The review will focus on key areas of the tax regime, including Value Added Tax thresholds, withholding tax, capital gains treatment and multiple taxation, with its recommendations expected to inform the Finance Bill 2027.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the exercise in Abuja while inaugurating the Technical Subcommittee on Fiscal Policy and Tax Reforms.
The Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025 came into effect on January 1, 2026.
Oyedele said experience since the implementation of the laws began had exposed areas requiring clarification, refinement and further reform.
“The real test begins when the law meets the economy, as businesses interpret it, administrators implement it, investors respond to it, and citizens experience it. Implementation inevitably reveals areas requiring clarification, refinement or further reform,” he said.
The minister stressed that the review was not designed to reverse the tax reforms introduced in 2025, but to improve their implementation based on practical experience and changing economic conditions.
“The Finance Bill 2027 should not be seen as just another annual legislative exercise. Our task is not to rewrite the 2025 reforms, but to preserve their fundamental principles while learning from implementation and responding to new economic realities,” he said.
Oyedele added that the government would examine areas where implementation had created ambiguity or unintended consequences, as well as opportunities to simplify compliance and improve investment and competitiveness.
The review follows concerns raised by members of the organised private sector over the implementation and interpretation of some provisions of the new tax regime.
In June, groups including the Manufacturers Association of Nigeria, Nigerian Association of Small and Medium Enterprises, Nigerian Association of Small Scale Industrialists, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture and the Nigeria Employers’ Consultative Association wrote to President Bola Tinubu over concerns relating to corporate tax filings.
The groups said they supported the government’s tax reform programme but argued that conflicting interpretations of the new laws had created difficulties for businesses seeking to comply.
One major area of concern involved tax obligations arising from accounting periods that ended before January 1, 2026.
The organised private sector said transition guidelines indicated that obligations relating to accounting periods ending before the commencement of the new laws should continue to be governed by the previous legislation, even where filing or payment deadlines fell in 2026.
However, the groups alleged that the Nigeria Revenue Service had adopted a different interpretation.
As part of the latest review, the government said it had received 134 submissions from across Nigeria’s six geopolitical zones following a call for public input.
Preliminary issues raised included calls for clearer and simpler VAT thresholds, withholding tax rules and capital gains provisions, alongside stronger measures against multiple taxation and improved coordination among revenue authorities.
Stakeholders also proposed greater digitalisation and data sharing to prevent taxpayers from repeatedly providing information already held by government agencies.
Other proposals include stronger taxpayer rights, faster refunds, safeguards for small businesses and measures to improve investment and competitiveness in sectors including mining, renewable energy, healthcare and capital markets.
The review will also extend beyond taxation to fiscal policy and management, public financial management, debt, transparency, capital markets and cross-border capital flows.
Oyedele directed the subcommittee to consider the broader economic effects of proposed changes, particularly on low-income households, workers and businesses.
“Every tax reform produces winners and losers; the question is whether a policy is fair, efficient and competitive, not whether it is popular with everyone,” he said.
He added that the government needed to consider the wider economic impact of tax measures rather than focusing solely on revenue generation.
Beyond recommendations for the Finance Bill 2027, the subcommittee will review the Deduction of Tax at Source Regulations 2024 and prepare revised withholding tax regulations.
It will also examine the Companies Income Tax (Significant Economic Presence) Order 2020 and develop an updated framework aligned with the new tax laws and international practices.
The subcommittee is chaired by the Permanent Secretary of the Federal Ministry of Finance, with Chairman of the Tax Advisory Committee, Albert Folorunsho, serving as co-chair.
Its membership includes representatives of the Federal Ministry of Justice, Nigeria Revenue Service, Joint Revenue Board, Nigeria Customs Service, Central Bank of Nigeria, Debt Management Office, Budget Office of the Federation and Nigerian Investment Promotion Commission.
Representatives of SMEDAN, MAN, the Nigerian Economic Summit Group, Nigerian Bar Association, Association of National Accountants of Nigeria, Chartered Institute of Taxation of Nigeria, Institute of Chartered Accountants of Nigeria and NACCIMA are also members.
The four major accounting firms — Deloitte, EY, KPMG and PwC — are represented on the committee.
Folorunsho said the committee would develop recommendations aimed at addressing the practical needs of taxpayers, businesses and government.
The subcommittee has six weeks to complete its assignment and submit its recommendations.
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