Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced that Nigeria’s Company Income Tax (CIT) rate will drop from 30% to 25% starting January. He said the reduction aims to boost foreign direct investment and promote domestic business expansion.
Oyedele emphasized that the reforms simplify the tax system, offering zero percent CIT for small and medium-sized businesses, simplified returns, and a business-friendly capital allowance regime. “The current tax system is inconducive to growth as it places excessive burden on businesses,” he said, criticizing archaic laws taxing poverty and investments.
Addressing misconceptions, Oyedele clarified that no government agency can unilaterally debit accounts. “Nobody will debit the accounts. Even if you have N1 billion, nobody can debit your bank account,” he said. Tax enforcement requires notification, assessment, objection, and judicial review, with extreme cases as the only exception.