Minister of State for Finance, Taiwo Oyedele, has acknowledged the existence of errors in Nigeria’s new tax laws, stating that a finance bill is being proposed to address the identified gaps.
Oyedele, who was also Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, made this known while speaking at the 2026 Annual Conference of the Nigerian Bar Association Section on Legal Practice, according to a post shared on the Committee’s official X handle on Friday.
He noted that the reforms are guided by principles of transparency, fairness, and clear policy intent, rather than arbitrary enforcement.
What he is saying
Oyedele emphasised the importance of policy intent in interpreting and implementing tax laws.
- “Under the old system, an individual could pay an effective tax rate of about 19 per cent, but registering the same business as a company pushed the burden above 40 per cent. This was the opposite of global best practice.”
- “If policies can change overnight, it sends the wrong signal to investors. Consistency is critical.”
- “Nearly half of working Nigerians earn less than N70,000 monthly. Taxing them aggressively would be unjust.”
In a statement posted on X, the Committee said:
- “Addressing concerns about discrepancies in the law-making process, Oyedele acknowledged that errors occurred due to manual processes and multiple stages of review. He said steps are underway to correct identified issues through a proposed finance bill.
Backstory
In December 2025, a member of the House of Representatives, Hon. Abdulsammad Dasuki (PDP, Sokoto), had raised concerns over alleged discrepancies between the newly gazetted tax reform laws and the versions passed by the National Assembly.
According to him, his review of the gazetted copies of the tax laws revealed material differences from what was debated, harmonised, and approved by the House of Representatives and the Senate.
The disputed laws form part of a broad tax reform package recently passed by the National Assembly and signed into law, with implementation scheduled to commence from January 2026.
More Insights
Oyedele further highlighted key features of the new tax framework and the rationale behind them.
- The reforms eliminate minimum tax requirements for loss-making businesses, preventing taxation of capital instead of profit.
- Essential goods and services such as food, education, and healthcare have been exempted from VAT.
- The framework consolidates multiple tax laws into four major legislations, including the Nigeria Tax Act and Nigeria Tax Administration Act.
- Low-income earners and millions of small businesses are shielded due to their limited tax-paying capacity.
These measures are intended to create a more equitable and business-friendly tax environment.
What you should know
In June 2025, President Bola Ahmed Tinubu signed four major tax reform laws aimed at improving tax administration and compliance.
- These reforms are designed to enhance revenue mobilisation and reduce dependence on oil revenues.
- In March 2026, the Federal Government introduced presumptive tax rules targeting Micro, Small, and Medium Enterprises (MSMEs).
