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The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has reaffirmed that Nigeria’s newly enacted tax reform laws will be implemented as scheduled on January 1, 2026.
Oyedele gave the assurance after a meeting with President Bola Tinubu in Lagos, ahead of the commencement of the new tax regime.
The committee’s delegation, which included Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), paid the visit on Friday to brief the President on progress and implementation plans.
New Tax Laws to Benefit Workers, Small Businesses
According to Oyedele, the planned rollout of the Nigerian Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) will not be delayed, as the reforms are designed to ease the tax burden on citizens while promoting economic growth.
“The bottom 98 percent of workers will either pay no Pay-As-You-Earn (PAYE) tax or see a reduction in the amount they pay,” he said.
He added that the reforms would significantly support small businesses across the country.
“About 97 percent of small businesses will be exempted from corporate income tax, VAT, and withholding taxes, while large businesses will benefit from reduced tax obligations.”
Oyedele explained that the reforms aim to foster economic growth, inclusivity, and shared prosperity, expressing optimism ahead of the January 2026 take-off date.
Revenue Growth Through Expansion, Not Higher Rates
The committee chairman further noted that increased government revenue would come from economic expansion rather than higher tax rates.
“Over time, revenue grows when the economy grows. People pay more not because tax rates are higher, but because the tax base has expanded,” he explained.
He also highlighted the rationalisation of inefficient tax incentives as a major component of the reforms.
“These reforms have removed several wasteful and distortionary incentives that were not beneficial to the economy.”
Oyedele added that improved tax awareness and a stronger tax culture would enhance compliance and fairness.
“When those who were previously not paying taxes begin to comply—especially those who are not low-income earners—we not only generate more revenue but also promote equity in society.”
Clarification on Alleged Discrepancies
Earlier in the week, Oyedele urged Nigerians to await the outcome of investigations by lawmakers into alleged discrepancies in the gazetted tax laws.
In response, the leadership of the Senate and the House of Representatives directed the Clerk of the National Assembly, Kamoru Ogunlana, to collaborate with relevant executive agencies to re-gazette the tax laws where necessary.
