Stakeholders in the business community have stressed the need for collaboration between government and private sector players to ensure effective implementation of the Nigeria Tax Reform Act 2025.

They made the call at the Lagos Chamber of Commerce and Industry (LCCI) Private Sector Stakeholders’ Forum on emerging tax matters, held on Wednesday in Lagos.

Ayodele Subair, chairman of the Lagos State Internal Revenue Service (LIRS), said President Bola Tinubu’s signing of comprehensive tax reform laws marked a watershed moment.

He explained that the reforms, while addressing longstanding challenges in Nigeria’s tax system, presented both opportunities and implementation concerns for businesses and tax authorities in Lagos.

Mr Subair emphasised that businesses must adapt quickly, while tax authorities must ensure clarity, fairness, and partnership to sustain confidence in the tax system.

According to him, the new tax laws reduce duplication of taxes and provide clarity in grey areas that previously caused disputes.

He added that the reforms would succeed only if government and the private sector worked hand in hand.

“While the new tax regime brings considerable prospects, it is important to recognise transitional realities that businesses must prepare for,” Mr Subair said.

He noted that shifting from the old laws to the new framework would naturally require adjustments by both businesses and regulators.

“LIRS reaffirms its commitment to guiding and supporting businesses under the new framework while ensuring they fulfil their civic obligations.

“Stakeholders are encouraged to engage actively, raise concerns, and contribute to shaping a system that promotes growth, development, and Lagos’s position as Africa’s leading business hub,” he said.

Chairman of the Federal Inland Revenue Service (FIRS), Zacchaeus Adedeji, said the reforms introduced a unified rule book that left little or no gaps.

Mr Adedeji, represented by Stella Okahbuzor, acting director, Large Taxpayers Department, said the FIRS aimed to reduce non-compliance by creating a friendly environment for voluntary compliance.

He disclosed that sensitisation had begun for FIRS staff to fully understand the new tax laws, after which taxpayers would also be engaged.

Gabriel Idahosa, president of LCCI, said taxation was more than a mechanism for raising government revenue, describing it as the backbone of a credible social contract.

He highlighted that the Act, with its provisions on digital taxation, unified filing systems, and incentives for green and export-oriented industries, offered an opportunity to strengthen that contract.

“Yet bold legislation alone is not enough; effective and collaborative implementation will determine whether we unlock the inclusive prosperity we all seek,” Mr Idahosa said.

He stressed that taxation worked best when taxpayers saw visible value from their contributions.

“The 2025 Act provides for enhanced accountability on how revenues are used, but improvements must be reflected in infrastructure, public services, and governance.

“When citizens and businesses see their taxes translate into electricity, transport networks, and quality education, compliance becomes civic pride rather than reluctant obligation,” Mr Idahosa said.

President of the Chartered Institute of Directors (CIoD), Adetunji Oyebanji, said successful implementation depended on understanding the potential impacts, especially on small and medium-sized enterprises.

Mr Oyebanji said CIoD’s most pressing concern centred on fairness, both in the application and the effect of the new tax regime.

He warned that while the laws aimed to increase revenue, poorly managed provisions could create undue burdens on businesses.

“We, therefore, propose continuous and open feedback to monitor implementation, track real-time business responses, and address unforeseen challenges as they arise,” he said.

(NAN)