Should Tinubu Suspend Tax Law? Analyst Opens New Dimension Amid Agitation
- President Bola Tinubu signs new tax reform acts set to begin in 2026 amid public outcry
- Atoyebi Paul, an APC chieftain and political commentator, commended the president for the tax reform act
- Paul's comment was a reaction to the calls for the suspension of the implementation of the tax reform act
President Bola Tinubu recently signed the new four tax reform acts, which are expected to take effect from January 1, 2026. However, there have been calls from different quarters of the country, particularly from opposition leaders.
Speaking on the development in an exclusive interview with Legit.ng, Atoyebi Paul, a chieftain of the ruling All Progressives Congress (APC) and political commentator, posited that Nigerians in the private and public sectors agreed that the country needs a new tax law, noting that the previous one was made 50 years ago.
Source: Twitter
One of the members of the House of Representatives, Abdussamad Dasuki, had raised the allegation that there were differences between the tax reform laws that were passed by the lawmakers and the gazetted copy that was in the public. The allegation had led to public outcry, and some Nigerians are now calling for the suspension of the implementation of the act.
The laws are the Nigeria Tax Act 2025; the Nigeria Tax Administration Act, 2025; the Joint Revenue Board of Nigeria (Establishment) Act, 2025; and the Nigeria Revenue Service (Establishment) Act, 2025. They can be downloaded here.
Paul speaks on Tinubu's tax reform
Reacting to the development, Paul commended President Bola Tinubu for keeping to his word, recalling how the president mentioned it in his manifesto and during his inauguration.
His statement:
"Almost Everyone in the private and public sectors agreed that our Tax law is outdated. So this is a very good one for the country. The last time our Tax law was reformed was 50 years ago, so we urgently needed another one, which the president and his team have done so well, and they deserve commendation, not condemnation. However, I am not really surprised, tax reform was clearly captured in the president's manifesto, and as we all know, he's a talk and do man. He does what he says."
Nigeria's fiscal landscape in 2026
Meanwhile, Nigeria’s fiscal landscape is set for a major shift in 2026 as a new Value Added Tax sharing formula takes effect under the recently enacted National Tax Acts.
The change, approved by the Federal Executive Council and captured in the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper, significantly increases the share of VAT revenue flowing to states, reinforcing the push toward deeper fiscal federalism.
Under the new framework, the 36 states are projected to receive a combined N5.07tn from VAT in 2026, representing 55 per cent of the total distributable VAT pool of N9.23tn. This marks a sharp increase from the N3.47tn allocated to states in 2025.
Source: Twitter
FG unveils Nigerians exempted from paying Income Tax
Legit.ng earlier reported that the Federal Government has announced major personal income tax exemptions that will take effect from January, offering relief to millions of low-income earners as enforcement of Nigeria’s new tax reforms begins.
Under the reforms, individuals earning up to about N100,000 per month will no longer be required to pay personal income tax.
The announcement was made by Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who said the changes had been designed to reduce hardship, improve fairness, and reset the relationship between citizens and the tax system.
Source: Legit.ng
