President Bola Tinubu yesterday gave his assent to four tax reform bills on key areas of Nigeria’s fiscal and revenue framework.
The four bills are the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
They were signed at a brief ceremony held at the Aso Rock Presidential Villa, Abuja.
The government fixed January 1, 2026 as the commencement time for the implementation of the tax laws, thereby giving stakeholders a six-month transition period to prepare.
“When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments,” presidential spokesman, Mr Bayo Onanuga said in a statement.
One of the four bills is the Nigeria Tax Bill (Ease of Doing Business), which aims to consolidate Nigeria’s fragmented tax laws into a harmonised statute.
“By reducing the multiplicity of taxes and eliminating duplication, the bill will enhance the ease of doing business, reduce taxpayer compliance burdens, and create a more predictable fiscal environment,” Onanuga further declared.
The second bill, the Nigeria Tax Administration Bill, will establish a uniform legal and operational framework for tax administration across federal, state, and local governments.
The Nigeria Revenue Service (Establishment) Bill, the third bill, repeals the current Federal Inland Revenue Service Act and creates a more autonomous and performance-driven national revenue agency—the Nigeria Revenue Service.
It defines the NRS’s expanded mandate, including non-tax revenue collection, and lays out transparency, accountability, and efficiency mechanisms.
The fourth bill is the Joint Revenue Board (Establishment) Bill.
It provides for a formal governance structure to facilitate cooperation between revenue authorities at all levels of government. It introduces essential oversight mechanisms, including the establishment of a Tax Appeal Tribunal and an Office of the Tax Ombudsman.
Meanwhile, the chairman FIRS, Dr Zacch Adedeji, and the chairman of the presidential fiscal policy and tax reforms committee, Mr Taiwo Oyedele, commended Tinubu for signing the four historic tax reform bills into law, setting the stage for a complete overhaul of Nigeria’s fiscal architecture.
Speaking at a post-signing press briefing at the Abuja, Adedeji described the moment as “a dream come true” and hailed the President’s “vision, courage, and commitment” to modernising the tax system.
Adedeji announced that the implementation of the new tax laws will commence on 1 January 2026, giving stakeholders a six-month transition period to prepare.
“The effective date for implementation has been set for 1 January 2026, as announced by the relevant ministry,” he said.
“This gives us a full six-month window for robust sensitisation, thorough planning, and alignment with the government’s fiscal calendar. A reform of this magnitude cannot be rushed.”
He also revealed that the FIRS would now transition into the Nigeria Revenue Service (NRS) with an expanded mandate covering both tax and non-tax revenue, promising greater efficiency and transparency.
In his remarks, Oyedele stressed that the reforms are pro-growth and pro-poor, aimed at improving equity, reducing burdens on vulnerable Nigerians, and stimulating economic development.
“Over one-third of workers in both public and private sectors will now be completely exempt from personal income tax. More than 90% of micro, small, and nano enterprises are also exempt from Corporate Income Tax, VAT, and PAYE obligations,” he noted.
Oyedele also announced that essential goods and services, including food, healthcare, education, transportation, and accommodation, are now exempt from VAT, a move expected to lower the cost of living for millions of Nigerians.
“These essential categories account for over 80% of average household spending in Nigeria. By removing VAT, we’re putting money back in the hands of ordinary people,” he added.
He further said the tax reforms were not about increasing tax rates, but about closing loopholes, simplifying processes, and expanding the tax base through digitalisation.
“The new laws are designed to end discretionary waivers and ensure that tax incentives are accessible to all qualifying businesses, not just the well-connected,” he said.
The presidential assent to the bills was witnessed by the leadership of the national assembly, committee chairmen, the governor of Kwara State and chairman of the Nigeria Governors’ Forum, Mr Abdulrahman Abdulrazaq, the chairman of the Progressives Governors’ Forum (PGF) and governor of Imo State, Mr Hope Uzodinma, the minister of finance and coordinating minister of the economy, Mr Wale Edun as well as the attorney general of the federation and minister of justice, Mr Lateef Fagbemi.
