Mixed views over new tax system

The long-awaited overhaul of Nigeria’s fiscal and revenue administration has taken off with the signing of four tax Bills into law, by President Bola Tinubu. According to the The Guardian Nigeria, the new tax regime means different things to different people. While Nigerians are still apprehensive over a possible backlash when it becomes fully operational, businesses are cautiously optimistic, believing it can only get better. The business community is elated by the possible elimination of multiple taxation regimes by unauthorised personnel at the state and local government levels. Providing more clarifications on the tax regime that takes effect in January 2026, the chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, and chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said the step sets the stage for a complete overhaul of the fiscal architecture. The four Bills – the Nigeria Tax Reform Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill and the Joint Revenue Board (Establishment) Bill – were signed into law by Tinubu after a long controversy, extensive consultations and legislative fireworks. Despite optimism, there are questions about how the authorities would secure nationwide compliance in the face of entrenched informality in the tax collection. Many states outsource tax and levy collection to party loyalists, who, in turn, hand off the operations to touts who secure compliance through intimidation and harassment of citizens. Adedeji announced that the implementation of the new tax laws would commence on 1 January 2026, giving stakeholders a six-month transition period to prepare. He also revealed that the Federal Inland Revenue Service would now transition into the Nigeria Revenue Service with an expanded mandate covering both tax and non-tax revenue.

Full report in The Guardian Nigeria