Nigeria’s Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has outlined the potential consequences of not implementing the new tax laws by January 1, 2026. According to Oyedele, 98% of workers will continue to suffer from multiple taxations if the laws are not put into effect. He made this statement on Channels Television’s program, The Morning Brief, in response to calls from former Vice President Atiku Abubakar, Labour Party’s Peter Obi, and several civil society organizations to suspend the implementation of the laws.
Oyedele explained that the failure to implement the new tax laws would result in businesses missing out on exemptions and continuing to pay multiple taxes, leading to significant burdens. Additionally, minimum taxes would continue to apply to low and small unprofitable businesses, and hidden Value-Added Tax (VAT) would cause prices of basic consumptions like food, healthcare, and education to increase.
Instead of calling for the cancellation of tax implementation, Oyedele suggested that areas of concern should be addressed. He noted that there were aspects of the version passed by the National Assembly that needed to be amended, citing issues with referencing and definition. Oyedele’s committee has identified areas that require amendments, which would be requested through the President.
The controversy surrounding the new tax laws was also discussed, with a member of the House of Representatives, Abdulsamad Dasuki, recently raising concerns about discrepancies between the tax laws passed by the National Assembly and the versions subsequently gazetted and made available to the public. Oyedele stated that he had reached out to the House of Representatives Committee regarding a particular section, which was not in the final gazette but was in the draft gazette.
President Bola Tinubu signed the four tax reform bills into law, marking a significant overhaul of the country’s tax system. The laws, which include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act, are scheduled to take effect on January 1, 2026. The implementation of these laws is expected to have a significant impact on Nigeria’s tax system, and Oyedele’s warnings highlight the importance of addressing concerns and implementing the laws as intended.