The FIRS chairman, Zacch Adedeji, explained that the laws will take effect on January 1, 2026. This gives ample time to prepare the grounds for a smooth implementation.

However, building public awareness and trust is crucial. Many Nigerians, based on past experiences of multiple taxation and harassment by tax officials, may be sceptical of the government’s intentions.

Without clear communication and transparent processes, voluntary compliance will remain elusive. The government must prioritise rebuilding trust through consistent enforcement and public education, ensuring that taxpayers understand and embrace the new system.

There is also a risk that, in their drive to meet revenue targets, tax authorities could resort to overzealous enforcement, imposing excessive reassessments or introducing hidden levies. Such actions would undermine the spirit of the reforms.

Enforcement must remain balanced, prioritising fairness and support over punitive measures, especially for SMEs.

Coordination across all levels of government will be vital, particularly with the new VAT sharing formula and revenue allocation structures.

Past disputes over revenue distribution have hampered tax collection efficiency, so the JRB and related institutions must function effectively to harmonise policies and resolve conflicts.

While digital tax administration brings the potential for efficiency gains, it also requires robust infrastructure, skilled personnel, and strong cybersecurity.

 If not properly implemented, technical glitches, data breaches, or the exclusion of less tech-savvy taxpayers could erode the gains.

 Crucially, tax laws must be dynamic. The government should remain open to amending the reforms as needed, based on feedback and changing economic conditions.

 Regular reviews and ongoing engagement with stakeholders will be critical to fine-tuning the system and addressing new challenges as they arise.

 The tax reform laws mark a bold and necessary step toward modernising the country’s fiscal system that can boost economic growth, increase government revenue, and promote social equity.

 However, these benefits will only be realised if the government commits to thorough, transparent, and technology-driven implementation to transform Nigeria’s tax landscape from a source of frustration into a basis for sustainable development.