Opposition demands suspension of new tax regime

The National Opposition Movement has urged President Tinubu to immediately suspend a new tax regime set for January 2026, arguing it will exacerbate hardships for poor Nigerians amid rising poverty and insecurity. Speaking in Abuja, the group described the policy as an assault on ordinary citizens' livelihoods. They called for nationwide consultations and protections for vulnerable groups.

The National Opposition Movement (NOM) held a press conference at the Shehu Yar’adua Centre in Abuja on Wednesday, December 17, 2025, to protest the upcoming tax reforms. The group warned that the new regime, effective from January 2026, would impose undue burdens on Nigerians already grappling with poverty, homelessness, insecurity, and high living costs.

NOM highlighted the nation's dire situation, stating, “At no time in the history of the country has life been so short, so brutish, and so miserable for citizens.” They cited global economic indices ranking Nigeria as having the lowest quality of life, even below neighbors like Benin, Togo, and Niger. The movement accused the Federal Government under President Bola Tinubu of prioritizing political interests over public welfare, calling the tax plan “an assault on the livelihood of ordinary Nigerians.”

Details of the policy include requirements for all adults of taxable age to file returns between January 1 and March 31, 2026, with sanctions for non-compliance. Company owners must file for all employees, regardless of income level, and a Tax Identification Number is mandatory. NOM noted challenges like over 70 million unemployed Nigerians and limited internet access, labeling the measures “mindless” and an “exploitative racket.” They added that low-wage earners, hit by subsidy removals and high tariffs, would face heavy taxation despite earning below minimum wage.

The group criticized a lack of transparency, referencing a memorandum between the Federal Inland Revenue Service and a French agency, and alleged corruption in state revenue bodies. NOM demanded immediate suspension of the implementation, nationwide consultations with labor, civil society, SMEs, professionals, and states, plus social protections tied to reforms. They advocated taxing “luxury, excess profits, monopolies, and corruption, not poverty.”

In a closing statement, NOM affirmed solidarity with workers, traders, professionals, and small businesses, vowing resistance to policies that punish the poor. They warned that forcing the plan without changes could spark social and economic unrest, contributing to West Africa's crisis of unaccountable governance.

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Illustration of Nigeria's tax law controversy: CITN demands verification, Senator Ndume calls for suspension, Lagos Governor defends reforms.
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CITN demands verification as calls intensify to suspend Nigeria's disputed tax laws

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Building on earlier policy critiques, the Chartered Institute of Taxation of Nigeria (CITN) has called for urgent verification of new tax laws amid discrepancies, while Senator Ali Ndume urges suspension of the January rollout and Lagos Governor defends the reforms.

The National Association of Nigerian Students has called on the Federal Government to suspend the January 1, 2026, rollout of the new Tax Reform Law due to procedural flaws and lack of public engagement. The group highlighted discrepancies between the gazetted version and the one passed by the National Assembly, amid concerns over inadequate sensitization efforts. NANS warned of nationwide protests if demands are ignored.

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Ethnic youth leaders across Nigeria have welcomed a court ruling affirming the January 1, 2026, rollout of the new tax regime, calling it a victory for national economic interests. They urged patience and support during the implementation to foster long-term stability. The decision clears legal hurdles amid ongoing reforms to address fiscal challenges.

In the latest development in the ongoing controversy over alleged alterations to Nigeria's Tax Acts 2025, former Vice President Atiku Abubakar has labelled the gazetted versions as illegal forgeries, warning of a constitutional crisis. The Patriots coalition has rejected the claims as baseless, backing the National Assembly's re-gazetting of the laws following earlier criticisms from figures like ex-FIRS chief Muhammad Nami.

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During the review of the 2026 budget at the National Assembly on Saturday, October 25, deputies rejected the government's proposed freeze on the income tax scale, choosing instead to index it on inflation. This decision, backed by a broad coalition, deprives the state of 2 billion euros in revenue and affects 200,000 households. Meanwhile, amendments defiscalizing overtime hours and child support payments were adopted, as debates on the Zucman tax drag on.

The National Assembly's finance commission rejected the Zucman tax on very high patrimonies on Monday, October 20, proposed by the left. Deputies from the government coalition and the National Rally voted against this amendment, which aimed to impose a 2% minimum on patrimonies over 100 million euros. The debate will continue in the hemicycle starting Friday.

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In Abuja, Wale Edun, the minister of finance and coordinating minister of the economy, signed the presumptive tax regulations framework on Tuesday. This step signals the federal government's initiation of full tax law implementation.

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