The Federal Government of Nigeria has initiated a six-week review of the country's tax reforms to address challenges that have emerged since the new tax laws took effect in January. This exercise aims to review key areas of the tax regime, including Value Added Tax thresholds, withholding tax, and capital gains treatment. The review is expected to provide recommendations that will form part of the Finance Bill 2027.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this in Abuja while inaugurating the Technical Subcommittee on Fiscal Policy and Tax Reforms. Oyedele, who is also the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, stated that the implementation of the new laws had exposed areas requiring clarification and refinement. He emphasized that the review is not intended to reverse the 2025 reforms but to address problems identified during implementation.
The Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025, and Joint Revenue Board (Establishment) Act 2025 came into full effect on January 1, 2026. Oyedele noted that the government is moving from fundamental reforms to continuous improvement. The review will extend beyond taxation to fiscal policy and management, public financial management, debt, transparency, capital markets, and cross-border capital flows.
The government received 134 submissions from across the geopolitical zones following its call for public input. Preliminary issues raised by stakeholders included proposals to clarify and simplify VAT thresholds, withholding tax, and capital gains treatment. Other proposals sought stronger action against multiple taxation and better coordination among revenue authorities.
Stakeholders also proposed stronger taxpayer rights, faster refunds, safeguards for small businesses, and measures to improve investment and competitiveness in mining, renewable energy, healthcare, and capital markets. Oyedele urged the subcommittee to consider the economic impact of proposed changes, particularly on low-income households, workers, and businesses.
Oyedele emphasized that every tax reform produces winners and losers, and the question is whether a policy is fair, efficient, and competitive. He stated that the government must optimize the whole economy, not merely achieve a single objective. The review aims to preserve the fundamental principles of the 2025 reforms while learning from implementation and responding to new economic realities.
The review is expected to provide recommendations that will form part of the Finance Bill 2027. The government aims to address implementation gaps, ambiguities, and unintended consequences that have emerged since the new tax laws took effect. The exercise is a continuous improvement process to ensure that the tax regime is fair, efficient, and competitive.
Key points
- The review will address implementation gaps and unintended consequences of the new tax laws.
- The government received 134 submissions from stakeholders.
- The review aims to preserve the fundamental principles of the 2025 reforms.
