Tax reform laws: Ready, set, launch, blossom, by Olabode Opeseitan

As we inch closer to the January 1, 2026 launch of Nigeria’s landmark tax reform laws, the propaganda machine of the opposition has gone into overdrive, seizing every opportunity to discredit a well-thought-out reform that most of society now accepts as the most rational path forward.

Truth be told: these laws mark a historic reset of Nigeria’s fiscal architecture, designed to correct decades of imbalance, opacity, and inefficiency.

The reform journey was national in scope and inclusive in spirit. From town halls to stakeholder consultations, the process engaged citizens, businesses, and subnational governments. It was not imposed. It was negotiated, refined, and ultimately embraced. Today, most Nigerians recognize the necessity of this shift.

Still, a few voices persist. Some are genuinely unconvinced and deserve respectful engagement. But others traffic in deliberate mischief, peddling half-truths and misrepresenting the facts. Let’s address their claims and highlight the real gains:

• “It will hurt the poor.” False. Over 90% of Nigerians are now exempt from PAYE tax, and essential items like food, education, and agriculture remain VAT-free.
• “It’s anti-business.” Not so. The laws simplify compliance, eliminate multiple taxation, and exempt small businesses with turnover below ₦100 million from Companies Income Tax, Capital Gains Tax, and the Development Levy.
• “It’s rushed.” On the contrary, these laws are the product of years of expert review, legislative scrutiny, and public input.
• “It’s politically motivated.” No. It’s economically necessary. Nigeria cannot build a resilient future on borrowed funds and broken systems.

Beyond rebuttals, the reforms offer transformative benefits:

• Nigeria’s tax-to-GDP ratio has risen to 13.5%, up from under 10%, and is projected to reach 18% by 2026, closing a massive tax gap and aligning Nigeria with peers like South Africa (26%).
• Businesses will thrive under a more predictable, transparent regime that reduces risk and incentivizes formalization.
• Multiple taxation is being dismantled. A 2025 study found that SMEs in Nigeria face up to six to ten overlapping taxes from federal, state, and local governments, including Business Premises Levy, Development Levy, signage fees, and local government permits. This uncoordinated burden has historically reduced profitability, discouraged reinvestment, and fueled tax evasion.
• Digital integration and simplified filing will reduce compliance costs and corruption.
• Subnational governments will benefit, with clearer revenue-sharing formulas and stronger local capacity.

And the economic momentum is already visible:

• Food prices are falling, especially rice and maize, due to improved harvests and logistics.
• Global institutions like the IMF and World Bank have praised Nigeria’s fiscal discipline.
• Foreign investors are returning, with rising interest in fintech, agriculture, and energy.
• Energy sector progress includes modular refineries, new solar and gas projects, and the revival of the Siemens electricity deal. That’s why Nigeria’s power grid is finally showing signs of resilience.

This is not just a tax reform. It is a moral recalibration, a signal that Nigeria is ready to reward honesty, broaden opportunity, and restore dignity to public finance. The few who resist may shout louder, but they do not speak for the nation. The nation has moved. And history will remember this moment not for the noise of its critics, but for the courage of its convictions.