Nigeria is set to roll out major tax reforms on January 1, 2026, after President Bola Ahmed Tinubu confirmed that the newly gazetted tax laws will go ahead as planned despite public debate and calls for delay. These changes are part of a broader overhaul of the nation’s tax system that aims to modernize how taxes are collected and managed, streamline enforcement, and support economic growth. The reforms are rooted in four key laws signed into effect in 2025, including the Nigeria Tax Act and the Nigeria Revenue Service Establishment Act.
Despite some controversy, the presidency has insisted that there is no going back on the January 2026 rollout. Tinubu’s administration says it will work with the National Assembly to address any technical concerns, but the overall implementation will continue as scheduled. Officials argue that the reforms are not meant to burden Nigerians with higher taxes but to create a fairer, more transparent system that broadens the tax base while reducing unnecessary complexity.
For example, many low-income earners and small businesses are expected to enjoy exemptions or reduced liability under the new regime, with relief measures aimed at easing financial pressure. 
Although specific impacts vary depending on income, business type, and tax status, some general effects expected in 2026 include:
• A progressive personal income tax structure, with relief for low earners and higher rates for wealthy individuals.
• Broader tax obligations for income, profits, and capital gains under one unified framework.
• Stronger digital and administrative enforcement as the Federal Inland Revenue Service transitions into the Nigeria Revenue Service (NRS).
Public discussion has been lively, some Nigerians are concerned about the pace and scope of these changes, while others hope the reforms will bring clarity, fairness, and better services from tax authorities.
Whatever your view, one thing is clear: 2026 will mark a new era for Nigeria’s tax system, and individuals and businesses alike will need to prepare for the shift starting January 1.
