The Nigerian Tax Act and the Nigerian Tax Administration Act will take effect on January 1, 2026, despite concerns raised by the House of Representatives over alleged alterations to the gazetted versions of the laws.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, confirmed this on Friday after briefing journalists following a meeting with President Bola Ahmed Tinubu. He said the Federal Government remains committed to the timeline, stressing that the reforms are meant to ease the tax burden and boost economic growth.
Oyedele explained that four tax reform laws have been enacted so far. Two—the Nigerian Revenue Service Establishment Act and the Joint Revenue Service Establishment Act—have already been in force since June 26, 2025, while the remaining two will commence in January 2026.
Instablog9ja, [12/27/2025 12:41 PM]
He acknowledged the House of Representatives’ concerns over alleged discrepancies between the passed and gazetted versions of the laws and said the Federal Government is open to working with the National Assembly if any corrective steps are required. However, he maintained that the commencement date will not change.
According to Oyedele, the reforms will deliver wide-ranging relief, with about 98 per cent of Nigerian workers paying little or no PAYE tax and roughly 97 per cent of small businesses exempt from corporate income tax, VAT and withholding tax. Large companies, he added, will also benefit from reduced tax liabilities.
He further noted that the reforms are not aimed at raising revenue through higher tax rates but through economic expansion, a broader tax base and improved compliance. The House of Representatives has since set up a committee to investigate the alleged alterations to the tax laws.
