From Juliana Taiwo-Obalonye, Abuja
Starting January 1, 2026, Nigeria will implement sweeping tax reforms under the newly renamed Nigeria Revenue Service (NRS), replacing the Federal Inland Revenue Service (FIRS).
This was disclosed by its chairman, Zacch Adedeji, shortly after President Bola Tinubu signed into law four landmark tax reform bills designed to bring much-needed relief to Nigerians, restore fairness in the tax system, and ignite inclusive economic growth.
The four new laws are: Nigeria Tax (Fair Taxation) Law, Nigeria Tax Administration Law, Nigeria Revenue Service (Establishment) Law, and Joint Revenue Board (Establishment) Law.
He said this would give the administration six months for planning, education, and alignment with the fiscal calendar.
Addressing State House Correspondents on Thursday, he explained, “Based on best practices globally, because when you have this kind of change, it takes time for all the stakeholders, participant operators, and even the regulator to change the system.
“So, with the magnanimity of the National Assembly, Mr President, the effective date will be January 1, 2026, by the special grace of Almighty God.”
Adedeji stressed the importance of launching the reforms at the start of a new calendar year, saying, “When you have this kind of change, it’s not what you do mid-year. Because if the application of law is better, you start from the beginning of the year.
“So, effective dates, by God’s grace, will be first of January 2026,” he added.
Adedeji praised the leadership behind the initiative. “This reform is a dream come true, made possible by the political will demonstrated by Mr President and the maturity of the National Assembly.”
Chairman of the Presidential Tax Reforms Committee, Taiwo Oyedele, explained, “These reforms are about relieving people of multiple taxes, not about raising more taxes. There will be more money in the hands of ordinary Nigerians to take care of their daily needs.”
He listed the key changes under the new tax regime to include:
– Removal of VAT on essentials: Value Added Tax (VAT) will no longer apply to food, medical services, education, and accommodation, easing the cost of living for many Nigerians.
– Transparent incentive regime: The laws introduce clearer rules around tax incentives, aiming to eliminate wasteful exemptions and curb tax evasion.
– Enhanced efficiency: The reforms empower the Nigeria Revenue Service with better technology and expanded authority to improve tax collection.
– Social contract revisited: The new laws redefine the relationship between the government and taxpayers, emphasising fairness and accountability.
House Committee on Finance Chairman, James Faleke, said the President’s consultative approach was also highlighted. “The President did not dictate; he asked questions and encouraged us to provide answers. He urged us to stay the course and support the government in implementing these reforms,” he said.
Faleke noted that the reforms will expand the tax base and improve revenue generation for both federal and subnational governments. “By 2026, subnational governments should expect an increase in their tax rolls, thanks to these reforms and the use of technology,” he said.
Chairman of the Senate Committee on Finance, Sani Mohammed, recalled the rigorous legislative process. “When the bill was introduced, it faced uproar, but through extensive consultations, we crafted laws that reflect Nigerians’ aspirations, protect the less privileged, and consider key sectors like oil and gas,” he said.