… NECA backs implementation of legislation
… Expert urges improved digital infrastructure to strengthen legislation
ABUJA – President Bola Tinubu has said that the new tax laws, including those that took effect on June 26, and others scheduled to commence on January 1, 2026, will be implemented as planned.
The president disclosed this in a statement on Tuesday.
Tinubu described the reforms as a once-in-a-generation opportunity to build a fair, competitive and robust fiscal foundation for the country.
“The reforms are a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country,” Tinubu said.
He clarified that the tax laws were not designed to increase the tax burden on Nigerians but to reset the fiscal system, promote harmonization and strengthen the social contract.
Tinubu said, “The tax laws are not designed to raise taxes, but rather, to support a structural reset, drive harmonization, and protect dignity while strengthening the social contract.”
The president urged the stakeholders to support the implementation phase, noting that the reforms had now moved firmly into the delivery stage.
“I urge all stakeholders to support the implementation phase, which is now firmly in the delivery stage,” he said.
Tinubu acknowledged ongoing public discourse surrounding the alleged changes to some provisions of the recently enacted tax laws.
He said no substantial issue had been identified to justify halting or disrupting the reform process.
“No substantial issue has been established that warrants a disruption of the reform process,” Tinubu maintained.
The president emphasised his administration’s commitment to due process and the integrity of laws duly enacted by the National Assembly.
“Absolute trust is built over time through making the right decisions, not through premature, reactive measures,” Tinubu said.
He assured Nigerians that the Presidency would continue to work with the National Assembly to address any issues that may arise during implementation.
“I assure all Nigerians that the Federal Government will continue to act in the overriding public interest to ensure a tax system that supports prosperity and shared responsibility,” he said.
Meanwhile, the Nigeria Employers’ Consultative Association (NECA) has expressed support for the implementation of new tax legislation scheduled to begin in January.
The Director-General of NECA, Mr Wale Smatt-Oyerinde, disclosed this at a media briefing on Tuesday in Lagos.
He commended the Presidential Committee on Fiscal Policy and Tax Reforms, for constructively engaging with all stakeholders, in spite of efforts to misinform the Nigerian populace on its intention.
He urged the Federal Inland Revenue Service (FIRS) to collaborate with the organised private sector, in a bid to deepen awareness on the new tax laws.
The DG said that the tax reform legislation remained a significant item that had witnessed the most excellent form of organised chaos in Nigeria’s political history.
He urged the Federal Government to proceed with implementation of the laws, as the issue of alteration raised by the National Assembly is not sufficient to hinder the same, considering its economic objectives.
“We cannot continue to run the system the way it was run with a lot of inconsistencies; No law is perfect, and that is why we have made provisions for amendments.
“As we proceed, we can make necessary amendments, and by doing so, we are building an institution,” he said.
He said that the tax laws were aimed at creating a more conducive and productive business environment for the private sector, thereby generating jobs that would address the root cause of insecurity in Nigeria.
Smatt-Oyerinde said that the stiff resistance faced by the reforms alone, was an indication that some forces were against the growth of the Nigerian economy.
“I have never seen a regulation or legislation that witnessed this kind of engagement or antagonism; I also probably have not seen an item in our lives that has witnessed this kind of organised chaos.
“However, the committee has done tremendous work, moving from one place to another; We all saw the issues, until two weeks ago, when it was alleged that the version gazetted was different from the one passed by the National Assembly,” he said
He urged that the tax legislation be allowed to run seamlessly, for the betterment of the nation.
Also, a tax expert, Mr Olugbenga Obatola, has called for improved digital infrastructure and the elimination of multiple taxation, as this might limit the impact of Nigeria’s new tax legislation.
Obatola, a Fellow, Chartered Institute of Taxation of Nigeria (CITN) spoke in a seperate interview with newsmen in Ibadan on Tuesday.
According to him, the new policy scheduled to take effect from January 2026, presents a major opportunity for Small and Medium Enterprises (SMEs) to expand and reinvest.
He worried about the weak digital infrastructure which he said could limit the benefits to those in the rural areas particularly.
“The 2025 Tax Reform Acts marks one of the most sweeping and potentially transformative fiscal reforms for SMEs in Nigeria in decades.
“If implemented faithfully, with transparency, fairness, and strong support for SMEs, the reforms could be a significant boost for entrepreneurship, business formalisation, job creation and economic diversification.
“For many small business owners and especially the artisans, small traders, start-ups, small manufacturers, and so on, this is a real opportunity to grow without being crushed by tax burdens.
“That said, the success of the reforms depends heavily on the implementation plans put in place by government and the availability of digital infrastructure, awareness, enforcement, and protection against State and Local Government duplicative levies.
“Without these, some of the benefits may not reach the grassroots or worse, new informal levies could arise to replace the old ones,” he said.
He also advised small and medium size companies to secure the services of good Tax advisors, to assist them in navigating the new tax regime by January.
According to him, the 2025 Tax Reform Acts introduced some of the most significant tax incentives for SMEs in decades, including the exemption of companies with turnover not exceeding ₦100 million from key federal taxes.
He listed the affected taxes as Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duty (SD), Education Tax (ET) and Development Levy.
According to him, the reliefs are expected to boost cash flow, encourage reinvestment in machinery and technology, improve competitiveness and support access to bank credit for qualifying enterprises.
“The exemption is not just a reduction of tax burden; it is a stimulus for growth if SMEs use the savings wisely to strengthen operations, structure finances and scale production,” he said.
Obatola added that the reforms also consolidate levies for medium and large companies and introduce digital tools to improve transparency in the tax system.
He, however, cautioned that gaps in digital readiness could prevent informal and rural businesses from accessing the benefits of the reforms.
“Mandatory e-invoicing, electronic VAT reporting and real-time documentation, will pose compliance challenges for micro enterprises operating in areas without reliable internet or digital tools,” he said.
The expert noted that unauthorised state and local government levies remained a major threat to the policy, warning that parallel taxation systems could erode the relief provided at the federal level.
He urged regulators to prioritise enforcement against arbitrary charges at sub-national levels, adding that awareness and capacity support must accompany the reform for it to be effective.
“Government agencies, especially SMEDAN and the National Orientation Agency, need to go beyond announcements and take sensitization to the grassroots where most SMEs operate,” he said.
He also recommended subsidised digital accounting tools, business-friendly filing systems and advisory desks in tax offices to support compliance.
“If implementation is smart and inclusive, this becomes more than a tax break, it becomes a growth plan.
“But if digital gaps and multiple taxation persist, the policy may not deliver its full impact,” he said.
