The Federal Government has restated its resolve to begin Nigeria’s major tax reforms on January 1, 2026, rejecting suggestions that the rollout should be postponed further.
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, affirmed that the final phase of implementation—covering the Nigeria Tax Act and the Nigeria Tax Administration Act—remains firmly on track.
This assurance was conveyed in a video shared on X by the President Bola Ahmed Tinubu Media Centre, which was reviewed, following the President’s meeting with the Tax Implementation Committee led by Oyedele.
Oyedele explained that the decision to proceed as scheduled is based on the “pro-people” orientation of the laws, which are intentionally structured to reduce the tax burden on vulnerable groups.
The reforms are expected to deliver broad economic relief, with government projections indicating that about 98 per cent of Nigerian workers and 97 per cent of small businesses will either be exempt from taxes entirely or experience significant reductions.
“The plans to commence the remaining two laws on January 1st, 2026, will go ahead because the reforms are designed to provide relief for the majority of Nigerians,” Oyedele said.
He noted that the redesign is aimed at easing financial strain on individuals and businesses, a move expected to stimulate economic growth.
Under the framework, the lowest 90 per cent of salaried workers will either not pay Pay-As-You-Earn (PAYE) tax or will see a substantial reduction in their tax obligations.
For the private sector, the reforms offer major relief, as 97 per cent of small businesses will be exempt from Corporate Income Tax, Value Added Tax (VAT), and Withholding Tax. At the same time, large companies are expected to benefit from lower tax rates.
“These reforms are designed to provide direct relief to the Nigerian people,” Oyedele said while detailing the intended outcomes.
“The overarching goal is to promote economic growth, inclusivity, and prosperity for our citizens,” he added.
He further outlined the careful process leading to implementation, noting that the tax reform bills underwent a rigorous nine-month legislative review at the National Assembly between October 2024 and June 2025. Since presidential assent, the committee has spent six months preparing for execution.
“Our internal preparations began on day one,” Oyedele said, citing work on “capacity building, system upgrades, and public sensitisation” to guarantee a seamless rollout.
While expressing optimism about progress so far, he acknowledged that reforms of this scale require constant fine-tuning.
“We are encouraged by the progress made thus far and look forward to the January 1st, 2026, launch,” he said, adding, “While such reforms are always a work in progress, we are committed to continuous improvement as we move forward.”
The announcement reinforces the timeline for one of the administration’s most far-reaching economic initiatives, as Nigerians now anticipate its real-world impact beginning in 2026.