KEY POINTS
- The Tinubu tax reform plans are still on schedule to go into effect in January 2026.
- Opposition warns the reforms could worsen economic hardship.
- Lawmakers allege gazetted copies contain unapproved alterations.
The Presidency on Wednesday rejected demands to suspend President Bola Tinubu’s recently-signed tax reform laws, insisting that the legislation is “unstoppable” and scheduled to take effect on January 1, 2026.
Special Adviser to the President on Information and Strategy, Bayo Onanuga said that the laws, already passed by the National Assembly and endorsed by the President, were now beyond dispute. “The law is unstoppable. By January 1, 2026 by the grace of God, the implementation will begin,” Onanuga said, adding that low-income workers would be excluded.
Tinubu tax reform laws to take effect as planned
Onanuga described the reforms as “revolutionary,” aimed at harmonising multiple taxes, simplifying compliance, and boosting revenue for the benefit of Nigerians. He dismissed late objections as inconsistent with “right-thinking Nigerians,” noting that public education and system alignment would precede full implementation.
The reforms encompass four major bills: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act. Together, they consolidate federal, state, and local tax administration under the Nigeria Revenue Service, aiming to modernise revenue collection and expand the tax base.
Opposition groups, on the other hand, said that the implementation could make the economy worse. The National Opposition Movement (NOM) called the rules “punitive” because they said Nigerians are already dealing with poverty, unemployment, growing inflation, and high electricity prices. NOM spokesperson Chille Igbawua called for nationwide consultations and social protection measures before implementation.
Lawmakers raise concerns over alterations to tax laws
Meanwhile, a group of House of Representatives lawmakers alleged that the gazetted versions of the tax laws contained substantive changes not approved by the National Assembly. They claimed the alterations removed oversight mechanisms and added coercive powers, including arrest authority and compulsory dollar-based calculations.
Abdussamad Dasuki, a member from Sokoto, said that these revisions break Sections 4 and 58 of the 1999 Constitution, which say that only the legislature may establish laws. Speaker Tajudeen Abbas promised to look into the differences and do what is best for the country.
As Nigeria gets ready for the rollout of Tinubu’s tax reforms in January 2026, the dispute further highlights the difficulties between the executive and legislative branches and poses legal and policy questions.
