The Role Of Accredited Tax Agents Under The Nigeria Tax Administration Act, 2025

Introduction

Nigeria's tax system is undergoing one of its most comprehensive reforms in decades. The Nigeria Tax Administration Act 2025 ("NTAA" or the "Act") represents a major step toward a more efficient, transparent, and technology-driven tax administration.

A notable provision of the Act is the formal recognition and regulation of tax agents, introducing a structured accreditation process and clearly defining their rights and responsibilities in representing taxpayers before tax authorities.¹ This reform could not be more timely. As tax administration becomes increasingly digital and globally integrated, businesses face more complex compliance demands — from electronic invoicing and realtime reporting to new rules on digital assets and cross-border taxation. The NTAA responds to these realities by positioning accredited tax agents as key partners in ensuring accurate filings, ethical representation, and proactive compliance management.

This article outlines who qualifies as a tax agent under the NTAA, how accreditation operates, and the key obligations that accompany the role. It also examines the practical impact of these changes for taxpayers and highlights why, in today's fast-evolving tax environment, working with accredited professionals is not just beneficial — it is increasingly essential.

Who is a Tax Agent and How Are They Accredited?

The NTAA defines a tax agent as "any person acknowledged and duly certified by a professional body in Nigeria to represent a taxable person."² In practical terms, this means only individuals who hold recognized tax or accounting credentials—such as members of the Chartered Institute of Taxation of Nigeria (CITN) or other approved professional bodies—can act as tax agents.

Under the Act, a taxpayer may either file returns personally or be represented by an accredited tax agent approved by the relevant tax authority. The detailed criteria and procedures for accreditation are to be prescribed by those authorities.³

A point of potential overlap exists between Sections 33 and 147 of the NTAA. While Section 33 empowers tax authorities to accredit agents, Section 147 recognizes those certified by professional bodies. Read together, these provisions create a two-step process:

1. Certification by a professional body confirms an individual's technical qualification; and
2. Accreditation by the tax authority authorizes that person to represent taxpayers officially.

This dual requirement ensures that only professionals with both proven competence and official recognition may act as intermediaries between taxpayers and the authorities.

The NTAA also ties accreditation directly to the validity of tax filings. Under Section 33, a return is deemed properly filed only if submitted by the taxpayer or an accredited tax agent.⁴ Filings made by unaccredited persons are invalid. In contrast, accredited agents may lawfully prepare, sign, and submit returns on behalf of clients—creating a clear incentive for both taxpayers and professionals to comply with the accreditation process.

In addition, every tax return submitted by an agent must include a professional declaration confirming that the agent has exercised appropriate technical competence and adhered to the highest ethical standards.⁵ This aligns with international best practice: for example, South African regulations require registered tax practitioners to maintain technical proficiency and stay current with tax developments.⁶

In Nigeria, the CITN remains the principal body responsible for defining the standards of tax practice. The NTAA complements this framework by empowering tax authorities to accredit those certified professionals as official tax agents, ensuring that taxpayer representation meets both professional and regulatory standards.

Roles and Responsibilities of Tax Agents

Once accredited, tax agents take on key responsibilities as recognized representatives of taxpayers. Their function extends beyond routine compliance—they act as trusted advisers who help individuals and businesses manage their tax obligations efficiently and lawfully.

1. Preparing and Filing Tax Returns: Tax agents assist clients in compiling records, preparing accurate returns, and submitting them to the tax authorities.
2. Providing Tax Advice: Tax agents guide clients on their tax obligations, available deductions, incentives, and planning options. They help clients make informed financial decisions while remaining compliant with applicable tax laws.
3. Liaising with Tax Authorities: Tax agents act as intermediaries between taxpayers and tax authorities. They respond to official queries, provide documentation during audits, and ensure smooth communication with tax officials. In many jurisdictions—such as Kenya— this liaison role is expressly recognized as a key function of tax agents,⁷ and the NTAA follows a similar approach.

Beyond technical duties, tax agents must uphold high ethical and professional standards. They are legally bound to maintain client confidentiality, avoid conflicts of interest, and refrain from any misuse of client funds or fraudulent activity. The NTAA treats unauthorized disclosure of taxpayer information as an offence.

Practical Implications for Taxpayers

The NTAA does not require every taxpayer to hire a tax agent. Individuals and businesses may still file their own returns. However, where professional assistance is used, the law now insists that such assistance comes only from an accredited tax agent.

