- Laws to exempt the poor from taxation take off Jan
- FIRS transforms to NRC
A new era in the country’s tax administration commenced with yesterday’s signing of the four tax bills by President Bola Ahmed Tinubu.
The new laws, which are due to go into effect in January, have streamlined taxation, which was uncoordinated before now.
The President said the new laws “opened the door for a new economy and business opportunity”.
“This is a clear message to the world that Nigeria is truly ready and open for business.
“We’re in transit—we have changed rules, we have changed some of the misgivings”, the President said at the signing ceremony held at the State House, Abuja.
Describing the occasion as a turning point for the nation’s economic future, President Tinubu hailed the new laws as a necessary step in Nigeria’s journey to modernisation.
“What we did a few minutes ago is a way forward for our country.
“Leadership must help the people to take off and lead the way at every twist and turn. That is what we are doing here,” he said.
The Nigeria Tax Reform Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act are part of the administration’s comprehensive fiscal policy overhaul and were developed through extensive consultations and legislative scrutiny over the past 10 months.
President Tinubu commended the National Assembly for what he called their “courage” and sense of duty.
“Initially, it was difficult, but not all roads will be easy in the process of nation-building.
“Even the blockwork takes a binder and concrete cement to build a body,” he said.
The laws, the President noted, will deliver relief, restore fairness, reignite growth, unify a fragmented tax system, remove redundant overlaps, boost investor confidence, enhance transparency and promote coordinated efforts across the board.
He also described the legislation as a clear departure from previous policies, emphasising that the reforms are designed to ease the burden on working families, small businesses, and low-income earners while eliminating inefficiencies that have long plagued Nigeria’s fiscal structure.
On his verified X handle @officialABAT, the President said the new tax laws form the groundwork for the Nigeria of tomorrow, focused on unlocking opportunities for all.
“We are also building a framework for the Nigeria of tomorrow: leaner, fairer and laser-focused on unlocking opportunities for all.”
He believes the new statutes have laid the foundation for a tax regime that is fair, transparent and fit for a modern, ambitious Nigeria.
“These reforms go beyond streamlining tax codes.
“They deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet.
“For too long, our tax system has been a patchwork-complex, inequitable, and burdensome.
“It has weighed down the vulnerable and shielded inefficiency. That era ends today.
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“We are laying a foundation for a tax regime that is fair, transparent and fit for a modern, ambitious Nigeria; a tax regime that rewards enterprise, protects the vulnerable and mobilises revenue without punishing productivity,” he said.
Leaders of the National Assembly, Chairman of the Federal Inland Revenue Service (FIRS), which is now to be known as the Nigerian Revenue Service (NRS), Dr Zacch Adedeji, and others witnessed the Presidential assent.
Akpabio: it’s historic
Senate President Akpabio described the legislative journey as historic.
“You have harmonised the entire tax system in this country,” he said, noting that laws like the Stamp Duties Act—originally enacted in 1901 and last revised in 1939—were overdue for reform.
Akpabio said the President’s vision was clear from the outset.
“You campaigned based on changing the country and the perception of our institutions.
“By signing these bills today, you are changing Nigeria’s future. Generations unborn will remember you.”
He underscored the dire fiscal condition inherited by the Tinubu Administration in 2023, saying “Nigeria was on life support,” with nearly all revenue consumed by debt servicing and subsidies.
“You came and saved the country,” he said.
Chairman of the Senate Committee on Finance, Senator Sani Musa, said the final bills reflect “the true aspirations of Nigerians,” shaped by extensive dialogue, even with groups initially opposed, particularly in the North.
Senator Musa highlighted the harmonisation of Nigeria’s tax system, which previously had over 70 fragmented and duplicative taxes across federal, state, and local levels.
House Finance Committee Chair James Faleke said the bills were once considered “mission impossible.”
He praised the coordinated national effort involving legislators, governors, and civil society.
Laws to take effect Jan.
Dr. Adedeji said the new tax laws will take effect on January 1, 2026, aligning with the fiscal calendar and allowing for adequate public sensitisation.
“Implementing such sweeping reforms mid-year would disrupt fiscal coherence.
“This timeline gives all stakeholders—regulators, taxpayers, institutions—time to adjust,” Adedeji explained.
He said the six-month window was based on global best practices and designed to ensure a smooth transition.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, described the laws as “pro-poor,” reassuring Nigerians that low-income earners, micro-enterprises, and vulnerable groups were protected in the reforms.
“Over one-third of workers—both public and private—will be fully exempt from PAYE.
“Over 90 per cent of micro, small, and nano businesses will no longer be subject to corporate tax, VAT, or withholding tax,” Oyedele said.
He noted that major spending areas for ordinary Nigerians—food, education, healthcare, housing, transportation, and accommodation—are now exempted from VAT entirely.
“Any traces of VAT in food, education, and healthcare are now removed completely. These are the three biggest expenses for Nigerian families. This is a huge relief,” he said.
Oyedele added that the reforms include transparency and efficiency measures to improve public trust in tax administration.
“For the first time, we are legally linking tax transparency with how public funds are used,” he said.
The laws
The Nigeria Tax Reform Act (Ease of Doing Business) consolidates fragmented tax statutes into a single modern code, aimed at reducing compliance burdens and increasing predictability for investors.
The Tax Administration Act introduces a unified legal and operational tax framework across all tiers of government, streamlining administration and reducing duplication.
The Nigeria Revenue Service (Establishment) Act repeals the old FIRS law and creates a more autonomous, performance-driven agency responsible for both tax and non-tax revenue collection.
The Joint Revenue Board (Establishment) Act establishes a formal governance structure for collaboration among federal, state, and local tax authorities.
It also creates a Tax Appeal Tribunal and an Office of the Tax Ombudsman to handle disputes and complaints.
Also in attendance at the signing were the Chairman of the Nigeria Governors’ Forum and Kwara State Governor, Abdulrahman Abdulrazaq; Chairman of the Progressive Governors Forum and Imo State Governor, Hope Uzodinma; Minister of Finance and Coordinating Minister for the Economy, Wale Edun; and Attorney-General of the Federation, Lateef Fagbemi (SAN).
NECA welcomes laws
The Nigeria Employers’ Consultative Association (NECA) said the four tax laws would promote and drive Nigeria’s economic growth.
Director-General of NECA, Adewale Smatt-Oyerinde, spoke on the sidelines of the fourth Employers Summit with the theme: “Enabling sustainable enterprise in a transitioning economy; aligning fiscal, trade and regulatory reforms for rapid development.”
He hoped the laws would open up the economy.
Smatt-Oyerinde noted that the Organised Private Sector (OPS) had struggled with the challenges of taxes, levies and fees for over 10 years.