Nigeria needs more taxpayers, not higher taxes, according to Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, who said expanding the country’s tax base is essential to generating sustainable revenue and supporting long-term development.

Oyedele stated that Nigeria’s tax challenge is not necessarily low tax rates but the relatively small number of individuals and businesses that comply with tax obligations. He stressed the importance of ensuring that those who should pay taxes are brought into the tax net while promoting fairness and efficiency in tax administration.

According to him, the country cannot continue to depend heavily on borrowing to finance critical sectors such as infrastructure, education, healthcare, security, and social protection. He noted that building a sustainable fiscal system requires a broader tax base capable of generating stable and predictable revenue.

Oyedele explained that effective tax reforms should encourage economic growth, reduce inequality, protect vulnerable groups, and improve productivity. He added that a well-functioning tax system could significantly accelerate national development and improve public service delivery.

The comments come amid the implementation of ongoing tax reforms designed to simplify Nigeria’s tax framework, improve compliance, and make the system more competitive and equitable. Recent reforms also introduced relief measures and exemptions for low-income earners and small businesses while seeking to reduce the country’s reliance on debt-financed development.

Economic experts say broadening the tax net through increased compliance and formalisation of economic activities could improve government revenue without placing additional burdens on existing taxpayers.

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Town planning consultants under the Association of Town Planning Consultants of Nigeria (ATOPCON) have been urged to align with the provisions of the new Nigerian Tax Act, particularly by taking advantage of its incentives while maintaining accurate records to ensure full tax compliance.

Experts say the evolving tax framework introduces both obligations and opportunities that could significantly reshape professional practice across Nigeria’s real estate and built environment sectors.

Speaking at the 2026 Annual General Meeting of ATOPCON’s Lagos branch, professional accountant and tax administrator Olufunlola Adediran emphasised the need for practitioners to understand how the law applies to their operations. Her presentation, titled “The Nigeria Tax Act, 2025: The Impact on Town Planning Consultancy Services,” highlighted key tax components affecting the sector.

These include Value Added Tax (VAT) on services, withholding tax on professional fees, Companies Income Tax (CIT), Personal Income Tax, development levies, capital allowances, and stamp duties on land-related instruments.

Adediran explained that town planning services such as layout preparation, environmental impact assessments, urban renewal, subdivision, zoning, and regularisation fall within taxable supplies under the law. Training and consultancy services are also covered.

She noted that while incorporated firms are subject to CIT based on profit levels, smaller firms with annual turnover below ₦100 million may qualify for exemption under Section 56 of the Act. In addition, certain transactions handled by consultants—such as land instruments and government contracts—may benefit from stamp duty exemptions.

“The government is a silent stakeholder in every business,” she said, stressing that taxes remain essential for infrastructure development.

She further warned consultants against mixing personal and business income, noting that proper financial separation improves compliance and can reduce tax exposure. According to her, the new law introduces stricter enforcement, with penalties for late filings and non-compliance.

Tax Planning Now Critical for Consultancy Firms

Adediran highlighted that proactive tax planning under the new framework can significantly lower a firm’s effective tax rate while ensuring regulatory compliance.

She added that the reform also provides clarity for non-residents and diaspora Nigerians, particularly regarding income earned outside the country, while tightening rules for locally sourced income.

Incentives such as small company exemptions, economic development reliefs, and expanded VAT input recovery were identified as key opportunities for firms willing to adapt early.

ATOPCON Leadership Calls for Professional Adaptation

Chairman of ATOPCON Lagos branch, Bello Akinwale, said the session was organised to help members understand the direct implications of the tax reforms and avoid compliance risks. He encouraged continuous training to strengthen professional capacity.

Also speaking, former ATOPCON President Waheed Kadiri stressed the importance of adapting to changing policy environments. He noted that consultancy firms must evolve beyond short-term income generation to sustainable business models.

“The consulting firm without a business outlet is not sustainable,” he said, urging practitioners to build resilience against changing tax regimes.

Kadiri further called for improved pricing structures, stronger collaboration among professionals, and the adoption of emerging technologies to enhance service delivery.

Outlook

The Nigerian Tax Act is expected to redefine operational standards within the town planning and consultancy space. For practitioners, the key takeaway is clear: compliance, strategic planning, and innovation will determine long-term sustainability in an increasingly regulated environment.

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Thousands of large companies across Nigeria are racing against time to meet a critical June deadline that could redefine how businesses report taxes, as authorities push forward with a nationwide electronic invoicing system.

Under the new framework introduced by the National Revenue Service, firms with annual turnover above N5 billion are required to integrate their systems with a central e-invoicing platform or risk sanctions.

The reform marks a significant shift in Nigeria’s tax administration, moving away from traditional self-reporting to a system that allows near real-time monitoring of business transactions.

At the core of the initiative is the Merchant Buyer Solution (MBS), a digital layer that enables companies to generate and transmit invoices directly to tax authorities as transactions occur. Each invoice is authenticated instantly, creating a verifiable digital trail for regulators.

Speaking during a recent industry webinar, Mohammed Bawa, a senior official at the NRS, warned that companies that fail to comply by the June deadline would be classified as defaulters.

“It means the NRS has the authority to apply sanctions for non-compliance,” he said, while noting that timelines may still be adjusted depending on implementation challenges.

The policy is expected to affect roughly 5,000 large taxpayers nationwide. However, early data suggests a slow start, with only about 20 percent of eligible firms—around 1,000 companies—having begun integration.

Major corporations such as MTN Nigeria, IHS Towers, and Huawei Nigeria are among early adopters of the system.

For many businesses, the transition represents more than a regulatory update. It requires significant changes to accounting infrastructure, internal processes, and compliance workflows.

Before the rollout, companies relied on platforms like TaxPro Max to file value-added tax returns monthly, often based on self-declared figures. Verification typically occurred during audits, sometimes months after transactions were completed.

The new system alters that structure entirely, shifting compliance from periodic checks to continuous validation. Analysts say this could reduce tax evasion and improve government revenue by closing gaps in reporting.

However, the transition is not without friction. Businesses have raised concerns about the cost of system upgrades, data privacy risks, and the operational burden of maintaining real-time compliance.

“There are legitimate concerns about how much visibility regulators will have over business transactions,” said Eben Joels, a managing partner at Stransact.

Despite these concerns, tax experts argue that the long-term benefits could outweigh the challenges. According to Oluyemisi Daramola, a tax consultant, real-time invoice validation enhances transparency, strengthens governance, and aligns Nigeria with global best practices.

Globally, countries such as Italy, Brazil, and Mexico have already implemented similar systems, requiring invoices to be approved before transactions are completed.

Nigeria’s phased rollout will extend beyond large firms. Medium-sized businesses with turnover between N1 billion and N5 billion are expected to begin pilot implementation in mid-2026, with enforcement starting in 2027.

Smaller businesses will follow later, with full adoption projected by 2028, giving them more time to adapt to the digital system.

As the June deadline approaches, the success of the initiative will depend on how effectively authorities balance strict enforcement with technical support for businesses still navigating the transition.

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