The Nigerian government will proceed with the implementation of the Nigerian Tax Act and the Nigerian Tax Administration Act from January 1, 2026, despite objections raised by the House of Representatives over alleged discrepancies in the gazetted versions of the laws.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, confirmed the timeline on Friday after briefing journalists on the outcome of a meeting with President Bola Ahmed Tinubu. He said the reforms remain central to the administration’s economic agenda and are designed to ease the tax burden on citizens while supporting growth.
Oyedele explained that four tax reform laws have been enacted so far, with two already operational. The Nigerian Revenue Service Establishment Act and the Joint Revenue Board Establishment Act, he said, came into force on June 26, 2025, allowing new institutions to begin preparations ahead of the broader reforms scheduled for 2026.
According to him, the remaining two laws will commence as planned, even as the Federal Government engages with lawmakers over claims that the versions passed by the National Assembly differ from those gazetted. He noted that the government is open to corrective steps if required but stressed that the implementation date would not be shifted.
The reforms, Oyedele said, are expected to deliver wide-ranging tax relief. Under the new framework, about 98 percent of Nigerian workers will either pay no personal income tax or face reduced PAYE obligations, while roughly 97 percent of small businesses will be exempt from corporate income tax, VAT, and withholding tax. Larger companies are also expected to benefit from lower effective tax burdens.
He added that the reforms are not aimed at boosting revenue through higher tax rates but through economic expansion, improved compliance, and a broader tax base. The removal of inefficient tax incentives, he said, would improve fairness and efficiency across the system.
Oyedele noted that the tax bills spent nine months in the National Assembly, giving the government time to prepare for implementation through capacity building, system upgrades, and stakeholder engagement. He described tax reform as a continuous process that would evolve over time to meet economic realities.
The House of Representatives had earlier set up a committee to investigate allegations that the gazetted laws differ from the versions approved by lawmakers, a development that has fueled calls for a suspension. The Federal Government, however, maintains that the reforms followed due process and remain critical to achieving inclusive growth and shared prosperity.
