President Bola Tinubu on Thursday signed into law four tax reform bills aimed at overhauling Nigeria’s complex and inequitable tax system. The new laws will come into effect on January 1, 2026.

The four bills are:

• The Nigeria Tax (Fair Taxation) Law

• The Nigeria Tax Administration Law

• The Nigeria Revenue Service (Establishment) Law

• The Joint Revenue Board (Establishment) Law

Together, they establish a unified framework for tax administration, abolish redundant agencies, and redefine who is eligible to pay taxes, how taxes are collected, and how revenue is shared between federal, state, and local governments.

At a signing ceremony held at the Presidential Villa in Abuja, Tinubu described the new laws as the “first major, pro-people tax cuts in a generation,” promising targeted relief for low-income earners, small businesses, and working families.

“For too long, our tax system has been a patchwork—complex, inequitable, and burdensome,” Tinubu said. “It has weighed down the vulnerable and shielded inefficiency. That era ends today.”

The president also said the reforms will eliminate duplications, reduce red tape, restore investor confidence, and foster greater transparency and coordination across all levels of government.

The bills, originally transmitted to the National Assembly in October 2024, faced initial opposition from some northern governors who feared the reforms would disadvantage their states. However, following negotiations and the adoption of a more equitable VAT-sharing formula, the Nigeria Governors’ Forum endorsed the bills in January 2025. The House of Representatives passed them in March, and the Senate followed in May. The bills were transmitted to the president for assent on June 18.

Among those present at the signing were Senate President Godswill Akpabio, House Speaker Tajudeen Abbas, House Majority Leader Julius Ihonvbere, Governors Abdulrahman Abdulrazaq (Kwara) and Hope Uzodinma (Imo), Finance Minister Wale Edun, and key figures in Nigeria’s fiscal reform architecture.

The reforms also rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS), granting it expanded authority beyond taxes to include the collection of all federal revenue. The NRS is now empowered with improved technology, streamlined processes, and broader enforcement tools.

Speaking to journalists after the ceremony, FIRS chairman Zacch Adedeji said the laws will be implemented from January 1, 2026, allowing a seven-month transition period for public awareness, alignment with Nigeria’s fiscal calendar, and system restructuring.

“This is not about raising more taxes. It’s about simplifying the system, removing inefficiencies, and putting more money in the hands of ordinary Nigerians,” Adedeji said.

He highlighted key features of the reforms:

• Exemptions from VAT: Basic items like food, education, medical services, and accommodation will be exempted, easing the cost of living.

• Transparent Incentives: The laws establish clearer, fairer rules for tax incentives, closing loopholes and ending arbitrary exemptions.

• Enhanced Taxpayer Rights: The reforms emphasize accountability, reduce harassment, and clarify the government’s obligations to citizens.

Describing the reforms as “a dream come true,” Adedeji praised Tinubu’s political will and the leadership of Taiwo Oyedele, chairman of the Presidential Tax and Fiscal Reforms Committee, for steering the process.