The Nigerian Tax Act and the Nigerian Tax Administration Act will take impact from January 1, 2026, regardless of issues raised by the Home of Representatives over alleged alterations to the gazetted variations of the legal guidelines.
Chairman of the Presidential Committee on Fiscal Coverage and Tax Reforms, Taiwo Oyedele, disclosed this whereas briefing journalists after a gathering with President Bola Ahmed Tinubu on Friday.
Oyedele mentioned the federal government stays dedicated to the implementation timeline, stressing that the reforms are geared toward easing the tax burden on Nigerians and stimulating financial progress.
The assertion follows latest deliberations by the Home of Representatives Committee on allegations that some provisions of the tax reform legal guidelines differed from what lawmakers initially handed.
What Oyedele is saying
Oyedele defined that 4 tax reform legal guidelines have been enacted, with two already in drive.
In keeping with him, the Nigerian Income Service Institution Act and the Joint Income Service Institution Act commenced on June 26, 2025.
He added that the remaining two legal guidelines—the Nigerian Tax Act and the Nigerian Tax Administration Act—are scheduled to start on January 1, 2026.
Oyedele welcomed the Home Committee’s engagement on the alleged alterations and mentioned the Federal Authorities is prepared to work with the Nationwide Meeting if any remedial motion is required.
Nevertheless, he emphasised that the graduation of the 2 remaining legal guidelines will proceed as deliberate.
“The plan to start the brand new legal guidelines on January 1, 2026, will go forward as scheduled as a result of these reforms are designed to supply reduction to the Nigerian individuals,” he mentioned.
Tax reduction for staff and companies
In keeping with Oyedele, the reforms will ship important tax reduction throughout the economic system.
- He mentioned about 98% of Nigerian staff will both pay no PAYE tax or pay decrease taxes beneath the brand new framework.
- He additionally famous that roughly 97% of small companies shall be exempt from company earnings tax, VAT, and withholding tax, whereas giant corporations will profit from diminished tax liabilities.
- The reforms, he mentioned, are supposed to advertise financial progress, inclusivity, and shared prosperity.
Oyedele mentioned the tax reform payments spent 9 months on the Nationwide Meeting between October 2024 and June 2025, permitting preparations to start early.
For the reason that legal guidelines had been signed, he mentioned the federal government has spent the final six months on capability constructing, system upgrades, and stakeholder sensitisation.
He defined that the early graduation of two of the legal guidelines was deliberate, enabling new establishments to start operations and put together forward of full rollout in 2026.
In keeping with him, tax reform is an ongoing course of that improves over time.
Income progress by way of enlargement, not increased charges
Oyedele confused that the reforms usually are not designed to boost rapid income by rising tax charges.
As a substitute, he mentioned the main target is on rising income by way of financial enlargement, widening the tax base, and enhancing compliance.
He added that the reforms have eliminated wasteful and distortionary tax incentives, which ought to enhance equity and effectivity within the tax system.
Improved tax consciousness and a stronger tax tradition, he mentioned, are anticipated to additional improve compliance.
Backstory
Earlier this month, a member of the Home of Representatives, Hon. Abdulsammad Dasuki (PDP, Sokoto), had raised issues over alleged discrepancies between the newly gazetted tax reform legal guidelines and the variations handed by the Nationwide Meeting.
- In keeping with him, his overview of the gazetted copies of the tax legal guidelines revealed materials variations from what was debated, harmonised, and accepted by the Home of Representatives and the Senate.
- This allegation has led to requires the suspension of the implementation of the tax legal guidelines.
- On Friday, the Home of Reps Spokesman, Akin Rotimi acknowledged that the Inexperienced Chamber has inaugurated a committee to “set up the sequence of occasions and establish any elements that will have contributed to the circumstances surrounding the legislative and administrative dealing with of the Acts.”
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