From anxiety to apprehension and then full-blown agitation, the Federal Government’s planned implementation of new tax laws appears to be enmeshed in controversy. Weighty allegations of doctoring versions of the laws by some national lawmakers, and the call by the opposition to suspend its take-off date, have contributed to muddying the waters. ENO-ABASI SUNDAY reports that the pushback by stakeholders remains a really troubling scenario in addition to raising fundamental questions.
Apart from the Federal Government and its assigns, who assume that all is set for the planned takeoff of the brand-new tax reform laws, a mere 12 days away, the country’s body language suggests otherwise.
Indeed, the hailstorm of opposition against it appears to be brewing ferociously from all flanks of the country. Allegations, some very weighty, and others outright damaging, are daily making the rounds as the country, with bated breath, marches towards the January 1, 2026, implementation date.
The grievous alterations noticed in versions of the law that are being circulated by the Federal Ministry of Information, among other things, raise fundamental questions over the laws’ legality, hint at weakened oversight and accountability mechanisms, as well as point to a potential undermining of parliamentary integrity and legislative supremacy.
These latter-day “discoveries” not only question the real intent of the new tax laws but also question their integrity, especially with the damaging claims by some lawmakers that what the National Assembly passed, and subsequently signed into law by President Bola Tinubu, were allegedly altered after passage.
Before the latest gale of apprehension and agitation, many public-spirited individuals and civil society groups were expressing concerns over the Federal Inland Revenue Service and France’s Direction Générale des Finances Publiques signing a memorandum of understanding at the French Embassy in Abuja.
The Executive Chairman of FIRS and French Ambassador Marc Fonbaustier thereafter formalised the agreement, which establishes a framework for collaboration between both outfits. This, the FIRS said, was focused on building institutional capacity, strengthening tax administration, and advancing digital processes.
As Nigerians struggle to make sense of the opening up of the country’s vital personal/tax data, among others, to France, in a country where indigenous service providers and fintechs are wowing the world with their exploits, the matter got even messier.
The Federal Government’s endless push to implement tax reform laws that have thus far manifested loads of controversies and concerns, and which the people are uncomfortable with, has also drawn the ire of the political class, forcing the National Opposition Movement (NOM) to call on it to suspend the planned implementation.
Spearheaded by opposition leaders like former Vice President Atiku Abubakar, former Senate President David Mark, and former presidential candidate of the Labour Party, Peter Obi, the NOM concluded that ushering in the new tax era would compound Nigerians’ woes.
Addressing a World Press Conference at the Yar’Adua Centre, in Abuja, on Wednesday, spokesman of the group, Chille Igbawua, said: “Introducing an aggressive tax regime now, confirms the widely held belief of a government dangerously out of touch with reality. As an oligarch and authoritarian, President Tinubu, by this tax plan, concentrates enormous powers in the hands of revenue authorities in a country with weak safeguards.
“Account access is already being enforced, penalties, and automated enforcement without strong oversight invite abuse. When citizens fear the taxman more than they trust the government, something is fundamentally wrong,” the group said.
While throwing their weight behind the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) in their fight for the freedom of workers, the opposition movement added, “The viciousness of this administration shows that Nigeria would be hit with these exploitative and inhuman tax regimes in January when they do not have the fiscal space for such sacrifices. This exploitative tax regime points to the thoughtlessness of the Tinubu administration and its unyielding commitment to catering to the financial interests of the oligarchs to the detriment of the ordinary Nigerians, whom it continues to punish with all manner of taxes and price increases.
Five years after cautioning the President Muhammadu Buhari-led government against increasing Value Added Tax (VAT) to generate more revenue, and two years after being sworn in as president, Bola Ahmed Tinubu, on June 26, 2025, signed into law, a historic package of tax reforms legislation, which experts say qualifies as the most comprehensive overhaul of Nigeria’s fiscal architecture in decades.
Among other things, the four acts – the Nigeria Tax Acts (NTA); the Nigeria Revenue Service (Establishment) Act (NRSEA) 2025; the Nigeria Tax Administration Act, and the Joint Revenue Board (Establishment) Act (NRSEA) 2025 are all aimed at repositioning the tax system to support inclusive growth, firm up intergovernmental coordination, and declutter revenue administration, as well as enhance compliance.
One of the most laudable aspects of the tax reform acts, which saw the consolidation of over a dozen outdated statutes, is the introduction of modern mechanisms for enforcement, digitalisation, and dispute resolution. Needless to say, these reforms would significantly reshape the country’s fiscal milieu.
