In a major development poised to reshape Nigeria’s fiscal future, Tinubu signs tax reform bills into law, introducing a sweeping overhaul of the country’s tax administration system. The ceremony took place at the Presidential Villa in Abuja on Thursday, June 26, 2025, where President Bola Ahmed Tinubu gave his assent to four landmark tax reform bills passed by the National Assembly.
The bills signed include:
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Nigeria Tax Bill
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Nigeria Tax Administration Bill
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Nigeria Revenue Service (Establishment) Bill
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Joint Revenue Board (Establishment) Bill
The reform package is seen as one of the most ambitious fiscal interventions in Nigeria’s recent history, with the potential to improve tax efficiency, ease of doing business, and national revenue generation.
New laws to take effect January 1, 2026
The new legislation will officially take effect on January 1, 2026. According to Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), which will now be rebranded as the Nigeria Revenue Service (NRS), the intervening period will be used for stakeholder sensitization and implementation planning.
“It takes time for all stakeholders, operators, regulators, and taxpayers to adjust. We have six months to ensure a smooth transition before full implementation begins with the 2026 fiscal year,” Adedeji told reporters.
A complete reimagining of Nigeria’s tax infrastructure
The reforms go beyond tax collection; they redefine how taxes are structured, who is eligible to pay, and how revenue is distributed among federal, state, and local governments.
The Nigerian Tax Bill, tagged “Ease of Doing Business,” seeks to harmonize the country’s fragmented tax statutes. It reduces the multiplicity of taxes, eliminates duplication, and is designed to simplify compliance. By reducing taxpayer confusion and compliance costs, the bill is expected to attract both local and foreign investment.
The Nigeria Tax Administration Bill introduces a uniform legal and operational framework across all tiers of government, ensuring consistency and fairness in how taxes are enforced and collected.
The third bill, the Nigeria Revenue Service (Establishment) Bill, replaces the FIRS with the newly established NRS. This new agency has a broader mandate, covering both tax and non-tax revenues. It will operate under principles of transparency, accountability, and measurable performance standards.
The final bill, the Joint Revenue Board (Establishment) Bill, formalizes collaboration between revenue authorities at all levels. It also establishes a Tax Appeal Tribunal and an Office of the Tax Ombudsman, important mechanisms for dispute resolution and taxpayer protection.
High-level support and wide stakeholder consultation
The signing ceremony was attended by prominent figures, including the Senate President, Speaker of the House of Representatives, and leaders of the Senate and House Finance Committees. Governors Abdulrahman Abdulrazaq (Kwara) and Hope Uzodinma (Imo), as well as the Ministers of Finance and Justice, also witnessed the event.
The Presidency emphasized that the legislation was shaped by broad consultations with key stakeholders, including state governments, business leaders, and civil society. This is especially significant considering the initial opposition from some governors who feared certain provisions could impact state revenues and hinder their ability to meet obligations such as salary payments.
The government, however, has reassured critics that the reform framework takes these concerns into account and ensures equitable distribution of resources.
Economic impact and investor confidence
According to a statement from the Presidency, these reforms are expected to modernize Nigeria’s tax regime, improve revenue collection, and create a more predictable economic environment for businesses. The unified legal frameworks and streamlined processes will reduce red tape, attract more formal sector participation, and boost Nigeria’s ranking in global ease-of-doing-business metrics.
“The new tax laws will transform tax administration, expand the tax base, and improve Nigeria’s global competitiveness,” said Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
A strategic step toward fiscal sustainability
The signing of these bills marks a strategic pivot by the Tinubu administration toward sustainable revenue generation without overburdening citizens. As oil revenues continue to decline, Nigeria is seeking more resilient internal sources of funding for its national development goals.
For many, the move signals Tinubu’s commitment to deep, structural reforms beyond surface-level policy changes. With Tinubu signing tax reform bills into law, Nigeria takes a bold step toward a fairer, more efficient, and forward-looking fiscal system, one that has the potential to unlock new economic opportunities for all.
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