Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, has affirmed that Nigeria’s new tax laws will take effect on January 1, 2026, as scheduled. This definitive statement came after a high-level meeting with President Bola Tinubu in Lagos, where Oyedele firmly dismissed calls for a delay in the implementation of these crucial reforms. The committee maintains that these changes are essential for the nation’s economic revitalization and establishing a more equitable tax system, despite some public apprehension.
Mr. Oyedele articulated that the comprehensive reforms are meticulously designed to significantly alleviate the tax burden on the majority of Nigerians while simultaneously stimulating broad-based economic growth. He underscored the government’s unwavering commitment to these changes, asserting that their primary aim is to cultivate an environment conducive to growth, inclusion, and shared prosperity, rather than imposing additional financial hardship on citizens and businesses. The committee believes these reforms are a foundational step towards a sustainable and resilient economic future for Nigeria.
Providing specific and reassuring figures, Mr. Oyedele stated that approximately 98 per cent of the nation’s workforce would either be entirely exempt from Pay As You Earn (PAYE) tax or experience a substantial reduction in their existing tax obligations. This significant relief is strategically intended to boost disposable income for low and middle-income earners, thereby stimulating domestic consumption and contributing to an overall improvement in living standards across various demographic segments. The government frames this as a direct and tangible benefit to individual citizens.
For the vital business sector, the reforms promise substantial and much-needed relief. Mr. Oyedele highlighted that an impressive 97 per cent of small enterprises would receive full exemption from Corporate Income Tax (CIT), Value Added Tax (VAT), and Withholding Tax (WHT). Furthermore, larger corporations are also slated to benefit from reduced tax payments, creating a more favourable operating environment. This targeted approach aims to foster robust business growth, actively encourage entrepreneurship, and attract both domestic and foreign investment into the Nigerian economy.
The committee chairman clarified that the anticipated increase in government revenue, a key objective of the reforms, would not stem from higher tax rates, a common misconception. Instead, the strategy is firmly anchored on expanding the overall tax base through robust and sustained economic growth, coupled with significantly improved compliance across all sectors. As the economy flourishes and more individuals and businesses formally participate, the tax revenue is projected to climb organically, establishing a sustainable funding model for national development priorities.
A core pillar of these transformative reforms involves the systematic removal of what Mr. Oyedele described as “wasteful and distortionary tax incentives.” These incentives previously complicated the tax system and often favoured specific entities without delivering broad economic benefit. Simultaneously, the new framework is meticulously crafted to cultivate a stronger tax culture and enhance compliance throughout the nation. This approach seeks to instill greater fairness, ensuring that those who previously evaded taxes now contribute their rightful share, thereby broadening societal gains beyond mere revenue generation.
The announcement of the reforms’ steadfast implementation comes amidst palpable concerns voiced by various labour unions and civil society organizations across Nigeria. These groups have publicly raised questions regarding the timing and certain intricate provisions of the proposed laws, advocating for a more cautious and deliberative approach. The government, while firm on its timeline, acknowledges these apprehensions and has expressed a commitment to transparency and ongoing engagement throughout the implementation process.
In direct response to these concerns, particularly allegations of discrepancies within the gazetted laws, Mr. Oyedele previously urged Nigerians to patiently await the outcome of a thorough legislative review. The leadership of both the Senate and the House of Representatives has since taken decisive action, directing the Clerk of the National Assembly, Kamoru Ogunlana, to collaborate closely with relevant executive agencies. Their crucial mandate is to meticulously review and, where necessary, re-gazette the tax laws to ensure absolute accuracy, clarity, and strict adherence to legislative intent, providing an essential layer of governmental oversight.
These far-reaching reforms form an integral part of President Bola Tinubu’s broader economic agenda, which seeks to fundamentally overhaul Nigeria’s fiscal landscape. The administration aims to diversify revenue sources beyond the traditional reliance on oil and to establish a more predictable, efficient, and investor-friendly tax system. A streamlined, equitable, and growth-oriented tax policy is considered fundamental to achieving macroeconomic stability, attracting crucial foreign direct investment, and fostering long-term prosperity for the entire nation.
The January 1, 2026, deadline underscores the significant urgency and strategic importance attached to these comprehensive economic transformations. The period leading up to the effective date will undoubtedly involve extensive public awareness campaigns, targeted stakeholder consultations, and capacity building initiatives to ensure a smooth transition. These efforts are vital for widespread understanding and acceptance of the new fiscal framework, ultimately aiming to unlock Nigeria’s full economic potential.
