‘Tax Reforms Step Towards More Transparent, Efficient Fiscal System’

Blessing Ibunge in Port Harcourt 

A professor of accounting and taxation, Prof John Ohaka has observed that the evolving tax reforms under the Finance Acts and innovation introduced by the federal government represent important steps towards a more transparent and efficient fiscal system in the country.

Ohaka made the observation during his paper presentation at a multi-level stakeholders breakfast meeting on the New Tax Law, organised by BusinessDay Media in collaboration with the Rivers State Internal Revenue Service (RIRS), in Port Harcourt, yesterday.

Speaking on the topic: “Reviewing innovations in the Rivers State Internal Revenue Service (RIRS), the 2026 Economic Outlook, and Sustainable Growth Enhancers,” Ohaka noted that taxation remains one of the most significant policy instruments available to governments for mobilising revenue, redistributing income, and stimulating economic growth.

He said, “In Nigeria, the tax system is designed not only to generate public revenue but also to create incentives that encourage investment, entrepreneurship, and corporate profitability.”

Ohaka, who is the Dean, Faculty of Administration and Management of the Rivers State University, expressed that companies in Nigeria can leverage the new tax Reform Act 2025 to enhance profitability in several ways.

He explained, “Companies with an annual turnover of N100million or less and fixed assets not exceeding N250million are exempt from corporate income tax, capital gains tax, VAT, Development Levy. Therefore, lowering total expenses and increasing profit level.

“The act (tax reform) has exempted payment of tax for individuals who earn an annual income of less that N800,000 and below. This provision will increase disposable income and drive sales and enhance the profitability of companies, especially the consumer focused -sector.”

Speaking on the theme of the meeting, “Leveraging Nigeria’s Tax Laws to Enhance Corporate Profitability,” Ohaka said leveraging the country’s tax laws responsibly, businesses cannot only improve profitability but also contribute to national economic development, job creation, and sustainable growth.

He said the key challenge lies in translating tax policy into practical business advantages while ensuring compliance and accountability. 

He added, “Nigeria’s tax laws offers significant opportunities for businesses to enhance profitability through strategic tax planning, investment incentives, and efficient financial management.”

In his remarks, chairman of RIRS, Israel Egbunefu called for the domestication of the new tax laws in Rivers State.

The RIRS boss said, “For the operations of other taxes and agents coming here and there, and our compliance officers also coming, we are yet to domesticate the tax agencies. And that is responsible for certain activities that have been slowed down.

“As soon as we’re able to get that through, we are going to launch our programs. And everybody will see it. We need to be careful about the law. We need to be empowered to operate adequately. So I believe that this forum provides us with opportunity to engage.”

Earlier, in his welcome address, General Manager, Business Development and Partnerships, South-East/South-South, BusinessDay Media Limited, Dr Patrick Ijegbai said the purpose of the meeting was for participants to look at the new tax law and the inherent opportunities for profitability that it offers Nigerians and businesses across all sectors of the economy.

He however, thanked the participants for their presence and invaluable contributions to “this important discourse as you share your practical experiences on tax issues in Nigeria”.