Nigeria is set to implement a comprehensive overhaul of its tax system from January 1, 2026, under four new laws: the Nigeria Tax Act, 2025; Nigeria Tax Administration Act, 2025; Joint Revenue Board of Nigeria (Establishment) Act, 2025; and the Nigeria Revenue Service (Establishment) Act, 2025.
The reforms are considered one of the most ambitious tax restructurings in decades, targeting simplification, coordination across government tiers, and improved revenue administration.
Public anxiety and confusion have risen in markets, parks, and online, where many mistakenly believe that “everything will be taxed” under the new regime often fueled by rumours and misinformation rather than the actual content of the laws.
Officials and tax experts stress that clear communication is still lacking, which is contributing to misunderstandings among Nigerians, especially in the informal sector.
Government Position: Relief, Not Burden
Authorities, including Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, say the reforms aim to provide relief to ordinary workers and small businesses, not to punish them.
Under the new system, most ordinary workers are expected to pay lower or no Pay-As-You-Earn (PAYE) tax, and the majority of small businesses will be exempt from key taxes like VAT and corporate tax.
The goal is to spur economic growth by broadening the tax base, eliminating multiple taxation, and encouraging compliance through fairness rather than coercion.
Some sectors, such as real estate and investors in free zones, are watching closely cautious about how the reforms will affect business costs and investor confidence in 2026.
In Borno and other regions, authorities like the FIRS are actively addressing fears about possible new taxes or deductions, reassuring citizens about incentives and protections.
Beyond fears and optimism, analysts say the success of the reforms will depend on effective implementation, public communication, and how well the new system balances revenue needs with economic relief particularly for informal workers and small enterpreneurs.
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