FG Begins Six-Week Review of Nigeria’s New Tax Laws

The Federal Government has commenced a six-week review of Nigeria’s new tax laws, with authorities seeking to address implementation gaps, clarify disputed provisions and reduce unintended consequences for businesses and taxpayers.

The review was announced by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during the inauguration of the Technical Subcommittee on Fiscal Policy and Tax Reforms in Abuja.

The exercise will focus on several areas of the new tax framework, including Value Added Tax thresholds, withholding tax, capital gains treatment and multiple taxation.

Oyedele said the review was not intended to overturn the major tax reforms introduced in 2025 but to improve their implementation based on experience since the laws took effect on January 1, 2026.

The four major laws introduced under the reforms include the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act and Joint Revenue Board (Establishment) Act.

The government says the reforms were designed to modernise Nigeria’s tax system, improve revenue collection and create a more coordinated framework for tax administration.

However, implementation has generated concerns from businesses and other stakeholders over the interpretation of certain provisions and the additional compliance burden they could create.

The organised private sector has particularly raised concerns about Companies Income Tax and withholding tax, as well as the treatment of tax obligations relating to accounting periods before the new laws came into effect.

The latest review is expected to examine these concerns and identify areas where the legislation or its implementation requires clarification.

The committee will also review existing withholding tax regulations and the framework governing significant economic presence for companies operating in Nigeria.

Recommendations from the exercise are expected to contribute to the preparation of the Finance Bill 2027.

The government has also invited stakeholders to contribute to the process. According to Oyedele, 134 submissions were received from across Nigeria’s geopolitical zones following a call for public input.

Among the issues raised are calls for clearer VAT thresholds, simpler compliance requirements, stronger taxpayer rights, faster refunds and better coordination among revenue authorities.

The review will also consider how tax policies affect investment, businesses and households, particularly the cost of complying with multiple requirements imposed by different revenue authorities.

Oyedele said the government wants a tax system that can generate revenue without unnecessarily increasing the cost of doing business or discouraging investment.

For businesses, the outcome of the review could determine whether some of the disputed provisions are clarified or adjusted in the next phase of Nigeria’s tax reforms.

The six-week exercise therefore comes at an important stage in the implementation of the new tax regime, as the government attempts to balance revenue mobilisation with economic growth, investment and a simpler compliance environment.