Three in five Nigerian households surveyed say they have little or no familiarity with the Nigeria Tax Act 2025, exposing a major public-awareness gap as the country implements its most significant tax reform in years.
The findings are contained in the Nigerian Economic Summit Group (NESG) Tax Perception Survey Report 2026, commissioned by the NESG with support from the United Kingdom Government. The study surveyed 18,000 working adults-one per household-and 9,097 firms across all 36 states and the Federal Capital Territory, alongside taxpayer discussions and interviews with tax officials.
According to the report, 60 per cent of household respondents said they were either not at all familiar with the Act or only slightly familiar with its provisions. The remaining 40 per cent reported moderate or high familiarity. The overall mean familiarity score was 2.33 on a four-point scale, indicating that knowledge of the law remains limited among many households.
The survey also found gaps in basic tax understanding. While 61 per cent correctly identified that Value Added Tax is charged on many goods and services people buy, other respondents expressed uncertainty about how VAT is charged or whether it applies to them. Only 15 per cent of households said they had sought official information about the Act.
Awareness of taxpayer rights was similarly uneven. About 63.8 per cent of households knew that a tax assessment could be appealed, while three-quarters believed taxpayers could request clarification or assistance from tax authorities.
However, only 24.3 per cent were aware of the Office of the Tax Ombud, suggesting limited knowledge of institutional channels for resolving tax-related complaints.
Responses on exemptions also revealed perception rather than confirmed legal knowledge. Of those surveyed, 46.3 per cent believed pension, gratuity or retirement benefits were usually exempt or attracted very little tax; 36.9 per cent selected basic food or agricultural inputs; and 25.9 per cent chose minimum-wage earners.
The NESG cautioned that these responses reflect perceptions and do not establish whether respondents understood the legal conditions for each exemption.
Familiarity varied across regions and socio-economic groups. The South East recorded the lowest regional mean familiarity score, at 1.94, below the national survey mean of 2.33. The North East and South South matched the overall mean, while other regions scored higher. Urban and rural scores were nearly identical, at 2.34 and 2.32 respectively.
Education and income appeared to influence awareness. Households with no formal education recorded a mean score of 1.85, compared with 2.54 among those with post-secondary education. Men reported higher familiarity than women, while upper-middle- and high-income households showed greater awareness than no- or low-income households.
Firms demonstrated stronger awareness than households. More than 80 per cent of surveyed businesses said they were aware of the Nigeria Tax Act 2025, the right to appeal tax assessments, and the right to request clarification or assistance. Yet only 56.7 per cent said they had received official information about the Act, and 72 per cent believed it applied to businesses like theirs.
The report found that businesses generally understood some core obligations. About 87.7 per cent correctly answered a basic record-keeping question, while more than 70 per cent demonstrated accurate knowledge of tax-return filing duties, the 7.5 per cent VAT rate, and eligibility for priority-sector incentives.
However, understanding of more specific rules was weaker. Fewer than half of firms correctly identified the taxes applicable to different taxpayer groups. Only 57.9 per cent understood the requirement to register with tax authorities before commencing operations, while 69.7 per cent understood tax exemption for firms below the applicable turnover threshold.
Access to official information also remained a challenge. Fewer than half of firms-44.2 per cent-had tried to obtain official information on business taxes. Among those who did, 86.5 per cent said they obtained it, while 25.6 per cent reported using a professional tax agent, accountant or bookkeeper.
The NESG described the study as a diagnostic assessment rather than an audit or ranking of tax administration. It said the pooled estimates adjust for oversampling but are not calibrated to national population totals, and that the findings describe reported perceptions and experiences rather than causal effects of the reform.
The report’s authors said the results underscore the need for clear, accessible public information on tax obligations, taxpayer rights, exemptions and the treatment of specific income categories and goods. The findings come amid earlier calls by civil society groups for intensified grassroots sensitisation on the Tax Act, particularly in rural communities where awareness has been reported as limited.
With implementation underway, the survey suggests that awareness of Nigeria’s new tax regime cannot be assumed-even among businesses-and that sustained taxpayer education will be critical to compliance, trust and effective revenue mobilisation.