Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has reaffirmed that the much-anticipated overhaul of the nation’s tax system is on track to begin on the 1st of January, 2026.
The announcement followed a high-level meeting at President Bola Tinubu’s private residence in Lagos on Friday, the 26th of December, 2025, the National Tax Policy Implementation Committee (NTPIC) led by its chairman, Joseph Tegbe briefed the President on the roadmap for execution.
Addressing journalists after the session, Oyedele emphasized that despite external pressures or debates, the government remains committed to the established schedule. He noted that the new legal framework is a strategic tool for economic revitalization.
“The plan to commence the two remaining new laws on the 1st of January 2026 will go ahead as planned on schedule because these reforms are designed to provide relief to the Nigerian people.”
A central theme of the reform is the redistribution of the tax burden to favor low-income earners and small-scale entrepreneurs. Oyedele outlined specific demographics that would experience immediate benefits.
A vast majority of the workforce will see their Pay-As-You-Earn (PAYE) obligations vanish or significantly decrease.
The reforms introduce sweeping exemptions to lower the barrier to entry and operation for local entrepreneurs.
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Major entities are also expected to see a reduction in their overall tax rates to encourage reinvestment.
Regarding the specific impact, Oyedele stated: “Bottom 98 per cent of workers will see either no PAYE tax or lower taxes to be paid; small businesses, 97 per cent of them, will be exempted from corporate income tax, VAT, withholding tax, and large businesses will see a drop in the taxes that they pay.”
The ultimate goal of the 2026 transition is to move away from a punitive tax culture and toward one that fosters investment and social equity. The committee expressed optimism that the new laws would harmonize revenue collection and reduce the complexities that currently hinder business growth.
“The whole idea is to try and promote economic growth, inclusivity, and shared prosperity for our people. We are actually excited at the progress we are making, and we are looking forward to January 1, 2026.”