The Nigerian Federal Government has firmly reiterated its commitment to implementing new tax laws from January 1, 2026, despite a parliamentary inquiry into alleged discrepancies between the harmonised and gazetted versions of the legislation. This resolve was underscored by Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who affirmed that the planned timeline remains unchanged, even as calls for a suspension persist.
The controversy emerged last week when Mr. Abdussamad Dasuki, a lawmaker in the House of Representatives, raised an alarm during plenary. He highlighted significant differences between sections of the tax laws passed by the National Assembly and their officially gazetted counterparts, prompting the leadership to launch an investigation into the matter.
Following a meeting with President Bola Tinubu in Lagos, Mr. Oyedele addressed the media, confirming that there were no intentions to delay the implementation beyond the scheduled date. While acknowledging the House of Representatives’ decision to investigate the issue, he expressed the federal government’s readiness to collaborate with the National Assembly should any corrective actions become necessary, but maintained that the overarching reform timeline stands.
The four tax-related bills, crucial components of President Tinubu’s comprehensive reform agenda, were signed into law in June 2025. These include the Nigeria Revenue Service (Establishment) Act, the Joint Revenue Board of Nigeria (Establishment) Act, the Nigeria Tax Act, and the Nigeria Tax Administration Act, designed to overhaul the nation’s fiscal landscape.
Mr. Oyedele elaborated that the primary objective of these far-reaching reforms is to provide substantial relief to Nigerian citizens and stimulate broader economic growth, rather than focusing on immediate revenue generation. This strategic approach aims to foster a more inclusive and prosperous economic environment across the country.
Quantifying the anticipated benefits, he noted that approximately 98 per cent of the working population would either be exempt from personal income tax or experience reduced payments. Furthermore, about 97 per cent of small businesses are projected to receive exemptions from corporate income tax and VAT withholding tax, significantly easing their operational burdens.
Large businesses are also poised to benefit from the reforms, which promise lower effective tax rates. The entire framework is meticulously designed to promote inclusivity, ensure shared prosperity among all economic actors, and substantially improve overall tax compliance within the nation.
Preparations for the implementation of these transformative reforms have been ongoing since October 2024, when the initial bills were first submitted to the National Assembly. Since their signing into law in June 2025, the process has involved extensive capacity building, critical system upgrades, and widespread stakeholder sensitisation campaigns to ensure a smooth transition.
The alleged discrepancies between the legislative versions and the gazetted laws raise important questions about legislative integrity and due process. Such variances, if confirmed, could potentially undermine public trust in government processes and even lead to legal challenges, making the ongoing parliamentary probe a critical step towards transparency and accountability.
Nigeria’s economy faces multifaceted challenges, including reliance on oil revenues, high inflation, and the need for diversified income streams. The government’s fiscal policy and tax reforms are seen as a cornerstone of its strategy to address these issues, aiming to create a more robust, equitable, and sustainable economic framework for the future.
While the government remains steadfast in its commitment to the January 2026 implementation, the outcome of the House of Representatives’ investigation will be closely watched. This dual approach of pushing forward with reforms while simultaneously addressing legislative concerns underscores a delicate balance between speed of implementation and adherence to legal and procedural rectitude.
Ultimately, the federal government’s insistence on the reform timeline, coupled with its willingness to engage with parliamentary oversight, signals a determined effort to modernise Nigeria’s tax system. The success of these reforms hinges not only on their effective implementation but also on ensuring they are perceived as fair, transparent, and legally sound by all stakeholders involved.
