Tinubu presses on with tax overhaul on Jan 1

…NECA backs FG

Nigeria’s new tax laws will take effect on schedule, President Bola Tinubu said Tuesday, dismissing calls for a delay amid controversy over alleged alterations to the legislation.

Measures that came into force on June 26, 2025, alongside additional tax acts due to commence on January 1, 2026, will proceed as planned, the president said, describing the reforms as a ‘once-in-a-generation’ opportunity to rebuild the country’s fiscal framework.

Tinubu said the laws are not aimed at raising taxes but at resetting the system, harmonising existing rules and strengthening the social contract between the state and citizens. He urged lawmakers, businesses and civil society groups to rally behind the implementation phase, which he said has moved firmly into delivery mode.

Read also: NECA backs FG’s tax law implementation from January 2026

The president acknowledged public debate over claims that some provisions of the tax laws were altered after passage, but said no material issue had been established that would justify interrupting the reform process.

“Trust is built over time by making the right decisions, not through premature or reactive measures,” Tinubu said.

He reaffirmed his administration’s commitment to due process and legislative integrity, adding that the presidency would work with the National Assembly to resolve any concerns that emerge.

“The federal government will continue to act in the overriding public interest,” Tinubu said, “to ensure a tax system that supports prosperity and shared responsibility.”

Read also: 5 major events that shaped Nigeria’s tax landscape in 2025

NECA backs FG

Meanwhile, the Nigeria Employers’ Consultative Association (NECA) has thrown its weight behind the FG’s insistence on the commencement of the new tax law from January 1, 2026.

It, however, cautioned that the success of the tax reforms will depend on coordination, stakeholder trust, and sensitivity to the fragile state of businesses—particularly small and medium-scale enterprises (SMEs).

Speaking at NECA’s end-of-year media engagement on Tuesday, December 30, in Lagos, Adewale-Smatt Oyerinde, the director-general/chief executive of NECA, said the reform must ultimately address one central issue: easing the multiple and overlapping tax burdens stifling Nigerian businesses.

Oyerinde noted that while 2026 could mark a turning point for Nigeria’s fiscal and monetary reforms, the proximity of the 2027 general elections poses a major risk to effective implementation.

“Politics will naturally take centre stage from January,” he warned, stressing that economic reforms, especially tax reforms, require consistency, discipline, and sustained governance focus.

Oyerinde said the tax framework should be judged by its impact on business survival, growth, and job creation.

He acknowledged the resilience of Nigerian enterprises amid currency instability, high inflation, insecurity, and regulatory bottlenecks, but cautioned against mistaking endurance for sustainability.

“The Nigerian spirit is not a substitute for good policy,” he said. “Doggedness alone cannot keep businesses alive in a hostile operating environment.”

According to him, the proliferation of levies, conflicting regulations, and policy inconsistencies across ministries, departments, and agencies continues to undermine productivity, erode investor confidence, and threaten employment—outcomes the reform is meant to reverse.

Addressing controversies surrounding the tax reform bill, Oyerinde described the process as imperfect but necessary. He defended ongoing stakeholder engagement involving the National Assembly and the Presidential Committee on Tax Reform, while admitting that significant gaps remain.

“No tax reform anywhere in the world is perfect at first contact,” he said. “What matters is the willingness to consult, amend, and correct.”

He welcomed the House of Representatives’ scrutiny of the bill, describing it as a healthy democratic safeguard rather than an attempt to derail reform. Continuous legislative oversight, he argued, would help align the final law with Nigeria’s economic realities.

Oyerinde also criticised the tendency of some regulatory agencies to pursue narrow mandates without considering broader economic consequences. He cited abrupt policy reversals, new fees, and bans that risk wiping out investments worth hundreds of billions of naira and sending negative signals to investors.

“If investors cannot predict policy stability over a 10-year horizon, capital will simply go elsewhere,” he warned.

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