IMPI Hails Tinubu’s Tax Reforms as “Legacy Fiscal Policies” in New Policy Statement
Abuja – The Independent Media and Policy Initiative (IMPI) has described President Bola Ahmed Tinubu’s newly signed tax laws as “legacy fiscal policies” capable of transforming Nigeria’s economy more than any policy intervention in decades.
In its Policy Statement 027 titled *”Nigeria Tax Act 2025: Our Verdict,” the policy think tank commended the four newly enacted tax acts—the Nigeria Tax (Fair Taxation) Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act—as meeting all conditions for accelerated and inclusive economic growth.
IMPI noted that the reforms consolidate Nigeria’s previously fragmented tax system, promote compliance through fairness, and position the country as an attractive investment destination. The group highlighted President Tinubu’s remarks at the signing ceremony, where he stated that the laws simplify taxation, deliver “Nigeria’s first major pro-people tax cuts in a generation,” and provide relief for low-income earners, small businesses, and families.
The report observed that Nigeria’s previously unfavourable tax regime had contributed to declining FDI inflows, which dropped to $0.25 billion in Q1 2025 from $0.31 billion in Q4 2024. However, IMPI projected that the new tax laws—particularly the adoption of a 15% Minimum Effective Tax Rate (ETR) for multinational firms—would reinvigorate foreign investment.
– 5% annual tax credit** for qualifying capital expenditures under the new Economic Development Incentive (EDI).
– Increased tax exemption threshold for share sales (₦150 million, up from ₦100 million).
– Enhanced R&D deductions, allowing companies to claim 5% of annual turnover (up from 10% of profits).
The policy statement lauded the zero % Company Income Tax (CIT) for firms with turnover below ₦100 million, a significant expansion from the previous ₦25 million threshold. Additionally, loss-making companies will no longer be subjected to the punitive 0.5% minimum tax.
For individuals, the Personal Income Tax (PIT) exemption for earnings below ₦800,000 annually was described as a “profound” pro-poor measure. IMPI estimated that **5.8 million workers would benefit, retaining an average of ₦152,000 per year—boosting consumer spending and economic growth.
The report highlighted sweeping **tax exemptions for the entire agriculture sector**, covering crop production, livestock, dairy processing, and agro-allied industries—a move expected to enhance food security and exports.
Additionally, companies hiring low-income workers (earning ≤₦100,000) or increasing net employment will enjoy **50% tax deductions on related expenses, incentivising job creation.
IMPI praised the introduction of Controlled Foreign Corporation (CFC) rules and anti-base erosion measures to curb profit shifting by multinationals, aligning with global OECD tax standards.
IMPI Chairman, Dr. Omoniyi Akinsiju, stated: “The NTA 2025 is not just about tax exemptions but expanding the tax base and plugging leaks without raising rates. This is a masterstroke in fiscal policy.”
The group urged stakeholders to support the reforms, which take effect in January 2026, as a catalyst for Nigeria’s economic renaissance.
