The federal government has begun a six-week review of the new tax laws to address implementation challenges and improve clarity, simplicity, competitiveness and predictability within the fiscal system.
According to NAN, Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, announced on Thursday in Abuja while
inaugurating the technical subcommittee on fiscal policy and tax reforms.
Speaking during the inauguration, Oyedele said the
subcommittee would strengthen Nigeria’s ongoing fiscal and tax reforms.
He said the assignment would focus on addressing
implementation challenges and unintended consequences arising from the new
laws.
According to the minister, Nigeria’s tax reforms culminated
in four major laws that came into full effect on January 1: the Nigeria Tax
Act, Nigeria Tax Administration Act, Nigeria Revenue Service Establishment Act
and Joint Revenue Board Establishment Act.
Oyedele said the Finance Bill 2027 should build on the 2025
reforms rather than rewrite their fundamental principles.
“The bill must respond to implementation challenges,
unintended consequences and emerging economic realities,” he said.
‘134 INPUTS RECEIVED FOR FINANCE BILL 2027’
The minister said the public call for inputs received 134
submissions from across the six geopolitical zones.
He said the submissions focused on simplifying tax laws,
multiple taxation, digitalisation, data-sharing, taxpayer rights, refunds,
small businesses and investment competitiveness.
Oyedele urged the subcommittee to assess all submissions
objectively, based on evidence, national interest and their potential economic
impact.
He advised members to protect the integrity of existing
reforms while ensuring policies remained fair, efficient and competitive.
The minister also urged the committee to consider the wider
economic effects of revenue measures rather than focusing solely on revenue
generation.
The fiscal policy expert said policies should promote
investment, manufacturing, productivity, formalisation and value creation while
reducing compliance costs and opportunities for arbitrage.
Oyedele urged members to consider the impact of proposed
measures on low-income households, workers, small businesses, women and young
people.
He said the subcommittee would review the Deduction of Tax
at Source Regulations 2024 against the new tax laws and prepare revised
withholding tax regulations.
The minister emphasised that withholding tax is an
advance-payment and compliance mechanism.
He said the subcommittee would also review the Companies
Income Tax (Significant Economic Presence) Order 2020 and develop an updated
framework aligned with the new laws and international best practices.
“The country must protect its taxing rights while remaining
competitive for technology and cross-border investments,” Oyedele said.
He gave the subcommittee six weeks to complete and submit
its report.
The minister said the ministry of finance, justice, Nigeria
Revenue Service, Joint Revenue Board, Nigeria Customs Service, Small and Medium
Enterprises Development Agency of Nigeria, private sector and professional
bodies would collaborate during the process.
He said the ministry of justice would participate throughout
the drafting process rather than only reviewing completed documents.
Oyedele directed members to maintain confidentiality of
deliberations and disclose conflicts of interest.
He urged members to represent the national interest rather
than narrow institutional interests.
The minister said the first reform phase changed the
architecture, while the next phase would make the system work better.
He said the success would be measured by the number of real
problems solved rather than the number of legislative provisions changed.
Oyedele urged members to be rigorous and objective, listen
widely, challenge assumptions and follow evidence in carrying out the
assignment.
Also speaking, Albert Folorunsho, co-chair of the technical
subcommittee on fiscal policy and tax reforms, assured the minister of timely
delivery of the mandate.
Folorunsho, who is also chairman of the tax advisory
committee, said the committee would prepare the Finance Bill 2027, review the
withholding tax regulations and examine the significant economic presence
order.
According to the chairman, the assignments are critical to
developing a fair, clear, efficient and investment-friendly tax system.
Folorunsho said the committee’s recommendations would be
technically sound, administratively practicable and responsive to taxpayers,
businesses and government.
He acknowledged that the six-week timeframe was short but
expressed confidence in members’ experience and commitment to completing the
assignment.
The chairman said the committee would work collaboratively,
consult relevant stakeholders and pursue reforms that strengthen revenue
mobilisation without imposing unnecessary burdens on taxpayers.
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