Tinubu Insists On January 2026 Tax Law Take-Off Amid Rising Opposition
By TINA TOLUTOPE
PRESIDENT Bola Ahmed Tinubu has firmly rejected calls to suspend or delay the implementation of Nigeria’s new tax laws, insisting that the reforms will take effect on 1 January 2026 as scheduled, despite mounting political, legal and business-sector resistance.
In a statement personally signed on Tuesday, the President described the reforms as a “once-in-a-generation opportunity” to rebuild Nigeria’s fiscal architecture, stressing that no credible issue has been established to justify halting the process.
According to him, the tax reforms are not intended to increase the tax burden on Nigerians but to harmonise existing laws, strengthen transparency, and reset the country’s social and economic contract.
Presidency Defends Reform Integrity
Tinubu acknowledged the growing public debate over alleged discrepancies between versions of the newly enacted tax laws but maintained that such concerns do not warrant disruption of implementation.
“No substantial issue has been established that warrants a disruption of the reform process,” the President said, adding that trust in governance must be built through consistency and sound decision-making rather than “premature, reactive measures.”
He assured Nigerians that his administration remains committed to due process and would continue to work with the National Assembly to resolve any identified concerns swiftly.
The new tax framework, signed into law in June 2025, consolidates several existing tax statutes into a unified regime, with full implementation slated for January 2026.
LCCI Backs Reform, Urges Transparent Rollout
The Lagos Chamber of Commerce and Industry (LCCI) has thrown its weight behind the tax reforms, calling for transparent and effective implementation to unlock growth and ease compliance for businesses.
LCCI President, Engr. Leye Kupoluyi, said the reforms could reduce the burden on productive enterprises, broaden the tax base, and improve fiscal predictability if properly executed.
He urged sustained coordination between fiscal and monetary authorities to support disinflation, lower interest rates gradually, and expand credit to the private sector.
Kupoluyi also highlighted the importance of strengthening food supply chains, promoting export diversification, improving infrastructure, and rebuilding household purchasing power to ensure inclusive growth.
He described 2025 as a transition year from crisis management to cautious stabilisation, warning that the real test in 2026 would be translating reforms into tangible benefits for households and businesses.
PDP Demands Suspension Over Alleged Alterations
The Peoples Democratic Party (PDP), however, renewed its call for the suspension of the tax laws’ commencement date, citing alleged discrepancies between the versions passed by the National Assembly and those eventually gazetted.
The party’s spokesperson, Comrade Ini Ememobong, accused the Presidency of downplaying what he described as the “illegal insertion” of dangerous provisions into the laws.
According to the PDP, the insistence on implementation despite unresolved concerns shows that the government prioritises revenue over citizens’ welfare.
“A mere suspicion that unapproved sections were smuggled into a law affecting all Nigerians is sufficient reason to suspend its commencement,” the party said, urging the President to order a full investigation before implementation.
Experts Warn of Awareness and Credit Risks
Economic analysts and industry experts have also raised concerns about the timing of the rollout.
Professor Chris Onalo, Registrar of the National Institute of Credit Administration of Nigeria, warned that inadequate public sensitisation could undermine the reforms and raise the cost of doing business.
He argued that higher compliance costs could discourage borrowing and weaken efforts to build a credit-driven economy.
Similarly, the CEO of Lancelot Ventures Limited, Adebayo Adeleke, warned of potential consequences for the capital market, particularly regarding capital gains tax, noting that investors are awaiting promised adjustments.
SMEs Caught Between Promise and Fear
Small and medium-scale enterprises (SMEs) remain deeply divided over the reforms.
While government officials insist the new regime will eliminate multiple taxation and ease burdens on small businesses, many SME operators fear rising compliance costs, legal uncertainty, and operational disruptions.
Former NACCIMA President, Dele Kelvin Oye, cautioned that SMEs are especially vulnerable to sudden policy shifts and could be pushed back into informality if reforms are poorly implemented.
Conversely, the Abuja Chamber of Commerce and Industry (ACCI) argued that a clearer and more predictable tax system could ultimately improve competitiveness and planning for small businesses.
Calls for Clarity, Not Reversal
Development economist Dr. Ekhumaga Muokhudo welcomed the President’s insistence on policy continuity, noting that frequent reversals have historically undermined Nigeria’s reforms.
However, he stressed that clarity and communication are now as important as policy consistency.
Public finance expert Dr. Joshua Ojake described the reforms as a necessary structural reset but warned that uneven enforcement and weak implementation could erode public trust.
He emphasised that for the reforms to succeed, enforcement must be fair and inclusive, ensuring that the informal sector is gradually brought into the tax net without overburdening compliant taxpayers.
As January 2026 approaches, Nigeria’s tax reforms remain at the centre of an intense national debate—one that pits fiscal stability against public trust, and policy certainty against fears of economic strain.
