Fear Over New Tax Reforms Driven by Misinformation, Not Reality – Mustapha
Story: written by Myra January 12,2026
Public anxiety surrounding Nigeria’s newly introduced tax reforms is largely the result of misinformation and limited understanding of the laws, according to Sadiq Muhammad Mustapha, Programme Lead at the Tax Justice and Governance Platform (TJ&GP).
Speaking on Saturday, Mustapha explained that the reforms are not designed to impose heavier taxes on Nigerians but rather to review, harmonise and simplify existing tax laws, with particular relief for low-income earners.
“Many people are scared because they do not understand what the new laws actually say,” he noted, adding that a significant number of Nigerians are expected to pay less tax than before, especially those on lower incomes.
He outlined that the reforms are built around four major laws. The first is the Nigerian Tax Administration Act (NTAA), which focuses on how taxes are administered, collected and enforced across the country.
The second is the Nigerian Tax Act (NTA), which he described as a landmark reform aimed at eliminating multiple taxation by consolidating all taxes—such as VAT, personal income tax, company income tax and stamp duties—into a single legal framework. According to him, this approach will reduce confusion and prevent different authorities from taxing the same income repeatedly.
The third law is the Nigerian Revenue Service (NRS) Establishment Act, which replaces the Federal Inland Revenue Service (FIRS) with a strengthened and restructured Nigerian Revenue Service, clearly defining its powers, duties and institutional framework.
Mustapha said the fourth pillar of the reform is the Joint Revenue Board (JRB) Establishment Act, which promotes coordination among federal and state tax authorities while safeguarding taxpayers’ rights. The Board, he explained, ensures consistency in tax administration nationwide and prevents overlapping responsibilities.
He added that the reforms also establish a Tax Appeal Tribunal, giving taxpayers access to an independent body to challenge tax assessments and seek fair resolution. In addition, an Office of the Ombudsman has been created at national and zonal levels to handle taxpayers’ complaints and grievances.
Addressing calls by organised labour for the suspension of the tax laws, Mustapha disagreed, insisting that extensive consultations were held before the reforms were introduced. He dismissed claims that private sector workers were excluded from the process.
On concerns over bank transfers, he clarified that adding narrations to transfers does not automatically exempt income from tax assessment, stressing the importance of proper tax filing to distinguish taxable from non-taxable income.
He emphasised that sustained public education is critical to the success of the reforms, noting that fear would subside once Nigerians fully understand the laws.
Despite growing criticism and objections from labour unions, the Federal Government has maintained that implementation of the Nigeria Tax Act and the Tax Administration Act will commence on January 1, 2026.
