| President says no substantial issue established that warrants reform process disruption
By Jonathan Nda-Isaiah, Chibuzo Ukaibe, Abuja; Zaka Khaliq, Cees Harmon, Olushola Bello and Kingsley Okoh, Lagos
President Bola Ahmed Tinubu has insisted that Nigeria's new tax laws, set to take effect on 1 January 2026, will proceed as planned, describing them as a "once-in-a-generation opportunity" to build a fair, competitive fiscal foundation without raising taxes.
He dismissed calls for a delay, stating that "no substantial issue has been established that warrants a disruption of the reform process," while urging stakeholders to support implementation and assuring collaboration with the National Assembly for swift resolutions.
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In a statement personally signed by him on Tuesday, the President said the new tax laws, including those that took effect on 26 June 2025, as well as the remaining acts scheduled to commence on 1 January 2026, would continue as planned.
According to Tinubu, the tax laws are not designed to raise taxes but to support a structural reset, drive harmonisation, protect dignity, and strengthen the social contract.
"I urge all stakeholders to support the implementation phase, which is now firmly in the delivery stage," the president said.
Tinubu noted that his administration was aware of public discourse surrounding alleged changes to some provisions of the recently enacted tax laws but stressed that no substantial issue had been established that would warrant a disruption of the reform process.
"No substantial issue has been established that warrants a disruption of the reform process. Absolute trust is built over time through making the right decisions, not through premature, reactive measures," he added.
The President emphasised his administration's commitment to due process and the integrity of enacted laws, assuring that the Presidency would work with the National Assembly to ensure the swift resolution of any identified issue.
He assured Nigerians that the federal government would continue to act in the overriding public interest to ensure a tax system that supports prosperity and shared responsibility.
LCCI Calls for Transparent Implementation of New Tax Reform Act to Boost Growth
The Lagos Chamber of Commerce and Industry (LCCI) has called for the effective and transparent implementation of the Tax Reform Act, describing it as essential to simplify compliance, reduce the burden on productive enterprises, and broaden the tax base without stifling growth.
LCCI President, Engr. Leye Kupoluyi, urged the government to build on the gains of 2025's reforms and address structural constraints to achieve inclusive growth in 2026.
"As we move into 2026, the LCCI urges the government to consolidate the gains of reform while decisively addressing the structural constraints that limited inclusive growth in 2025," he stated.
Kupoluyi commended the foreign exchange policy reforms that have instilled transparency and stability in the FOREX market.
"This is helping businesses access more FOREX for their critical raw material imports and calming import-induced inflationary pressures," he added.
He emphasised sustained coordination between fiscal and monetary authorities to entrench disinflation while gradually easing interest rates to unlock private sector credit and stimulate investment.
Special attention, he said, must go to food supply chains through improved security, targeted agricultural support, and better rural infrastructure.
The LCCI president also stressed deepening foreign exchange market confidence by promoting export diversification, supporting non-oil exporters, and sustaining transparent, market-driven FX policies.
He called for prioritising infrastructure development--particularly power, transport, and logistics--via public-private partnerships to cut business costs and boost competitiveness.
Kupoluyi insisted that policies must focus on inclusive growth by rebuilding household purchasing power, supporting pro-poor investments, strengthening social safety nets, and accelerating job creation for youth and SMEs.
He described 2025 as a turning point from crisis management to cautious stabilisation, with 2026's challenge being to translate reforms into broad-based prosperity--especially by boosting bank credit to the private sector amid expected Central Bank of Nigeria rate easing.
"With disciplined policy execution, enhanced security, infrastructure expansion, and a strong focus on inclusivity, Nigeria can make 2026 the year when the benefits of reform are finally felt by businesses and households alike," he concluded.
Highlighting 2025's key economic actions, Kupoluyi noted the National Bureau of Statistics' rebasing of GDP to 2019 and CPI to 2024, which better reflected the expanding digital sector, domestic refining, and structural shifts after subsidy removal. Nigeria's exit from the Financial Action Task Force (FATF) grey list restored economic confidence and global capital access.
Fiscal reforms gained momentum with the Tax Reform Act's signing in June 2025, consolidating multiple tax laws into a unified framework effective 1 January 2026.
On the real sector, the Dangote Refinery's expanded domestic crude refining capacity reduced fuel import dependence, eased FX demand, and reshaped inflation dynamics amid downstream market competition, he said.
PDP Reiterates Call to Suspend Take-Off Over Alleged Discrepancies
The Peoples Democratic Party (PDP) has reiterated its earlier call for the suspension of the commencement date of the Tax Act, citing discrepancies between the harmonised and gazetted versions of the new Tax Act.
The national publicity secretary, Comrade Ini Ememobong, said Nigerians across all walks of life have loudly voiced their displeasure over the smuggling in of dangerous provisions previously expunged by Parliament.
The party's spokesman said Nigerians have demanded a thorough investigation of this anomaly and sought to know who carried out the illegal insertion and how it was done.
He said that rather than address these issues comprehensively, the Presidency has consciously minimised them and instead insisted that the commencement date must stand despite the discrepancies.
"This disposition clearly shows where the priority of the government lies--between Nigerians and money. This Tinubu Presidency has always prioritised finance over the welfare and well-being of Nigerians from its inception in 2023, as evidenced by the reckless way it announced and implemented the removal of subsidy, which immediately impacted the economy and caused ordinary Nigerians irreparable economic damage.
"In this instance, the President should remember that he is an employee of the people and, therefore, should listen to his employers. He should also remember that he won with less than 40% of the votes in the election that gave him the job and should therefore recognise that listening to Nigerians must be a primary duty of his administration, rather than serving the narrow interests of people around him.
