The Federal Government has commenced a six-week review of Nigeria’s tax laws to address implementation gaps, ambiguities and unintended consequences identified since the reforms took effect in January.
The review will examine Value Added Tax thresholds, withholding tax, capital gains treatment, multiple taxation and other aspects of the tax regime. Its recommendations are expected to inform the Finance Bill 2027.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the exercise on Thursday in Abuja while inaugurating the Technical Subcommittee on Fiscal Policy and Tax Reforms.
Oyedele, who chairs the Presidential Fiscal Policy and Tax Reforms Committee, said implementation had exposed areas requiring clarification and refinement.
“The real test begins when the law meets the economy, as businesses interpret it, administrators implement it, investors respond to it, and citizens experience it. Implementation inevitably reveals areas requiring clarification, refinement or further reform,” he said.
The Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025 came into full effect on January 1, 2026.
Oyedele said the review was not intended to reverse the reforms but to preserve their core principles while responding to lessons from implementation and emerging economic realities.
He said the government had received 134 submissions from across the six geopolitical zones, in addition to hard-copy submissions.
According to him, stakeholders had proposed clearer VAT thresholds, simplified withholding tax and capital gains provisions, stronger action against multiple taxation and improved coordination among revenue authorities.
Other proposals included increased digitalisation and data sharing, stronger taxpayer rights, faster refunds, safeguards for small businesses and measures to improve investment in mining, renewable energy, healthcare and capital markets.
Oyedele urged the subcommittee to consider the effects of proposed changes on low-income households, workers and businesses.
“Every tax reform produces winners and losers; the question is whether a policy is fair, efficient and competitive, not whether it is popular with everyone,” he said.
He also warned against complex tax rules, describing complexity as a burden that raises compliance costs and creates opportunities for discretion and arbitrage.
“Where two approaches achieve the same outcome, choose the simpler one,” he said.
The minister said withholding tax should remain an advance-payment and compliance mechanism rather than become an additional cost to businesses or a tax on working capital.
“In a country where the cost of capital is very high, if you withhold the funds that businesses should use for expansion for even one year, it comes at a huge cost,” he said.
Beyond preparing the Finance Bill 2027, the subcommittee will review the Deduction of Tax at Source Regulations 2024 and prepare revised withholding tax regulations.
It will also examine the Companies Income Tax (Significant Economic Presence) Order 2020 and develop an updated framework aligned with the new tax laws and international practices.
The subcommittee is chaired by the Permanent Secretary of the Federal Ministry of Finance, while the Chairman of the Tax Advisory Committee, Albert Folorunsho, serves as co-chair.
Its members include representatives of the Federal Ministry of Justice, Nigeria Revenue Service, Joint Revenue Board, Nigeria Customs Service, Central Bank of Nigeria, Debt Management Office, Budget Office of the Federation and Nigerian Investment Promotion Commission.
Others are representatives of SMEDAN, Manufacturers Association of Nigeria, Nigerian Economic Summit Group, Nigerian Bar Association, Association of National Accountants of Nigeria, Chartered Institute of Taxation of Nigeria and Institute of Chartered Accountants of Nigeria.
Representatives of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture and the Big Four accounting firms—Deloitte, EY, KPMG and PwC—are also members.
Folorunsho said the committee would work towards recommendations that were technically sound, administratively practical and responsive to the concerns of taxpayers, businesses and government.
“Our recommendations must therefore be technically sound, administratively practicable, and responsive to the realities confronting taxpayers, businesses, and government,” he said.
He added that the panel would consult relevant stakeholders and pursue reforms that strengthen revenue mobilisation without imposing unnecessary burdens on taxpayers.
Oyedele directed the subcommittee to submit its report within six weeks.
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