As Nigeria inches toward January 1, 2026 — the scheduled commencement date for the most ambitious overhaul of its tax system in decades — a fierce national debate has erupted, pitting reform advocates against political heavyweights, labour-aligned critics, and civil society groups calling for a pause. At the centre of this unfolding controversy is a sobering warning from Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee: failure to implement the new tax laws on schedule will leave Nigeria’s bottom 98 per cent of workers trapped in an unjust and punishing tax regime.
Speaking during a widely watched appearance on Channels Television’s The Morning Brief on Monday, December 22, Oyedele did not mince words. According to him, delaying the reforms would not protect ordinary Nigerians, as some critics have argued, but would instead perpetuate a deeply flawed system that disproportionately burdens low- and middle-income earners while allowing inefficiencies, loopholes, and inequities to fester.
“The implication of not implementing the new tax laws by January 1, 2026, is that the bottom 98 per cent of workers remain overtaxed,” Oyedele said, a statement that has since reverberated across policy circles and reignited questions about who truly benefits from the status quo.
DDM NEWS reports that Oyedele’s remarks came amid mounting pressure from prominent political figures, including former Vice President Atiku Abubakar and the 2023 Labour Party presidential candidate, Peter Obi, both of whom have publicly called for the suspension of the tax reforms. Several civil society organisations have echoed these demands, citing concerns over transparency, alleged discrepancies between what lawmakers passed and what was eventually gazetted, and fears that the reforms could worsen the cost-of-living crisis.
Yet, according to Oyedele, the narrative that halting the reforms would protect Nigerians is not only misleading but dangerous.
A Tax System That Punishes the Many to Protect the Few
For decades, Nigeria’s tax structure has been criticised for being regressive, complex, and inefficient. While tax compliance remains low among the wealthy and in the informal economy, salaried workers — particularly those in the lower and middle income brackets — have borne the brunt of deductions through Pay-As-You-Earn (PAYE) and consumption taxes embedded in everyday goods and services.
Oyedele argued that the current system effectively punishes honesty and formal employment while rewarding opacity and avoidance. Under the existing framework, millions of workers earning modest incomes are taxed at rates that leave them with shrinking disposable income, especially in an economy battered by inflation, currency volatility, and rising living costs.
“If you do not implement the reforms,” Oyedele explained, “you are effectively choosing to maintain a system where people who earn the least continue to pay proportionally more than they should, while inefficiencies and leakages continue unchecked.”
DDM NEWS gathered that one of the central aims of the new tax laws is to recalibrate this imbalance by expanding the tax base rather than squeezing those already compliant. The reforms seek to exempt low-income earners from certain taxes, streamline rates, and eliminate overlapping levies that have long frustrated both individuals and businesses.
Businesses Trapped in a Web of Multiple Taxation
Beyond workers, Oyedele warned that Nigerian businesses — particularly small and medium-sized enterprises — stand to suffer significantly if the reforms are delayed.
According to him, the current tax environment is characterised by multiple taxation across federal, state, and local government levels, often with little coordination or clarity. Businesses face overlapping levies, arbitrary enforcement, and minimum taxes even when they are unprofitable.
“If we don’t implement these laws, businesses will continue to face multiple taxation and will miss out on exemptions that are meant to support growth,” Oyedele said. “Minimum taxes will continue to apply to small businesses, even those making losses. That discourages entrepreneurship and stifles innovation.”
DDM NEWS investigations reveal that many small business owners already operate on razor-thin margins, with some paying more in taxes and levies than they earn in profit. For such enterprises, the promise of a simplified and harmonised tax regime is not an abstract policy goal but a matter of survival.
The Hidden Tax Nigerians Pay Every Day
One of the most insidious aspects of Nigeria’s current tax system, Oyedele noted, is what he described as “hidden VAT” — indirect taxes embedded in the prices of goods and services, often without consumers realising it.
From food items to healthcare services and education-related expenses, Nigerians pay taxes not only directly through deductions but indirectly through inflated prices driven by inefficiencies in the tax system.
“If you don’t implement the reforms, hidden VAT will continue to drive up the cost of essentials like food, healthcare, and education,” Oyedele warned.
