The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, on Friday reassured Nigerians that the new tax laws were designed to ease burdens on Nigerians and not increase them.
He insisted that the new legislation, which would become effective from January 2026, would end a situation where the poor bear the tax burden, eliminate multiple nuisance levies, and ensure that 97 percent of small businesses pay zero corporate tax from next year.
Speaking during an interactive session with journalists in Lagos, on Friday, Oyedele, warned that widespread misinformation was fueling unnecessary fear, stressing that many reforms from the input VAT refunds on everyday purchases to exemptions for small businesses represent gains Nigerians are learning about for the first time.
He emphasised that the top two percent of earners, not ordinary citizens, would bear the bulk of new obligations, while long-standing requirements like Taxpayer Identification Number (TIN) for bank accounts are being misunderstood as new rules.
Oyedele maintained that the January 2026 rollout would be fair, technology-driven, and transparent, noting that the government’s continuous engagement before and after the law’s passage shows a sincere commitment to smooth implementation and genuine reform.
The Tax Reforms Committee boss also calmed growing public concerns that the federal government would begin deducting money directly from bank accounts once the new tax laws become effective.
He also explained that Nigeria’s Company Income Tax (CIT) rate, which has stood at 30 per cent since 1996, would under the new framework be reduced to 25 per cent, insisting that the reform was aimed at boosting investment and modernising the tax system.
Oyedele also clarified that more than 99 per cent of stock market investors would remain exempted from Capital Gains Tax (CGT), while only the top 1 per cent, typically large institutional investors, would be liable, and even they can avoid the tax if they reinvest their gains back into the market.
Addressing misconceptions about direct account debits from 2026, he stated: “Let me be clear: nobody will debit your account. There is no scenario under the current laws or the upcoming ones where government can simply take money from you because they think you should pay more tax.”
He emphasised that even in rare cases where taxpayers owe liabilities, the law requires a structured process involving notices, assessments, the right to dispute, and ultimately a court order.
“I’ve been involved in tax administration for nearly three decades, and I’ve never seen one instance where this power was used to take a single naira,” he added.
On monitoring individuals, Oyedele explained: “The new tax law says that banks will report activities in accounts where an individual records transactions worth N25 million naira in a quarter, that is 100 million naira in a year. That is what government is monitoring and with that you will be required to have a Taxpayers Identification Number (TIN),” he added.
On CIT, he noted: “Nigeria’s CIT rate has been 30 per cent for the past 30 years. The reduction to 25 per cent is part of broader reforms to close gaps, incentivise formalisation, and promote growth. Before you can even get to 25 per cent of your income as tax, you must be earning at least 20 million naira annually which is not a small amount anywhere in the world.”
He further explained that small businesses with annual turnover below 100 million naira will pay zero CIT, giving them a strong incentive to formalise operations.
On CGT, Oyedele stressed that reforms were designed to encourage long-term investment while shielding small and retail investors.
“For the capital markets, we have exemption for everybody in the capital markets or shares. All investors are tax exempt in the capital markets, 99 per cent of them. The exemption is unconditional. If you sell not more than N150 million of shares in a year, and your gains are no more than N10 million, you are permanently exempted, no questions asked. That threshold covers more than 99 per cent of investors in the market.
“The remaining investors are less than one per cent, including pension funds they are also unconditionally exempted. That includes mutual funds, unconditionally exempt. Real Estate Investment Trusts, unconditionally exempt. So even the one per cent is now much less.
“Whatever is left of that one per cent, we now said to them, if you don’t want to pay CGT, please reinvest your proceeds. So when you sell N200 million worth of shares, Zenith, Dangote, Flour, reinvest it. Reinvest it, and the tax on the gain you made is permanently exempted,” he added.
He stressed that there should be no need for apprehension about the implementation of the tax reform, maintaining that it is a fiscal instrument that would positively affect the people.
Nume Ekeghe
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