The Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, has stated that, under the 2025 Tax Law, the cost of tax evasion now far exceeds the cost of compliance, urging Nigerians to choose patriotism and lawful conduct by meeting their tax obligations.

Speaking during a live interview on TVC on Tuesday, Adedeji emphasised that the new tax regime is designed to promote fairness, transparency, and efficiency in revenue collection.

“It is now more expensive to evade tax than to comply. We tax profit, not assets, and the whole idea is to make the system simple, predictable and just,” he said.

He explained that although President Bola Tinubu assented to the Tax Act and the Tax Administration Act in June 2025, their full implementation commenced on January 1, 2026, following a structured transition period provided for in the law and supported by the National Tax Policy.

“Nigeria is a democratic country governed by the rule of law. The National Assembly passed the law, and the President assented to it. As an implementation agency, our duty is to follow the provisions. Considering the scale of the reforms, government agreed that full commencement should begin from January 1, 2026,” Adedeji stated.

According to him, the last six months were dedicated to building operational frameworks, deploying technology, and engaging stakeholders to ensure a smooth transition. He said early indicators show that the reforms are already strengthening confidence in the economy.

“You can see the response in the Nigerian Exchange, in capital inflows and in exchange rate stability. These are positive signals that the market understands the direction of the reforms,” he said.

Adedeji urged Nigerians to rely on facts rather than rumours, dismissing claims that the new law would lead to arbitrary deductions from bank accounts. “Today is January 13, and Nigerians can see clearly that those fears were unfounded. The reform is to modernise tax collection and simplify the process, not to intimidate citizens,” he added.

He also clarified misconceptions about the newly introduced Development Tax, noting that it is not an additional burden but a consolidation of several existing earmarked taxes such as the education tax and police trust fund levy.

This is a harmonisation exercise. It makes compliance easier and helps businesses plan better. It also ensures more efficient funding for education, student loans, security and other development needs,” he explained.

Describing the reform as historic, Adedeji said it is Nigeria’s most significant fiscal overhaul since independence, harmonising over 62 fragmented tax laws into a single framework and transforming the NRS into a modern, technology-driven revenue institution.

“This is not just a change of name. It is a total institutional and system

upgrade. We now use data intelligence, digital platforms and global best practices to drive compliance,” he said.

On concerns about tax compliance, Adedeji emphasised that the law now makes evasion more costly through improved detection, automation and enforcement. “With technology and data integration, it is no longer easy to hide. Compliance is cheaper, safer and better for everyone,” he said.

He reassured Nigerians that the government is not seeking to collect more taxes arbitrarily. “We are not here to collect more; we are here to collect right. Fairly, transparently and lawfully,” he noted.

Adedeji also dismissed calls for a suspension of the new tax laws, saying such demands have no place in a democratic system. “Once a law is passed and assented to, it becomes law. Suspending it would mean there is no legal basis for revenue collection, and no economy can survive without revenue,” he said.

He assured taxpayers that the NRS is fully prepared for the transition, having trained staff and upgraded systems over the last six months. “There will be no disruption. The experience for taxpayers will be better, faster and more transparent,” he added.

Adedeji concluded by appealing to Nigerians to support the reforms, saying compliance is not only cheaper but also essential for national development. “Tax is the price we pay for a functioning society. When we comply, we build a stronger and more prosperous Nigeria.”

(Tribune)