AKIRS Engages with Professionals, Business Associations on new Tax Reforms

 

Priscilla Akpanettot

The Akwa Ibom State Internal Revenue Service (AKIRS) has met with professionals and business associations in the State to sensitize and discuss with them, gains of the new tax reforms.

The engagement which held at the ICT Conference Room of the State Accountant-General’s Office in Uyo on Wednesday, December 3, 2025, had in attendance, members of the Nigerian Bar Association (NBA), the Nigerian Medical Association (NMA), Association of National Accountants of Nigeria (ANAN), Institute of Chartered Accountants of Nigeria (ICAN) and the Chartered Institute of Taxation of Nigeria (CITN).

Others are: Association of Private School Owners, Association of Community Pharmacists, Association of Private Medical Professionals, Nigerian Society of Engineers, Nigerian Institute of Management, Institute of Safety Professionals etc.

Enlightening the gathering, Chairman, AKIRS, Sir Okon Okon said the new national reforms which will be effective from January 2026 will bring far-reaching relief to many Nigerians, boost economic activities and drive growth and development across the country. 

Okon Okon who is a member of the Presidential Committee on Fiscal Policy and Tax Reforms, noted that the anxiety over the tax reforms was unfounded as the new tax regime was designed to correct inconsistencies in the national tax system, check the challenges of multiple taxation and curtail the activities of non-state actors and nuisance taxes. 

He noted that the existing tax system which was rooted in precolonial laws was marked by fiscal imbalance, inconsistent tax framework across jurisdictions, and multiple tax identifiers that adversely affected compliance by individuals and corporate organizations.

According to Okon who is also a Council Member of the Chartered Institute of Taxation of Nigeria (CITN), the reforms have produced four new tax Acts meant to streamline tax administration in the country, namely: the Joint Revenue Board (3RB) 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 fiscalization; personal income tax exemptions for those earning below 1 million annually; lower PAYE for incomes less than N1.7m monthly; 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 said, will ease pressure on individuals and families, while the introduction or a National Tax Identification Number (TIN) will encourage compliance, remove bureaucratic bottlenecks in the tax system, free up more revenue for government for development purposes, boost business expansion, create employment opportunities and make for global competitiveness.

On the implications and impact or the new reforms for Akwa Ibom State, the State's tax helmsman said it directly will improve the State's fiscal position as VAT formula has been revised from 50-55% percent, strengthen revenue administration and professionalism, eliminate consumption tax, provide better business environment and protect SMES, and target high net-worth individuals. 

He emphasized that the ongoing engagements with diverse groups was to dispel misconceptions, help taxpayers see the benefits of the tax reforms rather than be apprehensive, and to seek collaboration with critical stakeholders in propagating the right message. 

“We’re targeting the fruits of investments, not the capital. This is what we want the public to know. For instance, if your turnover as an SME is not up to N100m in a year, you won’t pay tax. The reform has also reduced the payment of Personal Income Tax to N1m, for those earning up to N1milion and above, which is against what used to be. There’ll be more sensitization to people in various categories and communities using handbills, fliers and every platform at our disposal”, he said.

Commending Sir Okon Okon for the initiative to interface with the stakeholders, the Commissioner for Information, Rt. Hon. Aniekan Umanah said there was no need for worries over the new reforms as it was meant to make for fairer, more transparent and efficient frame for tax administration in the country. He also commended him for his efforts in ensuring that the State revenue profile remains high.

Represented by the Permanent Secretary in the Ministry, Akparawa James Edet, Umana expressed optimism that the engagement would result in growth opportunities for the State.

“As stakeholders, this engagement provides guidance on how these reforms will affect operations in the State so we’re optimistic of a positive outcome that would rub off on the State’s economy”, he stated. 

Participants who spoke during the interactive session were glad to have been so enlightened. They asked for sustained collaboration with the AKIRS to enhance the knowledge gained, while promising to relate the information received to their members.

Statistics Indicate upward rise in engagement opportunities created by Christmas Village

 

Priscilla Akpanettot 

Statistics provided by the Akwa Ibom State Government have indicated an upward rise in engagement opportunities created by Christmas Village for Akwa Ibom people.

The Delivery Advisor to Governor Umo Eno on Tourism, Sir Charles Udoh gave the statistics on Monday, December 1, 2025 during the monthly briefing on the State Government's activities.

Udoh who informed that 3,920 skilled and unskilled workers were engaged last year, against 1,750 in 2023, revealed that there was a 67% increase last year from the number of local performing artistes who performed in 2023, while vendors registration last year recorded a 63% increase against what was documented in 2023. The figures for this year Sir Charles noted are already towering.

