Nigerian President Bola Tinubu on Tuesday ruled out any delay to the implementation of the country’s newly enacted tax laws, insisting that reforms scheduled to take effect from January 1, 2026 will proceed as planned despite controversy and calls for a pause.
In a statement personally signed by the president, Tinubu said the reforms including laws enacted on June 26, 2025, and additional legislation due to commence at the start of the new year represent a rare opportunity to rebuild Nigeria’s fiscal architecture.
“The reforms represent a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country,” Tinubu said, adding that the implementation phase was now “firmly in the delivery stage.”
The president stressed that the new laws are not designed to raise taxes, but to reset the system structurally, harmonise Nigeria’s fragmented tax framework and strengthen the social contract between the state and citizens.
“They are about fairness, dignity and shared responsibility,” Tinubu said, urging all stakeholders to support the reforms as they move from legislation to execution.
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Nigeria’s tax overhaul has triggered intense debate since its passage, with critics alleging inconsistencies between the gazetted versions of some laws and earlier drafts, and warning that poor implementation could place additional pressure on households already grappling with high inflation and economic hardship.
But Tinubu dismissed calls for a reversal or postponement, saying no substantial issue had been identified that would justify disrupting the reform process.
“Absolute trust is built over time through making the right decisions, not through premature, reactive measures,” the statement said.
Tinubu also reaffirmed his administration’s commitment to due process, pledging to work with the National Assembly to address any technical or legal concerns that may arise without undermining the broader reform agenda.
The tax reforms form a central pillar of Tinubu’s economic programme since taking office in May 2023, aimed at boosting government revenue, reducing reliance on borrowing and oil income, and creating a more predictable business environment in Africa’s most populous country.
Nigeria has one of the lowest tax-to-GDP ratios globally, estimated at below 10 percent, reflecting widespread informality, weak compliance and a narrow tax base. Authorities say the new framework is intended to correct these distortions while shielding vulnerable groups.
Following a high-level meeting with Tinubu on December 26, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, confirmed that the final implementation phase covering the Nigeria Tax Act and the Nigeria Tax Administration Act remains on schedule.
Oyedele said the decision to proceed was grounded in the “pro-people” design of the laws, which aim to shift the tax burden away from low-income earners and small businesses.
According to government projections, nearly 98 percent of Nigerian workers and 97 percent of small businesses will either be fully exempt from paying taxes or see their liabilities significantly reduced under the new regime.
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Supporters of the reforms argue that simplifying taxes and improving administration will ultimately expand the tax net, enhance compliance and raise revenue without increasing rates.
The government says the overhaul will also reduce duplication across federal, state and local tax authorities — a long-standing complaint among businesses — while improving transparency and enforcement.
Nigeria’s economy has faced mounting pressures in recent years, including high inflation, currency volatility and sluggish growth, prompting the government to pursue difficult reforms such as removing fuel subsidies and liberalising the foreign exchange market.
While those measures have drawn criticism over rising living costs, Tinubu’s administration says the tax reforms are designed to complement them by promoting fairness and long-term stability.
The president assured Nigerians that his government would continue to act in the overriding public interest, saying the goal was a tax system that supports prosperity while fostering a sense of shared responsibility.
As the January deadline approaches, attention is expected to shift to how effectively the reforms are implemented a critical test for an administration seeking to balance fiscal consolidation with social protection in a country of more than 220 million people.
