The Federal Government says it will proceed with the full implementation of the Tax Reforms Act from January 1, 2026, despite concerns raised by sections of the business community.
The law, approved earlier in 2025, seeks to overhaul Nigeria’s revenue system by harmonizing multiple taxes, expanding the tax net, and cutting leakages in collection.
Officials explained that the reforms are aimed at strengthening public finances, reducing dependence on oil, and improving ease of compliance for businesses, especially small and medium enterprises.
According to the Presidency, the new regime will also enhance transparency, curb duplication of levies across states and local governments, and promote investor confidence.
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Economic analysts have cautioned that while the Act could boost government revenue, its rollout will need to be carefully managed to prevent additional strain on struggling households and sectors.
The government has assured that consultations with private sector players, state governments, and other stakeholders are ongoing to smoothen the transition ahead of the January 2026 enforcement date.