He described the Christmas Unplugged as a boost to the Christmas Village, blending entertainment with innovation. 

"The idea is to brand  Christmas Unplugged as Africa's premier family event, while showcasing Akwa Ibom as a unique destination", he said.

Giving the theme for this Year's celebration as "Celebrating Culture, Inspiring Innovation", the  Delivery Special Advisor said it would feature sustained excitement all through with lots of  food, drinks and cultural display.

Other major highlights would be children's party, carols with gospel artistes like Mercy Chinwo, Moses Bliss, Bobby Friga, Prosper Ochimana amongst others, on stage.

He therefore called on Akwa Ibom people to explore the fun, excitement and economic offerings of the event.

The briefing which was held to inform the public of achievements and activities of the State Governor in the month of November, 2025 highlighted efforts in healthcare, infrastructure, and empowerment.

 A fully equipped General Hospital was commissioned in Ikot Akpankuk, Ukanafun, marking a significant milestone in the state's healthcare sector. The hospital, the first functional one since 1976, is equipped with supporting infrastructure and re-engaged retired health workers.

The government also approved a ₦1.390 trillion budget for 2026, focusing on flagship projects, MSME/job creation, tourism, transportation, transparency, and human capital development. This budget represents a 16% reduction from the revised 2025 budget and prioritizes capital expenditure.

In a bid to promote unity and inclusivity, the government allocated ₦800 million for non-indigenous communities, including Igbo, Yoruba, Arewa, and Niger Delta groups. This initiative aims to foster communal development and social cohesion.

Furthermore, the Federal Government approved full international flight operations for Victor Attah International Airport, set to commence in Q1 2026. This development is expected to boost tourism, global connectivity, and foreign investment in the state.

In a gesture of goodwill, Governor Eno approved payment of the 13th-month salary, to be paid before December 20, with rice distribution to all villages for Christmas. These initiatives demonstrate the government's commitment to improving the lives of Akwa Ibom residents and promoting social welfare.

AKIRS Clears Air on Nigeria’s Tax Reforms

 

...says individuals earning less than N1m are exempted from tax payment

Priscilla Akpanettot

Against widely held belief that the new tax reforms instituted by the President Bola Tinubu’s administration will force the payment of tax on all Nigerians from January 2026, the Akwa Ibom Internal Revenue Service (AKIRS), has cleared the air and allayed fears of forceful taxation on individuals and corporate entities.

Speaking on Friday, November 28, 2025 at the NUJ Press Centre in Uyo, Chairman of the AKIRS, Sir Okon Okon said that the tax reforms will rather protect low-income earners and reduce inequality for individuals earning below ₦1 million per year.

Okon who was giving a synopsis of the implication of the 4 new tax reforms with journalists said the reforms will improve fairness and transparency in the delivery of basic social amenities as well as reduce cost of living pressures.

It would be recalled that President Bola Ahmed Tinubu had on June 26, 2025 signed four key tax reform bills into law, collectively known as the Nigerian Tax Reform Acts. The reforms according to Okon Okon are aimed at overhauling the country’s fiscal governance, tax administration, and revenue generation; while improving a unified, technology-driven tax administration scheme for optimized revenue generation across tiers of government.

The AKIRS boss said the tax reform provides a simpler, unified tax system that is easier for businesses and individuals to understand and promotes improved fairness where large companies pay  minimum tax while small businesses and low-income earners receive exemptions and reliefs.

 

Furthermore, he posited that the reforms would bring about stronger digital and institutional capacity for tax collection, promote reduced duplication and multiple taxation, birth clearer investment incentives for both local and foreign investors and as well improve Nigeria’s ease of doing business.

Breaking down the reforms, the South South presidential committee member on tax reforms said that the Nigeria Tax Act, 2025 (NTA) would now ensure a comprehensive consolidation of major federal tax laws into one unified framework through the merging of CIT, PIT, VAT, CGT, Stamp Duties, Petroleum Taxes, and others into a single Act. It would as well broaden the tax base to include digital services, virtual assets, gaming, mining, petroleum operations, prizes, and grants; introduce a 4% Development Levy on assessable profits (replacing multiple old sectoral levies); implement a 15% minimum effective tax rate for large companies/MNEs; introduce Controlled Foreign Company (CFC) rules to limit profit shifting and as well updates rules on interest deductibility, capital allowances, free-zone incentives, and export tax reliefs.

Meanwhile, the Nigeria Tax Administration Act, 2025 (NTAA) which modernizes and harmonizes tax administration across all government levels will now standardize processes for tax filing, assessment, audits, and appeals, and introduce a unified digital system for taxpayers — making compliance easier and reducing bureaucracy; enhances transparency and efficiency in tax collection nationwide.

