NIGERIAN TAX INFRASTRUCTURE, INCENTIVES AND INNOVATIONS IN THE TAX REFORM ACTS 2025: AN APPRAISAL

Abstract

The necessity and importance of all citizens abiding to their obligation to pay tax to the state may sound rudimentary akin to the flogging of a dead horse, yet this obligation underscores the very fabric that make for modern day civilized society; the citizens pay to be protected and supplied with the basic amenities of life. On the other hand, there exist some benefits created by statute to lure the tax payer to collaborate with the state infrastructure by investing as pioneers in commerce and industry thus cutting them some slack in many tenable and untenable ways, this reality creates an imbalance which if unchecked could hamper the smooth generation of revenue and development in the nation. Using doctrinal methodology, this paper journeys on the path of discovery to make a case for the need to secure a middle course that benefits all, a middle course that ensures citizens’ continued compliance with their tax obligation and a middle course which ensures continued foreign direct investment (FDI)and local industries growth. The work examined the notion of taxation as a social contract, taxation incentives in Nigeria and the provisions of the National Tax Policy, and the new Tax Reform laws 2025. The paper found the innovations in the new reforms laudable and therefore recommends effective implementation of the new tax reforms by government at all levels and by relevant institutions, a monthly publication on Internal Revenue Service website to track compliance to the legislations as well as public enlightenment on tax laws.