…Tax reforms are proceeding as scheduled due to their people-centred focus on easing the burden on vulnerable Nigerians.
ABUJA, NIGERIA- The iNews Times | The Federal Government has reiterated that Nigeria’s landmark tax reforms will take effect on January 1, 2026, rejecting calls for any further postponement.
Speaking after a high-level meeting with President Bola Tinubu on Friday, December 26, 2025, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the final phase of implementation, covering the Nigeria Tax Act and the Nigeria Tax Administration Act, remains firmly on track.
The assurance was conveyed in a video shared on X by the President Bola Ahmed Tinubu Media Centre after the President met with the Tax Implementation Committee led by Oyedele.
Oyedele said Tax reforms are proceeding as scheduled due to their people-centred focus on easing the burden on vulnerable Nigerians. He disclosed that about 98 per cent of workers and 97 per cent of small businesses are expected to be exempt from taxes or enjoy significantly lower liabilities.
“The plan to commence the remaining two laws on January 1, 2026, will proceed because these reforms are meant to provide relief for the majority of Nigerians,” he said.
Under the reforms, the lowest 90 per cent of salaried workers will either be fully exempt from Pay-As-You-Earn tax or pay substantially less. In addition, 97 per cent of small businesses will be exempt from Corporate Income Tax, Value Added Tax and Withholding Tax, while larger companies will benefit from reduced tax rates.
Oyedele explained that the reforms are aimed at easing financial pressure on individuals and businesses, stimulating economic activity, and promoting inclusive growth.
He noted that the bills went through a nine-month legislative process at the National Assembly between October 2024 and June 2025, followed by six months of implementation planning after presidential assent.
“Our preparations started immediately, including capacity building, system upgrades and public sensitisation, to ensure a smooth rollout,” he said.
While acknowledging that reforms of this scale require continuous refinement, Oyedele expressed confidence in the process, saying the government remains committed to improving the framework as implementation begins.
The reaffirmation sets the stage for the rollout of one of the administration’s most ambitious economic reforms, with Nigerians now looking ahead to its impact from 2026.
