The Federal Government has commenced a six-week review of Nigeria’s new tax laws following concerns from businesses and other stakeholders over their implementation. The review will examine issues surrounding Value Added Tax (VAT) thresholds, withholding tax, capital gains treatment and multiple taxation, as the government seeks to identify gaps and unintended consequences that have emerged since the reforms took effect.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, announced the review while inaugurating the Technical Subcommittee on Fiscal Policy and Tax Reforms in Abuja. He said the implementation of the new laws had revealed areas that require clarification, refinement and possible further reform. According to him, the exercise is not designed to reverse the 2025 tax reforms but to ensure they work effectively in response to changing economic realities.
The review comes amid concerns from organised private sector groups over the interpretation and implementation of some provisions of the new tax framework. In June, major business organisations, including the Manufacturers Association of Nigeria (MAN), NACCIMA and NECA, appealed to President Bola Tinubu over what they described as conflicting interpretations of the laws. One major dispute involves whether companies should apply the new tax regime to accounting periods that ended before January 1, 2026.
The new tax framework comprises four major laws: the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025, all of which took effect on January 1, 2026. The government said stakeholder feedback has been significant, with 134 submissions received from across Nigeria’s geopolitical zones, alongside additional written submissions. Proposed areas for improvement include clearer VAT and withholding tax rules, stronger taxpayer rights, faster refunds, better protection for small businesses and improved coordination between revenue authorities.
Oyedele said the committee would also examine fiscal policy and public financial management, debt, transparency, capital markets and cross-border capital flows. It is expected to prepare recommendations for the Finance Bill 2027, review existing withholding tax regulations and update rules relating to companies with significant economic presence. The government said the broader objective is to simplify compliance, reduce unnecessary costs for businesses and create a tax system that supports investment, competitiveness and sustainable revenue mobilisation.
source: dailytrust