The Nigeria Labour Congress (NLC) has warned that it may mobilise resistance against the implementation of the new tax reform laws, saying labour was neither consulted during their drafting nor adequately briefed after they were passed and signed into law. The NLC claims the reforms, as currently understood, could worsen burdens on workers and small businesses, and has called for public enlightenment and transparency, threatening widespread pushback if concerns aren’t addressed.
SMEs and microbusinesses raise alarm
Operators of micro, small and medium enterprises (MSMEs) and groups like the Employers Association for Private Employment Agencies have also begged for a suspension of the rollout, citing poor awareness, a lack of stakeholder engagement, and confusion over how the new law applies in practice. They warn that enforcing the reforms without clear understanding could spark non-compliance or even protests.
Support from Manufacturers
In contrast, the Manufacturers Association of Nigeria (MAN) is backing the reforms, saying manufacturers expect a more business-friendly tax regime that eliminates “nuisance taxes” and reduces harassment by multiple tax collectors. MAN highlights that small manufacturers with turnovers below ₦100 million will be exempt from key taxes like CIT, VAT and withholding tax under the new regime, while middle-income and low-income earners stand to benefit from tax reliefs.
About the Tax Reform Laws
The reforms involve four major acts — the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act. These were signed into law in June 2025 and are described by the government as the most significant overhaul of Nigeria’s tax system in decades, consolidating tax codes and centralising administration under the Nigeria Revenue Service.
What the Reforms Aim to Do
The government says the tax reforms are pro-people, designed to ease burdens on low-income earners and small businesses, with most Nigerians either exempt or paying significantly less in tax.
They also include exemptions and reliefs for essential goods and low earners, and are intended to reduce inefficiencies and broaden the tax base without introducing new taxes.
The Key Points of Controversy
Lack of consultation and awareness among labour and small businesses.
Concerns about implementation capacity, especially of the newly established Nigeria Revenue Service.
Demand for transparency around collection, use of revenue and actual text of the laws.
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