Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has expressed a sense of fulfillment and optimism about Nigeria’s future following the enactment of four sweeping new tax laws signed by President Bola Tinubu. The reforms, which consolidate and modernize Nigeria’s tax system, are seen as a major step toward economic growth, improved business climate, and increased revenue generation.
The newly signed laws include the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act, and the Joint Revenue Board Act. Together, they replace more than 50 overlapping and fragmented tax statutes with a single, streamlined code, significantly reducing complexity and duplication for businesses and individuals. The reforms also establish a uniform framework for tax collection across all levels of government, aiming for greater efficiency, transparency, and fairness in tax administration.
Key highlights of the new tax regime include a reduction in corporate tax rates, expanded tax credits for VAT paid on business expenses and assets, and the zero-rating of essential items like food, healthcare, education, public transport, and residential rent to cushion inflationary pressures. The new laws also restructure how VAT revenue is distributed among states, with a focus on consumption and population, which is expected to boost state revenues and discourage tax evasion.
Oyedele’s optimism is rooted in the belief that these reforms will not only simplify compliance and reduce the burden on small businesses but also align Nigeria’s tax system with global best practices, fostering economic stability and prosperity for all Nigerians. The new tax regime is scheduled to take effect from January 1, 2026, giving stakeholders time to adapt and prepare for the changes.