The Federal Government says low-income Nigerians stand to benefit most from the new tax reforms signed into law by President Bola Ahmed Tinubu.
The Nigeria Revenue Service (NRS) made the statement through its Executive Chairman on Sunday, January 5, 2026, during an interview on Arise Television. He explained that the reforms were designed to protect the poor and do not impose additional taxes on the majority of Nigerians.
“Over 95% of low-income Nigerians are fully exempted from the new tax regime,” he said, highlighting the removal of Value Added Tax (VAT) on food items and public transportation as key relief measures for vulnerable households. “When you look at the net benefit, the poor are the most positively affected by this reform,” he added.
The tax laws, passed by the National Assembly in June 2025, began implementation on January 1, 2026, following a six-month adjustment period. Certified True Copies (CTCs) of the four Acts—the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, NRS (Establishment) Act 2025, and Joint Revenue Board (Establishment) Act 2025—were released by the House of Representatives to clarify discrepancies between gazetted and legislated versions. House spokesperson Akin Rotimi confirmed the release, which was ordered by Speaker Godswill Akpabio.
However, some groups, including the National Association of Nigerian Students (NANS), Socialist Party of Nigeria (SPN), and the Coalition of Northern Groups (CNG), have raised concerns that the reforms may increase hardship, are politically motivated, or deviate from the National Assembly-approved versions. TMN has not independently verified these claims.
The reforms cover VAT, income tax, and withholding tax, aiming to streamline revenue collection while reducing burdens on vulnerable Nigerians. Debates continue over enforcement powers, reporting thresholds, and currency requirements contained in the gazetted Acts.
Implementation of the new tax laws is ongoing nationwide, with authorities and stakeholders expected to provide further clarifications. Student groups and civil society organizations have pledged to monitor the reforms and respond to their impact.