The Federal Inland Revenue Service (FIRS) said Nigeria’s newly enacted tax laws are designed to strengthen economic competitiveness, attract investments and improve long-term fiscal stability.
The agency also clarified that the much-debated four per cent development levy on imported goods is not a new or additional tax burden, but a streamlined consolidation of several existing levies.
In recent weeks, the new Nigeria Tax Act (NTA) and Nigeria Tax Administration Act (NTAA) have sparked widespread debate among citizens and businesses seeking clarity on how the reforms would affect them.
But the tax authorities said the concerns stem largely from misinterpretations, insisting that the laws are aimed at simplifying compliance, protecting incentives and improving Nigeria’s investment environment.
According to FIRS, one of the most misunderstood elements of the new tax framework is the four per cent Development Levy.
The agency explained that the levy replaces a range of fragmented charges—such as the Tertiary Education Tax, NITDA Levy, NASENI Levy and Police Trust Fund Levy—that businesses previously paid separately. The consolidation, it said, would reduce compliance costs, eliminate unpredictability and end the era of multiple agency-driven levies.
