Nigeria's journey towards a historic overhaul of its tax system, scheduled to commence on January 1, 2026, is embroiled in a deepening crisis of credibility and legality. What was heralded as a modernising leap for the nation's fiscal architecture is now clouded by weighty allegations of unauthorised alterations to the signed laws, fierce political opposition, and widespread public apprehension.
Allegations of Post-Passage Tampering Spark Constitutional Crisis
The controversy reached a fever pitch in the House of Representatives when lawmaker Abdussamad Dasuki raised a matter of privilege. He alleged glaring discrepancies between the harmonised versions of the tax bills passed by the National Assembly and the copies later gazetted and circulated by the Federal Ministry of Information.
A select committee's report presented to the House claims forensic comparisons revealed substantive provisions were inserted, deleted, or modified after legislative approval. These include new coercive powers for revenue authorities, such as arrest powers and the ability to garnish accounts without a court order. The lawmakers assert these cannot be classified as clerical corrections and render the documents legally vulnerable, questioning the very integrity of the legislative process and the laws President Bola Tinubu signed on June 26, 2025.
Political and Public Backlash Intensifies
The brewing storm over the laws' authenticity has fueled broader opposition. The National Opposition Movement (NOM), spearheaded by figures like Atiku Abubakar, David Mark, and Peter Obi, has called for the suspension of the implementation. At a World Press Conference in Abuja, spokesman Chille Igbawua condemned the plan as an "assault on the livelihood of ordinary Nigerians," arguing it concentrates enormous power in a system with weak safeguards.
This sentiment echoes deep-seated public mistrust. Experts like Dr. Chiwuike Uba point to years of corruption, budget padding, and abandoned projects as reasons citizens resist new taxes. He cites data showing approximately N99 billion wasted on abandoned federal projects between 2023-2024 and alleged padding of the 2025 budget by about N6.93 trillion. For many Nigerians, the question is not just about new taxes, but whether collected revenues will be judiciously used.
Promises of Modernisation Amidst the Turmoil
Despite the turmoil, proponents argue the reform is a necessary and overdue shift. The package, consisting of four acts including the Nigeria Revenue Service (Establishment) Act 2025, aims to consolidate over a dozen outdated statutes. Key promises include:
- Exempting individuals earning N800,000 or less annually from Personal Income Tax.
- Zero corporate tax for businesses with an annual turnover below N50 million.
- Widening the tax net, especially in the digital and informal sectors, rather than burdening existing taxpayers.
- Introducing modern digital mechanisms for enforcement and dispute resolution.
Dr. Zach Adedeji, Executive Chairman of the FIRS, has been a key driver, targeting an ambitious 18% tax-to-GDP ratio by 2026. The agency is already transitioning to the new Nigeria Revenue Service (NRS). Supporters like Taiwo Oyedele, Chairman of the Presidential Tax Reform Committee, and economist Dr. Biodun Adedipe see this as a critical move to reduce reliance on volatile oil revenue and build a sustainable, broad-based tax system.
The Path Forward: Trust and Transparency
For the reforms to succeed, analysts stress that complementary measures are non-negotiable. Professor Okon J. Umoh highlights the need for robust digital infrastructure, transparent governance, and continuous taxpayer education. The debate now centres on whether the government can first resolve the legitimacy crisis surrounding the laws, then demonstrate the fiscal discipline required to turn tax compliance into tangible public goods like healthcare, education, and infrastructure.
As the January 1, 2026 implementation date looms just days away, Nigeria stands at a fiscal crossroads. The potential of a modernised tax framework is shadowed by allegations of constitutional breach and a profound trust deficit. The coming weeks will determine if this reform agenda can survive the hailstorm of controversy and deliver on its promise of inclusive growth.
