The Federal Inland Revenue Service (FIRS) has clarified that the 4% development levy on imported goods is not an additional tax but a consolidation of several existing charges meant to simplify the tax system and ease doing business. The agency said concerns around the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) are due to “misinterpretations,” stressing that the reform enhances competitiveness, protects incentives, and ensures long-term fiscal stability.
FIRS added that merging multiple levies into one will reduce compliance costs, eliminate unpredictability, and end overlapping charges, while small businesses and non-resident companies remain exempt. According to the FIRS, “This consolidation reduces compliance costs, eliminates unpredictability, and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks.”