….insists on January 1 take-off date
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has said the Federal Government will continue to subject tax laws to regular reviews.
He spoke against the backdrop of recent allegations that some laws passed by the National Assembly were altered, stressing that the government is ready to review any law where necessary.
Oyedele disclosed this on Friday in Lagos while briefing journalists after a meeting with President Bola Tinubu ahead of the implementation of the Nigerian Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA).
“The Federal Government is committed to working with the National Assembly if and when any action is required. Therefore, the plan to commence the remaining two tax laws on January 1, 2026, will go ahead as scheduled,” he said.
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Oyedele explained that the tax reform bills spent nine months at the National Assembly, from October 2023 to June 2025, adding that preparations began from day one.
“Since the laws were signed, we have had about six months of preparation, capacity building, system upgrades and sensitisation,” he said.
“You would agree that this kind of reform is a work in progress. You never get to perfection; you get better as you go along.
“One of the reasons why two of the tax laws took effect about six months ago was to allow institutions to start getting ready.
“For example, the Office of the Tax Ombudsman cannot be set up and begin operations on the same day. All of this combined, engagement with professionals and the organised private sector, is why we continue with the consultations we have been doing.
“We believe we are in a good state to commence implementation.”
Oyedele said the committee met the President to provide an update on the implementation of the tax reform laws.
“As you are already aware, there are four tax laws. Two of them, the Nigerian Revenue Service (Establishment) Act and the Joint Revenue Service (Establishment) Act, commenced on June 26, 2025.
“The remaining two laws, the Nigerian Tax Act and the Nigerian Tax Administration Act, are scheduled to commence on January 1, 2026,” he said.
Debunking claims that the reforms would worsen hardship for Nigerians, Oyedele said President Tinubu’s tax reforms were initiated to promote inclusive economic growth and shared prosperity.
He noted that the reforms are designed to provide relief for Nigerians.
“About 98 percent of workers at the bottom of the income ladder will either pay zero tax or lower taxes. About 97 percent of small businesses will be exempt from corporate income tax, VAT and withholding tax, while large businesses will see a reduction in the taxes they pay,” he said.
“We are excited about the progress we are making and are looking forward to January 1, 2026.”
Speaking on revenue projections, Oyedele said increased revenue was not the primary objective of the reforms.
“The intention of this tax reform is not immediate revenue generation. Over time, revenue will come from economic growth, not because tax rates have gone up, but because the tax base has expanded,” he said.
He added that the reforms have already helped to eliminate wasteful and distortionary incentives that are harmful to the economy.
“We expect that as a result of this transformative tax reform, awareness of tax obligations will increase, tax culture will improve, and compliance will rise.
“When people who were not paying taxes before begin to pay, and these are not low-income earners, you not only get more revenue, you also achieve greater fairness in society,” he said.
