New Year: Tax law rollout begins, as economist explains what Nigerians should know

 

 On January 1, 2026 By Ogaga Ariemu

New Year: Tax law rollout begins, as economist explains what Nigerians should know

Nigeria on Thursday, January 1, 2026, commenced the implementation of its much-anticipated new tax laws and fiscal reforms amid widespread public anxiety. 

President Bola Ahmed Tinubu had reaffirmed that the new tax regime, which was signed into law in June 2025, would take effect from January 1 despite repeated calls from various groups to delay its start. 

The rollout is part of what the government describes as a broader effort to modernize the tax system, simplify tax administration, and improve revenue generation across all sectors of the economy. 

Economists and tax experts have weighed in to explain key aspects of the new laws and to provide clarity for Nigerians concerned about how the changes will affect them. Among the assurances given was that personal income tax thresholds and exemptions remain in place to protect vulnerable citizens, with experts stressing that the reforms are not intended to penalize ordinary workers. 

Stakeholders have also emphasised the need for Nigerians to educate themselves about the provisions and compliance requirements of the new regime, noting that accurate information will be critical to avoiding confusion and misinformation as the laws take effect. 

The Federal Government and its advisors have also reassured the public that routine banking transactions will not be arbitrarily debited by tax authorities, and that enforcement will focus primarily on large-scale tax evasion and formal compliance challenges rather than low-income activities. 

Despite these explanations, the tax law rollout has been met with mixed reactions. Some civil society groups and commentators have criticised the timing and communication of the implementation, while others have welcomed the reforms as necessary to broaden Nigeria’s tax base and strengthen public finances.