Despite public outcry, Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, says Nigeria’s new tax laws will take effect on January 1, 2026, as scheduled, dismissing calls for a possible delay.
Oyedele said the government would not suspend the mplementation of the Nigerian Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) scheduled for January 1, arguing that they are designed to reduce the tax burden on most Nigerians and stimulate economic growth.
Oyedele stated this while addressing newsmen following the visit of the National Tax Policy Implementation Committee (NTPIC), chaired by Joseph Tegbe, to President Bola Tinubu at his residence in Lagos.
The delegation also included Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS).
He promised that the reforms under the new tax laws are intended to provide relief to Nigerians and stimulate economic growth, inclusivity, and shared prosperity.
According to Oyedele, “About 98 per cent of workers will either pay no PAYE tax or pay less. For businesses, 97 per cent of small enterprises will be exempt from corporate income tax, VAT and withholding tax, while large companies will also see reductions in what they pay. The whole idea is to grow the economy in a fair and sustainable way,” he said.
“That is why we are confident and looking forward to January 1, 2026,” he added.
Oyedele said the government expects revenue to rise over time, not through higher tax rates but through economic expansion and better compliance.
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“When the economy grows, the tax base expands,” he said. “People pay not because rates are higher, but because more people and businesses are participating.”
He added that the reforms have removed what he described as wasteful and distortionary tax incentives, while also strengthening tax culture and compliance.
“If people who were not paying before begin to pay — and these are not low-income earners — society gains both revenue and fairness,” he said.
Labour unions, Civil Society groups and other prominent Nigerians have raised concerns over the new tax regime.
Infact, earlier this week, Oyedele had urged Nigerians to await the outcome of a legislative review into the alleged discrepancies in the gazetted laws.
The leadership of the National Assembly has directed the clerk of the National Assembly, Kamoru Ogunlana, to work with relevant executive agencies to re-gazette the tax laws where necessary.
