The Federal Government has inaugurated the Technical Subcommittee on Fiscal Policy and Tax Reforms, with a six-week mandate to review the implementation of Nigeria’s new tax laws and make recommendations for further reforms.
Professor Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, inaugurated the subcommittee while outlining the government’s next phase of fiscal and tax reforms.
Oyedele said the committee’s work would focus on improving the implementation of the reforms introduced through the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025, which came into effect on January 1, 2026.
According to him, the enactment of the laws marked a fundamental reset of Nigeria’s tax system, but effective reform must continue beyond legislation.
He said: “Good reform is a process, not an event. The real test begins when the law meets the economy, as businesses interpret it, administrators implement it, investors respond to it, and citizens experience it.”
Oyedele explained that the Finance Bill 2027 should not be treated as another routine annual legislative exercise, but as an opportunity to address ambiguities, unintended consequences and compliance challenges identified during implementation.
He said the committee’s mandate would extend beyond taxation to areas including fiscal policy and management, public financial management, debt, transparency, capital markets and cross-border capital flows.
“The fiscal system is more than taxation. It is how we raise revenue, spend, borrow, manage assets, coordinate institutions, and drive inclusive growth,” he said.
The chairman disclosed that the government received 134 submissions from stakeholders across Nigeria’s geopolitical zones following its public Call for Inputs.
He said the submissions highlighted concerns and proposals around the clarification and simplification of the new tax laws, including VAT thresholds, withholding tax and capital gains treatment.
Other issues identified included multiple taxation, coordination among revenue authorities, digitalisation and data-sharing, taxpayer rights, faster refunds and safeguards for small businesses.
Oyedele said stakeholders also made proposals aimed at improving investment and competitiveness in sectors including mining, renewable energy, healthcare and capital markets.
He charged members of the subcommittee to assess the submissions based on evidence and national interest rather than the identity or interests of those making the proposals.
He listed fairness, efficiency, competitiveness, simplicity, evidence-based policymaking and long-term economic impact among the principles that should guide the committee’s work.
According to him, policymakers must consider the wider economic consequences of proposed tax measures, noting that a provision capable of raising revenue could impose a greater cost on the economy if poorly designed.
“Our philosophy remains that we should not tax the seed but fruits, not poverty but wealth; profits not capital, consumption not production; and value creation, not merely transactions,” he said.
Oyedele also directed the subcommittee to review the Deduction of Tax at Source Regulations 2024 against the new tax laws and prepare revised Withholding Tax Regulations.
He stressed that withholding tax should remain an advance-payment and compliance mechanism rather than an additional cost of doing business or a tax on working capital.
The subcommittee is also expected to review the Companies Income Tax (Significant Economic Presence) Order 2020 and develop an updated framework consistent with Nigeria’s new tax laws and international best practices.
Oyedele said Nigeria must protect its legitimate taxing rights in the digital and globalised economy while maintaining an environment conducive to technology and cross-border investment.
The subcommittee, which comprises representatives of the Ministry of Finance, Ministry of Justice, Nigeria Revenue Service, Joint Revenue Board, Nigeria Customs Service, SMEDAN, organised private sector and professional bodies, is expected to submit its report at the end of the six-week assignment.
Oyedele further directed members to maintain confidentiality on deliberations and working documents until authorised for release, while disclosing any conflict of interest and recusing themselves from voting on affected matters.
He urged members to see the assignment as a national responsibility rather than an avenue to advance institutional or sectional interests.
“The first phase of our reforms was about changing the architecture. The next phase must be about making that architecture work better, addressing complexity and providing clarity and predictability, to ensure the prosperity of our people and the competitiveness of our economy,” he said.
He added that the success of the exercise would not be determined by the number of provisions amended, but by the number of real problems resolved.
