The Federal Government has reaffirmed its commitment to commence the implementation of the remaining two recently signed tax reform laws on January 1, 2026, despite ongoing controversy over alleged alterations to the legislation.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made this known after leading a delegation to brief President Bola Ahmed Tinubu at his Lagos residence. The delegation included the Chairman of the Nigerian Revenue Service (NRS), Zacch Adedeji, and the Chairman of the National Tax Policy Implementation Committee, Joseph Tegbe.
Oyedele explained that the meeting was convened to update the President on the progress made in implementing the four landmark tax reform laws signed earlier in the year. He noted that two of the laws—the Nigerian Revenue Service (Establishment) Act and the Joint Revenue Service (Establishment) Act—have already taken effect since June 26, 2025.
“The remaining two laws—the Nigerian Tax Act and the Nigerian Tax Administration Act—are scheduled to commence on January 1, 2026, and that timeline remains unchanged,” Oyedele said.
He added that the Federal Government welcomed the recent position of the House of Representatives Committee that reviewed allegations of alterations to the laws, stressing that the Executive remains open to further engagement with the National Assembly where necessary.
“We welcome the statement by the House Committee on its findings regarding the allegations. The Federal Government is committed to working with the National Assembly if and when any action is required,” he said.
According to Oyedele, the decision to proceed with implementation as scheduled is driven by the people-centred nature of the reforms, which are aimed at easing the tax burden on Nigerians and stimulating economic growth.
“These reforms are designed to provide relief to the Nigerian people. That is why implementation will go ahead as planned,” he stated.
He disclosed that under the new tax regime, the vast majority of Nigerian workers and small businesses would benefit from significantly reduced tax obligations.
“About 98 per cent of workers will either pay no PAYE tax or pay less. Similarly, 97 per cent of small businesses will be exempt from Corporate Income Tax, VAT and Withholding Tax, while large businesses will also experience lower tax rates,” Oyedele explained.
He said the overarching objective of the reforms is to promote economic growth, inclusivity and shared prosperity, expressing confidence ahead of the January 2026 rollout.
On the level of preparedness, Oyedele said implementation planning began as soon as the bills were transmitted to the National Assembly in October 2024, adding that the period since presidential assent has been devoted to capacity building, system upgrades and public sensitisation.
“This is a continuous reform process. You don’t reach perfection at once; you improve over time. We believe we are ready to proceed,” he noted.
He further explained that the staggered commencement of the laws was deliberate, allowing newly created institutions—such as the Office of the Tax Ombudsman—to become operational ahead of full implementation.
Speaking on revenue expectations, Oyedele clarified that the reforms are not aimed at immediate revenue generation but at long-term economic expansion and improved tax compliance.
“The focus is growth. As the economy grows and more people comply, revenue will follow in a fair and sustainable manner,” he said.
Meanwhile, the National Assembly has responded to public concerns surrounding the legislative process of the tax laws, stating that it is addressing the issues strictly within its constitutional and statutory mandate.
In a statement signed by Bullah Audu Bi-Allah, Director of Information for the Clerk to the National Assembly, the legislature said it had noted public commentary on the passage, presidential assent and gazetting of the four tax-related Acts.
The statement said relevant committees, in collaboration with the management of the National Assembly, are conducting an internal review in line with the Constitution, the Acts Authentication Act, parliamentary standing orders and established legislative practice.
As part of the process, the Clerk to the National Assembly has been directed to facilitate the publication of the Acts in the Official Gazette and to issue certified true copies to stakeholders and the public on demand.
The National Assembly stressed that the review is strictly administrative and does not imply any defect in the exercise of legislative authority by either chamber.
Reaffirming its commitment to constitutionalism, separation of powers and due process, the legislature urged the public to allow its institutional processes to proceed without speculation, assuring that further information would be provided as necessary.
Comments