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New laws to take effect from January 1, 2026, aim to boost revenue, streamline tax administration, and attract investments
President Bola Ahmed Tinubu has signed four critical tax reform bills into law, signaling a major shift in Nigeria’s fiscal landscape. The signing ceremony took place at the Presidential Villa in Abuja on Thursday, June 26, 2025, in the presence of key government officials, including members of the National Assembly, state governors, ministers, and top aides.
TJ News Nigeria reports that the new legislation is expected to transform tax administration in Nigeria, enhance revenue generation, and create a more conducive environment for domestic and foreign investments.
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Overview of the Four Tax Laws Signed
The four newly signed bills are:
- Nigeria Tax Bill (Ease of Doing Business)
– Seeks to harmonize Nigeria’s fragmented tax laws into a unified statute to reduce duplication and enhance efficiency. - Nigeria Tax Administration Bill
– Establishes a uniform legal and operational framework for tax administration across all levels of government. - Nigeria Revenue Service (Establishment) Bill
– Replaces the existing Federal Inland Revenue Service (FIRS) with a more autonomous and performance-driven Nigeria Revenue Service (NRS). - Joint Revenue Board (Establishment) Bill
– Creates a formal governance body to foster cooperation and data sharing between federal, state, and local revenue authorities.
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🗓️ Implementation Timeline
The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, announced that the new tax system will come into effect on January 1, 2026. He noted that the six-month window before implementation will allow for sensitization, stakeholder engagement, and system transition.
“It takes time for all the stakeholders, participants, operators, and the regulator to change the system… We have six full months for both sensitisation and planning,” Adedeji said.
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Initial Concerns and Controversy
TJ News Nigeria gathered that the introduction of the bills sparked nationwide controversy and pushback from several governors. Some state governments feared that specific provisions could undermine their ability to meet salary obligations and manage local revenues.
However, both the Presidency and the National Assembly insisted that thorough stakeholder consultations were held and adjustments made to address concerns. The government described the reforms as essential for the country’s economic transformation.
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Tinubu: “This Is the Way Forward for Nigeria’s Prosperity”
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President Tinubu, while signing the bills, described the reform as a bold step toward Nigeria’s economic recovery and future stability.
“We are in transit; we have changed the roads, we have changed some of the misgivings, we have opened the doors to a new economy and business opportunities,” he stated.
He praised the lawmakers for their courage and unity in passing the bills, despite initial resistance and complexities surrounding tax reform.
Reactions from Key Stakeholders
- Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said:
“History will remember you for good for transforming our country because you went for a fundamental reform.”
- Dr. Zacch Adedeji, FIRS Chairman, described the day as the “happiest of his life,” calling the reform a long-awaited milestone.
- Senate President Godswill Akpabio commended Tinubu’s leadership, saying:
“This law would last for generations to come.”
Why the Reform Matters
- Improves Ease of Doing Business: Harmonizing tax laws reduces duplication and legal uncertainty for investors.
- Boosts Revenue Collection: A centralised and professional revenue agency will curb leakages and improve accountability.
- Strengthens Fiscal Federalism: With the Joint Revenue Board, coordination among federal, state, and local tax bodies will be streamlined.
- Promotes Transparency: Clear frameworks and timelines help prevent abuse and ensure taxpayer compliance.
Key Takeaways
- The four tax laws will take effect on January 1, 2026.
- Nigeria Revenue Service (NRS) replaces the FIRS.
- A new Joint Revenue Board will foster multi-level tax collaboration.
- The reforms aim to increase revenue, attract investment, and simplify tax compliance.
TJ News Nigeria will continue monitoring the rollout of these reforms and their impact on businesses, workers, and state revenues across the country.
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