CITN President Reports Reduced Tax Deductions for Nigerian Workers Under New Reforms
The Chartered Institute of Taxation of Nigeria (CITN) has announced that initial apprehensions surrounding the recently implemented tax laws are subsiding as the nationwide rollout gains momentum. According to the institute, salary earners across the country have begun observing lower deductions in their monthly paychecks since the legislation became effective at the start of the year.
Positive Feedback from Workers on Take-Home Pay
President and Chairman of the Council of CITN, Innocent Ohagwa, revealed that early responses from employees indicate the modifications are already manifesting in their monthly net income. While individuals exempted under the new framework continue unaffected, those within the revised tax brackets are experiencing either decreases or appropriate alignments consistent with the statutory provisions.
Speaking in Lagos prior to the CITN's 28th Annual Tax Conference, set to convene in Abuja, Ohagwa emphasized that these reforms, grounded in the Nigeria Tax Act 2025 and associated regulations, constitute the most comprehensive restructuring of Nigeria's taxation infrastructure in several decades.
Harmonization of State Taxes and Elimination of Nuisance Levies
A pivotal aspect of the overhaul, he highlighted, is the consolidation of more than sixty disparate state taxes and levies into merely nine categories. This strategic move is already alleviating pressures on commercial enterprises and local jurisdictions. Furthermore, nuisance charges and repetitive taxation, frequently linked with roadside checkpoints and informal collections, are progressively being eradicated.
Ohagwa noted that over fifteen states have enacted the necessary enabling laws through their respective legislative assemblies, facilitating this transition. Corporate entities are concurrently adapting their operational systems to meet the updated mandates, while revenue authorities are enhancing capacity-building initiatives to guarantee smooth execution.
Potential for Reduced Borrowing and Enhanced Revenue
Expressing confidence in the reforms' long-term impact, Ohagwa projected that persistent adherence and efficient management could substantially diminish Nigeria's dependency on external borrowing. He asserted that augmented revenue accumulation might fortify the nation's capacity to fulfill its fiscal responsibilities and foster economic resilience.
Upcoming Tax Conference and Broader Societal Engagement
Regarding the impending conference, themed "Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for a Sustainable Future," Ohagwa disclosed that the event, commencing on May 11 in Abuja, will assemble governmental stakeholders at both federal and state levels to deliberate on crucial factors influencing Nigeria's tax framework and economic trajectory, particularly amidst the ongoing transformations.
Characterizing taxation as a predominant national conversation, Ohagwa observed that awareness has intensified across various societal sectors, ranging from religious bodies to small-scale businesses, with an increasing number of citizens demonstrating readiness to comply. To exemplify his dedication, he shared that he submitted his annual tax returns before the March cutoff date.
"When each one of us tries to comply and respect the new law, we will get all the benefits embedded in it," Ohagwa concluded, underscoring the collective advantage of widespread tax law observance.
