In a decisive move that underscores his administration's economic agenda, President Bola Ahmed Tinubu has reaffirmed that Nigeria's newly enacted tax reform laws will take full effect as scheduled on January 1, 2026, brushing aside mounting objections and calls for suspension from various stakeholders across the country. The President's position was clearly articulated in a personally signed statement released on the evening of December 30, 2025, just hours before the dawn of the new year, signaling an unwavering commitment to what he described as a transformative fiscal overhaul.
The statement comes at a critical juncture, as Nigeria grapples with economic challenges including inflation, low revenue mobilization, and the need for sustainable growth. President Tinubu emphasized that the reforms represent "a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country." He clarified that the new laws, comprising four key acts signed into law on June 26, 2025—the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board of Nigeria (Establishment) Act—are not intended to impose higher taxes on citizens. Instead, they aim to achieve a "structural reset," promote harmonization across tax regimes, protect the dignity of taxpayers, and strengthen the social contract between the government and the people.
Two of these acts, focused on establishing new institutional frameworks, commenced operations earlier in 2025 to facilitate preparatory work. The remaining provisions, particularly those in the Nigeria Tax Act and Tax Administration Act, are set to activate on January 1, 2026. Tinubu urged all stakeholders— including businesses, civil society, and government agencies—to rally behind the implementation phase, which he noted has now entered a firm delivery stage.
The President's announcement has not been without controversy. Public discourse has intensified in recent weeks over allegations that certain provisions in the gazetted versions of the laws differ from what was debated and passed by the National Assembly. Critics, including opposition figures like former Vice President Atiku Abubakar, the Nigerian Bar Association (NBA), labor unions, small and medium enterprise (SME) operators, and some lawmakers, have raised concerns about potential irregularities, describing them as constitutional risks that could undermine democratic processes. Some have gone as far as labeling the alleged discrepancies as acts of "forgery" or even "treason," demanding a full investigation, suspension of implementation, and possible legal action.
In response, Tinubu acknowledged the ongoing debates but firmly stated that "no substantial issue has been established that warrants a disruption of the reform process." He stressed that building absolute trust in governance requires consistent, thoughtful decision-making rather than "premature, reactive measures." Reaffirming his administration's dedication to due process and the integrity of enacted legislation, the President pledged close collaboration with the National Assembly to swiftly address and resolve any identified concerns. "I assure all Nigerians that the Federal Government will continue to act in the overriding public interest to ensure a tax system that supports prosperity and shared responsibility," he concluded.
The tax reforms, spearheaded by the Presidential Fiscal Policy and Tax Reforms Committee chaired by Taiwo Oyedele, are designed to modernize Nigeria's outdated and fragmented tax system. Key highlights include exemptions for small businesses with turnovers below certain thresholds from major taxes like Company Income Tax, Value Added Tax (VAT), and withholding tax; reduced corporate tax rates for larger firms; higher personal income tax exemptions to relieve low- and middle-income earners; and the consolidation of multiple overlapping tax laws into a unified framework. Proponents argue that these changes will broaden the tax base without increasing burdens on the majority, potentially boosting compliance, reducing evasion, and aligning Nigeria with global best practices.
Oyedele, in recent briefings following meetings with the President, has defended the timeline, asserting that delays could exacerbate economic hardships by perpetuating inefficiencies. He highlighted benefits such as nearly 98% of workers paying no or lower Pay As You Earn (PAYE) taxes and 97% of small enterprises gaining full exemptions. Manufacturers and large business associations have expressed excitement, viewing the reforms as incentives for investment and growth.
However, opposition remains vocal. Labor groups and SME representatives have threatened protests, citing inadequate public sensitization and fears of hidden burdens. Student bodies like the National Association of Nigerian Students (NANS) have issued ultimatums, while some northern lawmakers previously resisted elements perceived as unfavorable to regional interests. Legal challenges have also emerged, with suits seeking injunctions against implementation pending investigations into the gazetting process.
Despite these headwinds, the administration appears resolute. The National Assembly has initiated reviews and ordered re-gazetting of certified true copies to address discrepancies, but this has not altered the executive's stance on the commencement date. As Nigeria steps into 2026, these reforms could mark a pivotal shift in fiscal policy, aiming to elevate the country's tax-to-GDP ratio from its current low levels toward more sustainable figures without alienating the populace.
The broader context underscores the urgency: Nigeria's reliance on oil revenues has long exposed it to volatility, and non-oil tax collections need bolstering to fund infrastructure, social programs, and debt servicing. If successfully implemented, the laws could foster inclusivity, stimulate economic activity, and enhance revenue efficiency. Yet, the success will hinge on transparent execution, effective communication, and responsive adjustments to legitimate concerns.
President Tinubu's statement serves as a clarion call for unity behind the reforms, positioning them as essential for long-term prosperity. As the clock strikes midnight into the new year, Nigerians await the practical rollout, hopeful that this "once-in-a-generation" initiative delivers on its promises of fairness and shared progress while navigating the turbulent waters of public skepticism.
