How New Tax Law Will Strengthen Revenue System – Varsity Don at DOPF Public Lecture

An Associate Professor of Accounting at Dennis Osadebay University, Asaba, Dr. Ochuko Emudainohwo, has described the new tax law as a strategic blueprint for inclusive economic growth, capable of repositioning Nigeria for a more diversified and resilient economic future.

Emudainohwob stated this while delivering a lecture as guest speaker at the Delta Online Publishers Forum (DOPF) 2025 Lecture Series held in Asaba with the theme “Nigeria’s New Tax Law: Implications and Opportunities for Businesses and Society”.

Speaking on the topic, unpacked the rationale, structure, and benefits of the recently enacted 2025 tax law under President Bola Ahmed Tinubu’s administration, he called on stakeholders—businesses, policymakers, and citizens alike—to embrace the reform and contribute to a more accountable and sustainable fiscal environment for the overall development of the country.

Dr. Emudainohwo, noted that taxation remains one of the strongest instruments for national development.

According to him, to understand the essence of the new tax law, citizens must first appreciate the context in which it was introduced.

He outlined several key factors that necessitated the reform, including Nigeria’s declining oil revenue capacity, which has become increasingly insufficient to sustain national development; a rising population that continues to exert pressure on public services; and lingering economic shocks from the COVID-19 pandemic, which exposed the fragility of the nation’s revenue system.

These challenges, he stressed, compelled the federal government to rethink its fiscal strategy and pursue a more sustainable and inclusive approach to revenue generation.

At the heart of the 2025 tax law, he noted, is the objective of reducing Nigeria’s overdependence on oil revenue.

Dr. Emudainohwo explained that the new framework consolidates income taxes and company taxes into a single tax net, streamlining compliance and reducing administrative bottlenecks.

He described the reform as “pro-people,” emphasizing that it was designed not only to boost government revenue but also to stimulate economic growth across various sectors.

“The law supports Small and Medium-Scale Enterprises (SMEs). Companies with an annual turnover of less than N50 million are now exempted from capital-based taxes and company income taxes,” he stated.

This exemption, he argued, will ease the burden on small businesses, encourage entrepreneurship, and promote innovation.

Furthermore, Dr. Emudainohwo highlighted the law’s emphasis on transparency and modernization. By strengthening digital tax platforms, the new legislation enhances accountability, improves efficiency, and minimizes leakages within the revenue system.