President Bola Ahmed Tinubu has defended the tax reform laws introduced by his administration, asserting that outdated colonial-era taxation frameworks had systematically impoverished Nigerians through fragmentation, multiplicity, and inconsistencies.
Speaking at the commissioning of the Nigeria Revenue Service (NRS) headquarters in Abuja on Tuesday, Tinubu emphasized that the new tax laws which became fully operational in January 2026—are designed to liberate the economy from archaic constraints and position Nigeria for sustainable growth.”
The reforms are designed to simplify our system, eliminate distortions and create a fair, transparent and investment-friendly environment,” Tinubu said.
“Our direction is clear: to have a revenue system that rewards enterprise, supports growth, and ensures that every contribution to the national cause is matched by feasible value for the people.”
Tinubu stressed that the new tax system is people-centered and investment-friendly, addressing longstanding challenges that had undermined Nigeria’s global competitiveness.
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The President highlighted early results as evidence of the reforms’ effectiveness, pointing to improved fiscal stability, stronger foreign reserves, and a more efficient trade ecosystem.
Government revenue figures underscore this trajectory. By September 2025, federal revenue had reached ₦3.6 trillion 400 percent above what the Tinubu administration inherited in 2023.
The President credited this performance to deliberate policy choices and sustained structural discipline rather than chance economic movements.The tax reform package, comprising four bills transmitted to the National Assembly in October 2024 and signed into law in June 2025, consolidates six major taxation acts into a unified legal framework.
The Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act fundamentally restructure how the government administers revenue collection and taxation across federal, state, and local levels.Key provisions reflect the administration’s stated focus on reducing the tax burden on vulnerable populations and small enterprises. Individuals earning ₦800,000 annually or less are exempted from income tax.
Small businesses with annual turnovers of ₦50 million or below are exempted from corporate income tax. Essential items including food, education, and healthcare are subject to zero percent VAT, providing relief for low-income households.For larger corporations, the corporate income tax rate has been reduced from 30 percent to 27.5 percent in 2025 and 25 percent from 2026 onwards.
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The government has also established a Tax Ombudsman and Joint Revenue Board to enhance dispute resolution and intergovernmental coordination on tax administration.
Addressing concerns about the reforms, Tinubu assured that the NRS has repositioned itself with enhanced technological capacity and research-driven policy frameworks.
He emphasized that the agency must function not merely as a revenue collection body but as a trust-building institution demonstrating governmental efficiency, fairness, and accountability.Senate President Godswill Akpabio and Speaker of the House of Representatives Tajudeen Abbas attended the commissioning, along with ministers, governors from Kwara, Imo, Borno, Kogi, Plateau, and Anambra States, and private sector leaders.
Akpabio urged Nigerians to exercise patience with the reform process, noting visible improvements in fuel supply stability and agricultural productivity. He stated that the administration has eliminated the long fuel queues that characterized previous years and increased Nigeria’s petroleum and agricultural output to export levels.
The President also credited the modernization of Nigeria’s trade ecosystem through the National Single Window—a digital platform launched in March 2025 that consolidates customs clearance processes and reduces administrative inefficiency. The platform, which took ten previous administrations six separate attempts to establish, became operational within three years under Tinubu’s leadership.
Despite the administration’s defense, the tax reforms have faced significant resistance. Northern Nigerian governors and traditional rulers have rejected aspects of the legislation, particularly the VAT revenue-sharing formula that allocates revenue based on consumption location rather than derivation alone. Critics argue the model disadvantages economically weaker regions.
Tinubu’s address underscores the administration’s commitment to proceeding with implementation despite ongoing political tensions. The President framed tax reform as a structural necessity for long-term national development rather than short-term political accommodation.
Source: NaijaNews
