Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, and Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, on Thursday commended President Bola Tinubu’s bold leadership in signing into law four historic tax reform bills, setting the stage for a complete overhaul of Nigeria’s fiscal architecture.
Speaking at a post-signing press briefing at the Presidential Villa, Abuja, Adedeji described the moment as “a dream come true” and hailed the President’s “vision, courage, and commitment” to modernising the tax system.
The four bills—the Nigeria Tax Reform Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill—were signed into law by Tinubu following extensive consultations and legislative processes.
Adedeji announced that the implementation of the new tax laws will commence on January 1, 2026, giving stakeholders a six-month transition period to prepare.
“The effective date for implementation has been set for January 1, 2026, as announced by the relevant ministry,” he said.
“This gives us a full six-month window for robust sensitization, thorough planning, and alignment with the government’s fiscal calendar. A reform of this magnitude cannot be rushed.”
He also revealed that the Federal Inland Revenue Service would now transition into the Nigeria Revenue Service (NRS), with an expanded mandate covering both tax and non-tax revenue, promising greater efficiency and transparency.
In his remarks, Oyedele stressed that the reforms are pro-growth and pro-poor, aimed at improving equity, reducing burdens on vulnerable Nigerians, and stimulating economic development.
“Over one-third of workers in both public and private sectors will now be completely exempt from Personal Income Tax. More than 90% of micro, small, and nano enterprises are also exempt from Corporate Income Tax, VAT, and PAYE obligations,” he noted.
Most significantly, Oyedele announced that essential goods and services—including food, healthcare, education, transportation, and accommodation—are now exempt from VAT, a move expected to lower the cost of living for millions of Nigerians.
“These essential categories account for over 80% of average household spending in Nigeria. By removing VAT, we’re putting money back in the hands of ordinary people,” he added.
Oyedele was clear that the tax reforms are not about increasing tax rates, but about closing loopholes, simplifying processes, and expanding the tax base through digitalisation.
“The new laws are designed to end discretionary waivers and ensure that tax incentives are accessible to all qualifying businesses, not just the well-connected,” he said.
Speaking at the Presidential Villa shortly after the signing, House of Representatives member Hon. James Faleke and Senator Sani Mohammed praised the President’s courage, especially in the face of initial resistance.
Faleke said the National Assembly had taken its time to consult widely and harmonise over 70 disparate taxes across federal, state, and local governments.
“This is a product of deep consultations and compromise. And laws are not static. We’re open to amending them if need be, in the national interest,” he said.
Senator Sani Mohammed likened the reform to the removal of fuel subsidy—another tough but necessary decision by the Tinubu administration.
“This isn’t about raising taxes. It’s about plugging leakages, leveraging technology, and ensuring fair contributions across all sectors,” he said, adding that state and local governments should expect increased revenue from 2026 onward.
Both Adedeji and Oyedele acknowledged that implementation will be the real test.
“No matter how beautiful the law, it’s meaningless without proper execution,” Oyedele cautioned.
“Now is the time to move from legislation to action, and that will require a united effort from both public and private sectors.”
