FG insists new tax laws start January 2026
The Federal Government has confirmed that the rollout of Nigeria's recently passed tax reform laws will commence on January 1, 2026, even amid rising debates regarding alleged inconsistencies in the published versions of the Acts in the Official Gazette.
Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, shared this information on Friday after updating President Bola Tinubu in Lagos, emphasizing that the reforms aim to alleviate the financial strain on Nigerians rather than to generate immediate revenue for the government.
“The plan to start the new tax laws on January 1, 2026, is still in place. These reforms are meant to bring relief to the Nigerian populace,” Oyedele informed reporters.
His comments came after the National Assembly issued a command to re-gazette the four tax reform laws following grievances that the gazetted versions did not align with those approved by legislators.
Oyedele elaborated that the reforms would result in a notable decrease in tax obligations for a majority of Nigerians, particularly benefiting low-income earners and small business proprietors.
“Approximately 98 percent of workers at the lower end of the income spectrum will either be exempt from personal income tax or will pay a reduced amount,” he stated.
“Additionally, around 97 percent of small businesses will be free from corporate income tax, VAT, and withholding tax, while larger enterprises will also experience lower tax responsibilities.”
He noted that the wider aim of the reforms is to foster economic growth, enhance inclusivity, and ensure shared prosperity across the population.
“We are concentrating on economic expansion and equity. A growing economy naturally increases revenue as more individuals and businesses become involved,” Oyedele clarified.
Addressing concerns regarding the country’s preparedness for the reforms, Oyedele mentioned that preparations have been underway for several months, beginning from when the bills were submitted to the National Assembly in October 2024.
“The bills were pending for nine months at the National Assembly, and preparation began right from the start. Following presidential approval in June 2025, we have engaged in capacity enhancements, system upgrades, and nationwide awareness campaigns,” he said.
He acknowledged that tax reform is an ongoing process but insisted that the government is well-prepared to initiate implementation.
“Perfection cannot be achieved immediately. You improve progressively, and we believe we are in a solid position to begin implementation,” he remarked.
Oyedele also revealed that two of the four tax laws, namely the Nigeria Revenue Service Establishment Act and the Joint Revenue Board Establishment Act, became effective on June 26, 2025, allowing the relevant institutions to prepare ahead of the complete rollout.
Clarifying revenue projections, he stressed that the reforms are not motivated by a need for immediate income generation.
“This reform is not aimed at generating instant revenue. Over time, revenue will arise from growth, a broader tax base, the elimination of inefficient incentives, and increased compliance,” he stated.
Despite the reassurances, the tax reforms have sparked controversy following assertions made by a House of Representatives member, Abdussamad Dasuki (Sokoto), that the gazetted versions of the laws included provisions that were not sanctioned by the legislature.
During a plenary session, Dasuki cautioned that the alleged modifications raised significant legal and constitutional issues, highlighting contentious elements such as arrest authority, garnishment without court orders, and mandatory foreign currency assessments.
In reaction to these claims, the National Assembly instructed its Clerk to re-gazette the laws and provide Certified True Copies of the versions that were officially approved by both chambers.
The spokesperson for the House of Representatives, Akin Rotimi, indicated that the directive, which was jointly issued by Senate President Godswill Akpabio and Speaker Tajudeen Abbas, was intended to safeguard the integrity of the legislative process.
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