The Federal Government of Nigeria remains steadfast in its commitment to initiate the new tax reforms laws on January 1, 2026. This was unequivocally stated by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who emphasized that these reforms are meticulously designed to foster economic growth, inclusivity, and shared prosperity for all Nigerians. Oyedele reiterated this position in Lagos after providing an implementation update to President Bola Tinubu, a meeting where he was accompanied by Zacchaeus Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), and Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee.

The comprehensive tax reform initiative encompasses four key laws. Two of these, the Nigerian Revenue Service Establishment Act and the Joint Revenue Service Establishment Act, have already been put into effect in June 2025. The remaining two critical pieces of legislation, the Nigerian Tax Act and the Nigerian Tax Administration Act, are slated for commencement on January 1, 2026, as planned. Oyedele welcomed the National Assembly's engagement regarding allegations of alterations to the laws, affirming the government's readiness to collaborate with the legislative body should any actions be required. He stressed that the primary objective of these reforms is to deliver tangible relief to the Nigerian populace.

Highlighting the anticipated benefits, Oyedele detailed that approximately 98 percent of workers are expected to experience either no PAYE (Pay As You Earn) tax or a reduction in their tax liabilities. Furthermore, a significant 97 percent of small businesses will benefit from exemptions from corporate income tax, Value Added Tax (VAT), and withholding tax. Even large businesses are projected to see a decrease in their tax burdens. These measures, according to Oyedele, underpin the overarching goal of stimulating economic expansion and ensuring equitable progress across society.

Preparations for the implementation have been ongoing since the tax reform bills spent nine months at the National Assembly, from October 2024 to June 2025. Following the signing of the laws, an additional six months have been dedicated to intensive preparation, capacity building, system upgrades, and public sensitization. Oyedele acknowledged that such reforms are an ongoing process, evolving towards perfection over time. He cited the earlier commencement of two tax laws as a strategic move to allow institutions, such as the office of the tax Ombuds, sufficient time to prepare and become operational.

Contrary to immediate revenue generation, the long-term vision for these reforms focuses on revenue derived from sustainable economic growth. Oyedele explained that increased revenue would stem from an expanded tax base, rather than elevated tax rates. The reforms have also streamlined numerous wasteful and distortionary incentives that were counterproductive to economic health, aiming instead to cultivate increased tax awareness and culture, thereby enhancing compliance and fostering societal fairness.

However, the proposed implementation timeline has faced strong opposition from Enough is Enough (EiE) Nigeria. The advocacy group has urged the federal government to postpone the commencement of the new tax reform laws until critical concerns regarding governance, transparency, and public trust are thoroughly addressed. EiE Nigeria argues that public confidence in the nation's tax system remains fragile, primarily due to long-standing issues surrounding transparency, accountability, and the judicious use of public funds.

Ufuoma Nnamdi-Udeh, Deputy Executive Director of Programs at EiE Nigeria, warned that proceeding with implementation without resolving these fundamental issues risks delegitimizing the reforms from their inception. This could lead to weakened voluntary compliance, increased public resistance, potential litigation, and a further erosion of confidence in public institutions. Nnamdi-Udeh emphasized that successful tax reform relies not merely on speed and enforcement, but critically on transparency, legal certainty, and robust public understanding. Without these elements, the reforms are vulnerable to failure by undermining the very trust essential for compliance.

To ensure a trustworthy and successful reform process, EiE Nigeria has outlined several governance safeguards as prerequisites for implementation. These include: making the exact versions of the tax bills passed by the National Assembly and assented to by the President publicly available, with any discrepancies between passed bills and gazetted Acts fully disclosed and lawfully corrected; conducting an independent investigation into any unlawful alterations to the tax laws post-legislative passage, coupled with the establishment of safeguards to prevent future recurrences; and proactively disclosing the Memorandum of Understanding (MoU) between FIRS and the French Government to the public, in adherence to best practices in transparency and data protection.