A new era for Nigeria’s tax administration has officially begun following President Bola Ahmed Tinubu’s signing of four landmark tax bills into law.
At the signing ceremony held yesterday at the State House in Abuja, Tinubu declared that the new laws would “open the door for a new economy and business opportunity,” signalling a shift from Nigeria’s fragmented and burdensome tax structure to a more transparent and equitable system.
“This is a clear message to the world that Nigeria is truly ready and open for business,” President Tinubu said. “We’re in transit we have changed rules, we have changed some of the misgivings.”
Describing the legislation as a turning point, Tinubu added, “Leadership must help the people to take off and lead the way at every twist and turn. That is what we are doing here.”
The new laws the Nigeria Tax Reform Act, Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act were developed through 10 months of legislative and stakeholder consultations. They will take effect on January 1, 2026, aligning with Nigeria’s fiscal calendar.
The President commended the National Assembly for what he called its “courage” and commitment to nation-building. “Initially, it was difficult, but not all roads will be easy in the process of nation-building. Even the blockwork takes a binder and concrete cement to build a body,” Tinubu noted.
On his verified X handle, Tinubu wrote: “These reforms deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet. For too long, our tax system has been a patchwork complex, inequitable, and burdensome. That era ends today.”
The President emphasised that the new tax regime aims to “reward enterprise, protect the vulnerable and mobilise revenue without punishing productivity.”
Senate President Godswill Akpabio described the laws as historic. “You have harmonised the entire tax system in this country,” Akpabio said, praising Tinubu for enacting overdue reforms to tax statutes like the Stamp Duties Act, which had not been updated since 1939.
Chairman of the Senate Committee on Finance, Senator Sani Musa, said the final bills reflect “the true aspirations of Nigerians,” shaped by wide-ranging consultations. House Finance Committee Chair James Faleke described the reforms as once deemed “mission impossible.”
Federal Inland Revenue Service (FIRS) Chairman Dr. Zacch Adedeji, whose agency will now be called the Nigeria Revenue Service (NRS), said the January 2026 start date will allow for “adequate public sensitisation” and “a smooth transition in line with global best practices.”
Taiwo Oyedele, Chair of the Presidential Fiscal Policy and Tax Reforms Committee, called the laws “pro-poor,” reassuring Nigerians that “over one-third of workers will be fully exempt from PAYE, and over 90% of micro and small businesses will no longer pay corporate tax, VAT, or withholding tax.”
He stressed that everyday essentials like “food, education, and healthcare are now fully VAT-exempt this is huge relief for families.” Oyedele said the reforms would also boost public trust by linking tax transparency to how public funds are used.
The Nigeria Employers’ Consultative Association (NECA) also welcomed the laws. Its Director-General, Adewale Smatt-Oyerinde, said they would help unlock growth. “For over 10 years, the Organised Private Sector has struggled with multiple taxes, levies, and fees. We hope this will change that,” he said.
The new tax framework consolidates Nigeria’s fragmented tax system, creates a unified administration, and sets up structures like the Tax Appeal Tribunal and an Office of the Tax Ombudsman to handle disputes a first in Nigeria’s fiscal history.
Other dignitaries present at the signing included the Chairman of the Nigeria Governors’ Forum and Kwara State Governor Abdulrahman Abdulrazaq, Chairman of the Progressive Governors Forum and Imo State Governor Hope Uzodinma, Minister of Finance Wale Edun, and the Attorney-General of the Federation Lateef Fagbemi (SAN).
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