The Federal Government of Nigeria has reaffirmed its commitment to implementing the new tax laws, which include the Nigerian Tax Act and the Nigerian Tax Administration Act, on January 1, 2026. According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the reforms are designed to provide relief to the Nigerian people. The new laws aim to promote economic growth, inclusivity, and shared prosperity by reducing taxes for low-income earners and small businesses.
The bottom 98% of workers will either be exempt from Pay As You Earn (PAYE) tax or pay lower taxes, while 97% of small businesses will be exempt from Corporate Income Taxes, Value Added Tax (VAT), and Withholding Tax. Large businesses will also see a drop in the taxes they pay. The government believes these reforms will have a positive impact on the economy and improve the lives of Nigerians.
The implementation of the new tax laws has been a subject of controversy, with some lawmakers raising concerns about discrepancies between the versions passed by the National Assembly and the gazetted versions. However, Oyedele welcomed the position of the National Assembly on the allegations and expressed the government’s willingness to work with lawmakers to address the concerns raised by Nigerians.
President Bola Tinubu signed the four tax reform bills into law, marking a significant overhaul of the country’s tax system. The laws include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act. The government is committed to ensuring a smooth implementation of the new tax laws, which are expected to take effect on January 1, 2026.
The new tax laws have faced opposition from some federal lawmakers, particularly from the northern part of the country. However, the government believes that the reforms are necessary to promote economic growth and improve the lives of Nigerians. With the implementation date approaching, the government is working to address the concerns raised by stakeholders and ensure a successful rollout of the new tax laws. The outcome of this implementation will be closely watched, as it has the potential to impact the country’s economy and the lives of its citizens.
