Tax Reforms: FG Pledges Broad Stakeholder Consultation Before 2026 Implementation

The Federal Government has assured Nigerians and the business community that it will carry out extensive stakeholder consultations before the implementation of the next phase of tax reforms slated for 2026. The government said the move is aimed at ensuring fairness, inclusiveness, and efficiency in the nation’s tax system, while also boosting compliance and economic growth.

Speaking during a policy dialogue on Nigeria’s tax reform agenda in Abuja, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, said the committee is prioritising dialogue with critical stakeholders, including state governments, businesses, labour unions, civil society organisations, and professional bodies.

According to Oyedele, the reforms are not designed to increase the tax burden on citizens or businesses, but to simplify the tax structure, eliminate multiple levies, and ensure that revenue collection becomes more transparent and efficient.

“We are committed to carrying everyone along in this reform process. Before any policy takes effect in 2026, we will have engaged extensively with all relevant sectors to understand their perspectives and concerns,” Oyedele said. “The goal is to build a tax system that promotes economic competitiveness, encourages voluntary compliance, and drives sustainable development.”

He noted that the committee has already begun harmonising overlapping taxes across the federal, state, and local government levels, and that significant progress has been made in identifying and eliminating redundant levies that impede business growth.

Oyedele further explained that the reform blueprint aims to reduce the number of taxes in the country from over 60 to fewer than 10, focusing instead on high-yield and easy-to-administer taxes. This, he said, would help curb revenue leakages, enhance accountability, and improve Nigeria’s ease of doing business ranking.

In his remarks, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, reaffirmed the government’s commitment to a balanced and transparent fiscal environment. He said the administration of President Bola Tinubu is focused on implementing reforms that support private sector-led growth while ensuring that the government has adequate resources to fund infrastructure, education, and healthcare.

Edun added that the forthcoming Fiscal Policy and Tax Reform Bill, expected to be presented to the National Assembly in 2025, will embody the outcome of consultations and provide the legal framework for the 2026 implementation phase.

He said, “Tax reforms are not about raising rates but about improving efficiency. We want a system that rewards productivity and supports the formalisation of the economy. Consultation is key because these reforms must reflect the realities of Nigerians and the business environment.”

Representatives from the Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), and other private sector groups at the event commended the committee’s inclusive approach, describing it as a step toward restoring confidence in Nigeria’s fiscal policies.

They, however, urged the government to ensure that the reforms do not lead to over-centralisation of revenue collection or place undue pressure on small and medium-sized enterprises (SMEs).

Civil society groups also called for transparency and public disclosure of how tax revenues are utilised, insisting that visible accountability would enhance citizens’ willingness to comply voluntarily.

Oyedele assured that digitalisation would play a central role in the reformed tax system, with plans to deploy technology to improve efficiency in data collection, compliance monitoring, and taxpayer engagement.

He added that the committee’s ultimate objective is to create a simple, fair, and growth-oriented tax regime that can support Nigeria’s long-term economic transformation.

The Federal Government’s renewed commitment to stakeholder consultation marks a shift from the historically top-down approach to tax administration in Nigeria, as authorities seek to balance fiscal sustainability with public trust and inclusiveness.