New tax reform favours poorer Nigerians — CITN president

The President of the Chartered Institute of Taxation of Nigeria (CITN), Innocent Ohagwa, has assured Nigerians that the newly introduced tax reform will benefit low-income earners and small business owners more than the wealthy, dismissing fears that it will further impoverish citizens.

Ohagwa gave the assurance on Saturday during the investiture of the seventh chairman of the CITN Ilorin and District Society and the inauguration of its new executive committee.

He explained that contrary to public apprehension, the reform was designed to ease the burden on small and medium-scale enterprises while promoting fairness and compliance in the tax system.

“For example, any small company with an annual turnover of up to ₦100 million or assets worth up to ₦250 million will be exempted from paying tax,” he said. “However, such businesses must still file returns, because the authorities can only determine your exemption status if you comply with that process.”

The CITN president noted that the reform contains numerous incentives meant to stimulate growth and encourage participation in the formal economy. He urged Nigerians to support the initiative by fulfilling their civic responsibilities.

“There are several incentives embedded in this reform. All that is needed is for Nigerians to give it a chance by doing their part. Being exempted from tax does not mean exemption from having a tax identification number. That ID will help businesses transition smoothly once they move beyond the exemption threshold. As a tax expert, I consider this the best reform we’ve ever had,” he added.

Ohagwa reaffirmed that the CITN would continue its advocacy and enlightenment efforts nationwide through its district societies and affiliated bodies.

In his acceptance speech, the new chairman of the Ilorin District Society, Taofiq Alabi, pledged to partner with key stakeholders to educate the public and dispel misinformation about the new tax framework.

“In terms of sensitisation, we’ll work closely with the state government, business community, and trade associations such as the Kwara Chamber of Commerce, Industry, Mines and Agriculture,” Alabi said. “Many people at the grassroots have been misled about what the new reform entails. We plan to bring accurate information to them directly, especially to market women and small business operators.”

Also speaking at the event, the guest lecturer, Chimenka Nzeribe, highlighted the need for tax harmonisation, stressing that multiple taxation continues to discourage investors and hinder Nigeria’s economic growth.

Earlier, the Kwara State Commissioner for Finance, Hauwa Nuru, congratulated the new district executives, describing their emergence as a call to greater service. She urged them to promote professional development and work with government and private institutions to improve tax transparency, compliance, and revenue generation in the state.

“You must build on the legacy of your predecessors and continue to advocate for clear, fair, and transparent tax policies,” she advised.