The House of Representatives has established an ad hoc committee to investigate discrepancies between the recently passed tax reforms and the official gazetted versions circulating in government agencies. This move comes after the Peoples Democratic Party (PDP) called for a six-month postponement of the new tax law, set to take effect on January 1, 2026. The PDP claims this delay is necessary due to alleged illegal alterations to the law by the National Assembly.
President Bola Tinubu recently signed four significant tax reform bills into law, aimed at overhauling Nigeria’s tax system to simplify compliance, expand the tax base, and modernize revenue collection across federal, state, and local governments. Despite the government’s promotion of these reforms, reactions have been mixed.
During a recent plenary session, PDP lawmaker Abdussamad Dasuki flagged discrepancies between what was passed by the National Assembly and the gazetted law. He warned that these alterations could render the tax laws legally vulnerable. House Speaker Tajudeen Abbas announced the formation of a seven-member committee to address these claims and submit a report.
The PDP commended Dasuki for his diligence and demanded that the commencement date of the Tax Act be shifted to allow for thorough investigation of the alleged discrepancies. They emphasized the importance of maintaining public trust in parliamentary processes.
Additionally, the National Opposition Movement (NOM) has called for an immediate suspension of the tax reforms, asserting that their implementation would worsen the economic conditions for struggling Nigerians. The government, however, insists that the reforms are designed to be pro-poor and enhance national revenue generation, with provisions designed to ease the tax burden on citizens.
The upcoming implementation of the reforms is scheduled to include tax exemptions for small businesses and streamlined compliance processes to encourage investment. The government plans to conduct awareness campaigns to ensure public understanding of the reforms and to address any misinformation.
