Nigerian Tax Reforms Face Implementation Uncertainty Amid Controversy
The implementation of Nigeria’s new tax laws, slated to take effect on January 1, 2026, is facing uncertainty due to ongoing controversy. Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has outlined the consequences of failing to implement the laws, including continued multiple taxation of 98% of workers and increased burdens on businesses. Oyedele made these comments on Channels Television’s The Morning Brief, amidst calls from former Vice President Atiku Abubakar, Labour Party’s Peter Obi, and civil society organizations to suspend the implementation.
The new tax laws, signed into effect by President Bola Tinubu, aim to overhaul the country’s tax system. However, concerns have been raised regarding discrepancies between the versions passed by the National Assembly and those subsequently gazetted. A member of the House of Representatives, Abdulsamad Dasuki, has alleged that his legislative rights were breached due to these discrepancies. Oyedele has suggested addressing specific areas of concern rather than calling for the cancellation of tax implementation.
The tax reform laws include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act. These laws operate under a single authority, the Nigeria Revenue Service. If the laws are not implemented, Oyedele warned that minimum taxes will continue to apply to low and small unprofitable businesses, and hidden VAT will lead to increased prices of basic consumables like food, healthcare, and education.
The controversy surrounding the tax laws has sparked debate about the need for transparency and accountability in the legislative process. As the implementation deadline approaches, it remains to be seen how the Nigerian government will address these concerns and ensure a smooth rollout of the new tax system. With the fate of the tax reforms hanging in the balance, Nigerians await clarity on the next steps and the potential impact on the country’s economy.