FG Insists New Tax Regime Will Begin January 1, 2026, Says Reforms Are Non-Negotiable

The Federal Government has reiterated its firm commitment to the implementation of Nigeria’s newly enacted tax reform laws, declaring that there will be no reversal or postponement of their commencement date of January 1, 2026. Despite rising public debate, apprehension, and political controversy surrounding the reforms, the government insists that the new tax framework is essential for long-term economic stability and inclusive growth.

This position was made clear by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, following a high-level meeting with President Bola Ahmed Tinubu in Lagos. Oyedele briefed the President on the progress made so far in preparing for the reforms and emphasized that the administration remains fully aligned with the original implementation timeline.

According to Oyedele, four major tax-related laws were signed as part of the comprehensive reform programme. Two of these—the Nigeria Revenue Service (Establishment) Act and the Joint Revenue Board of Nigeria (Establishment) Act—have already taken effect since June 26, 2025. The remaining two, namely the Nigeria Tax Act and the Nigeria Tax Administration Act, are scheduled to commence on January 1, 2026, as originally planned.

This clarification comes against the backdrop of recent actions by the National Assembly, which ordered the re-gazetting of the tax laws and the issuance of Certified True Copies (CTCs) following allegations of discrepancies between the versions passed by lawmakers and those gazetted for public use. Oyedele welcomed the legislature’s decision to investigate the matter, stressing that the Federal Government is open to cooperating with the National Assembly to resolve any administrative issues. However, he was unequivocal that such reviews would not derail the reform agenda or alter the commencement date.

Importantly, the committee chairman sought to dispel widespread fears that the reforms are designed to impose heavier burdens on already struggling Nigerians. He explained that the core objective of the tax reforms is to provide economic relief, broaden the tax base fairly, and stimulate growth, rather than to increase government revenue in the short term.

Oyedele revealed that under the new tax regime, approximately 98 per cent of Nigerian workers would either pay no personal income tax at all or pay significantly less than they currently do. In addition, about 97 per cent of small businesses will be exempt from corporate income tax and VAT withholding tax, a move aimed at supporting entrepreneurship and easing pressure on micro, small, and medium-sized enterprises (MSMEs).

He further noted that even large businesses stand to benefit from lower effective tax rates, arguing that the reforms are structured to encourage voluntary compliance, reduce tax evasion, and create a more transparent and predictable fiscal environment. According to him, a fairer and simpler tax system would ultimately strengthen trust between the government and taxpayers.

Oyedele explained that preparations for the reforms did not begin abruptly. He said the process started as far back as October 2024, when the tax reform bills were first submitted to the National Assembly. Since the laws were signed in June 2025, the government has focused on capacity building, system upgrades, stakeholder engagement, and nationwide sensitisation to ensure a smooth rollout.

Nevertheless, public reaction to the reforms has been sharply divided. While some Nigerians and policy analysts describe the changes as a step in the right direction toward fiscal responsibility and accountability, others remain deeply skeptical. Critics argue that taxation without visible public services—such as reliable electricity, quality roads, security, and healthcare—amounts to undue hardship on citizens. There are also concerns that confusion surrounding the laws’ gazetting has weakened public trust in the process.

The Federal Government, however, maintains that the reforms are unavoidable if Nigeria is to reduce its dependence on borrowing and volatile oil revenues. Officials argue that a modern, efficient tax system is critical for funding development, strengthening governance at all levels, and holding public office holders accountable through citizen participation.

As January 1, 2026 draws closer, it is clear that the debate over the new tax laws will continue. While the government insists there is “no going back,” public acceptance of the reforms may ultimately depend on how transparently they are implemented and whether Nigerians begin to see tangible improvements in governance and service delivery.