The Nigerian Tax Act and the Nigerian Tax Administration Act will take effect from January 1, 2026, despite concerns raised by the House of Representatives over alleged alterations to the gazetted versions of the laws.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this while briefing journalists after a meeting with President Bola Ahmed Tinubu on Friday.
Oyedele said the government remains committed to the implementation timeline, stressing that the reforms are aimed at easing the tax burden on Nigerians and stimulating economic growth.
The statement follows recent deliberations by the House of Representatives Committee on allegations that some provisions of the tax reform laws differed from what lawmakers originally passed.
What Oyedele is saying
Oyedele explained that four tax reform laws have been enacted, with two already in force.
According to him, the Nigerian Revenue Service Establishment Act and the Joint Revenue Service Establishment Act commenced on June 26, 2025.
He added that the remaining two laws—the Nigerian Tax Act and the Nigerian Tax Administration Act—are scheduled to commence on January 1, 2026.
Oyedele welcomed the House Committee’s engagement on the alleged alterations and said the Federal Government is willing to work with the National Assembly if any remedial action is required.
However, he emphasized that the commencement of the two remaining laws will proceed as planned.
“The plan to commence the new laws on January 1, 2026, will go ahead as scheduled because these reforms are designed to provide relief to the Nigerian people,” he said.
Tax relief for workers and businesses
According to Oyedele, the reforms will deliver significant tax relief across the economy.
- He said about 98% of Nigerian workers will either pay no PAYE tax or pay lower taxes under the new framework.
- He also noted that approximately 97% of small businesses will be exempt from corporate income tax, VAT, and withholding tax, while large companies will benefit from reduced tax liabilities.
- The reforms, he said, are intended to promote economic growth, inclusivity, and shared prosperity.
Oyedele said the tax reform bills spent nine months at the National Assembly between October 2024 and June 2025, allowing preparations to begin early.
Since the laws were signed, he said the government has spent the last six months on capacity building, system upgrades, and stakeholder sensitisation.
He explained that the early commencement of two of the laws was deliberate, enabling new institutions to begin operations and prepare ahead of full rollout in 2026.
According to him, tax reform is an ongoing process that improves over time.
Revenue growth through expansion, not higher rates
Oyedele stressed that the reforms are not designed to raise immediate revenue by increasing tax rates.
Instead, he said the focus is on growing revenue through economic expansion, widening the tax base, and improving compliance.
He added that the reforms have removed wasteful and distortionary tax incentives, which should improve fairness and efficiency in the tax system.
Improved tax awareness and a stronger tax culture, he said, are expected to further enhance compliance.
Backstory
Earlier this month, a member of the House of Representatives, Hon. Abdulsammad Dasuki (PDP, Sokoto), had raised concerns over alleged discrepancies between the newly gazetted tax reform laws and the versions passed by the National Assembly.
- According to him, his review of the gazetted copies of the tax laws revealed material differences from what was debated, harmonised, and approved by the House of Representatives and the Senate.
- This allegation has led to calls for the suspension of the implementation of the tax laws.
- On Friday, the House of Reps Spokesman, Akin Rotimi stated that the Green Chamber has inaugurated a committee to “establish the sequence of events and identify any factors that may have contributed to the circumstances surrounding the legislative and administrative handling of the Acts.”