Adedeji: We’re Implementing Gazetted Tax Laws, Not Harmonised Version, Passage Followed Due Process

¶Clarifies laws operational from June 29, 2025, not January 1

¶Says operational guidelines for tax law ready, full implementation underway

¶Insists objective of reform is to protect the poor, stimulate growth, others, douses concerns over bank transfers charges

James Emejo in Abuja

Chairman, Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, yesterday said there was no controversy over the implementation of the new tax laws, adding that their passage followed due process after adequate consultation.

He said the NRS was more interested in the gazetted tax laws, and not about the alleged controversies on the harmonised version by the National Assembly, which he said related to the internal workings of the legislative arm.

The NRS boss, who spoke in an interview on Arise Television, also clarified that contrary to speculations, the law became operational from June 29, 2025, when President Bola Tinubu signed the bills into law, and not January 1, 2026 as currently being taunted.

However, he explained that actual implementation of some of the laws was extended till January to allow taxpayers including companies as well as the NRS to prepare and adjust to the new reality.

He said, “What we have is the gazette, which was published within the legally required timeframe. That gazette is the law. When people say the executive has handled or altered the law, that has no basis.

“If something has no place in the law, then it does not exist legally. If you follow the institutional processes of the National Assembly, you will see that once a law is gazetted, that is final.

“We have not seen any dissenting official position on this matter, especially from us, because our duty is only to implement the law as passed by the National Assembly. If you listen to Mr. President’s speeches, he has repeatedly emphasised that implementation will strictly follow the law.”

He said, “Why would we want to go outside the law? The relationship between tax administration and taxpayers must be built on trust. The better that relationship, the better for everyone. Our objective is not enforcement for its own sake, but to help people prosper.

“The real essence of this reform is to stimulate economic growth. It is only when the economy prospers that revenue administration becomes effective.

“As the President has often said, ‘I will not tax seed; I will tax fruit. We do not want to tax investment; we want to tax returns’  That is why the focus of this reform is to remove obstacles that stand in the way of businesses, so they can grow and succeed.”

However, on the harmonised bill, Adedeji said, “Let me be clear: I do not need to see the harmonised bill. The internal processes of the National Assembly are their responsibility. The only thing that concerns us is the final law that is transmitted, gazetted, and handed over for implementation. We have no role in harmonisation, correction, or internal legislative procedures.

“Even if the National Assembly uses its internal mechanisms to correct issues, that is entirely within its institutional mandate. Our role begins and ends with implementation of the law as passed.

“By God’s grace, the law commenced as scheduled. The operational guidelines are ready. What we are looking forward to now is implementation and the delivery of benefits to Nigerians.”

Further commenting on the objectives of the tax reforms, Adedeji said the move was primarily taken to protect the poor as well as grow the economy.

He said, “One of our major objectives during public hearings was to protect the poor. Over 95 per cent of low-income Nigerians are completely exempt under this reform.

“We removed VAT on basic food items and essential transportation. Since about 90 per cent of poor households’ disposable income goes to food, this reform directly benefits them. When you look at the net effect, the poor are the biggest beneficiaries of the tax reform.”

On bank transfers, VAT, and allegations of excessive deductions, he stated that there had been lots of misinformation over the issue.

The NRS chairman said, “Effective January 1, the system operates on three tiers. Only the payer, not the recipient, is subject to applicable charges. Issues people complain about largely relate to state-level internal revenue practices, not federal taxes.

“No tax authority—state or federal—can pry into your bank account arbitrarily. There is no provision in the old or new law allowing that. Transfers between family members or businesses are normal transactions and are not taxed simply because money moved.”

He said, “Reporting thresholds have existed long before this reform. Banks report transactions above ₦25 million for individuals and ₦100 million for companies, but this is not new, and it is not unique to tax authorities. It reflects modern data management standards globally.”

He added that “Under the new taxation principles, We tax profit, consumption, and returns—not investments.

“Previously, companies were required to pay minimum tax based on turnover, even when making losses. That effectively taxed capital, which this administration strongly opposed.

“Under the new law, minimum tax applies only to profit, not turnover. This is one of the landmark changes, and it reflects the President’s commitment to encouraging investment and growth.”

Also, clarifying the commencement of the law, Adedeji said, “Let me clarify something. The law did not start on January 1 in the way some people have said. The law was assented to on June 26. From that date, it became operational.

“However, certain provisions—especially those involving changes in rates—were given a six-month transition period to allow companies to adjust their systems. That is standard tax policy.

“So, while the law commenced in June, rate changes were deferred to January to allow proper preparation.

“The President has described this reform as a once-in-a-generation opportunity to build a fiscal framework that supports sustainable prosperity.”

Adedeji also explained that the tax law and tax reforms had nothing to do with happenings  in the banks.

According to him, “It is not tax law that determines whether people get paid or not. What they get paid comes from their transactions. It has nothing to do with tax law, and that is what I am explaining.

“There is nothing in the tax law that introduces additional taxes beyond what already exists. This is something I clarified intentionally when the issue was raised officially for the first and last time.”