A university scholar and Associate Professor, Dr. Ochuko Emudainohwo, has described Nigeria’s newly enacted 2025 tax law as a transformative economic framework capable of driving inclusive growth and strengthening the country’s revenue architecture.
Speaking at the Delta Online Publishers Forum (DOPF) 2025 Lecture Series held in Asaba on Thursday, titled, “Nigeria’s New Tax Law: Implications and Opportunities for Businesses and Society”, Dr. Emudainohwo said the legislation offers a strategic pathway toward a more diversified and resilient national economy.
Dr. Ochuko Emudainohwo, a Fellow of the Institute of Chartered Accountants of Nigeria (FCA), urged stakeholders businesses, policymakers, and citizens to embrace the reform and contribute to building a more accountable and sustainable fiscal environment.
According to him, a clear understanding of the 2025 tax law requires an appreciation of the economic realities that necessitated the reform.
Associate Professor of Accounting at Dennis Osadebay University identified several critical factors, including declining oil revenue, Nigeria’s rapidly growing population, and the lingering economic shocks of the COVID-19 pandemic, which collectively exposed vulnerabilities in the country’s revenue system.
“These challenges compelled the federal government to rethink its fiscal strategy and adopt a more sustainable and inclusive approach to revenue generation,” he noted.
At the core of the new tax law, he explained, is a deliberate effort to reduce Nigeria’s heavy reliance on oil earnings. The legislation consolidates income and company taxes into a single tax structure, simplifying compliance for businesses and minimizing administrative bottlenecks.
Describing the law as a “pro-people reform,” Dr. Emudainohwo emphasized that it was crafted not just to boost government revenue but also to stimulate economic activity across diverse sectors.
He highlighted a key provision aimed at supporting Small and Medium-Scale Enterprises (SMEs): companies with an annual turnover below N50 million are now exempt from capital-based taxes and company income tax. This, he said, will ease financial pressure on small businesses, encourage entrepreneurship, and foster innovation.
Dr. Emudainohwo also pointed to the law’s commitment to transparency and modernization, citing the strengthening of digital tax platforms as a major step toward reducing leakages, enhancing efficiency, and improving public trust in the revenue system.
He maintained that the new legislation if effectively implemented holds significant promise for inclusive growth, a more equitable tax structure, and long-term economic stability.
