The Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has stated that postponing the implementation of Nigeria’s new tax laws beyond January 1, 2026, would negatively impact both businesses and low-income citizens. This statement is made in the context of ongoing debates regarding the accuracy and legitimacy of the tax reform process, which represents the most substantial change to Nigeria’s tax system in several decades.

The primary concern centers on inconsistencies between the tax laws approved by the National Assembly and those published in the official gazette. This issue was highlighted by House of Representatives member Abdulsamad Dasuki, who claimed that the gazetted laws do not match the versions debated and passed by lawmakers. As a result, civil society organizations and political figures, including former Vice President Atiku Abubakar and Labour Party presidential candidate Peter Obi, have called for a suspension of the reforms until these discrepancies are addressed.

Oyedele has advised against suspending the reforms, citing the need to resolve specific legislative concerns without halting the overall process. He argues that failure to implement the new tax laws by the specified deadline would maintain the current system, which he describes as disproportionately taxing the bottom 98% of workers. According to Oyedele, the existing tax structure imposes multiple layers of taxation on low- and middle-income earners and subjects businesses to excessive levies, while promised exemptions remain unfulfilled.

He further notes that, under the current regime, small and unprofitable businesses are still subject to minimum taxes, and hidden Value Added Tax (VAT) continues to keep prices of essential goods and services,such as food, healthcare, and education,elevated. Oyedele asserts that these factors contribute to increased living costs and hinder economic growth.

Oyedele recommends that stakeholders focus on identifying and correcting specific legislative discrepancies rather than suspending the entire reform initiative. He suggests implementing the law as passed by the National Assembly and addressing any unauthorized changes separately. He also acknowledges that some sections of the legislation require further clarification or amendment, particularly regarding references and definitions.

Regarding the authenticity of the gazetted laws, Oyedele points out the absence of an official, harmonized copy of the bills certified by the National Assembly clerk and sent to the President. He states that, without this document, it is not possible to definitively compare the gazetted version with the version passed by lawmakers. Only the National Assembly can confirm the content of the certified bills.

Oyedele also addresses concerns about specific provisions, such as Section 41(8), which allegedly required a 20% deposit. He clarifies that this clause was not included in the final gazette and appeared only in earlier drafts circulated before the committee completed its review. He further notes that some media reports on the issue did not originate from the official committee established by the House of Representatives.

The four tax reform bills, signed into law by President Bola Tinubu, aim to simplify tax compliance, broaden the tax base, and modernize revenue collection. The new laws,the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act,are intended to operate under the Nigeria Revenue Service. Despite opposition from some lawmakers, particularly from northern regions, the reforms are positioned as essential for improving Nigeria’s fiscal stability and creating a more equitable tax system.

As the implementation deadline approaches, the ongoing debate highlights the challenges of maintaining legislative accuracy, public confidence, and the need for economic modernization. Oyedele’s position is that further delays or suspensions would perpetuate the inefficiencies and inequities of the current tax system, adversely affecting both businesses and ordinary citizens.