Oyedele leads six-week review of tax reforms

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The Federal Government has begun a six-week review of Nigeria’s tax reforms to address implementation gaps, ambiguities and unintended consequences that have emerged since the new tax laws took effect in January.

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The exercise will review key areas of the tax regime, including Value Added Tax thresholds, withholding tax, capital gains treatment and multiple taxation, with recommendations expected to form part of the Finance Bill 2027.

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Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this in Abuja while inaugurating the Technical Subcommittee on Fiscal Policy and Tax Reforms.

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Oyedele, who is also the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, said the implementation of the new laws had exposed areas requiring clarification, refinement and further reforms.

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“The real test begins when the law meets the economy, as businesses interpret it, administrators implement it, investors respond to it, and citizens experience it. Implementation inevitably reveals areas requiring clarification, refinement or further reform,” the minister said.

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The Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025 came into full effect on January 1, 2026.

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Oyedele said the government was moving from fundamental reforms to continuous improvement, stressing that the latest exercise was not intended to reverse the 2025 reforms but to address problems identified during implementation.

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He said, “The Finance Bill 2027 should not be seen as just another annual legislative exercise. Our task is not to rewrite the 2025 reforms, but to preserve their fundamental principles while learning from implementation and responding to new economic realities.

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“We must ask where implementation has revealed ambiguity, where unintended consequences have emerged, where compliance can be simplified, and where we can improve investment and competitiveness.”

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The review, he added, would extend beyond taxation to fiscal policy and management, public financial management, debt, transparency, capital markets and cross-border capital flows.
nAccording to him, the government received 134 submissions from across the geopolitical zones following its call for public input, in addition to submissions received in hard copies.n

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He said preliminary issues raised by stakeholders included proposals to clarify and simplify VAT thresholds, withholding tax, and capital gains treatment.

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Other proposals sought stronger action against multiple taxation and better coordination among revenue authorities, as well as increased digitalisation and data sharing to prevent taxpayers from repeatedly submitting information already held by government agencies.

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Stakeholders also proposed stronger taxpayer rights, faster refunds, safeguards for small businesses and measures to improve investment and competitiveness in mining, renewable energy, healthcare and capital markets.

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Oyedele urged the subcommittee to consider the economic impact of proposed changes, particularly on low-income households, workers and businesses.

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He stated, “Every tax reform produces winners and losers; the question is whether a policy is fair, efficient and competitive, not whether it is popular with everyone,” he said.
n“A provision that raises revenue may impose a far greater cost on the wider economy. The government must optimise the whole economy, not merely achieve a single objective.”n

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• The PUNCH
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