When President Bola Tinubu signed the four Tax Reforms into law on June 26, 2025, there was a public outcry from Nigerians.
There were concerns that the new laws would worsen the burden on citizens and businesses, especially amidst the harsh economic realities in the country.
The Nigeria Labour Congress (NLC) condemned the law, insisting that it was drafted without consultation with labour groups and that no briefing was provided after its passage and presidential assent.
The Congress lamented that the reforms could increase hardship, hurt small businesses, and slow economic activity if rolled out without transparency and proper engagement.
In December 2025, a member of the House of Representatives, Rep. Abdussamad Dasuki (representing Kebbe/Tambuwal Federal Constituency of Sokoto State), raised an alarm over alleged discrepancies between tax laws passed by the National Assembly and the versions later gazetted and released to the public.
“I was here, I gave my vote, and it was counted, and I am seeing something completely different,” Dasuki had said, adding that copies of the gazetted laws obtained from the Ministry of Information did not reflect what was approved by both the House and the Senate.
The Chartered Institute of Taxation of Nigeria, while reacting to Dasuki’s outcry, had warned of the risks to which the country may be exposed.
The institute stated that such developments pose serious risks to governance, legal certainty, and public confidence.
Former presidential candidate, Peter Obi, raised concerns over trust deficits, policy clarity, and worsening hardship for citizens.
Clarifying the Controversy: Inside the Tax Reforms
Naijaonpoint reports that President Tinubu signed four major tax reform bills into law.
These reforms are meant to overhaul Nigeria’s tax system and make it simpler for citizens and businesses. The four bills are:
Nigeria Tax Act, 2025 – The main law that merges personal income tax, company tax, capital gains tax, and other taxes into a single framework.
Nigeria Tax Administration Act, 2025 – Sets the rules for how taxes are collected, reported, and enforced.
Nigeria Revenue Service (NRS) Establishment Act, 2025 – Establishes a new federal tax authority to replace the old FIRS, intended to be more efficient and transparent.
Joint Revenue Board (JRB) Establishment Act, 2025 – Creates a board for coordinating tax collection between the federal and state governments, aiming to reduce overlapping taxes and confusion.
Following the public uproar over the tax laws, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, assured Nigerians that the reforms are meant to unify existing tax laws, simplify compliance, and do not automatically mean higher taxes for Nigerians.
He also stated that the new system is designed to improve transparency and ensure that citizens can see how taxes are collected and used.
Also, Oyedele, while speaking during an appearance on Channels Television, dismissed claims that there was a difference between the tax bill that was gazetted and what was passed, describing the circulating drafts as unofficial and misleading.
He said, “Before you can say there is a difference between what was gazetted and what was passed, we don’t have the official harmonised bills certified by the clerk to compare. Only the lawmakers can say authoritatively what was sent; even I only have what was presented to the President to sign, and what was circulating and widely reported by media organizations is actually fake.”
Why Are Nigerians Wary?
Despite reassurances from the government that the tax reforms would ease the burden of the citizenry, many Nigerians remain in doubt.
For traders and small business owners, the fear is not only about new taxes, but how existing ones are enforced and whether revenues collected truly translate into public benefits.
This confusion is not just about ignorance; it comes from a lack of consistent communication and follow-through on reforms from those in power to the masses.
Voices On The Street
Speaking to Naijaonpoint, a grocery seller in Lambe Market in Ogun State complained about charges that she now incurs when sending money via bank transfers, noting that some of the deductions are labelled as stamp duties.
She also voiced her frustration over multiple taxes collected from traders.
According to her, “In my shop, I pay three different taxes. The money is not fixed. They might collect ₦5,000 from one shop and ₦3,000 from a different shop. Also, I have noticed that they now remove stamp duty when I make a transfer, and this was not so before. I can’t say anything about the tax laws for now until it starts to take effect.”
Another trader who sells foodstuffs told Naijaonpoint that he has been noticing higher charges on bank transfers.
“Any amount from ₦10,000 upwards, they used to charge me like ₦15. But now, their charges go to ₦53, ₦25. There was a day I transferred money, and they charged me ₦200 at once. They need to reduce the tax,” he said.
“There is no way, as a Nigerian, that you do business and don’t pay tax. That one is normal; everyone pays. But these charges the new government brought now, they have to reduce,” he added.
Financial Insight: Understanding the Reforms
In a bid to get more clarity on the new tax laws, Naijaonpoint spoke with financial analyst, Gbenga Onifade.
Can you quickly share your perspective on the new tax laws that took effect from January 1st, 2026 and what they aim to achieve?
“ So, I think the new tax laws is aimed to simplify the, it’s meant to modernize the tax code and simplify things. So, I think the Nigerian Tax Act, which is of 2025, which took effect on the 1st of January, 2026, replaced about six major old laws.
