New tax Act, a necessary reset of our tax system – Oyedele
RMAFC Chairman, Dr. Mohammed Bello Shehu in a group photograph with RMAFC members and guests at the National Discourse
Omeiza Bilal
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee (PFTRC), Prof. Taiwo Oyedele, has described the Nigeria Tax Act 2025 as a long-overdue but necessary reset of Nigeria’s tax system.
In his keynote address at the National Stakeholders’ Discourse on “Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025” Monday in Abuja, Oyedele said “This reform should have been done 20 years ago. The next best time is now.” Incremental fixing could no longer solve the problem; we needed a transformation.”
The PFTRC Chairman explained that the reforms are designed to promote fairness, simplify compliance and support economic growth, noting that “we were taxing poverty and capital investments, and that is not the way to build a prosperous and inclusive economy.”
According to him, the new tax framework is structured to protect low-income earners, support small businesses, simplify multiple tax laws, and create a more predictable environment that restores investor confidence.
He stressed that the success of the reforms must translate into tangible benefits for citizens, stating that, “When we say the economy is improving, it must mean something to households and businesses; macro gains must translate into micro-outcomes.”
In his remarks, Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Dr. Mohammed Bello Shehu described the engagement as both timely and necessary, considering the fact that the Tax Act will come into force on 1 January 2026.
“One critical but necessary fiscal matter that has elicited and continues to attract public discourse is the Nigeria Tax Act, 2025, which will come into effect on 1st January 2026,” the Chairman said.
He explained that the Act followed extensive consultations and reforms by the Federal Government and represents a major step towards strengthening Nigeria’s fiscal architecture.
According to him, “the Nigeria Tax Act, 2025 has harmonised previously fragmented tax laws, reduced duplication and obsolete provisions, and enhanced the ease of doing business.”
Highlighting recent fiscal outcomes, the Chairman noted that, “The growth in Federation Account inflows reflects the impact of fiscal reforms, stronger audits, digital tracking and improved coordination among revenue agencies, which have expanded the revenue pool available for allocation to the three tiers of government.”
In his welcome address, the Chairman, Fiscal Efficiency and Budget Committee, RMAFC, Ambassador Desmond Akawor, described the discourse as a defining moment in Nigeria’s fiscal journey.
“The choices we make today will shape the stability, sustainability and resilience of Nigeria’s public finances for many years to come,” he said. He added that the Nigeria Tax Act, 2025 is aimed at modernising tax administration, strengthening compliance frameworks, closing revenue leakages, and expanding the revenue base across all tiers of government.
