Stakeholders in Nigeria's fiscal sector have cautioned that tax collection without a visible public impact amounts to extortion, as over 1,400 new professionals were inducted into the Chartered Institute of Taxation of Nigeria (CITN) amid sweeping reforms to the country's tax system. The warning was issued by Senator Enyinnaya Abaribe, representing Abia South, who was represented by Senator Sunday Katung at the CITN's 54th induction ceremony held in Abuja. The event brought together policymakers, tax experts and industry leaders at a time when Nigeria is implementing the newly enacted Nigerian Tax Act 2025.
Taxation Must Be Tied to Citizens' Welfare
Addressing the inductees, Abaribe said taxation must be tied to measurable improvements in citizens' welfare, stressing that public trust in the system depends on accountability and transparency. “Every additional naira collected must translate to better roads, better schools, better hospitals and a better life for the Nigerian people. That is the social contract, because revenue without impact is extortion,” he said. The lawmaker noted that while the new tax reforms aim to simplify the system and expand government revenue, their success will depend largely on those responsible for implementation. He urged the newly inducted professionals to act as ethical gatekeepers within the system.
Key Reforms in the Nigerian Tax Act 2025
The Nigerian Tax Act 2025, which took effect in January 2026, introduces significant changes, including raising the personal income tax-free threshold to N800,000 and replacing multiple taxes with a unified four per cent development levy. The reforms are designed to ease the burden on small and medium-sized enterprises and create a more competitive tax environment. Abaribe said the National Assembly would continue to exercise oversight to prevent abuse of the tax system, warning against the weaponisation of taxation. He added that legislators would defend the principle that taxation must be accompanied by representation and transparency.
Changing the Narrative on Taxation
“We must change the narrative where taxes are seen as burdens without benefits,” he said, noting that citizens are more willing to comply when they see value in public spending. In his opening remarks, CITN President, Innocent Ohagwa, described the induction as a critical step in strengthening Nigeria's fiscal framework, particularly at a time of far-reaching reforms. He said the institute, now 44 years old with over 35,000 members, has played a central role in shaping Nigeria's tax policies through advocacy, education and professional regulation.
Role of Tax Professionals in Reforms
According to him, the new tax laws reflect decades of input from the institute and place greater responsibility on practitioners to uphold high standards. Ohagwa said: “There is perhaps no better time to be a tax professional than now. Individuals and businesses are seeking clarity, and they are looking to professionals who can interpret the law with integrity.” He emphasised that technical competence and ethical conduct are now non-negotiable, noting that the institute has strengthened its certification and disciplinary frameworks to ensure accountability among members.
The induction ceremony highlighted the importance of ethical practice and transparency in tax administration, as Nigeria continues to implement its most comprehensive tax reforms in recent history. Stakeholders called on the government to ensure that tax revenues are visibly utilized for public good, thereby building trust and encouraging voluntary compliance. The event concluded with a call for all tax professionals to uphold the highest standards of integrity and professionalism in serving the nation.
