COMMENTARY
“No Controversy Over New Tax Laws, Implementation Began June 2025” — Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji Clarifies Timelines, VAT Reliefs, Bank Transfer Claims
The Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, has dismissed claims of controversy surrounding the implementation of Nigeria’s newly enacted tax laws, insisting that the process followed due legislative procedure and extensive stakeholder consultations.
Speaking during an interview on Arise Television, Adedeji stressed that the focus of the revenue agency is strictly on the tax laws as gazetted, not on alleged disputes surrounding the harmonised version of the bills by the National Assembly.
According to him, any issues related to harmonisation fall squarely within the internal workings of the legislature and do not concern the executive arm or the tax authority.
He clarified that contrary to widespread speculation, the new tax laws did not commence on January 1, 2026, as being circulated in some quarters, but became operational immediately after President Bola Tinubu assented to them in June 2025.
However, he explained that the actual implementation of certain provisions was deliberately deferred to January 2026 to allow adequate preparation by taxpayers, businesses, and the NRS itself.
According to Adedeji, “What we have is the gazette, which was published within the legally required timeframe. That gazette is the law. When people say the executive has handled or altered the law, that has no basis.
“If something has no place in the law, then it does not exist legally. If you follow the institutional processes of the National Assembly, you will see that once a law is gazetted, that is final.
“We have not seen any dissenting official position on this matter, especially from us, because our duty is only to implement the law as passed by the National Assembly. If you listen to Mr. President’s speeches, he has repeatedly emphasised that implementation will strictly follow the law.”
He further underscored the importance of trust between taxpayers and tax administrators, warning against any attempt to operate outside the legal framework.
“Why would we want to go outside the law? The relationship between tax administration and taxpayers must be built on trust. The better that relationship, the better for everyone. Our objective is not enforcement for its own sake, but to help people prosper.
“The real essence of this reform is to stimulate economic growth. It is only when the economy prospers that revenue administration becomes effective.
“As the President has often said, ‘I will not tax seed; I will tax fruit. We do not want to tax investment; we want to tax returns’ That is why the focus of this reform is to remove obstacles that stand in the way of businesses, so they can grow and succeed.”
Addressing questions surrounding the harmonised tax bill, Adedeji made it clear that the NRS has no role in legislative harmonisation or corrections.
“Let me be clear: I do not need to see the harmonised bill. The internal processes of the National Assembly are their responsibility. The only thing that concerns us is the final law that is transmitted, gazetted, and handed over for implementation.
We have no role in harmonisation, correction, or internal legislative procedures.
“Even if the National Assembly uses its internal mechanisms to correct issues, that is entirely within its institutional mandate. Our role begins and ends with implementation of the law as passed.
“By God’s grace, the law commenced as scheduled. The operational guidelines are ready. What we are looking forward to now is implementation and the delivery of benefits to Nigerians.”
On the broader objectives of the tax reforms, the NRS chairman explained that the reforms were deliberately designed to protect low-income earners while stimulating economic growth.
“One of our major objectives during public hearings was to protect the poor. Over 95 per cent of low-income Nigerians are completely exempt under this reform.
“We removed VAT on basic food items and essential transportation. Since about 90 per cent of poor households’ disposable income goes to food, this reform directly benefits them. When you look at the net effect, the poor are the biggest beneficiaries of the tax reform.”
Responding to public concerns over bank transfers, VAT deductions, and allegations of excessive charges, Adedeji described much of the narrative as misinformation.
“Effective January 1, the system operates on three tiers. Only the payer, not the recipient, is subject to applicable charges. Issues people complain about largely relate to state-level internal revenue practices, not federal taxes.
“No tax authority, state or federal can pry into your bank account arbitrarily. There is no provision in the old or new law allowing that.
Transfers between family members or businesses are normal transactions and are not taxed simply because money moved.”
He further explained that transaction reporting thresholds long predate the current reforms.
“Reporting thresholds have existed long before this reform. Banks report transactions above ₦25 million for individuals and ₦100 million for companies, but this is not new, and it is not unique to tax authorities. It reflects modern data management standards globally.”
Highlighting what he described as one of the landmark changes in the new tax regime, Adedeji said the administration has moved away from taxing capital and investments.
“Under the new taxation principles, We tax profit, consumption, and returns not investments.
“Previously, companies were required to pay minimum tax based on turnover, even when making losses. That effectively taxed capital, which this administration strongly opposed.
“Under the new law, minimum tax applies only to profit, not turnover. This is one of the landmark changes, and it reflects the President’s commitment to encouraging investment and growth.”
Clarifying the timeline of the law’s commencement once again, Adedeji stated:
“Let me clarify something. The law did not start on January 1 in the way some people have said. The law was assented to on June 26. From that date, it became operational.
“However, certain provisions, especially those involving changes in rates, were given a six-month transition period to allow companies to adjust their systems. That is standard tax policy.
“So, while the law commenced in June, rate changes were deferred to January to allow proper preparation.
“The President has described this reform as a once-in-a-generation opportunity to build a fiscal framework that supports sustainable prosperity.”
He also dismissed claims linking the tax reforms to banking payment issues, stressing that taxation has no bearing on whether individuals receive payments.
“It is not tax law that determines whether people get paid or not. What they get paid comes from their transactions. It has nothing to do with tax law, and that is what I am explaining.
“There is nothing in the tax law that introduces additional taxes beyond what already exists. This is something I clarified intentionally when the issue was raised officially for the first and last time.”
Adedeji reaffirmed that the NRS remains committed to lawful, transparent implementation of the reforms, with the ultimate goal of economic growth, investor confidence, and tangible benefits for Nigerians, especially the most vulnerable.