• 27 Jun, 2025
• Faith Kegh
• No comment

Tinubu Signs Landmark Tax Reform Laws to Boost Economy and Ease Burden on Nigerians.

  President Bola Ahmed Tinubu has officially signed four major tax reform bills into law, marking a transformative moment in Nigeria’s economic landscape. These new laws are set to take effect on January

1, 2026, and aim to create a simpler, fairer, and more transparent tax system.

Speaking during the signing ceremony at the State House in Abuja, President Tinubu described the event as a “turning point” in Nigeria’s path to economic recovery and modernization.

  “We are laying a foundation for a tax regime that is fair, transparent, and fit for a modern, ambitious Nigeria,” he stated.

      What the New Tax Laws Mean for Nigerians

The newly signed legislation includes:

1.   Nigeria Tax Reform Act  Combines fragmented tax laws into a single, investor-friendly code.
2.   Tax Administration Act Unifies the tax administration system across federal, state, and local levels.
3.   Nigeria Revenue Service (NRS) Act Replaces the Federal Inland Revenue Service (FIRS) with a more autonomous, efficient agency.
4.   Joint Revenue Board Act Establishes coordination between all tax authorities and introduces a Tax Appeal Tribunal and Tax Ombudsman.

      Key Benefits of the Reforms

    Over one-third of Nigerian workers will be exempt from PAYE (Pay-As-You-Earn) tax.
    90% of micro, small, and nano businesses will no longer pay corporate tax, VAT, or withholding tax.
    Essential goods and services including food, education, healthcare, housing, and transport are now VAT-free.
  The reforms eliminate redundant levies and improve clarity, efficiency, and fairness in tax administration.
  Tax collection and public spending will now be legally connected to boost accountability and public trust.

      What Leaders Are Saying

  Senate President Godswill Akpabio called the reforms “historic,” highlighting that many outdated laws some unchanged since 1901 have finally been modernized.

  “By signing these bills today, you are changing Nigeria’s future. Generations unborn will remember you,” Akpabio said.

  Senator Sani Musa, who chairs the Senate Committee on Finance, noted that the laws reflect the true aspirations of Nigerians, especially after extensive public consultations across all regions.

  Chairman of the House Finance Committee, James Faleke, praised the collective effort, calling the outcome “a once-impossible mission made possible through unity.”

      Why the Reforms Start in 2026

  Dr. Zacch Adedeji, the Executive Chairman of the newly established Nigeria Revenue Service, explained that the January 2026 rollout aligns with the national fiscal calendar and gives all stakeholders governments, businesses, and citizens time to prepare.

      Reform with a Human Focus

  Taiwo Oyedele, Chair of the Presidential Fiscal Policy and Tax Reforms Committee, described the laws as “pro-poor”:

  “These reforms protect low-income earners and remove taxes from the biggest household expenses. This is a huge relief for millions of families.”

He added that for the first time, transparency in tax usage is backed by law, ensuring public funds are used responsibly.

      Business Sector Reacts

The Nigeria Employers’ Consultative Association (NECA) welcomed the reforms, saying they would help the private sector thrive after years of dealing with excessive taxes and overlapping levies.

  “This is a step forward for economic growth and enterprise,” said NECA Director-General, Adewale Smatt-Oyerinde.


    Conclusion

With these new tax laws, Nigeria is stepping into a new era of fiscal responsibility, economic opportunity, and social fairness. For working families, entrepreneurs, and investors, this reform signals a government serious about rebuilding trust, reducing hardship, and driving sustainable growth.

Faith Kegh

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