The Federal Authorities (FG) has as soon as once more confirmed that Nigeria’s new tax reform legal guidelines will take impact on January 1, 2026, dismissing requires postponement amid ongoing debates and considerations over ultimate legislative processes.
The reassurance got here after a **high-level assembly between President Bola Ahmed Tinubu and members of the Presidential Committee on Fiscal Coverage and Tax Reforms, led by Chairman Taiwo Oyedele. The group additionally included officers comparable to Zacchaeus Adedeji, Chairman of the Federal Inland Income Service (FIRS), and Joseph Tegbe, Chairman of the Nationwide Tax Coverage Implementation Committee.
“The plan to begin the remaining two tax legal guidelines on January 1, 2026, will go forward as scheduled as a result of these reforms are designed to supply reduction to the Nigerian folks,” Oyedele stated after the assembly.
What the Tax Reforms Imply
The upcoming section of the reforms — centred on the Nigeria Tax Act and the Nigeria Tax Administration Act — follows earlier graduation of the Nigeria Income Service (Institution) Act and the Joint Income Board (Institution) Act in June 2025.
Authorities statements emphasise that the reforms are “pro-people” in design, concentrating on reduction for each staff and companies:
- About 98 per cent of staff are anticipated to pay no Pay-As-You-Earn (PAYE) tax or decrease quantities beneath the brand new system.
- Roughly 97 per cent of small companies will likely be exempted from Company Revenue Tax, Worth Added Tax (VAT), and Withholding Tax, a major transfer to assist entrepreneurship and assist MSMEs develop.
- Bigger firms will profit from diminished efficient tax charges beneath the revised framework.
The reforms are anticipated to simplify the tax construction, promote financial progress, improve inclusivity, and strengthen compliance, with a long-term view towards boosting funding and lowering the price of doing enterprise.
Ongoing Legislative Clarifications
Regardless of the reaffirmation of the implementation date, the Nationwide Meeting has directed the re-gazetting of the tax reform legal guidelines and the issuance of licensed true copies of the variations handed by each chambers, following public considerations about discrepancies between handed payments and gazetted variations. Lawmakers stress that this train is administrative and doesn’t have an effect on the authorized timeline for the reforms to take impact.
The FG has welcomed the legislature’s evaluate and reiterated willingness to collaborate the place crucial to make sure readability and transparency within the course of.
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