No Delay: Nigeria’s Tax Reforms Set to Launch on January 1, 2026, Says FG

By Emmanuel Kwada

The Federal Government has reaffirmed its commitment to implementing key components of Nigeria’s sweeping tax reforms on January 1, 2026, dismissing calls for postponement amid recent controversies.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, made the announcement following a high-level meeting with President Bola Tinubu on Friday in Lagos. The delegation included Zacch Adedeji, Chairman of the Federal Inland Revenue Service (now transitioning to the Nigeria Revenue Service), and other key officials.

“The plan to commence the remaining two laws – the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) – on January 1, 2026, will go ahead as planned and on schedule,” Oyedele told journalists after the meeting. “These reforms are designed to provide relief to the majority of Nigerians.”

Of the four tax reform laws signed by President Tinubu in June 2025, two – the Nigeria Revenue Service (Establishment) Act and the Joint Revenue Board (Establishment) Act – took effect immediately to prepare institutions for the overhaul. The NTA and NTAA, which consolidate and modernize taxation rules, are slated for the January rollout.

Oyedele emphasized that the reforms prioritize economic growth, fairness, and inclusivity over immediate revenue hikes. “About 98% of workers will either pay no PAYE tax or pay less,” he said. “97% of small businesses will be exempt from corporate income tax, VAT, and withholding tax, while even large businesses will see a reduction in their overall tax burden.”

The assurance comes amid public concerns, including allegations of discrepancies in the gazetted versions of the laws and calls from labor unions and civil society for delays. Oyedele welcomed ongoing legislative reviews, noting the government’s openness to engagement, but stressed that the pro-people nature of the reforms justifies proceeding as scheduled.

“We are excited about the progress we’re making and looking forward to January 1, 2026,” he added, describing the changes as a pathway to sustainable revenue through broader compliance and economic expansion rather than higher rates.

The tax reforms, described as the most comprehensive in decades, aim to simplify Nigeria’s complex tax system, reduce burdens on low-income earners and small enterprises, and align with global standards while boosting investment and shared prosperity.