FG insists landmark tax reforms will begin January 1, 2026

The Federal Government has restated that Nigeria’s sweeping tax reforms will officially begin on January 1, 2026, despite calls for postponement.

Speaking after a meeting with President Bola Tinubu on Friday, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said implementation of the Nigeria Tax Act and the Nigeria Tax Administration Act remains firmly on track.

His remarks were shared in a video posted by the President Bola Ahmed Tinubu Media Centre on X.

Oyedele explained that the reforms were crafted to ease the burden on ordinary Nigerians, describing them as “pro-people.”

He said the new framework will significantly reduce or eliminate taxes for most workers and small businesses.

According to projections, about 98% of employees and 97% of small businesses will either be fully exempt from tax or pay much less.

The bottom 90% of salaried workers are expected to benefit from major Pay-As-You-Earn (PAYE) reliefs, while most small firms will be exempt from Corporate Income Tax, Value Added Tax and Withholding Tax. Larger companies will also enjoy lower rates.

“These reforms are intended to provide direct relief and support inclusive economic growth,” Oyedele said, adding that the goal is to stimulate business activity and reduce financial pressure on citizens.

He noted that the reform process has been deliberate and extensive.

The bills spent nine months at the National Assembly between October 2024 and June 2025, and since receiving presidential assent, government agencies have been preparing through training, system upgrades and public sensitisation.

While acknowledging that implementation will continue to evolve, Oyedele said the government is encouraged by progress so far and remains committed to refining the system as needed.

With the January 2026 launch date confirmed, attention now turns to how the reforms will shape Nigeria’s economy in the coming year.