The Federal Inland Revenue Service (FIRS) has assured Nigerians that the widely discussed 4 percent development levy on imported goods will not bring an additional tax burden on businesses.
In a statement on Wednesday, the agency, said the levy is a consolidation of several existing charges aimed at simplifying the tax system and improving the business environment.
It said public concerns over the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) stemmed largely from “misinterpretations,” particularly regarding the new levy structure.
According to the FIRS, the reform is designed to enhance economic competitiveness, protect existing incentives, and ensure long-term fiscal stability.
FIRS explained that merging multiple levies into a single charge of 4 percent will reduce compliance costs, remove unpredictability, and eliminate the era of overlapping charges from different government agencies.
It added that small businesses and non-resident companies are exempt, providing relief for the vulnerable and economically sensitive.
“This consolidation reduces compliance costs, eliminates unpredictability, and ends the era of multiple agency-driven levies. The law also exempts small businesses and non-resident companies, offering protection to firms most vulnerable to economic shocks,” the FIRS stated.
The clarification comes amid fears by businesses that the federal government’s new tax framework, set to take effect in January 2026, would increase their financial burden.