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VOL. 2, ISSUE 2 (2026)
An appraisal of the innovations of the Nigerian tax act 2025 on Companies Income Tax (Cit)
Authors
Y S Uthman
Abstract
Government is facing
a lot of challenges in providing public services and infrastructures. Taxation
is one of the most important channels that government employed to generate
revenue for public purposes. However, legal and institutional framework for taxation
has been plagued by several problems that negatively affect the generation of
revenue in Nigeria. Government loses a huge amount of revenue as the result of
such problems. To block such lacunae in the provisions of laws governing the
taxation in Nigeria, four reform legislations have been recently enacted in
2025 by the National Assembly. Nigeria Tax Act (NTA), No.7 is one of them. The
main objectives of the reform were to provide a unified tax legislation,
provide uniform procedure for the administration of tax, facilitate tax
compliance, provide for a legal and institutional framework for harmonization
and coordination of revenue administration and provide for an efficient mechanism
for settlement of disputes connected to tax matters in Nigeria. Corporate tax
is one of taxes collected by the Federal Government in Nigeria. It is presently
governed by the NTA, No.7, 2025 which incorporates several changes aimed at
broadening the tax base, increasing compliance, and fostering economic growth.
The aim of this article is to make a comprehensive appraisal of the innovations
introduced by the Act. It was found that there are several reforms introduced
by the Act of which inter alia include unified structure of tax legislation,
Minimum Effective Tax Rate (METR) and anti-avoidance measures. It was therefore
recommended that for a successful implementation of the innovations introduced
by the NTA there is a need for a robust administrative capacity and consistent
judicial interpretation. Nigerian Revenue Service (NRS) must therefore invest
in technology and human capital to administer these provisions effectively.
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Pages:1-4
How to cite this article:
Y S Uthman "An appraisal of the innovations of the Nigerian tax act 2025 on Companies Income Tax (Cit)". World Journal of Law, Vol 2, Issue 2, 2026, Pages 1-4
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