•Dr. Zacch Adedeji
The newly signed tax reform laws will officially take effect from January 1, 2026, giving room for adequate preparation and alignment with Nigeria’s fiscal calendar, Executive Chairman of the National Revenue Service (NRS), Zacch Adedeji, announced today.
Speaking to journalists at the State House after President Bola Ahmed Tinubu signed the laws, Adedeji explained that the six-month window before implementation would allow the government and relevant stakeholders to sensitise the public, align internal systems, and ensure smooth transition in line with global best practices.
“Based on best practices globally, because when you have this kind of change, it takes time for all stakeholders — participants, operators, and regulators—to adjust the system. So with the magnanimity of the National Assembly and Mr. President, the effective date will be January 1, 2026, by the special grace of Almighty God”, he stated.
Adedeji said implementing such sweeping reforms mid-year would disrupt fiscal coherence, noting that it is best to begin with the start of a new calendar year, reports The Nation.
“When you have this kind of change, it’s not what you do mid-year. It’s better to start from the beginning of the year,” he added.
The effective timeline, he stressed, is intended to ensure adequate public education, institutional planning, and seamless harmonisation with the annual budgeting cycle.
Meanwhile, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, described the newly enacted laws as “pro-poor,” assuring that the reforms are designed to relieve financial pressure on low-income earners, small businesses, and the most vulnerable segments of society.
Also speaking at the post-signing briefing along with Adedeji, Oyedele revealed that the reforms include sweeping exemptions and new frameworks aimed at making taxation fairer and more equitable.
“More than one-third of workers in both the private and public sectors will now be completely exempt from PAYE. They will not have to pay personal income tax. Over 90 percent of small, micro, and nano businesses will no longer need to worry about corporate income tax, VAT, withholding tax, or PAYE for their employees”, he disclosed.
According to Oyedele, the reforms are structured to leave “more money in the hands of the ordinary Nigerian to take care of their daily needs,” with targeted relief in critical sectors such as food, healthcare, and education.
“Any traces of VAT in food, education, and healthcare are now removed completely. So, we should see prices of those items come down,” he said.
He further noted that additional VAT exemptions cover housing, transportation, and accommodation—areas he described as the top three expenditure categories for most Nigerian households.
“These three account for more than 80 percent of where Nigerians spend their money. That’s a huge relief for them,” he stated.
Beyond economic relief, the new laws are also expected to modernise Nigeria’s tax system by improving efficiency, transparency, and public trust in the administration of tax revenues.
“There are now provisions to help us improve the efficiency of how we collect taxes, and also improve transparency in reporting the taxes we collect. We expect this transparency to be directly linked to how those taxes are utilised for the benefit of the people”, Oyedele noted.
President Tinubu had, minutes earlier, signed into law four tax-related bills: the Nigeria Tax Reform Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act, saying “I have just signed into Law, the four fiscal reforms bills. It is a new dawn for Nigeria”.