Fears of constitutional breach, weakened oversight eclipse promise of new tax regime
Before last Wednesday, many stakeholders held that the Nigerian Tax Acts constitute something akin to a paradigm shift, as it is not just another amendment, but a fundamental shift in strategy for the country. This is more so because it moves the focus from asphyxiating the limited number of existing taxpayers to creating mechanisms that would ultimately bring new taxpayers into the tax net, especially in the digital and informal sectors.
The Acts, they continued, comprehensively overhaul the Nigerian tax landscape to drive economic growth, increase revenue generation, improve the business environment, and eliminate nuisance taxes, in addition to being the country’s most sweeping tax overhaul in decades.
While many see the government’s push for electronic fiscal gadgets as a game-changing move aimed at ensuring transparency and automation, others are quick to point out that the adoption of international anti-avoidance rules addresses the issue of profit shifting by multinationals.
With the main goal of the law being the building of a sustainable, broad-based tax system that can successfully fund national aspirations and development without relying on volatile oil revenues, there is also the firm belief that breaking the cycle of debt and underinvestment can be facilitated if the reforms are effectively executed.
All these promises, however, became suspect, and another dimension to the many afflictions of the tax reform laws popped up last Wednesday when a group of concerned lawmakers in the House of Representatives alleged that the tax reform laws passed by the National Assembly, and assented to by Tinubu, were seriously altered after passage.
They, apart from questioning the legality of the versions that are being circulated by the Federal Ministry of Information, further alleged that the amendments contained in the gazetted copies did not receive legislative approval, thereby making the document legally vulnerable and constitutionally defective.
At the resumed plenary on Wednesday, Abdussamad Dasuki, who hails from Sokoto State, raised the issue under a matter of privilege, drawing the House’s attention to what he described as discrepancies between the harmonised versions of the tax bills passed by both chambers of the National Assembly and those that the Tinubu-led government gazetted.
A report authored by the aggrieved lawmakers read in part: “Following concerns that certain tax bills passed by the National Assembly in 2025 were altered after passage, the House constituted a Select Committee on Post-Passage Alterations to investigate discrepancies between votes and proceedings of the National Assembly, Clerk-certified (as-passed) bills and gazetted/ final versions of the Acts.
“The committee’s review, supported by forensic comparisons and independent legal opinions, establishes that substantive provisions were inserted, deleted, or modified after passage by both chambers… New coercive and fiscal powers (e.g., arrest powers, garnish without court order, compulsory USD computation, and appeal security deposits) appeared without legislative approval. These changes cannot be classified as clerical or editorial corrections.”
Speaking under a matter of privilege during plenary, Dasuki alleged that the gazetted copies of the new tax laws currently in circulation differ in key clauses from the harmonised versions passed by the Senate and the House of Representatives.
Multiple controversies as threat to ambitious 18% tax-to-GDP ratio by 2026
In the last five years, the FIRS has been moving from strength to strength with tax revenue appreciating with each passing year. In 2021, it raked in N6.4 trillion, N10.1 trillion in 2022, N12.37 trillion in 2023, and N21.7 trillion in 2024, while it collected N20.62 trillion in the first eight months of 2025.
Since taking the reins in late 2023 as Executive Chairman of FIRS, Dr Zach Adedeji has pursued tax reforms with gusto, in line with his pledge to transform the agency’s values to make it taxpayer-centric.
Ahead of 2026, Adedeji has also assured that through the integration of technology, improved processes, and capacity building, it is well-positioned to meet its ambitious target of an 18 per cent tax-to-GDP ratio by 2026.
Sharing Adedeji’s optimism of an improved era of tax administration and prosperity before the alleged illegal amendment of the gazetted copies filtered out is a Professor of Economics at the University of Uyo, Prof Okon J. Umoh, who said: “In my view, Nigeria’s new tax regime, effective January 2026, on the surface, looks like a simpler and fairer system with potential to boost revenue. It promises to consolidate over 100 taxes into a unified framework, therefore, making compliance easier and more efficient. The exemption of individuals earning N800,000 or less annually from Personal Income Tax will be a big relief for low-income earners. Moreover, businesses with an annual turnover below N50 million will pay zero corporate tax. This, in my view, is a significant reform that will encourage growth for small and medium enterprises.
