The Federal Government has commenced a six-week review of Nigeria’s new tax laws following concerns from businesses and other stakeholders over challenges arising from their implementation.
The review, led by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, will examine areas including Value Added Tax (VAT) thresholds, withholding tax, capital gains tax and multiple taxation.
The four major tax laws came into effect on January 1, 2026, following their passage by the National Assembly and assent by President Bola Ahmed Tinubu. They were introduced to harmonise Nigeria’s tax system, establish a unified administration framework and restructure the country’s revenue agencies.
However, organised private sector groups have raised concerns over the interpretation and implementation of some provisions, particularly Companies Income Tax and withholding tax.
In June, groups including the Manufacturers Association of Nigeria (MAN), Nigerian Association of Small and Medium Enterprises (NASME), NACCIMA and the Nigeria Employers’ Consultative Association (NECA) wrote to the President, warning that conflicting interpretations of the new laws were creating difficulties for companies filing their tax returns.
A major point of disagreement concerns tax obligations for accounting periods that ended before January 1, 2026. Private sector groups argued that such obligations should remain governed by the repealed tax laws, in line with the government’s transition guidelines.
The controversy intensified after the Nigeria Revenue Service reportedly directed companies yet to file their 2026 Companies Income Tax returns to do so under the new tax framework, stating that it lacked the authority to process such returns under repealed legislation.
Speaking during the inauguration of the Technical Subcommittee on Fiscal Policy and Tax Reforms in Abuja, Oyedele said the government was not seeking to reverse the 2025 reforms but to identify areas where implementation had exposed gaps or unintended consequences.
He said the review would also consider public financial management, debt, transparency, capital markets and cross-border investment.
According to the minister, the government received 134 submissions from stakeholders across the country. Key concerns included simplifying VAT, withholding tax and capital gains provisions, tackling multiple taxation, improving digital data-sharing among revenue agencies and strengthening taxpayer protections.
The committee will also review existing withholding tax regulations and rules relating to significant economic presence to ensure they align with the new tax framework and international practices.
The Permanent Secretary of the Federal Ministry of Finance chairs the subcommittee, with Tax Advisory Committee Chairman Albert Folorunsho serving as co-chair. Representatives of government agencies, business groups, professional bodies and major accounting firms are also members.
The review is expected to produce recommendations for the Finance Bill 2027, with the government seeking a tax system that improves revenue collection while reducing compliance difficulties and supporting businesses and investment.
