FG Reviews Tax Laws As Oyedele Orders Six-Week Reform Assessment

By Opeyemi Adelakun

The Federal Government has launched a six-week assessment of the tax laws introduced in 2025, with the exercise aimed at resolving implementation challenges and preparing recommendations for the Finance Bill 2027.

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

The subcommittee will examine areas of the tax system where implementation has produced uncertainty or unintended outcomes, including VAT thresholds, withholding tax, capital gains and multiple taxation.

Oyedele said the review was part of the government’s transition from major structural reforms to continuous improvement of the tax system.

He stressed that the exercise was not intended to abandon the 2025 reforms but to identify areas where the new framework could be clarified, simplified or improved.

“The Finance Bill 2027 should not be seen as just another annual legislative exercise,” he said.

According to the minister, the government must learn from the practical experience of implementing the new laws and ensure that tax policy supports investment, competitiveness and economic growth.

The four major laws under the review became fully effective on January 1, 2026. They are the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025.

The government’s call for public submissions generated 134 responses from across the geopolitical zones, in addition to submissions received physically.

Oyedele said stakeholders had raised concerns about the clarity of VAT thresholds, withholding tax and capital gains rules, as well as the problem of multiple taxation.

There were also proposals for stronger coordination between revenue agencies, expanded digitalisation and data sharing to prevent taxpayers from repeatedly providing information already held by government.

Stakeholders further called for stronger taxpayer rights, quicker refunds, protection for small businesses and measures to enhance investment in mining, renewable energy, healthcare and capital markets.

Oyedele said the subcommittee must assess the likely effects of proposed changes on households, workers and businesses, particularly low-income groups.

He also cautioned against unnecessarily complicated tax regulations, saying they could increase compliance costs.

The minister said the review would extend beyond taxation to public financial management, debt, transparency, capital markets and cross-border capital flows.

The subcommittee will also review the Deduction of Tax at Source Regulations 2024 and prepare revised withholding tax regulations.

It will further examine the Companies Income Tax (Significant Economic Presence) Order 2020 and develop an updated framework that aligns with the new tax laws and international standards.

On withholding tax, Oyedele said the mechanism should not become an additional financial burden on businesses.

He warned that prolonged withholding of business funds could restrict companies’ ability to invest and expand, particularly given the high cost of capital in Nigeria.

The subcommittee has six weeks to complete its assignment and submit its report.

Its membership cuts across government agencies, organised business and professional institutions, including the Ministry of Justice, Nigeria Revenue Service, Customs Service, Central Bank of Nigeria, Debt Management Office, Budget Office, NIPC, SMEDAN, MAN, NESG, NBA, ANAN, CITN, ICAN and NACCIMA.

The four major accounting firms—Deloitte, EY, KPMG and PwC—are also represented.

Albert Folorunsho, Chairman of the Tax Advisory Committee and co-chair of the subcommittee, said the panel would consult stakeholders while working towards reforms that improve revenue mobilisation without creating unnecessary burdens for taxpayers.