Civil society group, Citizen Monitors, has called on the Federal Government to provide Nigerians with clear and practical guidance on the new tax law scheduled to take effect from January 1, 2026.
The law introduces multiple reforms, including the Nigeria Tax Act, Nigeria Tax Administration Act, and Nigeria Revenue Service Act. However, it has sparked debate, particularly over the proposed 5% fossil-fuel surcharge, which has already triggered protests.
The Federal Inland Revenue Service (FIRS) recently dismissed reports claiming that Nigerians would be required to present a Tax Identification Number to open or maintain bank accounts under the new regime.
In a statement issued on Monday by its spokesperson, Olajumoke Alawode-James, Citizen Monitors welcomed the government’s decision to suspend the fossil-fuel surcharge pending consultations. It, however, stressed that reforms must be clearly explained to citizens for proper planning.
The group outlined three immediate actions for the government before the law takes effect:
1. Publish a one-page plain-language guide detailing what is changing, what is not, and when, alongside a simple timeline, FAQs for workers and small businesses, and a helpline/portal to curb misinformation.
2. Reassure the public that VAT remains at 7.5%, while ensuring that zero-rated essentials such as food, books, medicines, and certain energy items are respected in practice, with regulators cracking down on fake “VAT increases.”
3. Release updated PAYE tables early and provide SMEs with a smooth onboarding process into the new e-invoicing and fiscalisation system, including free toolkits and a penalty-free transition period.
Reaffirming its mission to monitor public policy, the organisation pledged to track and report the real-life effects of the reforms once implementation begins, helping citizens identify successes and areas needing adjustments.
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