The Federal Government of Nigeria has firmly rejected calls for delay or suspension, confirming that the remaining provisions of the landmark tax reform laws will take effect as scheduled on January 1, 2026.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made the declaration on Friday after briefing President Bola Tinubu in Lagos. The meeting, attended by Federal Inland Revenue Service (FIRS) Chairman Zacchaeus Adedeji and National Tax Policy Implementation Committee Chairman Joseph Tegbe, underscored the administration's commitment to the rollout.
“The plan to commence the two remaining new laws on the first of January 2026 will go ahead as planned, on schedule, because these reforms are designed to provide relief to the Nigerian people,” Oyedele told journalists. He described the changes as pro-people, aimed at fostering economic growth, inclusivity, and shared prosperity rather than immediate revenue generation.
The four laws—signed by President Tinubu on June 26, 2025—include the Nigeria Revenue Service (Establishment) Act and Joint Revenue Board (Establishment) Act, which commenced in June to enable institutional setup, and the Nigeria Tax Act and Nigeria Tax Administration Act, set for full activation next month. Preparations, including capacity building, system upgrades, and stakeholder engagement, have been underway since the bills were submitted to the National Assembly in October 2024.
Oyedele highlighted significant relief measures: approximately 98% of workers will pay no or reduced personal income tax (PAYE), while 97% of small businesses will be exempt from corporate income tax, VAT withholding, and related obligations. Large businesses are expected to benefit from lower effective rates overall.
The announcement comes amid heightened controversy over alleged discrepancies between the versions of the laws passed by the National Assembly and those gazetted. House of Representatives member.
Oyedele welcomed the National Assembly's review, stating the government is open to collaboration. “We welcome the statement by the National Assembly... and we are ready to work with them to address concerns,” he said. However, he dismissed viral documents purporting to detail alterations as misleading, noting that delaying implementation would perpetuate overtaxation on low-income earners and small businesses, potentially harming vulnerable groups.
