By Nchetachi Chukwuajah
Minister of State for Finance, Taiwo Oyedele, says the Federal Government is taking steps to correct identified issues in the new tax laws through a proposed Finance Bill.
Oyedele admitted that there are errors in Nigeria’s tax reform laws, noting “that errors occurred due to manual processes and multiple stages of review” in the law-making process.
He addressed concerns about the reported discrepancies in the new laws during a fireside chat at the 2026 annual conference of the Nigerian Bar Association’s (NBA) section on legal practice.
According to a statement on X by the fiscal reforms committee, the event has the theme ‘From Policy to Practice: Making Sense of Nigeria’s New Tax Reforms.’
Oyedele said, “What we need is a more transparent and reliable legislative process where every version of a law is publicly available.”
He further assured that enforcement of the new tax laws would not be arbitrary, noting that the reforms are anchored on clear policy intent, transparency, and fairness.
Oyedele stressed the importance of understanding the rationale behind tax laws rather than focusing solely on their provisions.
The Finance Minister added that many professionals often overlook the underlying purpose of tax legislation, noting that policy intent should guide both interpretation and implementation.
He also underscored the role of legal practitioners in shaping economic outcomes through tax advisory and compliance.
“The decisions lawyers help businesses make will determine investment, job creation, and revenue generation,” the minister said.
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He highlighted inconsistencies in Nigeria’s previous tax regime, particularly the disparity between personal and corporate tax burdens, which he said discouraged business formalisation.
Oyedele stated that the reforms aim to incentivise business formalisation, ensure policy consistency, and minimise discretion in tax administration.
On past challenges, the minister said policy inconsistencies, including abrupt proposals to increase taxes on gas companies, had previously discouraged foreign investment.
“If policies can change overnight, it sends the wrong signal to investors. Consistency is critical,” he said.
On inclusivity, the policy expert said the new tax framework protects low-income earners and small businesses, noting that individuals earning around N1 million annually and millions of small businesses have limited capacity to pay taxes and should be shielded under the reforms.
“Nearly half of working Nigerians earn less than N70,000 monthly. Taxing them aggressively would be unjust,” Oyedele said.
He added that the reforms eliminate minimum tax on loss-making businesses, describing the practice as a form of taxing capital rather than profit.
The minister added that essential goods and services, including food, education, and healthcare, have been exempted from Value Added Tax (VAT), making the system more progressive.
Oyedele further acknowledged improvements in public revenue utilisation and called for greater impact and efficiency, noting that Nigeria still lags behind countries like South Africa in tax collection.
“If we improve collection, we can significantly increase funding for infrastructure, education, and healthcare,” he added.
