In a bold move to modernize Nigeria’s tax system and boost economic growth, President Bola Ahmed Tinubu has signed into law four major tax reform bills passed by the National Assembly. The new laws mark a historic shift in the country’s fiscal policy, aimed at streamlining tax administration and easing the burden on everyday Nigerians.
One of the key highlights of the reforms is the removal of Value Added Tax (VAT) on essential goods and services, including food, healthcare, education, transportation, and housing—a move expected to lower the cost of living and positively impact over 80% of household spending.
“This is the way forward for our country’s prosperity,” President Tinubu declared during the signing ceremony at the State House in Abuja. “We have opened the doors to a new economy and shown the world that Nigeria is ready and open for business.”
Key Provisions of the New Tax Laws:
- Nigeria Tax Bill (Ease of Doing Business) – Consolidates Nigeria’s fragmented tax laws into one harmonized statute.
- Nigeria Tax Administration Bill – Establishes a uniform legal and operational framework for tax administration at all levels of government.
- Nigeria Revenue Service (Establishment) Bill – Renames the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) and enhances its autonomy and performance metrics.
- Joint Revenue Board (Establishment) Bill – Introduces a formal governance structure for cooperation between federal, state, and local tax authorities.
Effective Date:
Implementation of the new tax framework will begin on January 1, 2026, allowing for a six-month transition period to ensure smooth execution and public awareness.
Inclusive Reform Process
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, praised the President’s vision and commitment to inclusive governance. He emphasized that the implementation phase would involve all stakeholders—from the public and private sectors to civil society and international partners.
“Writing the law is just the beginning,” Oyedele noted. “Proper implementation is where the real impact lies. We’re prepared, and we’re going to work collectively to get it right.”
Expanded Mandate for NRS
Chairman of the FIRS (now NRS), Dr. Zacch Adedeji, described the reforms as a dream come true. He highlighted the expanded scope of the new agency, which will now also oversee non-tax revenue collection with a renewed focus on transparency, accountability, and performance.
“Two hours ago, we were FIRS. Now we are NRS—better structured, more efficient, and performance-driven,” he said.
National Assembly, NECA Laud the Reform
Senate President Godswill Akpabio and House Finance Committee Chair Hon. James Faleke commended the President’s courage and vision. Akpabio noted that the reforms were long overdue and would place Nigeria on a sustainable fiscal path.
The Nigeria Employers’ Consultative Association (NECA) also welcomed the legislation. Its Director General, Mr. Adewale-Smart Oyerinde, said the reforms mark the beginning of long-advocated changes that would benefit businesses and the wider economy.
“For us, it’s good news. We’ve waited over a decade for harmonized taxes and fees. Now, the real work begins—with implementation,” Oyerinde said at the Nigeria Employers’ Summit in Abuja.
He stressed the importance of stakeholder engagement during the rollout phase, assuring that NECA would continue to play an active role through its representation on the Presidential Committee.
