Tax Reform Not Targeted At Poor Nigerians, APC Insists

The Lagos State chapter of the All Progressives Congress (APC) has dismissed claims that the Federal Government’s newly introduced tax laws would place additional burdens on poor Nigerians, describing such assertions as misleading and politically motivated.

In a statement on Wednesday by its spokesperson, Seye Oladejo, the party said it was concerned about what it described as widespread misinformation and sensational narratives surrounding the reform, stressing that the policy was designed to protect low-income earners and create a fairer and more progressive tax system.

According to the APC, the new tax framework expands exemptions and reduces tax exposure for Nigerians within the lowest income brackets, contrary to claims by critics that the reform targets the vulnerable.

“The new tax reform is not a weapon against the poor, nor is it an attempt to overburden struggling Nigerians. On the contrary, the reform is deliberately structured to protect low-income earners, expand exemptions, and introduce a more progressive, fair, and humane tax system that aligns with global best practices,” the party said.

The APC noted that the reform seeks to address longstanding weaknesses in Nigeria’s tax system, including multiple taxation, overlapping mandates, revenue leakages, and weak enforcement, which it said have hindered economic growth and discouraged investment over the years.

It added that the policy would benefit businesses, especially Micro, Small and Medium Enterprises (MSMEs), by simplifying tax compliance, eliminating nuisance taxes, and creating a more predictable fiscal environment.

Large corporations, the party said, would also be required to contribute their fair share to national development.

Describing the reform as pro-growth and pro-investment, the APC emphasised that taxation remains a critical tool for funding infrastructure, education, healthcare, security, and social protection.

“Nigeria can no longer run a modern economy on an archaic, fragmented, and oil-dependent tax structure. For decades, the nation suffered from multiple taxation, overlapping mandates, leakages, and weak enforcement -a system that stifled businesses, discouraged investment, and rewarded tax evasion. This reform decisively confronts those failures.

“For businesses, particularly Micro, Small and Medium Enterprises (MSMEs), the reform simplifies compliance, removes nuisance taxes, and creates a more predictable fiscal environment. For large corporations, it promotes fairness by ensuring that profitable entities contribute their equitable share to national development. This is not anti-business; it is pro-growth, pro-investment, and pro-Nigeria,” it noted.

The party urged Nigerians to resist what it termed the politics of fear and distortion, calling for informed public engagement on the reform rather than partisan attacks.

While acknowledging that reforms of such scale require transparency and sensitivity in implementation, the APC said constructive criticism was welcome but warned against the spread of false information.

The APC’s statement comes amid criticisms from political actors and civil society organisations, who argue that the new tax reform would further burden Nigerians already grappling with the effects of petrol subsidy removal and the floating of the exchange rate.

According to PwC, poverty levels in Nigeria are expected to worsen significantly over the next two years, with as many as 141 million Nigerians, representing about 62 per cent of the population, projected to be living in poverty by 2026.

The projection is contained in PwC’s Nigeria Economic Outlook 2026, titled “Turning Macroeconomic Stability into Sustainable Growth”, which warns that recent policy adjustments aimed at stabilising the economy are yet to translate into tangible welfare gains for households.

THE WHISTLER reports that on June 26, 2025, President Bola Tinubu signed four Tax Reform Bills into law: the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), the Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA).

The new laws, which their implementation began on January 1, represent a comprehensive overhaul of Nigeria’s tax framework.

Speaking at an event in Lagos recently, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed that the number of active tax-paying individuals in Nigeria is currently less than 10 million.

He said the success of the new tax regime would depend largely on accurate and reliable data, noting that while the Federal Government would provide policy direction and harmonisation, states and local governments would be responsible for implementation, administration and service delivery.