Renowned tax expert, Professor Olateju Somorin, popularly known as Teju Tax, has described Nigeria’s ongoing tax reforms as the most comprehensive overhaul of the nation’s fiscal system since 1939.
Somorin, a former Director at the Federal Inland Revenue Service (FIRS) and the first woman to hold the position, shared her insights in an interview with Vanguard. She noted that the reforms are designed to harmonise multiple taxes and levies across federal, state, and local governments, unify revenue collection under a single agency, and modernise tax administration through technology and data intelligence.
“These reforms are out to cut tax evasion, curb aggressive tax avoidance, and simplify the system for all categories of taxpayers. They are landmark reforms that will fundamentally reshape Nigeria’s revenue generation landscape,” she said.
According to her, the reforms which produced four new tax laws known as the Tax Acts 2025 repealed 10 principal laws, one subsidiary law, and amended 12 others. The new Acts include:
Nigerian Tax Act (NTA)
Nigerian Tax Administration Act (NTAA)
Nigerian Revenue Service Act (NRSA) which replaces the FIRS by January 1, 2026
Joint Revenue Board Act (JRBA) which introduces the office of the Tax Ombudsman
Somorin stressed that the reforms aim to increase Nigeria’s tax-to-GDP ratio to at least 18% by 2026, while removing tax provisions that hinder business and economic growth.
“These changes are not just about revenue; they are about efficiency, fairness, and creating an enabling environment for economic growth. Households, low-income earners, high-net-worth individuals, businesses, manufacturers, real estate, the capital market — all sectors stand to benefit,” she explained.
On tax policy, she clarified the distinction between tax policy and national tax policy, noting that the latter provides the broader framework for sustainable revenue management. She revealed that the 2025 National Tax Policy, currently in draft form, will soon be reviewed by the Federal Executive Council before heading to the National Assembly.
“When passed, it will ensure fiscal discipline, strengthen federalism, and position Nigeria among the world’s top 50 economies,” she added.
Somorin, who is also the Dean of the largest faculty at Caleb University, emphasised the importance of tax education, particularly for young people. She argued that many Nigerians remain unaware of their tax obligations, rights, and the purpose of taxation.
“Tax education ensures voluntary compliance and helps citizens understand their rights — from objecting to assessments to legal representation. Introducing tax knowledge in schools will prepare the next generation to navigate taxation with confidence,” she said.
Commenting on the impact of the digital era, Somorin noted that technology has transformed tax systems globally. She pointed to Nigeria’s introduction of Significant Economic Presence (SEP) rules to capture revenue from digital businesses as a step in the right direction.
“From digital payments to virtual tax hearings, technology is making revenue collection more efficient and inclusive. Nigeria must continue to adapt to the realities of the digital economy,” she concluded.
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