The Chairman of the Alliance for Economic Research and Ethics (AERE), Dele Oye, has said Nigeria could unlock billions of naira in additional revenue by integrating the country’s vast faith-based economy into a more formal and transparent tax framework under the new tax regime.
He believes that the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) represent the most comprehensive overhaul of the nation’s fiscal system in decades, with significant implications for religious institutions.
He explained that the new regime centralises revenue collection, tightens the definition of charitable activities, and mandates digital documentation of financial transactions, bringing churches, mosques and other faith-based organisations under closer regulatory scrutiny.
Oye, a former Chairman of the Organised Private Sector of Nigeria (OPSN) and current Chairman of the Nigeria–Türkiye Business Council (NTBC), expressed this in a paper titled ‘Harmonising Zakat, WAQF, and Christian Stewardship Under Nigeria’s 2025 Tax Act.’
He noted that while the reforms promote modernisation and reduce tax fragmentation, their effectiveness in the religious sector would depend on professional financial management and collaboration between the Nigeria Revenue Service (NRS) and faith-based stakeholders.
READ ALSO:
- Centre Opposes Sugar Tax Hike, Warns of Economic Fallout
- Greenland Takeover: Trump Cites Security Threats, NATO Gaps
- Access ARM Pensions Crosses ₦4 Trillion in Asset Under Management
- Invest ₦50m in latest FGN Bond, Earn ₦11.3m Yearly, Unlock ₦163m in 10 years
“The 2025 Tax Act is not merely a technical adjustment of rates; it is a fundamental reimagining of the social contract between the Nigerian state and its citizens.
“For decades, religious institutions operated within a grey area of the law, enjoying broad exemptions under the guise of ‘public character’ while occasionally venturing into commercial activities that blurred the lines between sanctuary and shop,” Oye said.
He added, “The new regime, characterised by the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA), seeks to bring order to this complexity by centralising collection and mandating a digital paper trail for all financial transactions… For the devout, this raises a pressing question: how does one balance the ‘Nisab’ of Zakat or the ‘Tenth’ of the Tithe with the rigorous demands of the Nigeria Revenue Service (NRS)?”
Oye believes that the reforms mark the end of an era of multiple and overlapping taxes, replacing them with a unified, data-driven system that integrates tax records with national identifiers such as the NIN and BVN.
He noted that religious organisations engaged in commercial activities would now be required to clearly separate their spiritual and business operations.
“The unification of VAT administration is a cornerstone of this shift,” he said.
He stressed that religious bodies running schools, hospitals or bookstores would no longer rely on informal exemptions.
On charitable status, Oye stated, “The 2025 Tax Act significantly tightens the criteria for what constitutes a ‘charitable’ organisation.”
He added that tax exemptions would now depend on strict reinvestment of surplus funds and detailed documentation.
Addressing Islamic finance, he said, “Islamic finance, rooted in the principles of social justice and wealth redistribution, offers a unique set of challenges and opportunities within the 2025 tax framework,” particularly around the treatment of Zakat and Waqf.
“The 2025 Tax Act represents a transformative shift in Nigeria’s fiscal landscape,” Oye maintained.
He added that aligning faith-based giving with the new tax system could strengthen transparency, protect spiritual integrity and support national development.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
