The Federal Government has reaffirmed that the Nigeria Tax Act and the Tax Administration Act will take effect on January 1, 2026, insisting there will be no delay despite ongoing debates over alleged discrepancies in the gazetted versions of the laws.
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, stated this on Friday after briefing President Bola Tinubu in Lagos. He said the reforms are primarily designed to ease the tax burden on Nigerians and stimulate economic growth, rather than to generate immediate revenue.
“The plan to commence the new laws on January 1, 2026, will proceed as scheduled. These reforms are intended to provide relief to the Nigerian people,” Oyedele said.
His comments came hours after the National Assembly directed the re-gazetting of the four tax reform laws following public concerns that the published versions differed from what lawmakers passed.
Oyedele explained that the reforms would significantly reduce tax obligations for most Nigerians. According to him, about 98 per cent of workers are expected to pay little or no personal income tax, while approximately 97 per cent of small businesses will be exempt from corporate income tax, value-added tax, and withholding tax. He added that large companies would also benefit from lower tax rates.
“These reforms are meant to promote economic growth, inclusivity, and shared prosperity. We are encouraged by the progress so far and are looking forward to January 1, 2026,” he said.
Addressing concerns about readiness for implementation, Oyedele noted that preparations have been ongoing for several months. He explained that work began when the bills were first submitted to the National Assembly in October 2024 and continued after the laws were signed in June 2025, with capacity building, system upgrades, and public sensitisation already underway.
He acknowledged that tax reforms are an evolving process but stressed that the government is confident it has reached a stage where implementation can begin effectively.
Oyedele also clarified that the reforms are not aimed at short-term revenue generation. Instead, he said increased revenue would come over time through economic growth, expansion of the tax base, reduction of inefficient incentives, and improved compliance.
“When the economy grows, revenue grows naturally — not because rates increase, but because more people and businesses are participating fairly in the system,” he explained.
Two of the four tax laws — the Nigeria Revenue Service Establishment Act and the Joint Revenue Board Establishment Act — have already taken effect since June 26, 2025, to allow the institutions to prepare ahead of full implementation.
The renewed insistence on the January 1 start date comes amid controversy sparked earlier this month when a lawmaker raised concerns that certain provisions in the gazetted laws were not approved by the National Assembly. These reportedly included expanded enforcement powers and other fiscal measures.
In response, the National Assembly ordered the re-gazetting of the laws and the issuance of Certified True Copies to accurately reflect what was passed by both chambers. Lawmakers stressed that the move was an administrative step aimed at preserving legislative integrity and clarifying the official record.
An ad hoc committee has also been set up to investigate the circumstances surrounding the passage, presidential assent, and gazetting of the tax reform laws.
Despite the controversy, the Federal Government maintains that the reforms will proceed as planned, describing them as a critical step toward a fairer, growth-driven tax system for Nigeria.
