FG Begins Review of Implementation of 2025 Tax Reform Laws

The Federal Government has commenced a fresh review of the implementation of Nigeria’s 2025 tax reform laws, with the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, directing a technical subcommittee to identify areas that may require clarification, adjustment or further reform.

Oyedele inaugurated the Technical Subcommittee on Fiscal Policy and Tax Reforms in Abuja on Thursday, September 17, 2026.

The committee has been given six weeks to complete its assignment and submit its recommendations.

The review comes months after the new tax laws became operational on January 1, 2026.

This exercise is expected to examine how the laws have worked in practice and identify difficulties experienced by taxpayers, businesses, investors and government agencies.

The four major laws that took effect at the beginning of the year are the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025.

Oyedele said the government was not seeking to discard the reforms but wanted to learn from the experience of their implementation.

He said, “The real test begins when the law meets the economy, as businesses interpret it, administrators implement it, investors respond to it, and citizens experience it. Implementation inevitably reveals areas requiring clarification, refinement or further reform.”

The minister said the committee must pay attention to provisions that have created uncertainty or unintended effects since the new framework came into force.

He said, “We must ask where implementation has revealed ambiguity, where unintended consequences have emerged, where compliance can be simplified, and where we can improve investment and competitiveness.”

Committee to Review VAT, Withholding Tax

Among the areas listed for review are Value Added Tax thresholds, withholding tax, capital gains treatment and multiple taxation.

The government also wants better coordination among revenue-collecting agencies and more effective use of digital systems and data sharing.

According to Oyedele, the issues were among the matters raised through the government’s consultation process.

The Federal Government received 134 submissions from the six geopolitical zones after inviting Nigerians and stakeholders to submit recommendations on the implementation of the reforms. Additional submissions were also received in hard copies.

Some of the submissions called for clearer rules around VAT thresholds and simpler procedures for withholding tax and capital gains.

Others raised concerns about multiple taxes imposed by different levels or agencies of government.

Stakeholders also asked for stronger coordination among revenue authorities so that taxpayers would not be repeatedly required to provide information that is already available to government agencies.

The submissions further covered taxpayer rights, quicker tax refunds and safeguards for small businesses.

There were also proposals aimed at improving the investment environment in sectors such as mining, renewable energy, healthcare and capital markets.

Finance Bill 2027 to Reflect Review

The recommendations from the committee are expected to feed into the preparation of the Finance Bill 2027.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele

Oyedele said the bill should reflect the lessons learnt from the first phase of implementation rather than simply introduce another round of yearly tax changes.

He stated, “The Finance Bill 2027 should not be seen as just another annual legislative exercise. Our task is not to rewrite the 2025 reforms, but to preserve their fundamental principles while learning from implementation and responding to new economic realities.”

The minister said the review would also cover areas beyond taxation.

These include fiscal policy and management, public financial management, debt, transparency, capital markets and cross-border capital flows.

The subcommittee is also expected to review the Deduction of Tax at Source Regulations 2024 and prepare revised withholding tax regulations.

It will examine the Companies Income Tax (Significant Economic Presence) Order 2020 and work on an updated framework that aligns with the 2025 tax laws and international practices.

FG Warns Against Complicated Tax Rules

Oyedele also raised concerns about the cost of complicated tax procedures on businesses.

He argued that businesses should not have to spend excessive resources understanding or complying with rules where simpler alternatives could achieve the same objective.

“Complexity is itself a tax; it raises compliance costs and creates room for discretion and arbitrage. Where two approaches achieve the same outcome, choose the simpler one,” he said.

The minister also placed particular attention on withholding tax.

He said withholding tax should remain an advance-payment and compliance mechanism and should not become an additional burden on businesses.

According to him, tying down funds belonging to companies can affect their ability to operate and expand, particularly at a time when businesses are facing high financing costs.

Oyedele warned that money held back through withholding tax could carry significant economic costs when businesses would otherwise have used the funds for expansion, investment or working capital.

He said, “A provision that raises revenue may impose a far greater cost on the wider economy. The government must optimise the whole economy, not merely achieve a single objective.”

Over 20 Representatives on Subcommittee

The technical subcommittee is made up of more than 20 representatives drawn from government institutions, the private sector and professional bodies.

Representatives include officials from the Central Bank of Nigeria, Nigeria Customs Service, Nigeria Revenue Service, Debt Management Office, Joint Revenue Board and Budget Office of the Federation.

The Legal Drafting Department of the Federal Ministry of Justice is also represented.

The private sector and professional community are represented by organisations including the Nigeria Economic Summit Group, Institute of Chartered Accountants of Nigeria, Association of National Accountants of Nigeria, Chartered Institute of Taxation of Nigeria and Nigerian Bar Association.

Members of the Organised Private Sector are also involved.

They include the Manufacturers Association of Nigeria and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture.

Representatives of Deloitte, EY, KPMG and PwC are also part of the committee.

The committee is chaired by the Permanent Secretary of the Federal Ministry of Finance and co-chaired by the Chairman of the Tax Advisory Committee, Albert Folorunsho.

The Impact on Nigerians

Oyedele directed the members to consider the wider effect of any proposed changes on Nigerians and businesses.

He specifically mentioned low-income households, workers and small businesses.

The minister said tax policy should not be assessed only by the amount of revenue it generates.

He maintained that the wider consequences for investment, production, employment and economic activity must also be considered.

He stated, “Every tax reform produces winners and losers; the question is whether a policy is fair, efficient and competitive, not whether it is popular with everyone.”

The committee’s assignment is therefore expected to balance revenue mobilisation with the need to reduce compliance difficulties and create a more predictable environment for businesses.

Folorunsho, speaking on behalf of the committee members, pledged that the panel would engage relevant stakeholders before completing its recommendations.

He said, “Our recommendations must, therefore, be technically sound, administratively practicable, and responsive to the realities confronting taxpayers, businesses, and government.”

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