Lifestyle & Wellness DeskCSO Seeks Federal Government Explanation on New Tax Law
A civil society group, Citizen Monitors, has called on the Federal Government to provide Nigerians with clear guidance and safeguards ahead of the new tax law scheduled to take effect on January 1, 2026.
The legislation, which introduces the Nigeria Tax Act, the Nigeria Tax Administration Act, and the Nigeria Revenue Service Act, has stirred debate, including protests against the proposed 5% fossil-fuel surcharge.
The Federal Inland Revenue Service has already dismissed claims that Nigerians would be required to present a Tax Identification Number to open or maintain bank accounts under the law. In a statement signed by its spokesperson, Olajumoke Alawode-James, Citizen Monitors welcomed the suspension of the 5% fossil-fuel surcharge pending further consultations but stressed that reforms must be understood by citizens to be effective.
The organisation outlined three urgent actions the government should take before the rollout:
- Publish a one-page plain-language guide detailing what is changing, what is not, and when, along with a clear timeline to January 2026, FAQs for workers and small businesses, and a helpline or portal for quick answers.
- Reassure the public that VAT remains at 7.5%, ensure that zero-rated items such as food, medicines, books, and some energy products remain exempt, and actively monitor against fake “VAT increases” at retail outlets.
- Release updated PAYE tables early, while giving small businesses a smooth entry into the new e-invoicing and fiscalisation system without retroactive penalties during the transition, supported by toolkits and simplified steps.
Citizen Monitors reaffirmed its mission to monitor government reforms and their real-life impact. The group said it will track the implementation process and report on areas that work well and those that require further clarity or correction.
