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2026: Tax law rollout begins as economist explains what Nigerians should
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 on Tuesday reaffirmed that the new tax regime signed into law in June 2025 would take effect on January 1, despite repeated calls from various quarters for a suspension to allow for further review.
Among those who had urged the Federal Government to pause the implementation were the Nigeria Labour Congress (NLC), the Minority Caucus of the House of Representatives, former Senate Leader, Ali Ndume, human rights lawyer, Femi Falana (SAN), former Minister of Education Oby Ezekwesili, Bauchi State Governor, Bala Mohammed, and several opposition parties.
The controversy surrounding the tax reforms intensified after a lawmaker, Abdulsamman Dasuki, raised concerns over alleged alterations to the gazetted version of the tax law. Following the outcry, the leadership of the National Assembly ordered that the laws be re-gazetted to address the concerns.
Defending the reforms, President Tinubu assured Nigerians that the new tax laws would not impose additional burdens on citizens.
His position was echoed by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, who maintained that the implementation was necessary to reposition the countryâs revenue framework.
Further clearing the path for the rollout, Justice Bello Kawu of the Federal Capital Territory High Court dismissed a suit seeking to halt the implementation of the tax laws.
Despite these assurances, concerns over the possible effects of the reforms on individual incomes, prices, businesses, and corporate operations have continued to fuel public unease.
In a recent interview, a university don, economist, and accountant, Prof. Godwin Oyedokun, urged Nigerians to move beyond fear and misinformation, stressing that the reforms require âcalm understanding rather than panic.
He explained that the objective of the new tax laws is not to punish taxpayers but to strengthen government revenue in a sustainable manner.
âThe objective of the new tax laws is not to make life harder for Nigerians.
âIt is to improve revenue efficiency, block leakages, and reduce the countryâs dangerous dependence on oil income,â he said.
According to Oyedokun, Nigeriaâs tax-to-GDP ratio remains among the lowest globally, limiting government capacity to fund infrastructure, healthcare, education, and security without excessive borrowing.
âWhat the government is trying to do is to broaden the tax base, not necessarily to raise tax rates across the board,â he noted.
Impact on Low-Income Earners
Addressing fears that the reforms could worsen hardship, Oyedokun said most low-income earners are unlikely to be directly affected.
âPersonal income tax thresholds and exemptions are still in place to protect the most vulnerable Nigerians,â he explained.
âThe greater responsibility is expected to fall on higher-income earners, large corporations, and sectors that have historically operated with weak compliance,â he added.
However, he cautioned that indirect effects could still emerge.
âThere is a real risk that some businesses may pass compliance costs to consumers through higher prices, especially in an inflationary environment.
âBut this depends largely on how the laws are enforced and how competitive the markets are,â he said.
What Businesses Should Expect
For businesses, the economist acknowledged that the reforms may initially feel demanding.
âStronger reporting requirements and tighter enforcement will increase compliance costs in the short term,â he said.
âHowever, these measures are meant to ensure fairness so that companies that pay their taxes are not disadvantaged while others evade the system,â he noted.
He added that effective implementation could eventually benefit the private sector.
âA transparent and predictable tax system can support business growth through better infrastructure, improved public services, and reduced policy uncertainty,â Oyedokun said.
Call for Caution and Accountability
Oyedokun advised Nigerians to stay informed and actively engaged as the new laws take effect.
âNigerians should approach these reforms with informed caution, not panic,â he said. âPublic education, dialogue, and engagement with tax authorities are essential.â
He also stressed the responsibility of the government to deliver accountability.
âTaxes must translate into visible public value.
âWithout service delivery and transparency, even the best-designed tax laws will face resistance,â he warned.
According to him, the success of the new tax regime will ultimately depend on trust, effective communication, and responsible governance.
âThere may be short-term discomfort, but widespread harm is not inevitable.
âIf implemented fairly and with sensitivity to current economic realities, these reforms can benefit Nigeria in the long run,â Oyedokun concluded.
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