Major overhaul of Nigeria’s tax administration is expected to kick off in January 2026, following the anticipated presidential assent to four harmonized Tax Reform Bills recently transmitted by the National Assembly.
The comprehensive bills Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill are poised to reshape the fiscal architecture of the country and double Nigeria’s current tax-to-GDP ratio, which has remained among the world’s lowest.
A six-month window from the date of President Bola Ahmed Tinubu’s assent is being provided to sensitize Nigerians and prepare stakeholders for smooth implementation of the new laws.
Sources confirm that the Presidency has received the clean versions of the bills and is reviewing them before the final sign-off by the President.
At an event in Abuja marking the 50th birthday of Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed the bill transmission.
“It was, I think, yesterday that it was finally delivered to Mr. President… It is a critical milestone in this administration’s reform journey,” Edun stated.
Key Reforms in the Bills
The new tax regime is designed to:
- Improve fairness and transparency
- Streamline tax administration across federal and state levels
- Boost Nigeria’s tax-to-GDP ratio from 13.5% toward the 18% target
- Encourage voluntary tax compliance
- Eliminate redundant and overlapping tax agencies
Edun praised the President’s commitment, saying: “Mr. President knew the value of those four tax reform bills and kept going through thick and thin… supporting you,” in reference to Oyedele’s role in the reform process.
Oyedele emphasized that regulatory inefficiencies, high corporate taxes, and complicated tariffs are currently undermining investment and productivity. He called for:
- A review of corporate tax rates to attract investors
- Simplified tariffs, especially on raw materials
- Digitisation and modern fiscal practices
- Public institutions to operate efficiently and only fill gaps the private sector cannot
- Civic participation by Nigerians in the tax ecosystem
The reforms, he noted, could significantly reduce government overreach and foster economic inclusivity.
President Tinubu, in a statement by his media adviser Bayo Onanuga, lauded Oyedele for his leadership, describing him as “an accomplished tax expert… who exemplifies resilience and innovation.”
Recalling Oyedele’s committee mandate, the President said: “We tasked the committee with a bold mission to reform Nigeria’s tax and fiscal landscape, raise our tax-to-GDP ratio to 18% within three years, and make the business environment more attractive.”
He noted that early signs indicate the reforms are already yielding results, with the tax-to-GDP ratio increasing from 10% to over 13.5%.
If signed and implemented effectively, the bills will mark the beginning of a new fiscal era, aiming to improve public services like health, education, infrastructure, and social welfare through efficient revenue generation.
The spotlight is now on President Tinubu to append his signature and officially set the new system in motion a critical move that could define the long-term fiscal health of Africa’s largest economy.
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