Tax reform our collective tool for rebuilding Nigeria

By Arabinrin Aderonke

When Dr. Zacch Adedeji, Executive Chairman, Federal Inland Revenue Service mount the podium at the Domestic Investors Summit on July 21, 2025 in Abuja, he spoke passionately and intelligently about the tax system, not with official speeches but with the kind of directness people have come to expect from him. He came to remind the country of something: tax reform is no longer sitting in a cabinet file. It is here to stay. He broke down the details and went further to explain what this means for Nigerians moving forward.

His leadership and understanding of Nigeria’s tax challenges make him one of the rare voices Nigerians can trust with the agency. He did not come to occupy space and did not need to tell us that Nigeria’s tax system was overdue for a proper housecleaning. We have known for decades, it is evident.

One of the smartest moves about the reform is how it focuses on taxing success rather than the struggle. The government will now tax the profits businesses make, not the investments they pour in. This means entrepreneurs can nurture their ideas and build their businesses without early tax pressure. It’s a system that supports growth and rewards hard work.

The new Nigeria Revenue Service stands as a symbol of unity and efficiency. It replaces the old Federal Inland Revenue Service and consolidates all tax collection under one roof, including federal, state, and local taxes. This single agency approach makes compliance simpler for taxpayers and strengthens our tax system.

The introduction of the four percent National Development Levy replaces many smaller levies, making payments clearer and easier. Plus, businesses can now claim VAT credits on capital equipment, lowering the cost of setting up and expanding in Nigeria by nearly eight percent. This enhancement puts Nigeria in a stronger position to attract both local and international investors.

Small and medium enterprises, which power our economy, also benefit from tax credits and incentives. Supporting these businesses means more jobs, more innovation, and a brighter future for our communities.

The tax reform also includes a Joint Taxpayer Committee to resolve tax matters between different government levels. This innovation promises smoother operations and greater certainty for businesses, encouraging more investment and confidence in Nigeria’s economy.

Dr. Zacch told the audience that the current administration is focused not on quick wins, but long-term prosperity. He added that, for the economy to grow, taxation must not be a burden but a partnership. He said it plainly: government must earn the trust of taxpayers through transparency, fairness, and results. The days of taxing confusion and chaos are over.

At the summit, he didn’t use theory to impress anyone. He made it clear that Nigerians are tired of words. He said the role of the taxman has changed. The job now is to empower growth, not frustrate it. He talked about the recent efforts to harmonise taxes, remove overlaps, and end the era where agencies ambush businesses with random levies. And he mentioned something that stuck with me: the goal is to “remove the fear and replace it with trust.”

By the time he ended his remarks, it was no longer a policy talk. It had become a charge. He told everyone present that this reform is not about him or his agency. It is about a new culture. A culture where government no longer hides behind complexity, and citizens are not punished for daring to build.

And so, I will say this: whether you are a worker, a trader, an investor, or just someone trying to make life work in Nigeria, don’t look away. This tax reform is not just about documents and bills. It is about the kind of country we are building. Everyone must play their part. The government must not go back to old habits. But we, the people, must also not go back to distrust. If we stay the course, we all can build Nigeria through tax reform. The Tax Boss has taken one of the most dreaded parts of governance – taxation- and turned it into a space where Nigerians can see sense, structure, and purpose. He is not performing leadership; he is doing the work. He stands out for speaking directly, moving quickly, and backing every policy with action. Whether it is harmonising taxes, cleaning up collection, or making the system easier for everyday Nigerians, Dr. Zacch is not just reacting to problems; he is reimagining what the tax system can be. Aderonke is the technical assistant on broadcast media to the executive chairman of the Federal Inland Revenue Service.