"Mr President is reminded that a responsible PDP administration in 2012 listened to the cries of Nigerians and civil society organisations (where he played a prominent role during the protests) against the removal of fuel subsidy, in deference to the voices of Nigerians. The interest of Nigerians must be uppermost in the mind of the President and the federal government.
"Consequently, we reiterate our earlier call for the suspension of the commencement date of the Tax Act, pending the conclusion of a thorough investigation.
"Obedience to laws in a democracy is directly linked to the belief that elected legislators have deliberated upon and approved them. A mere suspicion, let alone a confirmed fact, that unapproved sections have been smuggled into a law with the capacity to affect all Nigerians is sufficient reason to suspend its commencement. The President must act in favour of the people of this country; to do otherwise is a clear confirmation that money, not the people, is the priority," the party said.
Analysts Advocate More Awareness Before Kick-off
Reacting to this development, the registrar/chief executive officer (CEO) of the National Institute of Credit Administration of Nigeria (NICA), Professor Chris Onalo, said that although tax is a key component of revenue generation for every economy, the commencement date is premature as the needed awareness has not been carried out.
Onalo, in a chat with LEADERSHIP yesterday, said the tax regime is a disincentive to a credit-based economy his institute has been advocating for.
According to him, "in the case of Nigeria, vis-à-vis the new tax regime, the immediate impact will be that the cost of doing business will rise, and if you are moving the economy to a credit system, you must do everything possible to reduce the cost of credit, the cost of advancing credit, the cost of borrowing, and the cost of granting credit. So, whether it is trade credit or financial credit, there are cost elements."
"Government should do more public enlightenment using all platforms, so that people are educated; otherwise, it may end up penny-wise, pound-foolish. The immediate impact on the credit economy system is that it will fuel the cost of credit and undermine access to credit. What then is the essence? People will start getting scared of accessing credit. It's a disincentive to credit."
Similarly, the group managing director/CEO of Lancelot Ventures Limited, Adebayo Adeleke, said the new tax regime has major consequences for the nation's capital market, especially in the area of capital gains tax.
"The Minister of Finance has promised to review it. The market is expecting a probable adjustment," he added.
Meanwhile, as Nigeria prepares to roll out a sweeping new tax regime in January 2026, small and medium-scale enterprises (SMEs) say they are caught between government assurances of relief and mounting fears that the reforms could raise operating costs, deepen compliance burdens, and slow investment at a time when many businesses are already stretched.
While the federal government insists the reforms will simplify taxation, eliminate multiple levies, and ease pressure on low-income earners and small businesses, SME operators and business groups argue that the reality on the ground may be far more complicated.
"There's a difference between tax relief on paper and what it costs to comply in practice," said an SME operator in Lagos' manufacturing cluster, who asked not to be named.
"If compliance costs rise, any tax cut disappears."
The former president of NACCIMA, Dele Kelvin Oye, had cautioned that some elements of the new tax laws, including higher capital gains tax and new levies, could reduce retained earnings and discourage expansion, particularly for small and growing firms.
According to Oye, SMEs are the most vulnerable to sudden policy shifts because they lack the buffers large corporations use to absorb regulatory shocks. He has warned that if poorly implemented, the reforms could slow investment, shrink margins, and push some businesses back into informality.
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On the other hand, official business groups such as the Abuja Chamber of Commerce and Industry (ACCI) argue that the reforms could benefit SMEs in the long run by "eliminating multiple taxation" and bringing predictability to government revenue collection.
ACCI president, Chief Emeka Obegolu, has said a clearer, more transparent tax system would improve competitiveness and planning for small businesses.
Yet beyond costs, SMEs are also watching the growing legal and political disputes around the reforms.
Senior lawyers and civil society groups have questioned the legality of the gazetted tax laws, warning that unresolved disputes could lead to litigation and enforcement confusion.
Government officials, including chairman of the National Tax Policy Implementation Committee, Joseph Tegbe, insist that implementation will not harm businesses and that consultations are ongoing to ease the transition. Tegbe said the goal is to support growth, not stifle it.
Earlier, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Prof. Taiwo Oyedele, repeatedly described the new framework as "pro-people," projecting that about 98 per cent of Nigerians will either pay less tax or be exempt.
He maintained that failure to implement the reforms would leave workers and small businesses trapped in a chaotic system of overlapping taxes and levies.
Also commenting, development economist at Nasarawa State University, Dr Ekhumaga Muokhudo, welcomed the President's insistence on policy continuity, noting that frequent reversals have historically undermined Nigeria's fiscal reforms.
He said one of Nigeria's biggest problems has been uncertainty. By affirming that the tax laws will proceed, the government is sending a signal of seriousness. However, he added, continuity must go hand in hand with clarity, especially for businesses still trying to understand the practical implications of these changes.
He stressed that while the government insists the reforms are not designed to raise taxes, the perception among taxpayers remains critical.
"If harmonisation results in higher effective tax burdens for SMEs or individuals, resistance will grow. The communication strategy now matters as much as the policy itself," he said.
Public finance expert, Dr Joshua Ojake, described the reforms as a necessary structural reset but cautioned against underestimating implementation challenges.
He said Nigeria's tax system has long suffered from fragmentation, leakages, and weak compliance. He said if these laws genuinely simplify processes and improve fairness, they can strengthen the social contract.
He added that enforcement must be even-handed to avoid targeting only the compliant while the informal sector remains largely outside the net.
