Fresh controversy over Nigeria’s newly signed tax reform laws has drawn a firm response from the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, who has described documents currently circulating in the public space as fake and misleading.
The debate followed claims in some quarters that the tax reform bills signed into law by President Bola Tinubu differed from what was passed by the National Assembly. However, speaking during an interview on Channels Television, Oyedele cautioned against drawing conclusions without following proper legislative verification procedures.
According to him, any allegation of alteration can only be substantiated by comparing two authoritative documents: the gazetted version of the law and the officially harmonised bill jointly approved by the Senate and the House of Representatives and certified by the Clerk of the National Assembly.
Oyedele disclosed that while he had seen the gazetted copy of the law, the harmonised version transmitted to the President was not yet publicly available. “Without that certified document, no one can definitively say that changes were made,” he said, stressing that only lawmakers are constitutionally empowered to confirm what was finally transmitted for presidential assent.
He described as false the materials widely shared and reported in sections of the media, noting that they did not originate from the committee set up by the House of Representatives to review the matter. He cited a specific example in which a circulating document referenced a provision requiring a 20 per cent deposit under Section 41, Subsection 8—an item he said existed only in an earlier draft and not in the final gazette.
“The inclusion of such provisions shows that someone circulated an outdated or fabricated document, possibly even before the committee commenced its work,” Oyedele said.
Beyond the immediate controversy, he warned that the situation exposed deeper weaknesses in Nigeria’s legislative process. He argued for a near tamper-proof system for handling laws, likening the seriousness of legislation to the printing of currency or ballot papers. “Legislation matters that much,” he said.
Addressing specific allegations, Oyedele referenced Section 25 of the Nigeria Revenue Service Act dealing with accounts and audits, explaining that the provision clearly outlines timelines and procedures for auditing, under the supervision of auditors appointed by the Board in line with the Auditor-General’s guidelines. He reiterated that until the certified harmonised bill is produced, claims of discrepancies remain speculative.
On growing calls for a suspension of the tax reforms’ implementation, scheduled to take effect on January 1, Oyedele attributed much of the agitation to misinformation. He warned that delaying the reforms could deprive small businesses and low-income earners of significant reliefs embedded in the new laws.
“Legally, only the National Assembly can postpone implementation,” he noted, adding that any such decision should be guided by the outcome of lawmakers’ investigations rather than public panic.
Oyedele also cautioned against what he described as fear-mongering, saying some interests were mobilising public opposition against reforms designed to benefit the majority of Nigerians. He outlined the cost of delay, including continued overtaxation of low-income workers, loss of exemptions for small businesses, and the persistence of multiple and nuisance taxes that raise the cost of essentials such as food, healthcare, and education.
He maintained that even if lawmakers eventually identify substantial alterations, only the affected provisions should be set aside, while the rest of the properly enacted law should proceed. He acknowledged, however, that certain areas of the reforms may still require amendments, including inconsistent definitions of small businesses.
Reacting to reports that some businesses are already increasing prices in anticipation of the new tax regime, Oyedele expressed concern that the core objectives of the reforms were being misunderstood. He recounted an anecdote of a tailor who justified a price hike by vaguely citing tax reforms, despite being unable to explain how the changes would affect him.
“This is dangerous,” Oyedele said, insisting that the reforms are structured to reduce costs rather than raise them. He highlighted key benefits, including VAT input credits on assets and overheads—estimated at about ₦3.4 trillion based on 2024 figures—lower corporate income tax, and tax relief for 98 per cent of workers. Small businesses earning up to ₦100 million annually, he added, would pay no corporate tax, VAT, or withholding tax.
Contrary to current fears, Oyedele said prices should stabilise rather than rise, noting that many of the taxes causing concern already exist under the old regime in a more burdensome form. He added that several multiple taxes have been eliminated or harmonised, with ongoing collaboration between the federal and state governments. Some states, he revealed, have already passed tax harmonisation laws and are awaiting assent.
