When President Bola Ahmed Tinubu assented to four major tax reform bills on June 26, 2025, the decision was met with widespread public backlash. Many Nigerians feared the new laws would deepen the financial strain on individuals and businesses already struggling under tough economic conditions.
The Nigeria Labour Congress (NLC) strongly criticised the reforms, arguing that labour unions were not consulted during the drafting process and that no proper briefing followed their passage and presidential assent. According to the NLC, implementing the reforms without transparency and stakeholder engagement could worsen hardship, hurt small businesses, and slow economic activity.
Concerns intensified in December 2025 when Rep. Abdussamad Dasuki, who represents the Kebbe/Tambuwal Federal Constituency of Sokoto State, alleged discrepancies between the tax bills passed by the National Assembly and the versions later gazetted for public use. Dasuki said documents obtained from the Ministry of Information did not reflect what lawmakers approved.
Reacting to the controversy, the Chartered Institute of Taxation of Nigeria warned that such inconsistencies could undermine governance, legal certainty, and public trust. Former presidential candidate Peter Obi also weighed in, expressing worries about policy clarity, public confidence, and the growing economic hardship faced by citizens.
Understanding the Tax Reforms
Naija News reports that President Tinubu signed four landmark tax reform bills aimed at restructuring Nigeria’s tax system to make it simpler and more efficient. The laws include:
- Nigeria Tax Act, 2025: A comprehensive law that consolidates personal income tax, company income tax, capital gains tax, and other levies into a unified framework.
- Nigeria Tax Administration Act, 2025: Provides guidelines for tax collection, reporting, and enforcement.
- Nigeria Revenue Service (NRS) Establishment Act, 2025: Creates a new federal tax authority to replace the Federal Inland Revenue Service (FIRS), with a focus on efficiency and transparency.
- Joint Revenue Board (JRB) Establishment Act, 2025: Establishes a coordinating body to harmonise tax collection between federal and state governments and reduce multiple taxation.
Addressing public concerns, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, assured Nigerians that the reforms are designed to harmonise existing laws, simplify compliance, and improve transparency—not to automatically increase taxes.
Speaking on Channels Television, Oyedele dismissed claims of discrepancies between the bills passed by lawmakers and those gazetted, describing the circulating documents as unofficial and misleading. He explained that only the harmonised bills certified by the National Assembly could be considered authentic.
Why Public Skepticism Persists
Despite government assurances, many Nigerians remain cautious. For small business owners and traders, the concern goes beyond new taxes to how existing levies are enforced and whether tax revenues genuinely translate into improved public services.
This skepticism, many argue, stems from years of inconsistent communication and weak implementation of reforms.
Voices from the Market
A grocery trader at Lambe Market in Ogun State told Naija News that she now incurs additional deductions, including stamp duties, when making bank transfers. She also complained of multiple and inconsistent taxes imposed on traders.
“I pay three different taxes in my shop, and the amounts are not fixed. One shop pays ₦5,000, another ₦3,000. Now they also deduct stamp duty on transfers. I’ll wait to see how the new tax laws affect us before judging,” she said.
Another foodstuff seller expressed frustration over rising bank transfer charges. “Before, transferring ₦10,000 cost about ₦15. Now I see ₦53, ₦25, and even ₦200 deducted at once. Taxes are normal, but these charges need to be reduced,” he said.
Expert Perspective on the Reforms
To shed more light on the new laws, Naija News spoke with financial analyst Gbenga Onifade. He explained that the reforms, which took effect on January 1, 2026, are intended to modernise Nigeria’s tax system by replacing several outdated laws with a single, unified code.
According to Onifade, the reforms aim to reduce duplication, broaden the tax base, and boost revenue for development—without increasing taxes across the board. He highlighted key changes, including a global minimum effective tax rate for multinational companies, VAT reforms such as mandatory invoice sequencing, and a 4% development levy that replaces several existing earmarked taxes.
On implementation, Onifade noted that while the reforms promise clarity, reduced harassment, and digitalised tax administration, their success will depend largely on rebuilding public trust.
He explained that the rebranding of FIRS to the Nigeria Revenue Service comes with stronger legal backing, broader responsibilities, and a push toward technology-driven compliance, including a unified tax identification system linked to national identification numbers.
Onifade stressed that the reforms are designed to be pro-poor and pro-growth, offering relief and exemptions for low-income earners and small businesses while creating a more sustainable revenue base for the country.
Building Trust Through Education
On how the government can gain public confidence, Onifade emphasised the need for widespread education. He argued that authorities should proactively explain the reforms through community outreach, media campaigns, and local-language communication, rather than waiting for citizens to seek clarification.
“Education is key. Nigerians need clear, simple explanations of what the tax reforms mean and how they work. Once people understand, trust and compliance will improve,” he concluded.