Nigeria begins a tax reform review ahead of the 2027 Finance Bill, with officials targeting implementation gaps, simpler compliance and stronger investment
The Federal Government has begun a fresh tax reform review in Abuja, with Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele inaugurating a technical subcommittee on Thursday, September 17, 2026, to examine the implementation of Nigeria’s new tax laws and develop recommendations for the 2027 Finance Bill.
The six-week exercise comes less than a year after four major tax laws took effect on January 1, 2026. The laws include the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025.
Oyedele said the latest review was not intended to reverse the 2025 reforms but to refine them based on experience from their implementation and changing economic conditions.
“The Finance Bill 2027 should not be seen as just another annual legislative exercise,” Oyedele said. “Our task is not to rewrite the 2025 reforms, but to preserve their fundamental principles while learning from implementation and responding to new economic realities.”
The committee has been asked to identify areas where the new framework has created ambiguity, unintended consequences or unnecessary compliance burdens.
Key areas under consideration include Value Added Tax thresholds, withholding tax, capital gains treatment and multiple taxation.
The wider review will also touch on public financial management, debt, transparency, capital markets and cross-border capital flows.
The government has already received more than 134 submissions through its public consultation process, alongside additional hard-copy submissions.
The contributions came from businesses, investors, professional bodies, civil society organisations, academics and individual citizens.
Some of the proposals seek clearer and simpler tax rules, better coordination among revenue authorities and greater use of digital systems and data sharing to reduce repeated requests for information from taxpayers.
Stakeholders have also raised issues around taxpayer rights, faster refunds, safeguards for small businesses and measures to improve investment and competitiveness in sectors including mining, renewable energy, healthcare and capital markets.
The composition of the technical subcommittee reflects the breadth of the exercise. The body is chaired by the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, with Albert Folorunsho, Chairman of the Tax Advisory Committee, serving as co-chair.
Representatives from government institutions, professional organisations and the organised private sector are involved, including the Nigeria Revenue Service, Nigeria Customs Service, Central Bank of Nigeria, Debt Management Office, Budget Office of the Federation, Manufacturers Association of Nigeria, NACCIMA and major accounting firms.
Oyedele has urged the committee to consider the wider economic consequences of proposed changes, particularly for low-income households, workers and businesses.
The minister has also stressed that tax policy should not be judged solely by the revenue it generates, as measures intended to increase collections could create wider costs for businesses and the economy if poorly designed.
The review is therefore expected to balance revenue mobilisation with the need for a simpler and more predictable environment for taxpayers and investors.
“Good reform is a process, not an event,” Oyedele said, arguing that the real test of the changes comes when legislation is interpreted by businesses, implemented by administrators and experienced by citizens.
The committee has six weeks to complete its assignment and submit its recommendations, which are expected to inform the Finance Bill 2027 and related fiscal measures.
The review also comes against a backdrop of increased tax collection
. National Bureau of Statistics data show that Nigeria’s VAT report for the first quarter of 2026 was released on June 11, 2026, providing the latest official quarterly basis for assessing VAT performance under the evolving tax framework.
The outcome of the tax reform review could consequently have implications for how businesses calculate and remit taxes, how government agencies administer the system and how investors assess Nigeria’s fiscal environment as preparations for the 2027 budget gather pace.
