President Bola Tinubu's recent signing of four major tax reform acts, scheduled to commence on January 1, 2026, has ignited a national debate, with growing calls for their suspension met by staunch defence from within the ruling party.
Analyst Commends Reform, Dismisses Outcry
Amid the agitation, Atoyebi Paul, a chieftain of the All Progressives Congress (APC) and political commentator, has praised the President's move. In an exclusive interview, Paul argued that stakeholders across Nigeria's private and public sectors have long agreed on the necessity of overhauling the nation's 50-year-old tax legislation.
"Almost everyone in the private and public sectors agreed that our Tax law is outdated," Paul stated. "The last time our Tax law was reformed was 50 years ago, so we urgently needed another one, which the president and his team have done so well."
He commended Tinubu for being a "talk and do" leader, noting that the tax reform was a clear part of the President's manifesto and inauguration promises.
Controversy and the Call for Suspension
The push for the new laws' suspension stems from allegations raised by a member of the House of Representatives, Abdussamad Dasuki. Dasuki claimed there were discrepancies between the version of the tax laws passed by the National Assembly and the gazetted copy made available to the public.
This allegation has fueled public distrust and led to demands from various quarters, including opposition figures, to halt the implementation of the acts pending clarification. The four acts in question are: the Nigeria Tax Act 2025; the Nigeria Tax Administration Act, 2025; the Joint Revenue Board of Nigeria (Establishment) Act, 2025; and the Nigeria Revenue Service (Establishment) Act, 2025.
A Major Fiscal Shift for 2026
Beyond the controversy, the new tax framework heralds a significant transformation of Nigeria's fiscal landscape, particularly in the sharing of Value Added Tax (VAT) revenue. Approved by the Federal Executive Council and embedded in the 2026–2028 Medium-Term Expenditure Framework, the new formula marks a decisive move toward deeper fiscal federalism.
Under this new arrangement, the 36 states are projected to receive a combined N5.07 trillion from VAT in 2026. This sum represents 55% of the total distributable VAT pool of N9.23 trillion, a sharp increase from the N3.47 trillion allocated to states in 2025.
Concurrently, the reforms introduce substantial relief for low-income earners. The Federal Government, through the Presidential Committee on Fiscal Policy and Tax Reforms chaired by Taiwo Oyedele, has announced that individuals earning up to approximately N100,000 per month will be exempt from paying personal income tax starting in January 2026. This measure is designed to alleviate hardship and improve fairness within the tax system.
As the 2026 implementation date approaches, the discourse continues to balance the acknowledged need for modern tax legislation against concerns over procedural transparency and its immediate impact on the populace.
