In a major fiscal development, President Bola Ahmed Tinubu has announced that the new tax reform laws signed in June 2025 will officially take effect from January 1, 2026, marking one of the most significant overhauls of Nigeria’s tax system in recent years.
According to The Punch, the reforms aim to simplify Nigeria’s complex tax structure, broaden the tax base, and enhance compliance while reducing the burden on small and medium-scale enterprises (SMEs). The new framework merges several levies under a unified tax administration system designed to improve transparency and boost federal revenue.
BusinessDay Nigeria reports that the reforms are part of the recommendations from the Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele. The new laws introduce streamlined VAT collection processes, improved digital tax filing, and incentives for local manufacturers and startups.
The Guardian Nigeria adds that the Tinubu administration believes the policy will strengthen Nigeria’s fiscal stability, support infrastructure investment, and reduce dependence on oil revenue. However, experts have urged caution, noting that effective implementation and clear communication to businesses are key to avoiding disruptions.
Premium Times notes that public response has been mixed: while some business groups have welcomed the simplification, others worry that state-level taxes might still overlap with federal ones, potentially straining small enterprises.
Sources
The Punch — “Tinubu Signs New Tax Reform Laws to Take Effect in 2026,” Nov. 13, 2025
BusinessDay Nigeria — “Fiscal Committee’s Recommendations Shape Nigeria’s 2025 Tax Overhaul,” Nov. 13, 2025
The Guardian Nigeria — “New Tax Laws to Broaden Nigeria’s Revenue Base,” Nov. 13, 2025
Premium Times — “Mixed Reactions as Tinubu’s Tax Reforms Set for January Rollout,” Nov. 13, 2025
