The Federal Government has commenced a six-week review of Nigeria’s tax laws and fiscal policies to address implementation challenges, ambiguities and unintended consequences that have emerged since the new tax regime took effect in January 2026.
The review followed the inauguration of the Technical Subcommittee on Fiscal Policy and Tax Reforms in Abuja by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Oyedele, who is also Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, said the exercise was not designed to rewrite the fundamental tax reforms enacted in 2025, but to refine their implementation in response to lessons learned and changing economic realities.
The reforms include the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act and Joint Revenue Board (Establishment) Act, which came into full effect on January 1, 2026.
Oyedele said the proposed Finance Bill 2027 should address ambiguities, unintended consequences and compliance difficulties identified during implementation while improving Nigeria’s investment environment and economic competitiveness.
According to him, the government received 134 submissions from across the country following its call for public input.
Among the issues raised were the need to clarify and simplify provisions on Value Added Tax thresholds, withholding tax and capital gains treatment, as well as concerns over multiple taxation and coordination among revenue authorities.
Stakeholders also proposed greater digitalisation and data-sharing to reduce the burden on taxpayers repeatedly submitting information already held by government agencies.
Other proposals focused on stronger taxpayer rights, faster tax refunds and safeguards for small businesses.
Oyedele urged the subcommittee to assess the submissions based on evidence and their wider economic impact, including the problems they seek to solve, their costs, beneficiaries, those who would bear the burden and possible unintended consequences.
He also directed the subcommittee to review the Deduction of Tax at Source Regulations 2024 and prepare revised Withholding Tax Regulations.
The minister stressed that withholding tax should remain an advance-payment and compliance mechanism rather than becoming an additional cost of doing business or a tax on working capital.
The subcommittee will also review the Companies Income Tax (Significant Economic Presence) Order 2020 and develop an updated framework aligned with the new tax laws and international best practices.
Oyedele said Nigeria needed to protect its legitimate taxing rights in the digital and globalised economy while maintaining an environment capable of attracting technology and cross-border investment.
He gave the subcommittee six weeks to complete its assignment and submit its report.
The panel comprises representatives of relevant government institutions, the organised private sector and professional bodies, who are expected to work together on recommendations for improving the country’s fiscal and tax framework.
Oyedele said the first phase of the government’s tax reforms focused on changing the architecture of the tax system, while the next phase would focus on making the framework simpler, clearer and more predictable.
He added that the success of the exercise would be measured not by the number of provisions amended, but by the number of real problems resolved.
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