By Erewunmi Peace

Experts say the recently signed Nigeria Tax Act (NTA) 2025 is expected to significantly reduce revenue leakages in the country’s oil and gas sector.

According to Prof. Ken Ife, the Act introduces a consolidated tax framework that aims to streamline collections, increase transparency, and improve compliance.

The new law, effective January 1, 2026, merges multiple outdated tax statutes into a single, unified code.

This consolidation, experts say, will make it harder for companies to exploit loopholes and under-declare revenues.

Key reforms in the Act include:

Minimum Effective Tax Rate (ETR) to prevent profit shifting and tax base erosion by multinational oil companies.

Consolidated Development Levy, replacing various smaller levies, simplifying payments for both taxpayers and regulators.
Centralized Revenue Collection through the Nigeria Revenue Service, which now has exclusive authority over petroleum taxes.

Prof. Ife emphasized that while the law cannot immediately eliminate all revenue losses, it represents a critical step toward reducing inefficiencies and curbing tax evasion in one of Nigeria’s most important economic sectors.

Implementation of the Act, coupled with stricter enforcement and better administrative oversight, is expected to improve government revenue inflows and strengthen accountability in the oil and gas industry.

About the Nigeria Tax Act 2025:

The Act consolidates prior tax laws, introduces modern compliance measures, and strengthens mechanisms for monitoring revenue. Analysts believe these reforms will not only plug revenue leakages but also create a more investor-friendly environment while ensuring fairness in tax administration.