Tinubu: New tax laws will unlock the economy

 Torchlight news.


Tinubu: New tax laws will unlock the economy



• Pro-poor exemptions begin January 2026
• FIRS re-christened Nigerian Revenue Service

President Bola Ahmed Tinubu yesterday signed four landmark tax bills, heralding what he called “a new economy and fresh business opportunities” for Nigeria.

“This tells the world Nigeria is truly open for business,”
Tinubu declared during the ceremony at the State House, Abuja, calling the assent a turning-point in the nation’s modernisation drive.

What the new laws do

The Nigeria Tax Reform Act, Tax Administration Act, Nigeria Revenue Service (Establishment) Act and Joint Revenue Board (Establishment) Act consolidate more than 70 scattered federal, state and local taxes into a coherent framework. They promise to:

  • Protect low-income earners – one-third of workers will be exempt from PAYE; micro and small businesses will no longer face corporate, VAT or withholding taxes.
  • Remove VAT on essentials – food, education, healthcare, housing, transport and accommodation are now VAT-free.
  • Streamline collection – the Federal Inland Revenue Service is replaced by a more autonomous, performance-driven Nigerian Revenue Service (NRS).
  • Create safeguards – a Tax Appeal Tribunal and Tax Ombudsman will handle disputes and complaints.

Although the legislation takes effect 1 January 2026 to align with the fiscal calendar, Tinubu said its impact on investor confidence begins immediately.

Praise—and context—from lawmakers

Senate President Godswill Akpabio called the overhaul “historic,” noting that antiquated statutes such as the 1901 Stamp Duties Act had finally been modernised. Finance Committee chair Senator Sani Musa added that months of consultations—even with groups that initially resisted the reforms—produced bills reflecting “the true aspirations of Nigerians.”

House Finance Committee chair James Faleke said the effort was once deemed “mission impossible,” while FIRS chairman (now NRS helmsman) Dr Zacch Adedeji explained the six-month lead-time would ensure a smooth transition.

A pro-people foundation

Fiscal-policy chief Taiwo Oyedele stressed that more than 90 percent of micro, small and nano businesses are now outside the tax net, describing the package as “the first major, pro-people tax cuts in a generation.”

Tinubu echoed that sentiment on his verified X handle:

“We are laying a foundation for a tax regime that rewards enterprise, protects the vulnerable and mobilises revenue without punishing productivity.”

Business welcomes the move

The Nigeria Employers’ Consultative Association (NECA) said the laws would energise growth after years of multiple, overlapping levies. NECA Director-General Adewale Smatt-Oyerinde expressed optimism that a clearer, fairer system would “open up the economy” and relieve the Organised Private Sector of burdens it has battled for more than a decade.

With the bills now law, Nigeria embarks on a leaner, more transparent fiscal path aimed at stimulating enterprise while shielding the poor—an agenda Tinubu says future generations will remember.

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