The Centre for the Promotion of Private Enterprise has expressed concerns over the potential effectiveness of Nigeria’s new tax laws, which took effect on January 1, 2026. According to Muda Yusuf, Executive Chief Officer of CPPE, the laws are being implemented under “unusually delicate circumstances.” This sentiment comes as the new tax laws have commenced despite calls for their suspension.
CPPE emphasized that the success of Nigeria’s tax reform hinges largely on its implementation, rather than the legislative provisions themselves. As 2026 is poised to be a pre-election year, the think tank cautioned that political and social sensitivity is crucial, which could significantly impact the enforcement of the tax laws.
The economic think tank warned that without careful consideration and sequencing, even well-intentioned reforms can lead to resistance, disrupt livelihoods, and further erode public trust. It is essential to balance political sensitivity with economic realism to ensure a smooth implementation of the tax laws.
Nigeria’s tax reform aims to revamp the country’s taxation system, but its implementation is being closely watched due to the current political climate. The country’s history of tax reforms has been marked by challenges, including resistance from various stakeholders and difficulties in enforcing tax laws.
As the new tax laws unfold, it remains to be seen how they will be received by the public and private sectors. The Nigerian government will need to navigate the complex political and economic landscape to ensure the successful implementation of the tax reforms. The outcome of this effort will have significant implications for the country’s economic development and growth.