This rule has several practical effects for taxpayers:

1. Authorized Representation: Only a taxpayer—or, in the case of a company, a designated officer such as a director, CFO, or tax manager—or an accredited tax agent may lawfully sign and submit tax returns. Allowing an unaccredited consultant or staff member to handle filings contravenes the NTAA and could invalidate the return.
2. Validity of Filings: The Act gives legal effect only to filings made by taxpayers or accredited agents. Submissions prepared or filed by unlicensed persons are not recognized by the tax authority. This protects taxpayers from unqualified "tax preparers" but also means businesses must confirm the accreditation status of anyone representing them.
3. Accountability and Risk Management: Corporate taxpayers remain responsible for the accuracy and timeliness of their filings. The NTAA allows tax authorities to hold a company's manager or principal officer liable for unpaid or incorrect taxes. Engaging an accredited agent adds a layer of assurance, since each agent must declare that they have exercised professional competence and ethical conduct when filing on behalf of a client.
4. Defined Scope of Authority: Tax agents can manage compliance, correspondence, and representation before tax authorities but cannot exceed their mandate. They have no authority to act as legal counsel in court or make commitments without the taxpayer's authorization. The NTAA preserves a taxpayer's right to self-representation and requires agents to act strictly within their instructions.

In essence, the NTAA gives taxpayers freedom of choice—either to handle their own tax affairs or to rely on accredited professionals—but it also establishes clear boundaries and accountability. This protects taxpayers from errors or misconduct and strengthens confidence in Nigeria's tax administration system.

Why Regulated Representation Matters

Requiring tax agents to be accredited is not merely an administrative measure — it directly benefits taxpayers. Across several countries, experience shows that using qualified and regulated tax agents leads to more accurate filings, fewer disputes, and stronger compliance outcomes.

A study in Uganda, for instance, found that taxpayers who used accredited agents filed more accurate returns and faced fewer audit adjustments.⁸ Simply put, professional agents helped clients "get it right the first time," avoiding costly corrections and penalties. Similar results have been observed elsewhere in Africa. When South Africa introduced mandatory registration for tax practitioners, the tax authority (SARS) reported higher levels of accountability and fewer fraudulent filings. Kenya's 2020 tax agent licensing framework had the same objective — to eliminate unqualified preparers and build a more transparent system.

The NTAA adopts this tested approach. By requiring formal accreditation, it seeks to professionalize tax advisory services, ensuring that taxpayers receive accurate advice and representation from competent professionals. This not only supports government efforts to expand the tax base but also protects taxpayers from the risks of misfiling, overpayment, or exposure to penalties caused by untrained intermediaries.

Emerging Trends in Tax Compliance and Advisory

The NTAA comes at a time when the tax landscape is changing rapidly. Modern compliance now demands a blend of legal knowledge, technological skill, and strategic insight — all areas where qualified, accredited tax agents play a growing role. Several developments make their expertise even more important:

1. Digitalization of Taxation: The NTAA mandates electronic filing, e-invoicing, and realtime reporting. As tax administration becomes increasingly digital, agents must not only understand tax law but also master digital platforms, data systems, and fiscal devices. In countries like the UK, the Making Tax Digital initiative has shown that businesses rely heavily on trained advisers to navigate digital tax systems. In Nigeria, accredited agents will be key partners in helping clients transition to e-filing and maintain compliance in a data-driven environment.
2. Global Tax Reforms: International tax rules — including the OECD's Base Erosion and Profit Shifting (BEPS) framework and the Pillar Two global minimum tax — are influencing local compliance obligations. While the NTAA focuses on domestic administration, multinational and cross-border businesses will increasingly depend on tax agents who understand global reporting standards, transfer pricing, and related disclosure rules.
3. Expansion of Taxable Activities: The NTAA extends tax obligations to new sectors such as digital assets and e-commerce. For instance, Section 25 introduces filing requirements for virtual asset transactions. Accredited tax agents will play a vital role in helping taxpayers understand and comply with these new rules — covering everything from cryptocurrency and NFTs to cross-border online services — and in clarifying how these transactions fit into the formal tax system.

4. Compliance and Risk Management: Modern tax advisory increasingly involves proactive compliance and risk management. The NTAA empowers authorities to conduct joint audits and exchange taxpayer information, signaling more intensive oversight. Competent tax agents help clients prepare for this by conducting internal compliance checks, identifying risks, and ensuring that disclosures meet statutory requirements before audits arise.

The NTAA's emphasis on professionalism and accreditation ensures that taxpayers have access to experts equipped for today's complex, digital, and globally connected tax environment.

Footnotes

1. Section 33(1)

2. Section 147 ibid

3. Ibid

4. Ibid

5. Section 33(4)(b) ibid

6. Tuck, Elizabeth. Regulating Tax Practitioners: Towards Greater Coherence and Effectiveness. Law and Policy Discussion Paper No. 2003-03, Australian National University, Centre for Tax System Integrity, Mar. 2003. https://openresearch - repository.anu.edu.au/bitstream/1885/41961/2/Tuck_DP3.pdf . Accessed 21 July 2025.

7. Laws of Kenya, The Tax Procedures (Tax Agents) Regulations, No.111 of 2020

8. Giovanni Occhiali, "Can tax agents support tax compliance in low-income countries? Evidence from Uganda" (2022) https://www.researchgate.net/publication/370987792_Can_tax_agents_support_tax_compliance_in_low income_countries_Evidence_from_Uganda#:~:text=evidence%20from%20two%20surveys%20on,agent s%20in%20the%20first%20place accessed on July 4, 2025

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