Dalena Reporters l December 26, 2025
The Federal Government of Nigeria has reaffirmed that the implementation of its new tax reform laws will commence as scheduled on January 1, 2026, despite controversy and allegations regarding the legislative process, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has confirmed.
Oyedele said after meeting with President Bola Tinubu in Lagos that the start date for the Nigeria Tax Act and the Nigeria Tax Administration Act — two of the core tax reform laws is “sacrosanct” and will proceed without delay, emphasising that the reforms are designed to provide economic relief and promote growth for Nigerians.
According to Oyedele, the measures are structured to ease the tax burden on ordinary workers and businesses: about 98 per cent of workers will either pay no Pay-As-You-Earn (PAYE) tax or pay lower taxes, while 97 per cent of small businesses will be exempt from corporate income tax, value-added tax (VAT) and withholding tax. Larger companies are also expected to benefit from reduced tax obligations under the new regime.
Two other tax reform laws — the Nigeria Revenue Service (Establishment) Act and the Joint Revenue Board (Establishment) Act — have already taken effect since June 26, 2025, as part of the phased rollout of the broader tax overhaul.
Oyedele also addressed concerns about alleged alterations to the laws, welcoming the National Assembly’s engagement on the matter and affirming the government’s willingness to cooperate on clarifying any discrepancies, while maintaining that the January 1 implementation date will not be changed.
The tax reforms — described by the government as the most comprehensive overhaul of Nigeria’s tax system in decades aim to simplify administration, broaden the tax base, enhance compliance and stimulate economic activity.