The 2023 presidential candidate of the African Action Congress (AAC), Omoyele Sowore, has faulted Nigeria’s newly introduced tax reforms, cautioning that policies which place additional burdens on poor citizens could trigger public backlash.
Speaking during an interview on Channels Television’s The Morning Brief on Monday, the human rights activist said Nigerians are already under severe economic strain and should not be exposed to further tax pressures.
“Anybody who taxes poverty will reap resistance, because Nigerians are just too poor right now,” Sowore said.
He argued that reforms should prioritise expanding the tax base rather than imposing higher taxes on citizens who are already struggling financially.
“What I have always proposed is that we expand our tax base, not to increase taxes. We are not doing well in terms of how much taxes we are collecting.
“I think we are at 17 per cent, and a lot of countries around Africa are at about 20 per cent. It is that increase of how far we go that is important, not to tax people who are already overtaxed,” he said.
Sowore also raised concerns about the reliability of official data used to justify the reforms, accusing the government of inconsistencies surrounding the tax framework.
“Any time you see data presented by these guys on statistics, lies and lies. You never get anything correct from them. At the end of the day, there will be resistance.
“You’ve heard that the tax regime that came into effect is not the one the National Assembly passed. A tax system that starts with fraud is not taxation; it is extortion,” he added.
The Federal Government recently rolled out four tax reform laws: the Nigeria Tax Act, 2025; the Nigeria Tax Administration Act, 2025; the National Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board (Establishment) Act, 2025.
Although implementation began on January 1, 2026, the reforms sparked controversy following claims that discrepancies existed between the versions passed by the National Assembly and those later gazetted.
Responding to the allegations, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, said the versions circulating publicly were unauthorised. He described them as “fake,” explaining that the inconsistencies stemmed from an unauthorised draft gazette that had since been corrected.
To address public concerns, the House of Representatives on Sunday released the Certified True Copies (CTCs) of the four Acts signed into law by President Bola Tinubu. In a statement signed by the House spokesperson, Akin Rotimi, it was disclosed that Speaker Tajudeen Abbas ordered the immediate release of the documents to promote transparency and public scrutiny.
Rotimi said the move, taken in consultation with Senate President Godswill Akpabio, followed allegations that the circulating laws differed from those approved by the legislature and assented to by the president.
Amid the controversy, the Federal Government assured Nigerians that the new tax regime would not involve automatic deductions from personal bank accounts when it fully takes effect on January 1, 2026.
Oyedele emphasised that the reforms were designed to be transparent and citizen-focused, adding that they would protect small businesses and vulnerable Nigerians. He noted that the tax system had been restructured to be progressive rather than regressive.
Earlier, President Bola Tinubu reaffirmed that implementation of the new tax laws would proceed as planned, despite opposition from political leaders, labour unions, and civil society groups. He said the reforms were intended to strengthen Nigeria’s fiscal framework, not to impose additional taxes.
Signed into law in June 2025, the reforms include a full personal income tax exemption for individuals earning ₦800,000 or less annually, while small businesses with an annual turnover below ₦100 million are exempt from company income tax, VAT, and the development levy.
Despite these assurances, critics remain unconvinced. Former Vice President and 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, accused the Federal Government of unlawfully altering the tax laws after their passage by the National Assembly. Former Labour Party presidential candidate, Peter Obi, also criticised the reforms, warning that economic prosperity cannot be achieved by imposing heavier burdens on poor citizens.