FIRS Says Nigeria’s New Tax Laws Will Boost Competitiveness, Ease Compliance and Attract Investors

Nigeria’s major tax reforms are expected to strengthen the country’s competitiveness, simplify compliance and signal stability to investors, the Federal Inland Revenue Service (FIRS) has said.

The agency clarified that the widely debated 4% Development Levy on imported goods is not an additional burden, but a consolidation of several long-standing charges previously collected by different government agencies.

According to the tax authority, the 4% levy merges previously separate deductions such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy. FIRS says the consolidation ends years of unpredictable, multi-agency tax collection while reducing administrative pressures on businesses.

Small enterprises and non-resident companies are excluded from the levy — a measure analysts say shields vulnerable sectors and preserves Nigeria’s appeal to international investors.

The Nigeria Tax Act (NTA) and Nigeria Tax Administration Act (NTAA) have generated intense national debate, with businesses seeking clarity on the implications for costs and incentives. FIRS maintains that many concerns are based on misinterpretation, stressing that the goal of the laws is to create a more transparent and coordinated tax environment.

Economic experts say the reforms send a strong message that Nigeria is modernising its tax framework to support long-term investment and growth.

The revenue agency also addressed widespread speculation about changes to incentives in Free Trade Zones (FTZs). Contrary to early commentary, companies operating within FTZs will continue to enjoy tax-exempt status under the new laws.

The reforms, instead, introduce clearer operational guidelines intended to safeguard the original purpose of the zones — fostering export production and attracting major international investors.