Why new tax laws must take effect January 1, 2026 – Oyedele

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has cautioned that postponing the implementation of Nigeria’s new tax laws beyond January 1, 2026, could severely affect workers and businesses.

The warning follows concerns over discrepancies between the versions of the laws passed by the National Assembly and those later gazetted. House member Abdulsamad Dasuki had questioned whether the gazetted laws matched what was approved in the House.

Speaking on Channels Television’s The Morning Brief, Oyedele said, “The implication of not implementing the new tax laws by January 1, 2026, is that the bottom 98 per cent of workers remain overtaxed.”

He also highlighted the impact on businesses: “Businesses will miss out on exemptions and will continue to pay multiple taxes, creating large burdens. Minimum taxes continue to apply on low and small unprofitable businesses, while hidden VAT keeps the prices of basic consumables like food, healthcare, and education high.”

Oyedele advised that rather than suspending the laws, discrepancies should be addressed directly. “Even if it is established that there have been substantial alterations to what the National Assembly passed, my view is to identify those provisions, they are not part of the law, then implement the law as passed by the NASS while addressing the issues as to how they got there in the first place.”

He added that some provisions would still require amendments: “Even my committee and I have noted areas where we need to go back through Mr President to request amendments to those laws because of issues with referencing and definition.”

On Section 41(8), which reportedly required a 20 per cent deposit, Oyedele clarified: “I know that particular provision is not in the final gazette, but it was in the draft gazette. Some people decided to circulate the report before the committee had met. The media reports did not come from the committee set up by the House of Representatives.”

The four tax reform bills, described as the most significant overhaul of Nigeria’s tax system in decades, include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act. All will take effect under the Nigeria Revenue Service from January 1, 2026.