FG stands firm on Jan 1 rollout of new tax laws as N’Assembly orders re-gazetting

The Federal Government has reaffirmed that the implementation of the new tax laws will commence on January 1, 2026, insisting there will be no postponement despite mounting controversy and calls for a delay over alleged irregularities in the legislative process.

However, in response to public concerns surrounding the passage, presidential assent and gazetting of the laws, the leadership of the National Assembly has directed the Clerk to re-gazette the Tax Acts and issue Certified True Copies of the versions duly passed by both chambers.

The firm stance by the Executive came as the National Association of Seadogs (NAS), also known as the Pyrates Confraternity, warned that rising questions over transparency, legality and sovereignty now risk overshadowing the substance and objectives of the tax reforms.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, restated the government’s position while briefing journalists after a meeting with President Bola Tinubu at his Ikoyi residence in Lagos.

“We’re actually excited about the progress we’re making, and we’re looking forward to January 1, 2026,” Oyedele said.

Addressing concerns about readiness for implementation, he said preparations had been extensive and deliberate, beginning from the moment the bills were transmitted to the National Assembly in October 2024.

“As you know, the Tax Reform Bills were at the National Assembly for nine months — from October 2024 until June 2025 — and for us, preparation started from day one,” he said.

Oyedele added that the six months following presidential assent had been devoted to capacity building, systems upgrades and nationwide sensitisation, describing the reform as an evolving process rather than a one-off event.

“This kind of reform is work in progress. You never get to perfection; you get better as you go along. But we believe we’re at a point already,” he noted.

He explained that the staggered commencement of the laws was deliberate, allowing institutions created under the reforms to become operational ahead of full rollout.

“One of the reasons two of the laws took effect about six months ago is to allow those institutions to start getting ready. For instance, you can’t establish the Office of the Tax Ombudsman on day one and expect it to function immediately,” Oyedele said.

On revenue expectations, he clarified that immediate revenue generation was not the primary goal of the reforms.

“The intention is not to raise revenue immediately. Over time, revenue will come from economic growth and improved compliance,” he said, adding that widening the tax base, eliminating wasteful incentives and strengthening tax culture would promote fairness and sustainability.

“If people who were not paying taxes before — and who are not low-income earners — begin to pay, society becomes fairer and public finances stronger,” he added.

Oyedele said the delegation’s visit was to update the President on the status of implementation of the four landmark tax laws signed earlier this year, noting that two are already in force.

According to him, the Nigerian Revenue Service (Establishment) Act and the Joint Revenue Service (Establishment) Act took effect on June 26, 2025, while the Nigerian Tax Act and the Nigerian Tax Administration Act are scheduled to commence on January 1, 2026.

“The timeline remains unchanged,” he stressed.

He also welcomed the House of Representatives’ intervention on allegations of alteration, assuring that the Executive remains open to legislative engagement where necessary.

“These reforms are pro-people and designed to reduce the tax burden on ordinary Nigerians. That is why implementation will proceed as scheduled,” Oyedele said.

He disclosed that under the new regime, about 98 per cent of workers would pay either lower or no Pay-As-You-Earn tax, while 97 per cent of small businesses would be exempt from Corporate Income Tax, VAT and Withholding Tax. Large businesses, he added, would also see a reduction in effective tax rates.

N’Assembly orders re-gazetting

Meanwhile, the National Assembly has directed the Clerk to re-gazette the Tax Acts and issue Certified True Copies following public concerns over alleged discrepancies between versions passed by lawmakers and those published in the Official Gazette.

In a statement, the House Spokesman, Hon. Akin Rotimi, said the controversy had raised issues relating to the harmonisation of bills passed by the Senate and House of Representatives, the documents transmitted for presidential assent and the versions eventually gazetted.

He said the House had constituted a seven-member Ad Hoc Committee after the matter was raised under a Point of Order, noting that the committee, alongside other relevant committees and the management of the National Assembly, was conducting an institutional review.

According to Rotimi, the review is aimed at establishing the sequence of events and identifying any lapses, irregularities or external interferences that may have occurred during the legislative and administrative handling of the Acts.

He stressed that the exercise was being conducted strictly in line with the Constitution, the Acts Authentication Act, the Standing Orders of both chambers and established parliamentary practice.

“In the interest of clarity, accuracy and the integrity of the legislative record, the leadership of the National Assembly has directed the Clerk to re-gazette the Acts and issue Certified True Copies of the versions duly passed by both chambers,” Rotimi said.

He emphasised that the step was administrative and did not imply any defect in the exercise of legislative authority by either chamber.

Rotimi reaffirmed the National Assembly’s commitment to transparency, accountability and due process, urging the public to allow institutional processes to run their course without speculation.