Modernizing Consumption Tax in Nigeria: A Review of VAT Reforms from 1993 to 2025

In this article, the author traces the evolution of Nigeria’s value added tax (VAT) from its replacement of the sales tax in 1993 to its consolidation under the Nigeria Tax Act 2025. She examines key reforms in the Finance Acts of 2019-2023 that expanded the VAT base to cover online and cross-border transactions, improved input tax credit provisions, and simplified compliance for businesses. She also highlights continuing challenges, from delayed tax refunds to low awareness and weak enforcement of the digital economy rules.