With less than a year to implementation, the Federal Government has fixed January 1, 2026, as the definitive start date for Nigeria’s new tax reform laws—setting the stage for what could become one of the most consequential fiscal policy tests of the current administration.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, reaffirmed the timeline while briefing journalists after a visit by the National Tax Policy Implementation Committee (NTPIC), led by Mr. Joseph Tegbe, to President Bola Ahmed Tinubu in Lagos.
Oyedele said the reforms are structured around clear deliverables that Nigerians should begin to experience from the implementation date, particularly workers and small business owners who have long complained of multiple taxation and shrinking disposable income.
According to him, about 98 per cent of Nigerian workers are expected to pay no Pay-As-You-Earn (PAYE) tax or significantly reduced amounts, while 97 per cent of small businesses will be exempted from corporate income tax, value-added tax (VAT), and withholding tax.
“These reforms are designed to provide relief to the Nigerian people,” Oyedele said, stressing that the January 2026 commencement date remains non-negotiable.
The policy also promises tax reductions for large businesses, a move government officials argue will encourage investment, improve compliance, and stimulate economic activity across sectors.
As the countdown begins, economic analysts note that the credibility of the reforms will depend not just on legislation but on effective execution, transparency, and enforcement across federal and subnational tax authorities.
For households and businesses grappling with rising living costs, January 1, 2026, now stands as a critical benchmark—when policy intent must translate into real, measurable relief.
