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With just four days to the planned implementation of Nigeria’s newly enacted tax reform laws, sharp divisions have emerged among key stakeholders, as organised labour and small business groups warn of possible resistance, while manufacturers express optimism.
The Nigeria Labour Congress (NLC) has threatened to revolt against the implementation of the tax laws scheduled to take effect from January 1, 2026, citing lack of consultation, poor public awareness, and fears of increased hardship for workers and small businesses.
Labour Says It Was Excluded
The NLC said it was neither consulted during the drafting of the tax reform bills nor adequately informed after their passage by the National Assembly and assent by President Bola Tinubu.
Raising concerns over timing, clarity, and implementation, the congress warned that the reforms could deepen citizens’ financial burdens, stifle small businesses, and slow economic activity.
“At the level of the congress, we do not even know what these laws contain, yet we are the largest tax-paying community in the country,” said NLC spokesperson Benson Upah.
He described the absence of sensitisation and public enlightenment as “an affront and a clear disrespect to citizens.”
“The right to know what is going on is not a privilege; it is a right. Nobody is doing us any favour,” Upah added.
Demand for Transparency and Public Enlightenment
The NLC called for comprehensive public education on the content and objectives of the tax reforms before implementation.
Upah also expressed concern over reports of plans to introduce tax agents, describing the idea as unclear and unacceptable.
“The processes of tax collection, warehousing of proceeds, and utilisation must be transparent. If not, the people — not just labour — will revolt,” he warned.
Labour leaders further criticised their exclusion from the Presidential Committee on Fiscal Policy and Tax Reforms, despite workers being Nigeria’s largest tax-paying group.
“How can anybody shave our head in our absence? Our input was necessary,” Upah said.
He warned that high taxes combined with opaque spending would only encourage tax evasion and public resistance.
Manufacturers Back the Reforms
In contrast, the Manufacturers Association of Nigeria (MAN) welcomed the reforms, saying the new tax laws would be business-friendly and beneficial to manufacturers.
However, small and medium-scale enterprises (SMEs) and the Employers Association for Private Employment Agencies of Nigeria called for a suspension of implementation, citing low awareness levels and inadequate stakeholder engagement.
Oyedele Warns Against Delay
Defending the reforms, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, warned that delaying implementation could drive up the cost of basic goods and services, including food, healthcare, and education.
He argued that postponement would mean retaining the current tax system, which he said disproportionately burdens workers and small businesses.
Background: Nigeria’s New Tax Laws
The controversial tax reforms became law on June 26, when President Tinubu signed four major tax reform bills, described by the government as the most significant overhaul of Nigeria’s tax system in decades.
The laws include:
- Nigeria Tax Act
- Nigeria Tax Administration Act
- Nigeria Revenue Service (Establishment) Act
- Joint Revenue Board (Establishment) Act
All will operate under a single authority — the Nigeria Revenue Service.
Allegations of Discrepancies
The reforms came under renewed scrutiny last week after Abdussamad Dasuki (PDP, Sokoto), a member of the House of Representatives, alleged discrepancies between the versions of the tax bills passed by lawmakers and those later gazetted and released to the public.
Dasuki insisted that the published laws did not reflect what lawmakers debated, voted on, and approved during plenary.