Oyedele Faults Fears of Higher Personal Income Tax, Explains Safeguards in New Law
Amid rising public anxiety over possible increases in personal income tax under Nigeria’s new tax regime, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has dismissed claims that middle- and upper-income earners will be unduly burdened, describing such fears as largely driven by misinformation and a poor understanding of how tax tables work.
Oyedele said concerns that Nigerians earning above ₦1 million monthly would automatically pay more tax under the new law were unfounded. According to him, anyone earning ₦2 million or less per month will either pay less tax or no tax at all compared to the current system.
He explained that a key source of confusion is the tendency to equate gross income with taxable income. Under the law, taxable income is calculated only after deducting statutory contributions, insurance premiums, mortgage interest, rent reliefs, and approved allowances. In addition, the first ₦800,000 of taxable income attracts a zero percent tax rate.
To further promote transparency, Oyedele disclosed that a tax comparison calculator has been made available on fiscalreforms.ng, allowing individuals to assess their current and projected tax liabilities. He noted that only about the top two percent of earners would pay more tax under the new structure, and even then, the increase would be marginal. He added that the highest personal income tax rate of 25 percent would only apply to individuals earning close to ₦1 billion annually.
According to him, even high-income earners who experience a slight increase in personal income tax are likely to gain significantly from reductions in business-related taxes introduced by the reforms.
Oyedele also addressed concerns about the impact of the reforms on informal and micro-businesses, using a practical illustration. He cited the example of a vulcaniser earning about ₦10,000 daily for six days a week—roughly ₦2.8 million annually. Such earnings, he explained, represent revenue rather than profit, as the business owner must still cover costs such as equipment, materials, rent, and transportation.
To protect such operators, the new tax law introduces a presumptive tax system with clear thresholds. Under this arrangement, individuals earning up to about ₦40,000 daily in revenue will be exempt from tax. As a result, many roadside vendors, artisans, and other micro-entrepreneurs will not pay any tax at all.
Oyedele said the reforms are designed not only to protect vulnerable groups but also to remove excessive discretion from individual tax officers, which has often led to abuse. He added that the reporting threshold under the new law is set at ₦25 million, further shielding small operators from unnecessary compliance burdens.
Describing the broader philosophy behind the reforms, Oyedele said fairness lies at the heart of the new tax framework, with deliberate efforts to reduce the tax burden on low-income earners while creating a more rational and transparent system.
Reflecting on his role in drafting the new tax regulations, Oyedele emphasised that the work was the product of extensive collaboration rather than individual effort. He said he had the privilege of leading a diverse and patriotic team of Nigerians drawn from various backgrounds, at times numbering over a hundred people, who worked together over a period of about two and a half years.
According to him, the team undertook a comprehensive review of Nigeria’s tax system, identifying its flaws and designing reforms aimed at making the country’s tax environment more equitable and supportive of economic growth.
He explained that the committee drafted the bills using a deliberately rigorous process, informed by past experiences where multiple and conflicting versions of legislation created confusion. He recalled the Petroleum Industry Bill as an example of how uncertainty over bill versions had previously undermined public confidence.
Once the President transmitted the bills to the National Assembly, Oyedele said the committee’s role shifted mainly to public engagement—explaining the policy rationale behind the proposed provisions. He noted that the legislative process itself involved detailed scrutiny by both the House and Senate Committees on Finance, with each chamber passing its own version before harmonisation.
After the harmonised bills were sent to the President, Oyedele said his focus was to review the laws assented to, ensuring that the core policy objectives—tax harmonisation, reduced burden on businesses, and protection for low-income earners—had not been substantially altered.
He added that even after presidential assent, the committee paid close attention to the gazetting process to ensure accuracy in editing, numbering, references, and definitions. He recalled that an unauthorised draft gazette containing errors was initially released, but those issues were escalated and corrected before the final gazette was issued.
Overall, Oyedele maintained that the new tax laws are structured to promote fairness, clarity, and economic inclusion, urging Nigerians to rely on verified information rather than speculation when assessing their impact.