By Lucy Ogalue
The Independent Media and Policy Initiative (IMPI) says Nigeria’s new tax reforms will strengthen revenue mobilisation and drive economic growth across sectors from 2026.
In a statement signed by its Chairman, Dr Omoniyi Akinsiju, IMPI said the tax reforms, which took effect on Jan. 1, were expected to improve the federation’s revenue performance.
Akinsiju said this would be done through enhanced compliance, expanded use of digital revenue systems and improved remittance discipline among revenue-generating agencies.
According to him, the reforms will also reshape the operating environment for manufacturers by introducing a more coordinated and incentive-driven fiscal framework.
“At the centre of the reforms are the newly-introduced Economic Development Tax Incentives targeting priority sectors such as manufacturing.
“Also, eligible firms can obtain an Economic Development Incentive Certificate granting a five per cent annual tax credit on qualifying capital expenditure for up to five years,” he said.
The IMPI boss said the incentives were designed to support local production and industrial expansion amid foreign exchange volatility and rising import costs.
Akinsiju said the incentive included longer benefit periods for firms that reinvested profits and exemptions from stamp duties on some manufacturing-related transactions,
He said that the revised capital allowance rules would provide clearer guidance on deductions for plant, machinery and industrial buildings, helping manufacturers recover capital costs faster and ease cash flow pressures.
Akinsiju further said that the introduction of research and development deductions would allow manufacturers to deduct up to five per cent of turnover from taxable profits when linked to innovation.
According to him, this will potentially encourage technology upgrades and product development in the country.
Akinsiju said that clearer rules on input Value Added Tax credits would reduce disputes and prevent the accumulation of unrecoverable taxes, particularly for manufacturers operating within the agriculture and agro-processing value chain.
He listed additional sector-specific incentives to include income tax exemptions for the first five years of operation, zero-rated VAT on selected agricultural inputs and duty-free importation of machinery for agricultural production.
The think tank boss also highlighted pro-poor provisions in the new tax laws.
“These include full Personal Income Tax exemption for individuals earning 800,000 naira or less annually, progressive taxation for higher earners and the elimination of multiple nuisance taxes.
“Expanded reliefs, such as increased tax-free compensation for job loss or injury, will put more funds in the hands of Nigerians while boosting revenue without increasing borrowing.
“These changes will harmonise levies, reduce multiple taxation, stimulate economic growth and improve Nigeria’s revenue outlook,” he said. (NAN)(www.nannews.ng)
Edited by Mufutau Ojo