“In terms of incentives for investment, the new capital gains tax framework allows deductions for capital losses and offers reinvestment relief, with the potential of making the capital market more attractive with reduced risk on investment. However, there are concerns over potential negative impacts on investment and cost of living. There is concern regarding the hike in corporate Capital Gains Tax (CGT) from 10 per cent to 30 per cent. It is feared that this could trigger capital flight and make Nigeria less competitive than its counterparts in the sub-region.”
Misconception, years of mismanagement, misapplication of tax revenue as drawback
For obvious reasons, many Nigerians are apprehensive of the impending tax regime, as most of them continue to wallow in the pangs of dire belt-tightening economic policies. The anguish in the land is a double whammy, especially with the failure of previous governments to judiciously account for tax proceeds over the years.
His words: “Public trust lies at the heart of any successful tax reform. In Nigeria, that trust has been severely undermined by pervasive corruption, waste, budget padding, procurement and contract fraud, abandoned or uncompleted projects, and extra-budgetary expenditures, all of which send a strong signal that public resources are not being used for the public good,” said a governance, public financial management and social protection expert, Dr Chiwuike Uba.
Uba, a development economist and policy strategist, recalled that Tracka, a watchdog, reported that between 2023 and 2024, approximately N99 billion was wasted on 352 federal government projects that were either abandoned or left uncompleted. “Budget padding has also drawn sharp criticism. Independent observers allege that in the 2025 national budget, about N6.93 trillion worth of projects, representing roughly 12.6 per cent of the total budget, were inserted without adequate justification. Taken together, these data reveal that a substantial portion of government spending never reaches its intended purpose, whether due to overpriced or fraudulent contracts, unfinished projects, or padded budgets…These practices reinforce the belief that the government does not exercise fiscal discipline. Consequently, even technically sound reforms, such as proposed tax changes, face public suspicion and resistance.
“Therefore, undisciplined expenditure, corruption-related practices, budget padding, abandoned projects, and poor fiscal governance are major drivers of opposition to the impending tax regime. Until the government demonstrates stronger discipline, transparency, and alignment of spending with citizens’ priorities, tax reforms will continue to encounter strong resistance,” he stated.
In emphasising the importance of building a sustainable, broad-based tax system that can fund national development without relying on volatile oil revenues, thereby breaking the cycle of debt and underinvestment, Prof Umo said that building a sustainable, broad-based tax system is a crucial step for many nations looking to break the cycle of debt and underinvestment. Key reasons for its importance include fiscal stability; availability of funding for national development; economic resilience and autonomy, equity and social contract, and creditworthiness.
Tax Reform Acts will modernise tax framework, reduce reliance on crude oil revenue
Since Tinubu signed the tax reform law, many highly-placed government officials, including the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, have had a hectic time dispelling widespread misconceptions surrounding the law and insisting that the reform acts would modernise the country’s tax framework.
Legal scholar and Professor of Accounting and Financial Development at Lead City University, Ibadan, Godwin Emmanuel Oyedokun, aligns his thoughts with Oyedele, emphasising that “the new tax law represents an effort to modernise Nigeria’s tax framework and reduce the long-standing reliance on crude oil revenue. It aims to widen the tax net rather than increase the burden on those who are already compliant. One of its strongest points is the attempt to simplify procedures for individuals and businesses, especially SMEs, through clearer rules, improved digital systems, and reduced compliance bottlenecks.
“It also seeks to curb leakages through stronger enforcement mechanisms and better coordination between revenue agencies. Nigerians would support it if the benefits become visible: fair implementation, reduced arbitrariness, and policies that genuinely make compliance easier. They may withhold support if the law is perceived as another tool for revenue extraction without accountability, or if enforcement targets only the ‘easy-to-tax’ while ignoring the large informal and elite spaces where revenue losses are heaviest.
“Furthermore, the ongoing tax reforms could break from a past shaped by oil dependence, a narrow tax base, opacity, and mistrust- if implemented credibly. How necessary is this reform now?
“This reform is not just necessary; it is overdue. Nigeria’s fiscal landscape can no longer rely on the volatility of crude oil. Revenue needs far outweigh current inflows, and citizens expect improved infrastructure, security, and public services. A well-designed tax reform offers a pathway to sustainability. The timing aligns with pressing realities: declining oil receipts, rising public debt, and increasing demand for social investments. Reforming the tax system with fairness, clarity, and digital innovation is essential for stabilising the economy, restoring public confidence, and building a more resilient revenue structure,” said Oyedokun.
