NIWA Highlights Gender and Grassroots Implications of New Tax Reforms
By Ugonma Ewa
The Neighbourhood Initiative for Women Advancement (NIWA), a prominent Nigerian non-governmental organization focused on empowering women and youth, has expressed concerns about the potential impacts of Nigeria’s newly enacted tax reforms on women-led businesses and grassroots communities.
In a press statement released over the weekend, NIWA provided an in-depth analysis of the new tax policies, underscoring their implications for small enterprises, particularly those run by women, and low-income earners.
Nancy Ifeyinwa Humphrey, NIWA’s Team Lead and the host of the Ebonyi State Tax Justice and Governance Platform, emphasized the need for equitable implementation of the reforms. “The new tax laws represent a significant shift in Nigeria’s fiscal landscape. Their implications must be fully understood, especially by those most likely to be affected—women and low-income communities,” she said.
One major highlight of the legislation is the exemption of small businesses with an annual turnover of ₦50 million or less from several taxes. These include:
- Companies Income Tax (CIT)
- Capital Gains Tax (CGT)
- Value Added Tax (VAT)
- Withholding Tax (WHT)
- The newly introduced Development Levy
This threshold, previously set at ₦25 million, is widely seen as a positive development that could ease the compliance burden and foster the growth of women-led small and medium-sized enterprises (SMEs).
However, NIWA raised concerns over the absence of a gender-responsive framework in the reforms. While the exemptions provide some relief, the lack of tailored support mechanisms—such as tax credits or waivers specifically for women in the informal sector—may limit the potential benefits for female entrepreneurs.
NIWA commended the government’s efforts to promote tax equity, particularly through measures designed to protect vulnerable populations. These include:
- Exemption from personal income tax for individuals earning ₦800,000 or less annually
- Zero VAT on essential goods and services like food and medicine
- A 0% rent deduction (capped at ₦500,000) for low-income earners
“These safeguards are designed to cushion rural households and economically disadvantaged women from the regressive effects of taxation,” the organization noted.
Yet, NIWA stressed that the success of these measures hinges on public awareness and transparent implementation. “We will closely monitor the application of these exemptions to ensure they deliver real financial relief for women, especially at the grassroots level,” the statement read.
To bridge the prevailing knowledge gap, NIWA announced a series of community-focused educational initiatives aimed at increasing tax literacy and awareness. Planned activities include:
- Local-language community workshops and sensitisation campaigns
- Distribution of simplified, easy-to-understand tax information materials
- Engagements with community leaders, women’s groups, and local authorities
- Collaboration with the Ebonyi State Internal Revenue Service (EBSIR) to improve compliance and promote fairness
“Our mission is to ensure that women and marginalised groups are not left behind in the implementation of these reforms. We are committed to advocacy, education, and accountability,” Nancy affirmed.
In conclusion, NIWA called on all stakeholders—including government agencies, civil society organizations, and the media—to work together in ensuring the fair and inclusive implementation of the tax reforms.
“The principles of fairness and empowerment embedded in the new tax laws must be translated into real benefits for all Nigerians, especially those at the margins,” the organization emphasized.
