax regime.
According to him, many Nigerians wrongly believe the reforms introduced entirely new taxes across all sectors of the economy or were designed solely to increase government revenue without considering taxpayers’ welfare.
He also noted that some business owners remain worried about compliance requirements without fully understanding the available reliefs and protections.
Ohagwa blamed conflicting information circulating on social media for creating confusion and unnecessary anxiety among taxpayers.
He urged Nigerians to seek accurate information from credible sources and take advantage of public awareness initiatives to better understand the new tax framework.
