New tax laws promote prosperity, others, says Adedeji

The Chairman of the Nigerian Revenue Service (NRS), Zacch Adedeji, has said the new tax laws introduced by the Federal Government are designed to simplify taxation, ease compliance, and promote prosperity for ordinary Nigerians and businesses, contrary to widespread misconceptions surrounding their implementation.

Speaking during an interview on national television on Tuesday, Adedeji addressed widespread misconceptions and apprehension surrounding the implementation of the Tax Acts, which took effect on January 1, 2026.

He described the reforms as a landmark fiscal intervention aligned with President Bola Tinubu’s vision of “taxing prosperity, not poverty.”

“There is so much misinformation around this tax law,” Adedeji said. “The intent of the reform is to harmonise tax collection, modernise administration and simplify compliance. This law is not about taxing more; it is about taxing right and fairly.”

The new framework comprises four major legislations: the Nigerian Tax Act 2025, the Nigerian Tax Administration Act 2025, the Nigerian Revenue Service Establishment Act 2025, and the Joint Revenue Board Act. According to Adedeji, the laws consolidate over 60 scattered tax legislations into a single framework, making compliance easier for businesses and individuals.

On the transition from the Federal Inland Revenue Service (FIRS) to the Nigerian Revenue Service, Adedeji said the change represents the fulfilment of a long-standing reform promise.

“For us, it is a feeling of achievement,” he said. “This reform is in fulfilment of Mr. President’s inaugural promise to remove multiple taxation and create a conducive environment for businesses to grow. We thank the President, the National Assembly and, most importantly, Nigerian taxpayers.”

Adedeji dismissed calls by some stakeholders for a suspension of the new tax laws, stressing that such demands have no place in a democratic setting.

“When a law is passed and assented to, it becomes law,” he said. “There is no provision for suspending a law except under a state of emergency or by court order. If we suspend the law, we have no legal basis to collect taxes, and no country can survive without revenue.”

Addressing criticism from consulting firm KPMG and other commentators, the NRS chairman said engagement and clarification had helped resolve initial concerns.

“We are not opposed to criticism,” he said. “This is the first major tax reform since independence, so misunderstanding is expected. After engagement, it is clear we are on the same page that this reform is necessary for sustainable growth.”

On benefits to ordinary Nigerians, Adedeji highlighted exemptions on food and transportation, noting that these account for about 90 per cent of the disposable income of low-income earners.

“For the common man, this law brings relief,” he said. “Food and transportation are exempted from transactional taxes, and low-income earners will see reduced personal income tax deductions compared to the old regime.”

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He also clarified that the newly introduced development levy is not an additional tax but a consolidation of existing earmarked taxes such as education tax and the police trust fund.

“It is not a new tax,” Adedeji explained. “It is a consolidation to help businesses plan better and comply more easily.”

Reassuring Nigerians about fears surrounding bank accounts and tax clearance certificates, Adedeji said all valid certificates remain effective and that no arbitrary deductions would occur.

“Nigeria has nothing to fear,” he said. “January 1 has come and gone, and none of the rumours have materialised. This law is here to simplify processes, reduce compliance costs and support economic growth.”

He urged Nigerians to assess the new tax regime based on facts rather than rumours, adding that the ultimate goal is to grow the economy and ensure shared prosperity.

“When businesses prosper, they employ more people, and prosperity trickles down. That is the spirit and the promise of this reform,” Adedeji said.