New tax laws is not to make life harder for Nigerians – Economists reveals

Nigeria on Thursday, January 1, 2026, formally began implementing a new set of tax laws and fiscal reforms, a move that has generated widespread public concern despite repeated assurances from the federal government that the measures are intended to strengthen the economy rather than impose additional hardship on citizens.

The rollout followed through on President Bola Ahmed Tinubu’s declaration in June 2025 that the reforms would take effect at the start of 2026, even in the face of mounting opposition and calls for postponement.

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Several influential groups and individuals had urged the government to delay the reforms, including the Nigeria Labour Congress (NLC), the House of Representatives Minority Caucus, and senior human rights lawyer Femi Falana (SAN).

Concerns were also voiced by former Senate Leader Ali Ndume, former Minister of Education Oby Ezekwesili, and Bauchi State Governor Bala Mohammed, among others.

The debate intensified after federal lawmaker Abdulsamman Dasuki alleged that discrepancies existed between the version of the tax laws passed by the National Assembly and the one officially gazetted. This prompted the leadership of the legislature to order a re-gazetting of the laws.

A last-minute legal challenge seeking to halt the implementation was dismissed by Justice Bello Kawu of the Federal Capital Territory High Court, effectively removing the final legal obstacle to the reforms taking effect nationwide.

Despite this, public unease has persisted, with many Nigerians worried about the potential impact on personal income, consumer prices, and business operations, especially amid existing economic pressures.

President Tinubu has consistently maintained that the reforms will not introduce new tax burdens on ordinary Nigerians. This position has been echoed by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, who described the changes as essential for modernising Nigeria’s revenue system.

According to the administration, the reforms are designed to improve efficiency, eliminate leakages, and create a more sustainable fiscal framework.

Expert Calls for Calm and Understanding

Speaking to DAILY POST, economist and accountant Prof. Godwin Oyedokun urged Nigerians to approach the reforms with caution rather than fear, stressing that they are not meant to be punitive.

“The objective of the new tax laws is not to make life harder for Nigerians,” Oyedokun said. “It is to improve revenue efficiency, block leakages, and reduce the country’s dangerous dependence on oil income.”

He explained that Nigeria’s tax-to-GDP ratio remains among the lowest globally, limiting government capacity to fund key sectors such as infrastructure, healthcare, and security without excessive borrowing.

Who Bears the Bigger Burden?

Oyedokun clarified that low-income earners are largely protected, as existing tax thresholds and exemptions remain in place.

“The greater responsibility is expected to fall on higher-income earners, large corporations, and sectors that have historically operated with weak compliance,” he noted.

However, he warned of possible indirect effects, particularly if businesses pass increased compliance costs on to consumers through higher prices.

Implications for Businesses

The economist acknowledged that businesses may face initial challenges due to stricter reporting requirements and enforcement measures.

“These measures are meant to ensure fairness, so that compliant companies are not disadvantaged while others evade the system,” Oyedokun said.

He added that over time, a more transparent and predictable tax environment could encourage investment by supporting better infrastructure and reducing policy uncertainty.

Oyedokun stressed that the success of the reforms depends heavily on government accountability.

“Taxes must translate into visible public value. Without service delivery and transparency, even the best-designed tax laws will face resistance,” he warned.

While acknowledging the likelihood of short-term discomfort, he concluded that widespread harm is not inevitable if the reforms are implemented fairly and with sensitivity to Nigeria’s current economic realities.