AKIRS intensifies awareness on new tax reforms, engages with LG chairmen
New tax regime’ll eliminate revenue collection roadblocks, says Sir Okon
Some of the impacts and implications of the new tax regime in Nigeria on local government areas will include a significant improvement in internally generated revenue (IGR), more efficient revenue administration, seamless harmonisation and collaboration with state systems and structures, the removal of roadblocks for revenue collection, and the elimination of multiple taxation.
These were announced by the Executive Chairman of the Akwa Ibom State Internal Revenue Service (AKIRS), Sir Okon Okon, on Friday, December 12, as the agency took the sensitisation on the New Tax Reforms to the Association of Local Governments of Nigeria (ALGON) in Akwa Ibom State to ensure that the message reaches more key stakeholders and members of the public.
The strategic engagement, held in the Conference Hall of the Chairman of the Uyo Local Government Council, was attended by the chairmen of local government councils in the state.
Highlighting the need for reforms and the expected significant outcomes, Sir Okon noted that the new national tax reforms would provide great relief to many Nigerians, boost economic activities, and drive growth and development across the country.
He stated, “The new regime will boost the state’s fiscal position as VAT formula has been revised from 50 percent to 55 percent, strengthen revenue administration and professionalism, eliminate consumption tax, offer improved business environment, and expanded and more profitable activities for SMEs, etc.
“There is no need for anxiety over the tax reforms as the new tax regime was intentionally designed to simplify the national tax system, check multiple taxation, and curtail the activities of non state actors and nuisance taxes”.
Sir Okon, a Member of the Presidential Committee on Fiscal Policy and Tax Reforms, further noted that the existing tax system which was rooted in colonial and archaic laws was marked by fiscal imbalance, inconsistent tax framework across jurisdictions, and multiple tax identifiers that adversely affected compliance by individuals and corporate organizations.
Okon, who is also a Fellow and Council Member of the Chartered Institute of Taxation of Nigeria (CITN), said the reforms have birthed four new tax Acts designed to consolidate and streamline tax administration in the country, namely, the Joint Revenue Board (JRB) Establishment Act 2025, which replaces the Joint Tax Board (JTB); the Nigeria Revenue Service (NRS) Establishment Act 2025, that replaces the Federal Inland Revenue Service (FIRS); the Nigeria Tax Administration Act (NTAA) 2025; and the Nigeria Tax Acts (NTA) 2025.
These, he noted, come with reliefs for many Nigerians, including low-income-friendly-thresholds, personal income tax exemptions for those earning below one million naira annually; promotion of efficient, unified, tech-driven tax administration; while basic services and commodities such as food, education, health, rents, transport, etc, will attract zero percent VAT.
These measures, he argued, will ease pressure on individuals and households, while the introduction of a national Tax Identification Number (TIN) will boost compliance and catalyse economic planning at both national and subnational levels.
He noted that part of the ongoing engagements was to dispel misconceptions, help taxpayers see the benefits, and to seek collaboration with critical stakeholders in propagating the right message.
In his remarks, Dr. Uwemedimo Udo who doubles as the Chairman of Association of Local Governments of Nigeria (ALGON), Akwa Ibom State and Executive Chairman, Uyo Local Government Area, thanked and commended AKIRS for bringing the sensitisation to the council helmsmen, acknowledging that it has updated and broadened their knowledge of the new Tax Reforms.
Dr. Udo as well as others who spoke also lauded the Akwa Ibom State Governor, Pastor Umo Eno, for the people-oriented leadership and judicious management of the State’s resources that have acted as morale booster for compliance by the citizenry.
The meeting with ALGON came after similar event had been held in recent times with professional organizations like MDA, NBA, ANAN, ICSAN, etc, including investors and business associations in preparation for the January 1, 2026 deadline scheduled for the implementation of the New Tax Regime.
