A new report has revealed an abysmally low awareness of Nigeria’s 2025 Tax Law among business owners in several states, with Abia State recording the lowest level nationwide at just one per cent.

According to findings published by Statisense, based on data from the Fate Institute’s State of Entrepreneurship in Nigeria Report 2025, only one out of every 100 business owners in Abia State is aware of the new tax law. This means that 99 per cent of businesses in the state are operating without knowledge of the policy changes that directly affect their tax obligations and compliance requirements.

The report highlights widespread gaps in tax policy communication and engagement across different regions of the country, especially in states with weaker institutional outreach and lower access to structured business support systems.

After Abia, Jigawa and Edo states followed with 12 per cent awareness each, meaning only 12 out of every 100 business owners in both states were aware of the 2025 Tax Law. Gombe recorded 13 per cent awareness, while Taraba stood at 19 per cent.

Ekiti State had 20 per cent awareness, Oyo recorded 23 per cent, and Enugu reached 25 per cent. Akwa Ibom and Zamfara both reported 28 per cent awareness, while Rivers followed closely with 29 per cent. Yobe State rounded off the list with 30 per cent awareness, the highest among the 12 states identified as having the lowest levels of tax policy knowledge in the country.

In summary, the awareness levels per 100 business owners stood as follows; Abia (1), Jigawa (12), Edo (12), Gombe (13), Taraba (19), Ekiti (20), Oyo (23), Enugu (25), Akwa Ibom (28), Zamfara (28), Rivers (29) and Yobe (30).

Further analysis showed that the problem cuts across all six geopolitical zones: North-East (NE), North-West (NW), North-Central (NC), South-West (SW), South-East (SE), and South-South (SS), indicating that low tax awareness is a national challenge rather than a regional one.

Analysts say Abia’s one per cent awareness level is particularly troubling, as it suggests near-total disconnect between tax authorities and the business community. With such limited knowledge, most entrepreneurs in the state may be exposed to un

intentional non-compliance, penalties, and missed opportunities to benefit from any incentives or reforms embedded in the new law.

The 2025 Tax Law was introduced to improve revenue mobilisation, simplify compliance processes, and strengthen fiscal sustainability. However, experts warn that the effectiveness of any tax reform depends largely on how well it is understood by taxpayers, especially small and medium-sized enterprises (SMEs) that form the backbone of Nigeria’s economy.

The Fate Institute report notes that poor awareness undermines voluntary compliance, weakens trust in government institutions, and limits the potential impact of tax reforms on economic growth and formalisation of businesses.

Stakeholders have called for urgent, targeted awareness campaigns using local languages, business associations, digital platforms, and market-based outreach to close the information gap.

They argue that without aggressive education and engagement, the 2025 Tax Law risks remaining largely theoretical for millions of Nigerian entrepreneurs.

The findings serve as a stark reminder that passing legislation is only the first step. Ensuring that business owners understand and engage with tax reforms remains a critical challenge for policymakers and tax authorities across the country.

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