The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has warned that a significant portion of Nigerian workers will continue to bear excessive tax burdens if the newly passed tax laws are not implemented by January 1, 2026.
Oyedele spoke on Monday during an appearance on Channels Television’s The Morning Brief, addressing growing debates surrounding the anticipated rollout of the tax reforms.
Several prominent stakeholders, including former Vice President Atiku Abubakar and ex-Labour Party presidential candidate Peter Obi, have called for a postponement of the laws until their concerns are fully addressed.
However, Oyedele emphasized that delaying implementation would disproportionately affect the bottom 98 per cent of workers, who would continue to face overtaxation. He explained that businesses would miss out on available exemptions, small and unprofitable businesses would remain subject to minimum taxes, and the Value Added Tax (VAT) on essential goods would continue to drive up household costs for food, healthcare, and education.
“The implication of not implementing the new tax laws by January 1, 2026, is that the bottom 98 per cent of workers remain overtaxed,” Oyedele said. “Businesses will miss exemptions and continue to pay multiple taxes, creating unnecessary burdens. Minimum taxes remain on small businesses, and hidden VAT continues to push up the cost of basic consumables.”
Oyedele stressed that rather than suspending the laws entirely, implementation should proceed while addressing specific areas of concern.
“So, we need to be clear about what we are asking for,” he noted. “Even if there are substantial alterations to what the National Assembly passed, the law should still be implemented, while we simultaneously identify the issues and address them.”
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He further revealed that his committee has already approached President Bola Tinubu to initiate amendments on certain sections of the laws, particularly regarding definitions and references that require clarification.
The new tax laws encompass the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act, all consolidated under the Nigeria Revenue Service.
According to the Federal Government, the reforms aim to simplify tax compliance, broaden the tax base, eliminate overlapping taxes, and modernize revenue collection across federal, state, and local governments.
