The Chairman of Nigeria Revenue Service (NRS), Zacch Adedeji, has dismissed claims that the new tax laws place additional burden on poor Nigerians, insisting that the reforms are designed to protect low-income earners while simplifying tax administration and boosting economic growth.
Speaking during a live interview on TVC, Adedeji said: “There is no section of the law that taxes poor people. About 90 percent of the disposable income of the poor goes into food and transportation, and both are exempted from transactional taxes.”
According to him, the new tax framework, which commenced on January 1, 2026, is aimed at fairness, efficiency, and modernisation of Nigeria’s tax system.
Commencement of new tax laws
Adedeji explained that although President Bola Tinubu assented to the Tax Act and Tax Administration Act in June 2025, their implementation began on January 1, 2026, in line with provisions in the law and the National Tax Policy.
“The transition framework is clearly stated in the Act. While laws technically take effect after presidential assent, tax reforms usually allow time for businesses and institutions to adjust. Given the magnitude of these reforms, the President and the National Assembly agreed on January 1, 2026, as the commencement date,” he said.
He added that the last six months were dedicated to developing the operational framework, training staff, and setting up systems to ensure a smooth transition.
“So far, the transition has been smooth, apart from rumours and misinformation. The stability in the foreign exchange market, the inflows into the Nigerian Exchange, and the renewed confidence of investors show that the reforms are being positively received,” he noted.
Rumours and public fears
Adedeji urged Nigerians to rely on facts and data rather than speculation.
“Some people said that if you don’t declare your bank balance, your money will disappear. Today is January 13, and Nigerians can see clearly that nothing like that has happened. The purpose of the reform is to modernise tax collection and simplify compliance, not to intimidate citizens,” he said.
Development tax
Clarifying misconceptions around the newly introduced Development Tax, Adedeji stressed that it is not a new tax.
“It is a consolidation of existing earmarked taxes such as education tax, police trust fund levy, and others into a single item. This simplifies compliance and allows businesses to plan better,” he said.
He explained that funds from the Development Tax would support education, student loans, TETFund, security, and other development priorities.