The Federal Government has said there is no going back on Nigeria’s new tax reform laws, which are scheduled to take effect from January 1, 2026. The government made it clear that despite questions and reviews by the National Assembly, the reform programme will move forward as planned.
This assurance was given by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, after a meeting with President Bola Ahmed Tinubu in Lagos on Friday. Oyedele briefed the President on the progress made so far and the level of preparation ahead of the full implementation of the new tax system.
According to Oyedele, the tax reforms are a key part of the Tinubu administration’s plan to fix Nigeria’s weak revenue system, support economic growth, and reduce the burden on ordinary Nigerians and small businesses. He said the government’s focus is not to raise more taxes immediately, but to create a fair and simple system that encourages growth and compliance.
Oyedele explained that four major tax-related laws were passed and signed as part of the reform programme. Two of these laws, the Nigeria Revenue Service (Establishment) Act and the Joint Revenue Board of Nigeria (Establishment) Act, have already come into force. They became effective on June 26, 2025.
The remaining two laws are the Nigeria Tax Act and the Nigeria Tax Administration Act. According to Oyedele, these two laws will take effect from January 1, 2026, as earlier announced. He stressed that the timeline has not changed and will not be changed.
“There is no plan to suspend or reverse the reforms,” Oyedele said. “We are fully committed to implementing the laws as scheduled. The goal is to give Nigerians relief and build a stronger economy.”
His comments come amid ongoing discussions at the National Assembly over the need to re-gazette the tax laws. On Friday, the House of Representatives directed that the laws be re-gazetted to address concerns about clarity and accuracy in the official records.
However, the National Assembly explained that the re-gazetting exercise is purely administrative. Lawmakers said it does not affect the validity, authority, or legal standing of the laws already passed by both chambers and signed by the President.
Oyedele welcomed the decision of the House of Representatives to investigate the matter. He said the executive arm of government is open to working with the legislature if any further action is required. Still, he maintained that the January 2026 implementation date remains firm.
“We respect the role of the National Assembly and we are ready to cooperate fully,” he said. “If anything needs to be clarified or corrected, we will do that together. But the reform programme is on track.”
The tax reforms are expected to bring major changes to how individuals and businesses are taxed in Nigeria. One of the key promises of the new system is relief for workers and small business owners, who have long complained about multiple taxes and high compliance costs.
Oyedele said about 98 per cent of Nigerian workers will either pay no personal income tax at all or pay less than they currently do. This is expected to leave more money in the hands of workers, especially those earning low and middle incomes.
In addition, he said about 97 per cent of small businesses will be exempted from corporate income tax. They will also not be required to pay value-added tax (VAT) withholding tax. This move is aimed at helping small businesses grow, create jobs, and survive in a tough economic environment.
Large businesses are also expected to benefit from the reforms. According to Oyedele, the new laws will lower the effective tax rates for bigger companies, making Nigeria more attractive to investors and reducing the incentive for tax avoidance.
He said the reforms are designed to promote fairness, shared prosperity, and better tax compliance across the country. By simplifying the system and reducing the burden on most taxpayers, the government hopes more people and businesses will be willing to pay taxes willingly.
Nigeria has struggled for years with low tax revenue compared to the size of its economy. Experts have often pointed out that the problem is not just low tax rates, but poor administration, a narrow tax base, and widespread evasion. Many businesses operate outside the formal system, while those within it often complain of being overtaxed.
The Tinubu administration launched the tax reform effort as part of a broader plan to stabilize the economy, reduce dependence on borrowing, and improve public services. The Presidential Committee on Fiscal Policy and Tax Reforms was set up to review existing laws and propose changes that reflect current economic realities.
Oyedele said preparations for the reforms started as far back as October 2024, when the bills were first submitted to the National Assembly. Since the laws were signed in June 2025, the government has been working on capacity building, system upgrades, and public awareness.
He noted that tax officials across the country are being trained to understand and apply the new laws correctly. Technology systems are also being upgraded to make tax collection more efficient and transparent.
Stakeholder engagement has also been a major part of the process. According to Oyedele, the committee has held meetings with business groups, professional bodies, state governments, and other key players to explain the reforms and address concerns.
Despite these efforts, the reforms have faced some criticism and misinformation, especially on social media. Some Nigerians have expressed fears that the new laws will lead to higher taxes and increased hardship. Oyedele said such fears are not supported by the facts.
“These reforms are pro-people and pro-business,” he said. “They are meant to ease the burden, not increase it. We urge Nigerians to take time to understand what is in the laws.”
As January 2026 approaches, the Federal Government says it will continue to engage with the public and lawmakers to ensure a smooth rollout. For now, officials insist that the country is on course for a major shift in its tax system, one that they believe will support growth, fairness, and long-term stability.