“I think we have the company’s income tax, the personal income tax, the VAT, etc.
“And there we are, they are looking to simplify it with one unified code. The key goals are to reform and simplify the system, reduce duplication and confusion, broaden the tax base, and of course, boost revenue for development, not to raise taxes across the board as opposed to what many people think. Some of the major changes are to top up the tax for Nigerian parent companies to ensure a global minimum effective tax rate, and control foreign company rules to tax undistributed profits of foreign companies controlled by Nigerian companies.
“We have a minimum effect tax rate, which I think is 15% for multinational companies with high turnover. We have the VAT reform, which is mandatory invoice sequencing. I think there’s a digital service, and of course, there’s a 4% development levy, which replaces several earmarked taxes, for example, the tertiary education tax, the policies trust fund.
“That’s my understanding of it. Okay, thank you very much for that. Sharing just your personal view, because we know that this tax, the theory is different from implementing it.
Considering how past reforms have been handled, do you believe that these new laws can be successfully implemented?
“Sure. On paper, it’s meant to create less confusion and harassment. You know, one code means fewer overlapping laws and reduces the risk of multiple assessments and disputes.
“It’s supposed to make things clearer for businesses in terms of the rules, the deduction allowances and compliance procedures, and is supposed to standardise them. I think it is also a digital administration, which is what the government is doing. So we have a new system which pushes for electronic invoicing, filing and payment, which should speed up processes and reduce fiscal visits to tax offices.
“So that’s what I think it will be. I mean, that’s what it is on paper. The implementation, of course, is different. And I think that comes a lot from the mistrust of government. However, when things are simplified, they’re unified. And of course, you have a standard specified one rule code for all.
“Yes. Overall, the long-term benefit should be for the people.”
What is the role of the new Nigeria Revenue Service and the old FIRS? What has changed in tax administration and enforcement?
“I think the FIRS rebranded to NRS as of this year. So we had a Federal Inland Revenue Service, which became the Nigerian Revenue Service again under the old Nigerian Act, or the new Nigerian Act, which I mentioned.
“So the key change is we’re looking at stronger legal mandates.
“So the old FIRS is repealed. Now, the new law gives a clearer, more robust foundation. I think there’s been quite a lot of education around that.
“There’s a broader scope. So NRS is no longer just a tax collector, but it starts with coordinating all federal revenue streams and is more centralised and, again, being more efficient. Then again, digital first enforcer.
“So expect stronger tech-driven compliance and checks. And of course, a move towards a unified. I think it’s a 13-digit tax ID, which links your NIN or the CSC number as a business.
“And finally, it stays the same. So the existing tax IDs remain valid for now. But the key rates, which are the VAT of 7.5 and filing deadlines, will also remain unchanged.
“So I think the bottom line for Nigeria is that they need to understand, or we need to understand, number one, is simplification. So we get one tax code, which replaces many and reduces confusion and duplication.
“Number two, there’s a lot more relief for income earners..And small businesses’ explicit exemptions and thresholds protect the majority from higher taxes. So when you earn a certain amount, I think a huge amount or a certain percentage of your wage is protected by default without being taxed at all. And then, of course, it’s modern.
“So the shift to NRS signals a move towards a more centralised, digital-driven revenue system, which is aimed at fairness and efficiency. So the reforms represent the most significant overhaul of Nigeria’s tax framework in decades, which we haven’t had. So the success will depend on the transparent implementation of public trust.
“The design is deliberately supposed to support the poor. I call it pro-poor and, of course, pro-growth, which aims to tighten the burden on ordinary Nigerians while building a more sustainable revenue base for the country..The people, in terms of the physical intervention we have, are supposed to be repealed.
“But this is the early stages. It’s just been implemented. I think with gradual, eventual understanding, this will be a thing of the past.”
In your view, how can the federal government make Nigerians believe in the new tax laws and feel more confident about complying with them?
“I think the key thing is education.
“There has to be a lot more education. There is not enough education about it. Yes, I do read a lot about it, but most of what I read comes from the source, the guy himself.
“So when you don’t go out there, I don’t think education is pushed out to you. So instead of Nigerians or the government waiting on Nigerians to go seek clarification of the tax rules,I think the government needs to spend and do a bit more in terms of pushing out there the details, the granular details.
“And of course, if at all, it could just be a street walk, get people to understand, call communities, centres, get a breakdown.
“And of course, TV, push it out there to the media. So, for me, overall, I think it’s a general key to education. And of course, it all boils down to education.
“There needs to be probably advertisements out there that talk about the general consensus, where people can learn to understand the tax. And of course, again, being translated into local languages. Because yes, while many people are educated enough, they use very simple terms.
“So, overall, generally for me, it boils down to one thing or two things. One is education. And number two, invest a little bit of funds to put out there of what the granular details are.”