The Federal Government has ruled out any further postponement of Nigeria’s sweeping tax reforms, reaffirming that the new regime will take effect on January 1, 2026, as scheduled.
The assurance followed a high-level meeting between President Bola Tinubu and the Tax Implementation Committee at the State House on Friday, December 26, 2025. Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, confirmed that the final phase of implementation—covering the Nigeria Tax Act and the Nigeria Tax Administration Act—has entered its concluding stage.
Details of the meeting were shared in a video posted on X by the President Bola Ahmed Tinubu Media Centre, where Oyedele described the reforms as firmly “on track” and designed to deliver broad-based relief.
“The plans to commence the remaining two laws on January 1st, 2026, will go ahead because the reforms are designed to provide relief for the majority of Nigerians,” Oyedele said.
According to him, the restructuring of the tax system deliberately shifts the burden away from low-income earners and small businesses, placing emphasis on fairness, inclusion and economic growth. He disclosed that nearly 98 per cent of Nigerian workers and about 97 per cent of small businesses will either be fully exempt from taxes or experience significant reductions in their liabilities.
Oyedele explained that under the new framework, the bottom 90 per cent of salaried workers will pay little to no Pay-As-You-Earn (PAYE) tax, easing pressure on household incomes. In the same vein, small businesses—representing the backbone of the economy—will be exempted from Corporate Income Tax, Value Added Tax (VAT) and Withholding Tax.
“In a major boost for the private sector, 97 per cent of small businesses will be exempt from these key taxes, while larger corporations will benefit from reduced rates,” he said.
The tax reform bills, Oyedele noted, went through a rigorous nine-month legislative process at the National Assembly between October 2024 and June 2025 before receiving presidential assent. Since then, the implementation committee has spent the past six months laying the groundwork for rollout.
“Our internal preparations began on day one,” he said, pointing to ongoing efforts in capacity building, system upgrades and public sensitisation to ensure a seamless transition.
While acknowledging that reforms of this scale require constant fine-tuning, Oyedele expressed confidence in the country’s readiness.
“We are encouraged by the progress made thus far and look forward to the January 1st, 2026, launch,” he said. “While such reforms are always a work in progress, we are committed to continuous improvement as we move forward.”
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