The Federal Government has reaffirmed its commitment to the January 1, 2026, commencement of Nigeria’s landmark tax reforms, dismissing calls for further delays.
Following a high-level meeting with President Bola Tinubu on Friday, December 26, 2025, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, confirmed that the final implementation phase—specifically covering the Nigeria Tax Act and the Nigeria Tax Administration Act—is firmly on schedule.
The confirmation was made in a video via an X post shared by the President Bola Ahmed Tinubu Media Centre, which was sighted by newsmen after the President met with the Tax Implementation Committee led by Oyedele on Friday.
According to Oyedele, the decision to proceed is rooted in the “pro-people” nature of the laws, which are strategically engineered to shift the tax burden away from the vulnerable.
The reforms promise a significant economic cushion, with the government projecting that nearly 98% of Nigerian workers and 97% of small businesses will either be fully exempt from taxes or see their liabilities drastically reduced.
“The plans to commence the remaining two laws on January 1st, 2026, will go ahead because the reforms are designed to provide relief for the majority of Nigerians,” Oyedele declared.
He elaborated that the core objective of the redesign is to directly ease the financial pressure on citizens and businesses, thereby stimulating economic activity.
According to the detailed plan, the bottom 90 per cent of salaried workers will either be fully exempt from Pay-As-You-Earn (PAYE) tax or see their burden significantly reduced.
In a major boost for the private sector, 97 per cent of small businesses will be exempted from three key taxes: Corporate Income Tax, Value Added Tax (VAT), and Withholding Tax. Concurrently, large corporations are slated to benefit from reduced tax rates.
“These reforms are designed to provide direct relief to the Nigerian people,” Oyedele explained, outlining the targeted benefits.
“The overarching goal is to promote economic growth, inclusivity, and prosperity for our citizens, Oyedele added.
The path to implementation has been methodical. The tax reform bills underwent an extensive nine-month legislative review at the National Assembly, from October 2024 to June 2025. Following presidential assent, the committee has dedicated the last six months to intensive preparation.
“Our internal preparations began on day one,” Oyedele noted, highlighting efforts in “capacity building, system upgrades, and public sensitisation” to ensure a smooth rollout.
While expressing encouragement at the progress, the tax chairman acknowledged that such transformative policies require ongoing adjustment.
“We are encouraged by the progress made thus far and look forward to the January 1st, 2026, launch,” he said, adding a note of continued commitment: “While such reforms are always a work in progress, we are committed to continuous improvement as we move forward.”
The confirmation solidifies the roadmap for one of the administration’s most ambitious economic policies, with the nation now awaiting the tangible impact of the new regime in 2026.
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