Nigeria New Tax Law 2025 Matter (Alleged Additions or Changes)

Nigeria New Tax Law 2025 Matter (Alleged Additions or Changes)

According to reporting and investigative commentary on the discrepancies, the additions or changes are:

1. Expanded Enforcement Powers of the Nigeria Revenue Service (NRS)

a. Allegedly inserted provisions grant the NRS arrest powers and the ability to freeze or

garnish taxpayer funds without a court order.

b. These types of enforcement powers would logically fall under the “Investigation and

Enforcement” provisions of the Nigeria Tax Administration Act (NTAA) — typically in

sections dealing with compliance, enforcement actions, and penalties.

c. In the published Tax Reform acts, section headings around enforcement, inspections, and

sanctions often cover such powers, although the gazette copy reportedly expanded them

beyond what was approved.

2. Lower Reporting Thresholds for Taxable Income

a. The controversy involves the tax reporting thresholds for individuals and companies:

lowering from

o ₦50m to ₦25m for individuals, and

o ₦250m to ₦100m for corporate organisation.

b. Thresholds for mandatory tax registration and reporting are normally specified in the

Income Tax provisions (Nigeria Tax Act/Nigeria Tax Administration Act) under sections

on who is chargeable to tax and return filing requirements.

c. It is alleged that the gazette copy lowered these thresholds without legislative approval,

which contradicts what was reported as passed by the National Assembly.

3. New Fiscal/Appeal Measures (20% Pre-Appeal Deposit)

a. The requirement that a taxpayer must pay 20% of a disputed tax liability upfront before an

appeal is lodged was reported in investigations and appears linked to Section 41(8) or

similar dispute resolution provisions in the gazette NTAA/Tax Act.

b. This provision affects the Tax Appeal Tribunal and judicial review process, typically in

sections addressing appeals against tax assessments and preconditions for filing appeals.

4. Removal of Legislative Oversight Mechanisms

a. Provisions that granted the National Assembly oversight, reporting, or parliamentary

control (e.g., powers for committees to summon revenue officials or require reporting) are

alleged to have been deleted.

b. Oversight clauses are normally found in the institutional governance chapters of the

Nigeria Revenue Service (Establishment) Act and the joint revenue board/administration acts.

c. By removing these, critics say the gazette versions weaken legislative checks and balances

that were purportedly in the bills as passed.