The Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has raised serious concerns over the potential impact of a tax reform delay beyond the scheduled January 1, 2026, implementation date.
According to Oyedele, postponing the rollout of Nigeria’s newly enacted tax laws could have adverse consequences for both workers and businesses nationwide.
Speaking on Channels Television’s The Morning Brief on Monday, Oyedele warned that failing to implement the reforms would perpetuate multiple taxation, disproportionately affecting 98 percent of Nigerian workers.
“The implication of not implementing the new tax laws by January 1, 2026, is that the bottom 98 per cent of workers remain overtaxed,” he said.
The warning comes amid growing controversy over alleged discrepancies between the versions of the tax laws passed by the National Assembly and those later gazetted.
Concerns were first raised last week by House of Representatives member Abdulsamad Dasuki, who claimed that the gazetted laws did not reflect what was approved on the floor of the House.
Civil society groups, political actors, and prominent figures such as former Vice President Atiku Abubakar and Labour Party presidential candidate Peter Obi have called for a suspension of the laws’ enforcement.
However, Oyedele stressed that a tax reform delay would be far more detrimental than proceeding with the rollout while addressing discrepancies.
“Businesses will miss out on exemptions and will continue paying multiple taxes, creating large burdens. Minimum taxes continue to apply on low and small unprofitable businesses, while hidden VAT keeps the prices of basic consumables like food, healthcare, and education high,” he said.
Oyedele advised that concerns over discrepancies should be addressed directly rather than suspending the law.
“Even if it is established that there have been substantial alterations to what the National Assembly passed, my view is to identify those provisions—they are not part of the law—then implement the law as passed by the NASS while addressing the issues as to how they got there in the first place,” he explained.
The chairman also acknowledged that certain technical aspects of the legislation might require amendments.
“Even my committee and I have noted areas where we need to go back through Mr President to request amendments to those laws because of issues with referencing and definition,” Oyedele stated.
On specific concerns regarding Section 41(8), reportedly requiring a 20 percent deposit, Oyedele clarified that the provision was part of a draft gazette but not in the final gazetted version.
“Some people decided to circulate the report before the committee had met. The media reports did not come from the committee set up by the House of Representatives,” he said.
The four major tax reform bills, described by the government as the most significant overhaul of Nigeria’s tax system in decades, are scheduled to take effect on January 1, 2026.
- These include:
- Nigeria Tax Act
- Nigeria Tax Administration Act
- Nigeria Revenue Service (Establishment) Act
- Joint Revenue Board (Establishment) Act
All four laws operate under the newly established Nigeria Revenue Service, which aims to simplify tax compliance, broaden the tax base, and modernize revenue collection across federal, state, and local levels.
Oyedele’s warning underscores the urgency for timely implementation of the reforms.
A tax reform delay could hinder economic relief for small and medium-sized businesses and stall improvements in fiscal efficiency.
By contrast, timely enforcement would enable businesses to benefit from exemptions, reduce overlapping taxes, and provide relief to ordinary workers.
The chairman further explained that while opposition from some lawmakers had emerged before the passage of the reforms, the overarching goal remains to create a modern, transparent, and accountable tax system.
“Price increases are not, in themselves, unlawful. However, conduct that exploits consumers or takes unfair advantage of heightened seasonal demand may attract regulatory attention,” he said, highlighting the need for structured oversight.
Oyedele also clarified procedural uncertainties surrounding the gazetted laws. “Before you can say there is a difference between what was gazetted and what was passed, we have what has not been gazetted. We don’t have what was passed. Only the lawmakers can say authoritatively what we sent,” he noted.
In conclusion, Oyedele urged stakeholders to support the implementation of the new tax framework without unnecessary delays.
“A tax reform delay will not just hurt workers and businesses; it will undermine the broader objectives of economic growth, fiscal discipline, and equitable revenue mobilization,” he warned.
With the January 1, 2026, rollout date approaching, all eyes are on government agencies, lawmakers, and businesses to ensure a smooth transition to a more transparent and efficient tax system.
Failure to act promptly could exacerbate economic pressures on ordinary Nigerians and small business operators who rely on timely relief from the current cumbersome taxation regime.
About The Author