Also throwing his weight behind the new tax laws, an economist and Founder/Chief Consultant of B. Adedipe Associates Limited, Dr Biodun Adedipe, said: “The new tax laws are what policy advocates like me have canvassed and waited for in the last 29 years. Its finest points are: narrowed window for tax evasion and to a large extent tax avoidance; reduced significantly multiple taxes from more than 60 to about single digit; provided safety net through exemptions for small businesses and low income earners, making it truly progressive; provided for tax redress by creating the office of tax ombudsman (this in particular, I have repeatedly advocated for over many years), and deepened the tax principles that are applied in other geographies, thus improving the prospect of higher Tax/GDP ratio and creating space for interventions that will drive inclusive economic growth.”
Complementary reforms must support tax reforms to ensure dividends
Ahead of the change in its nomenclature come January 1, the Federal Government has begun the restructuring of the Federal Inland Revenue Service (FIRS), to ease the process of transiting to the Nigeria Revenue Service (NRS) in line with the Nigeria Revenue Service (Establishment) Act, 2025, which repeals the FIRS Establishment Act of 2007, and creates a new legal and institutional framework for national tax administration.
But for Adedipe, this alone will not ensure the full realisation of the benefits of the tax reform laws. “Our consequence management system in the tax and fiscal space needs to change; perhaps also a reform of the penal code to ensure sanctions that are commensurate with proven infractions in fiscal operations…”
For Prof Umo: “There is no doubt that in the past the polity had been bedevilled by trust deficit, transparency concerns and multiple taxation. However, the necessary action to propel the successful implementation of the new tax regime includes key administrative, technological, and governance reforms. The success of the reforms will depend on effective implementation and bridging the deep trust deficit between citizens and the government regarding how tax revenues are channelled towards the socio-economic well-being of the citizens. There is also a need for the deployment of robust digital Infrastructure in the implementation of the tax regime. A key requirement will be the upgrading of existing systems to support e-invoicing and real-time VAT reporting.
“Essentially, a unified, cloud-based platform for tax administration, integrated with national databases like the National Identity Number (NIN) and Corporate Affairs Commission (CAC), will ensure data consistency and fraud reduction. Other necessary reforms are enhanced institutional capacity and coordination; transparent and accountable governance; continuous taxpayer education and support; clear and consistent enforcement, as well as effective and efficient monitoring and evaluation,” the economist stated.
He added that specific safeguards should be administered to ensure that tax receipts benefit Nigeria and its citizens. Specifically, he stressed the need for full automation of the process and ensuring that the process is corruption-free. Moreover, the income generated from the new tax regime should be properly channelled and invested into infrastructure and other important sectors of the economy, like healthcare, education, security, agriculture, and technology development.”
Also offering his perspectives on specific safeguards that must be administered to ensure that the tax reforms benefit Nigeria, Adedipe said: “It is a convenient excuse to argue non-judicious use of tax proceeds when you have not discharged your civic responsibility of paying tax. No aspect of taxpayer behaviour (theories and all) recognises the social contract without the citizen playing his/her role. As a taxpayer, I have the moral right to query government spending only when I have extinguished my tax obligations. Once implementation commences in January 2026, all stakeholders can begin to demand more frequent reporting on government spending (quarterly and promptly), challenging obvious mis-spend and sustaining that process to achieve true accountability.”
Adedipe said that from his experience, the real problem of poor fiscal transparency and demonstrated responsibility lies with the civil servants and less so with the politicians. So, “we should shift the searchlight and whistle-blowing on this category of citizens.”
Declaring his stance on this, Dr Uba said: “For progressive tax reform to succeed in Nigeria, two conditions must be met beyond just shifting the burden. First, fiscal discipline and implementation must improve so that allocated budgets for health, education, and other social sectors are actually spent, not just approved. Second, accountability and transparency mechanisms must be strengthened, including robust monitoring, reporting, and auditing, so that citizens can see where tax revenues go and what they deliver. In the absence of these measures, tax reforms risk deepening public cynicism, reducing voluntary compliance, and undermining the broader goal of equitable development.
“Reducing the tax burden on low-income earners while placing greater responsibility on high-income groups remains a desirable policy goal, particularly in an unequal society where low-income households spend a large part of their earnings on basic needs. In principle, shifting the burden could free resources for social investments, stimulate domestic demand, and reduce inequality. However, whether this aspiration translates into real welfare gains depends crucially on the government’s ability to convert tax revenues into effective public services, especially in essential sectors such as health and education,” Uba submitted.
