The Federal Government has reaffirmed that the Nigerian Tax Act and the Nigerian Tax Administration Act will take effect from January 1, 2026, despite concerns raised by the House of Representatives over alleged alterations to the gazetted versions of the laws.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, disclosed this while briefing journalists after a meeting with President Bola Ahmed Tinubu, stressing that the implementation timeline remains unchanged.
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Oyedele said the government is fully committed to the tax reform programme, which he described as a critical component of the administration’s broader strategy to ease the tax burden on Nigerians, promote economic growth, and improve fairness in the tax system.
His comments came against the backdrop of recent deliberations by the House of Representatives Committee following allegations that certain provisions of the tax reform laws differed from what was originally passed by lawmakers.
Oyedele welcomed the engagement of the National Assembly on the matter, noting that the Federal Government remains open to working with legislators if any remedial actions are deemed necessary.
However, he emphasised that such discussions would not affect the scheduled commencement of the two remaining laws.
According to Oyedele, four tax reform laws have been enacted under the ongoing reform programme, with two already in force.
He said the Nigerian Revenue Service Establishment Act and the Joint Revenue Service Establishment Act commenced on June 26, 2025, deliberately ahead of the broader reforms to allow new institutions created by the laws to begin operations and prepare for full implementation.
He explained that the remaining two statutes—the Nigerian Tax Act and the Nigerian Tax Administration Act—are scheduled to commence on January 1, 2026, as originally planned.
“The plan to commence the new laws on January 1, 2026, will go ahead as scheduled because these reforms are designed to provide relief to the Nigerian people,” Oyedele said.
Providing details on the expected impact of the reforms, Oyedele said the new tax framework would deliver significant relief across the economy.
He noted that about 98 per cent of Nigerian workers would either pay no Pay-As-You-Earn tax or pay lower amounts, while approximately 97 per cent of small businesses would be exempt from corporate income tax, value-added tax, and withholding tax.
Large companies, he added, would also benefit from reduced tax liabilities under the revised regime.
The tax reforms, according to him, are designed to promote inclusivity, shared prosperity, and sustainable economic growth rather than to raise revenue through higher tax rates.
He stressed that the focus is on expanding economic activity, widening the tax base, and improving compliance.
Oyedele further disclosed that the tax reform bills spent about nine months at the National Assembly between October 2024 and June 2025, providing sufficient time for preparations ahead of implementation.
Since the laws were signed, he said the government has devoted the past six months to capacity building, system upgrades, and extensive stakeholder sensitisation.
He also noted that the reforms have removed what he described as wasteful and distortionary tax incentives, a move expected to enhance efficiency and fairness within the tax system.
Improved tax awareness and a stronger tax culture, he added, would further support compliance and revenue growth over time.
Describing tax reform as an ongoing process, Oyedele said the framework would continue to evolve in response to feedback and economic realities, but maintained that the January 2026 commencement date for the Nigerian Tax Act and the Nigerian Tax Administration Act remains firm.