The Federal Inland Revenue Service (FIRS) has said Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments and improve long-term fiscal stability.
The agency also clarified that the widely debated four per cent Development Levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.
In recent weeks, the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) have generated widespread debate among citizens and businesses seeking clarity on how the reforms would impact them. However, FIRS said most of the concerns stem from misinterpretations of the provisions of the new laws.
According to the agency, the central objective of the new tax framework is to simplify compliance, protect existing incentives and improve Nigeria’s investment environment.
FIRS explained that one of the most misunderstood aspects of the reforms is the four per cent Development Levy. The agency noted that the levy replaces multiple fragmented charges that businesses previously paid separately.
These include the Tertiary Education Tax, NITDA Levy, NASENI Levy and the Police Trust Fund Levy.
By consolidating these levies into a single charge, FIRS said the new framework would reduce compliance costs, eliminate unpredictability in tax payments and end the era of multiple agency-driven levies.
The agency reiterated that the reforms are aimed at creating a more transparent, efficient and investor-friendly tax system capable of supporting Nigeria’s long-term economic growth and fiscal sustainability.
