Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, says Nigeria’s new tax laws will take effect on January 1, 2026, as scheduled, dismissing calls for a delay.
Oyedele spoke after meeting President Bola Tinubu in Lagos ahead of the implementation of the Nigerian Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA). The delegation included Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS).
He said the government would not suspend the reforms, arguing that they are designed to reduce the tax burden on most Nigerians and stimulate economic growth.
“About 98 per cent of workers will either pay no PAYE tax or pay less,” Oyedele said. “For businesses, 97 per cent of small enterprises will be exempt from corporate income tax, VAT and withholding tax, while large companies will also see reductions in what they pay.”
According to him, the reforms aim to promote growth, inclusion and shared prosperity, rather than increase hardship.
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“The whole idea is to grow the economy in a fair and sustainable way,” he said. “That is why we are confident and looking forward to January 1, 2026.”
Oyedele said the government expects revenue to rise over time, not through higher tax rates but through economic expansion and better compliance.
“When the economy grows, the tax base expands,” he said. “People pay not because rates are higher, but because more people and businesses are participating.”
He added that the reforms have removed what he described as wasteful and distortionary tax incentives, while also strengthening tax culture and compliance.
“If people who were not paying before begin to pay — and these are not low-income earners — society gains both revenue and fairness,” he said.
The comments come amid concerns raised by labour unions and civil society groups over the new tax regime. Earlier this week, Oyedele urged Nigerians to await the outcome of a legislative review into alleged discrepancies in the gazetted laws.
The leadership of the Senate and the House of Representatives has directed the clerk of the National Assembly, Kamoru Ogunlana, to work with relevant executive agencies to re-gazette the tax laws where necessary.