Nigeria: Oyedele Flags Errors in New Tax Laws, Announces Plans for Correction

Minister of State for Finance, Taiwo Oyedele, has acknowledged the presence of errors in Nigeria’s newly introduced tax reform laws, confirming that steps are already being taken to address the issues.

Speaking during a fireside chat at the 2026 Annual Conference of the Nigerian Bar Association (NBA) Section on Legal Practice, Oyedele responded to concerns surrounding discrepancies in the legislation. The session, themed “From Policy to Practice: Making Sense of Nigeria’s New Tax Reforms,” focused on bridging the gap between legislative intent and real-world implementation.

The concerns stem from earlier claims that the gazetted versions of the tax laws differ from those passed by the National Assembly. In response, lawmakers constituted a panel to investigate the discrepancies.

Oyedele explained that the inconsistencies arose from manual processes and multiple review stages within the legislative cycle. He noted that corrective actions are already in motion through a proposed finance bill aimed at resolving the identified gaps.

“What is required is a more transparent and reliable legislative process, where every version of a law is publicly accessible,” he stated.

He reassured stakeholders that enforcement of the new tax laws would be guided by clarity, fairness, and transparency, rather than arbitrary application. According to him, a proper understanding of the policy intent behind the reforms is critical to ensuring effective implementation.

Addressing structural issues in the previous tax regime, Oyedele pointed to imbalances between personal and corporate taxation, which he said discouraged business formalisation. The new reforms, he explained, are designed to promote consistency, reduce administrative discretion, and encourage businesses to operate within the formal economy.

He also highlighted the impact of policy unpredictability on investor confidence, noting that abrupt fiscal changes in the past had deterred foreign investment. “Consistency in policy direction is essential for building trust with investors,” he added.

On inclusivity, Oyedele emphasised that the reforms are structured to protect low-income earners and small businesses. He noted that a significant portion of Nigeria’s workforce earns below N70,000 monthly, making aggressive taxation both impractical and inequitable.

“Taxing low-income earners excessively would be unjust,” he said, adding that the reforms eliminate minimum tax requirements for loss-making businesses, a move aimed at preventing the erosion of capital.

While acknowledging progress in public revenue utilisation, Oyedele called for improved efficiency in tax administration, noting that Nigeria still lags behind peer economies such as South Africa in overall tax collection performance.

The minister maintained that the ongoing reforms represent a shift toward a more balanced, transparent, and growth-oriented tax system.