Addressing Issues in Nigeria’s Tax Reforms
Steve Aya
The Office of the Advancement and the Board of Trustees of the Lagos State Professorial Chair in Tax and Fiscal Matters, in collaboration with the Department of Commercial and Industrial Law, held a public lecture last Tuesday to examine the complex issues on Nigeria’s tax policies.
The lecture which was delivered by the Dean of the Law Faculty, University of Lagos, Prof Abiola Sanni, SAN was titled ‘Navigating Nigeria’s Tax Reform: Implications for Fiscal Federalism and State Autonomy’.
The event which held at Tayo Aderinokun Hall, University of Lagos was chaired by the Pro-Chancellor of the University, Chief Wole Olanipekun, CFR, SAN,
In his lecture, Prof Abiola Sanni, SAN, pointed out that when it comes to tax reform, the work shouldn’t be left solely in the hands of policy makers. He further stated that there can’t be any meaningful reforms at the national level, commensurate reform at the subnational level.
In the lecture he gave a comprehensive overview of the 2025 Tax Law.
He posited that ‘in practical terms, tax reforms may include:-
• Simplifying complex tax law laws.
• Adjusting tax rates (either upward or downward).
• Expanding the categories of taxable persons, income, or goods and services.
• Closing loopholes that encourage evasion or avoidance.
• Strengthening tax administration and enforcement, and
• Aligning taxation with broader economic, social or political objectives (eg, growth, redistribution, or fiscal federalism)’.
Prof Sanni further pointed out that, ‘Tax Reform is not a mere amendment of tax laws. It entails a significant review of policy, law and administration, in order to make a quantum leap. Tax reform will always lead to significant revenue yield, among other desirable goals’.
Form a historical perspective, Prof Sanni gave an overview of th 2025 Tax Reform.
He itemised the laws as:-
• Nigeria Tax Administration Act
• Joint Revenue Board (Establishment) Act, 2025.
• Nigeria Revenue Service (Establishment) Act, 2025
Prof Abiola dissected the concept of Intergovernmental Tax Immunity and the Fiscal Cost of Governance in Nigeria, Value Added Tax and the Limits of Federal Taxing Powers under the 1999 Constitution, Tax Appeal Tribunal and the Original Jurisdiction of State High Courts in Nigeria.
With the aid of decided cases, Prof Sanni concluded that ‘the central lesson is clear: fiscal reform in a Federation cannot succeed through administrative ingenuity alone; it must rest on constitutional legitimacy, institutional clarity, and genuine intergovernmental cooperation’.