DDM NEWS analysis suggests that this hidden burden disproportionately affects the poor, who spend a larger share of their income on basic necessities. In this context, delaying reforms that aim to reduce distortions and improve transparency could exacerbate inequality rather than alleviate it.
Suspension or Surgical Fix? Oyedele’s Middle Ground
Despite his firm stance on implementation, Oyedele did not dismiss concerns raised by critics. Instead, he advocated a more nuanced approach: identify specific problematic provisions, correct them, and proceed with implementation rather than halting the entire reform package.
“So, we need to be clear about what we are asking for,” he said during the interview. “Even if it is established that there have been substantial alterations to what the National Assembly passed, my view will be to identify those provisions and go ahead to implement the law as passed by the NASS, while you address the issues as to how they got in there in the first place.”
This position reflects a pragmatic recognition that no major reform is perfect at birth. According to Oyedele, even the version of the bills passed by the National Assembly contains sections that require further refinement.
“I will say to you that regarding the one passed by NASS, even my committee and I have noted areas where we need to go back through Mr President to request amendments,” he disclosed. “There were issues with referencing and definition.”
DDM NEWS understands that such post-enactment amendments are not unusual in complex legislative reforms, particularly those touching on fiscal policy and revenue administration.
The Gazette Controversy: What Was Passed Versus What Was Published
Fueling the calls for suspension is a growing controversy over alleged discrepancies between the tax bills debated and passed by lawmakers and the versions later gazetted and made available to the public.
A member of the House of Representatives, Abdulsamad Dasuki, recently raised a point of privilege, alleging that the gazetted laws did not reflect what legislators approved on the floor of the House. He argued that this discrepancy constituted a breach of legislative process and undermined the integrity of the reforms.
Addressing this issue, Oyedele urged caution, noting that it is difficult to establish discrepancies without access to the officially harmonised bills certified by the clerk of the National Assembly.
“Before you can say there is a difference between what was gazetted and what was passed, we have what has not been gazetted. We don’t have what was passed,” he said. “The official harmonised bills certified by the clerk — only the lawmakers can say authoritatively what they sent.”
He pointed to a particularly controversial provision — Section 41(8), which appeared to require a 20 per cent deposit — as an example of how confusion may have arisen. According to Oyedele, that provision appeared in a draft gazette but was not included in the final version.
“I know that particular provision is not in the final gazette,” he said. “It was in the draft. Some people decided to write the report of the committee before the committee had met, and it circulated everywhere.”
“What is out there in the media did not come from the committee set up by the House of Representatives,” Oyedele added, calling for patience while the legislature conducts its own investigation.
Tinubu’s Gamble: A Defining Reform Moment
President Bola Ahmed Tinubu has already signed the four tax reform bills into law, describing them as the most significant overhaul of Nigeria’s tax system in decades. The laws — the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act — are designed to operate under a single authority, the Nigeria Revenue Service.
According to the Federal Government, the reforms aim to simplify tax compliance, expand the tax base, eliminate overlapping taxes, and modernise revenue collection across federal, state, and local governments.
For Tinubu’s administration, the reforms represent both a bold gamble and a defining legacy project. Success could strengthen Nigeria’s fiscal position, reduce dependence on borrowing, and create a fairer economic environment. Failure, however, could deepen public mistrust and entrench resistance to future reforms.
The Bigger Picture: Reform or Regression
As January 1, 2026 draws closer, Nigeria faces a stark choice. Implement the reforms — imperfect as they may be — and commit to refining them through transparent, inclusive processes. Or delay once again, preserving a system that, according to its own architects, punishes the many while shielding inefficiency and inequality.
For Oyedele, the stakes could not be clearer. Delaying implementation, he insists, is not a neutral act but a decision with real consequences for millions of Nigerians.
At a time when workers are struggling, businesses are under pressure, and public trust in institutions is fragile, the question is no longer whether the tax system needs reform, but whether Nigeria has the political will to follow through.
As DDM NEWS will continue to monitor developments, one thing is certain: the battle over Nigeria’s tax future is not just about laws and timelines. It is about who bears the cost of governance — and who gets relief.