The Nigeria Revenue Service (Establishment) Act, 2025 (NRSA) now will establish the Nigeria Revenue Service (NRS), replacing the former FIRS. It centralizes federal tax collection and taxpayer registration; implements stronger automation, data integration, and compliance tools and enhances capacity for revenue intelligence and enforcement.

While the Joint Revenue Board (Establishment) Act, 2025 (JRBA) which replaces the Joint Tax Board (JTB) creates a coordinated revenue-administration body across federal, state, and local governments will now reduce multiple taxation by aligning roles across tiers of government; enable coordinated data sharing and joint enforcement and harmonize revenue policies for more predictable taxpayer obligations.

By implication, the AKIRS boss announced 50 tax exemptions and reliefs benefiting the masses to include: Personal Income Tax/PAYE, National minimum wage earners exempt, Annual income ₦1.2 million exempt, lower PAYE rates up to ₦20 million yearly income, gifts exempt, allowable Deductions, Pension contributions and NHIS contributions.

Others are: Loan interest for owner-occupied homes, Life insurance/annuity premiums, Rent Relief Allowance up to ₦500,000 or 20% of rent, Pensions & Gratuities, Pension funds under PRA exempt, Retirement benefits under PRA exempt and Loss-of-employment compensation up to ₦50 million exempt, among others.

He therefore called on members of the public to support the new tax regime, saying it was in the interest of the masses.

For Companies and Investments, the benefits include: CGT exemption for retail investors, pension funds, REITs, M&A, security lending; Capital losses deductible; No WHT on bonus shares; Stamp duty exemption on documents for stocks/shares transfers; Lower business costs via input VAT credits; CIT reduction from 30% → 25%; Harmonization of levies (TET, NITDA, NASENI, etc) and Repeal of 60+ taxes/levies down to < 10; moderation of excessive agency fees via Tax Ombud; and tax exemption for state government bonds.

‘‘Personal Income Tax exemption or final WHT on fixed income securities, lower WHT or exemptions to ease cash-flow pressures, final WHT on foreign investors’ dividends and interest, TIN exemption for foreign investors; Export Processing Zones; entities fully exempt if ≥ 75% of sales are exports; If 25% sales made locally, tax applies to local sales.’’

According to him, ‘‘From 1 January 2028, full taxation applies on all local-territory sales, Share Disposal, flat 10% CGT replaced by 0–30% progressive tax, disposals up to ₦150 million with gains ₦10 million exempt; and gains exempt if proceeds are reinvested in same year.

Commenting on implications for States and Local Government Areas, Sir. Okon stated that VAT formula was revised from 50% to 55% for States, distribution: Equity 50% | Population 20% | Derivation 30%, strengthened revenue administration and professionalism, improved compliance through Tax ID, Stamp Duties on individuals now belong fully to states, and tax harmonization eliminating multiple taxation.

‘‘States empowered to collect taxes for LGAs, consumption Tax abolished, full digitalization: e-invoicing, e-payments, no cash handling, better business environment and protection for SMEs, states administer virtual currency taxes, focus on High-Net-Worth Individuals (HNWIs), National Tax Identification Number (NTIN) for all taxpayers.’’

On implications for the Nation, Okon said it would consolidate major tax laws into a unified framework, facilitate more progressive tax system that protects the poor and boosts equity, enhanced higher tax-to-GDP ratio and reduced dependence on oil, better environment for investment and business growth, remove wasteful levies and reduction of leakages, sustain stronger accountability via the Nigeria Revenue Service, improved tax refunds, better national data, and stronger fiscal planning. As well as harmonized national taxpayer identification.

Speaking on Economic and Operational Impact, he said the tax reform frees capital for expansion and job creation, smooth transition from small to medium scale, improves cash flow and reduces administrative bottlenecks, protects struggling firms, promotes recovery, encourages staff welfare and employment growth, enhances liquidity with faster VAT recovery, promotes consolidation without tax penalties and builds trust through Ombud oversight.

Earlier, the State Chairman of Nigerian Union of Journalists, Comrade Nsibiet John Udoh, commended the Chairman of AKIRS for the thought to sensitize journalists who he said would then take the message to members of the public.

In their separate remarks, the Commissioner for Finance, Emem Bob and his Information counterpart, Rt. Hon. Aniekan Ummah called for the organisation of more trainings for journalists to enable them better educate the masses on impacts and benefits of the new tax regime.

The Commissioner for Information called on journalists to join in the campaign to sensitise the masses on the Nigeria Tax Reforms, while assuring that Governor Umo Eno’s administration would put everything in place to facilitate the smooth take off of the reforms by January 2016.