The Federal Government has confirmed that there will be no reversal in the planned implementation of Nigeria’s new tax reform laws, which are scheduled to take effect on January 1, 2026.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made this known on Friday after a meeting with President Bola Tinubu in Lagos, where he briefed him on the progress of the ongoing reforms.
Oyedele explained that four tax-related laws were signed into law as part of the reform programme. He noted that two of them, the Nigeria Revenue Service (Establishment) Act and the Joint Revenue Board of Nigeria (Establishment) Act, have already commenced since June 26, 2025.
He stated that the remaining two laws, the Nigeria Tax Act and the Nigeria Tax Administration Act, would take effect as planned on January 1, 2026, despite ongoing reviews by the National Assembly concerning the gazetting of the Acts.
According to him, the committee welcomed the decision of the House of Representatives to investigate the matter, adding that the Federal Government is ready to cooperate with the National Assembly if any action becomes necessary. However, he stressed that “the reform timeline remains unchanged.”
Oyedele said the reforms are not primarily about raising revenue but about easing the tax burden on Nigerians and supporting economic growth. He explained that “about 98 per cent of workers will either pay no personal income tax or pay less,” while “97 per cent of small businesses will be exempted from corporate income tax and VAT withholding tax.”
He added that large businesses would also enjoy lower effective tax rates, saying that the reforms were designed to promote inclusivity, shared prosperity, and improved tax compliance.
The committee chairman also noted that preparations for the reforms began in October 2024 when the bills were submitted to the National Assembly and have continued through capacity building, system upgrades, and stakeholder sensitisation since the laws were signed in June 2025.
Earlier on Friday, the National Assembly directed the re-gazetting of the tax laws to ensure clarity and accuracy of legislative records, stating that the exercise is purely administrative and does not affect the validity or authority of the Acts passed by both chambers.
