No going back as new tax laws begin January 1, Presidency says
Dispute grows over differences between National Assembly bill and laws signed by President
As Nigeria approaches January 1, 2026, the Federal Government has insisted that the country’s new tax laws will take effect as scheduled, despite growing controversy over alleged differences between what the National Assembly passed and what was eventually signed into law by the President.
The Presidency, in a statement issued this week, dismissed speculation that the reforms would be suspended or delayed, maintaining that all commencement dates remain legally binding. According to the government, no decision has been taken to halt implementation, including provisions that already came into force in June 2025.
However, the renewed public debate has shifted away from timelines to substance, with lawyers, tax professionals, and civil society groups questioning whether some provisions contained in the signed laws materially differ from the versions approved by lawmakers.
Central to the controversy are concerns that the enacted laws grant expanded enforcement powers to tax authorities, including the ability to seize assets in certain circumstances without prior court approval. Critics argue that such provisions were either absent or more narrowly defined in the bills passed by the National Assembly, raising constitutional and due process questions.
The Presidency acknowledged public discussions around alleged alterations but said no substantial issue had been established that would warrant disrupting the implementation process. It maintained that consistency and policy stability were necessary as the reforms moved from legislation to execution.
“Trust is built over time by making the right decisions, not through premature or reactive measures,” the statement said, adding that attention has shifted from legislative debate to implementation.
Also Read: What Nigeria’s new tax laws really mean for your work and business
Government officials said the tax reforms are intended to address structural weaknesses in Nigeria’s tax system, including overlapping taxes, administrative inefficiencies, and weak compliance, rather than introduce higher tax rates. The Presidency reiterated that the focus is on enforcement efficiency and system harmonisation.
Still, legal analysts note that questions over how enforcement powers are framed and exercised are unlikely to disappear once implementation begins. Several stakeholders have argued that if discrepancies exist between what lawmakers approved and what was signed, the issue may ultimately require judicial interpretation.
The Presidency said it remains committed to due process and would continue engaging with the National Assembly to address any concerns that arise during implementation, while preserving what it described as the integrity of the enacted laws.
As businesses prepare for the new tax regime, uncertainty persists, particularly among small and medium-sized enterprises already grappling with rising operating costs, limited access to credit, and uneven regulatory enforcement. For many smaller operators, the concern is not only compliance but exposure, especially in an environment where enforcement discretion can significantly affect survival.
Large corporations may have the legal and financial capacity to adjust quickly, but smaller businesses, which account for a significant share of employment and informal economic activity, face a steeper adjustment curve. Whether the new tax laws simplify compliance or deepen existing pressures will become clearer in the months ahead, as implementation moves from policy statements to practice.
For now, the government says there is no turning back. Critics, however, insist that clarity, transparency, and adherence to the legislative process will matter just as much as timelines when the laws take effect in the New Year.
