JUST IN: The Rich Will Pay More, Not the Poor” — FG Defends 2026 Tax Reforms
JUST IN: The Rich Will Pay More, Not the Poor” — FG Defends 2026 Tax Reforms
The Federal Government has moved to calm growing public anxiety over Nigeria’s upcoming tax reforms, insisting that the changes are designed to reduce pressure on ordinary citizens while shifting the burden to high-income earners.
Speaking during a media engagement in Lagos, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said the reforms scheduled to take effect in January 2026 represent a long-overdue correction to a system that has unfairly placed tax obligations on low-income Nigerians and small businesses.
Oyedele dismissed claims that the new laws would worsen financial hardship, explaining that most Nigerians will either pay less tax or none at all under the new framework. According to him, about 97 percent of small businesses will be exempt from corporate income tax, while low-income earners will also enjoy expanded reliefs.
He described widespread fears surrounding the reforms as the result of misinformation, stressing that several benefits including VAT refunds on basic consumption and broader exemptions are only now becoming clear to the public.
Addressing concerns around banking and tax enforcement, Oyedele clarified that the government has no power to arbitrarily deduct money from citizens’ bank accounts. He explained that tax recovery, where applicable, follows a strict legal process involving assessments, notifications, dispute resolution, and court approval.
“There is no law old or new that allows government to simply dip its hand into people’s bank accounts,” he said, adding that such actions have never occurred in his decades of experience in tax administration.
Oyedele also explained that bank transaction monitoring under the new tax laws targets high-value financial activity, not everyday banking. Only accounts recording transactions above ₦25 million per quarter would attract reporting requirements, primarily to ensure tax registration compliance.
On corporate taxation, he revealed that Nigeria’s Company Income Tax rate will be reduced from 30 percent to 25 percent, a move aimed at encouraging investment, improving competitiveness, and driving business formalisation. He noted that companies must earn significant income before reaching the taxable threshold.
The reforms also offer sweeping relief to capital market participants. Oyedele disclosed that over 99 percent of stock market investors will remain exempt from Capital Gains Tax, with additional incentives for reinvesting profits to sustain long-term market growth.
He maintained that the tax overhaul is technology-driven, transparent, and people-focused, assuring Nigerians that continuous stakeholder engagement will guide implementation to avoid shocks or unintended consequences.
As 2026 approaches, the committee chairman urged Nigerians to focus on facts rather than speculation, insisting that the reforms are meant to strengthen the economy without punishing citizens.
