By Nchetachi Chukwuajah
With just two days remaining until the planned January 1, 2026, implementation date, the Nigerian Tax Reform Acts continue to be trailed by controversies, alleged alterations, and opposition.
Since the four tax Acts were sent to the National Assembly by President Bola Tinubu in October 2024, they have been greeted with criticism and opposition.
The tax laws are the Nigeria Tax Act 2024, the Tax Administration Act, the Nigeria Revenue Service Establishment Act, and the Joint Revenue Board Establishment Act. They will review the sharing formula of the Value Added Tax (VAT) to accommodate what each state gets as VAT for what it generates within its territory.
They will also remove VAT from essential consumption, education, healthcare, transportation, and accommodation to benefit low-income earners.
According to the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, the laws will lift the tax burden on 90 per cent of Nigerian workers.
Oyedele has often maintained that Nigeria’s tax system is among the most outdated globally and requires an urgent overhaul to enhance revenue generation, streamline tax administration, and improve the Nigerian business climate.
However, there have been mixed reactions to the tax laws since their initiation. While some stakeholders called for wider consultations before passage, others, like the Afenifere, endorsed the bills.
Among those on the opposing side of the laws were members of the Peoples Democratic Party (PDP) and the Northern Governors Forum, that during a meeting in October 2024, said some aspects of the bills, especially the VAT components, are skewed against the interests of the North, and further called on the lawmakers from the region in the National Assembly to reject the bills.
The bills were also challenged by the National Economic Council, which comprises the governors and is chaired by the Vice President, Kashim Shettima.
After legislative deliberations and scrutiny, the laws were approved and subsequently sent to President Tinubu for assent.
On June 26, 2025, President Tinubu signed the laws, with the Nigeria Revenue Service Establishment Act and the Joint Revenue Board Establishment Act taking effect immediately, while the Nigeria Tax Act 2024 and the Tax Administration Act will take effect from January 1, 2026.
In the months that followed, the controversy and skepticism around the tax laws heightened. Despite repeated assurances from the Federal Government, many Nigerians expressed worry over the impact on their finances, while businesses fear that the laws might lead to an increase in the prices of goods and services.
This much was noted by Allen Onyema, the Chief Executive Officer of Air Peace. He argued that the new wave of taxes and levies could push the prices of domestic ticket to N1 million and force major carriers out of business within a short while.
Another concern raised by Nigerians was that of getting tax identification numbers for individuals and businesses, considering the hassles often associated with such exercises in the country.
To address this, the Federal Inland Revenue Service (FIRS) said the National Identification Number (NIN) would serve as tax ID numbers for individuals, while Corporate Affairs Commission (CAC) registration numbers would suffice for businesses.
A new layer to the tax laws’ controversy was added on Wednesday, December 17, when Abdussamad Dasuki, a lawmaker from Sokoto State, raised the alarm during plenary that the tax reform Acts passed by the parliament differed materially from copies in circulation at the Federal Ministry of Information and National Orientation.
Dasuki warned that the alleged alterations posed serious legal and constitutional risks, noting that they were not backed by any constitutional framework and could threaten Nigeria’s democratic order.
He also argued that the differences amounted to a breach of lawmakers’ legislative rights, insisting that the gazetted versions did not reflect what was debated and approved on the floor of the House.
Following the allegations, the Speaker of the House of Representatives, Tajudeen Abbas, constituted a seven-member ad hoc committee chaired by a Borno State lawmaker, Muktar Betara, to investigate the allegations and report back to the House for further legislative action.
The House, on Friday, December 26, also directed the Clerk of the National Assembly to re-gazette the new tax laws and issue Certified True Copies (CTC) of the versions passed by the Senate and the House of Representatives as part of institutional actions to address the concerns.
The concerns raised by Dasuki led to civil society organisations, lawmakers, and individuals demanding an independent probe into the purported discrepancies. This is even as people like a former Vice President, Atiku Abubakar, and the 2023 Labour Party presidential candidate, Peter Obi, are calling for the suspension of the laws’ implementation.
Also, concerned individuals, under the aegis of Incorporated Trustees of African Initiative for Abuse Public Trustees, took the Federal Government to court over the alleged discrepancies in the tax laws.
The Attorney-General of the Federation, the Senate President, the Speaker of the House of Representatives, and the National Assembly were also joined as respondents in the suit.
The suit is seeking “an order of interim injunction restraining the Federal Government from going ahead with the implementation pending the hearing and determination of the substantive originating summons.”
Despite these seeming bumps, the Federal Government insists that the commencement of the implementation of the tax laws would go on as scheduled.
Oyedele stated this on Friday, December 26, after presenting an update on the implementation of the tax reform Acts to President Bola Tinubu at his Lagos residence, insisting that there will be no delay in implementing the tax laws.
He said the government remained committed to the agreed implementation timeline, stressing that any delay would hurt businesses and poor workers.
This was also reiterated by President Tinubu on Tuesday, December 30, saying the tax reforms Acts “are a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country.”
The President further stated that no substantial issue has been established to warrant disruption of the reforms, affirming that his administration is committed to due process and the integrity of enacted laws.
With only a few hours to the planned commencement of the implementation of the tax reform Acts, it remains to be seen how the government navigates the murky waters of controversies and opposition around the laws.
