Nigeria’s Tax Overhaul Sparks Fierce Debate as Reform Backers Clash with Opposition

An Ogun State Peoples Democratic Party chieftain, Segun Showunmi, has strongly defended Nigeria’s planned tax reforms, dismissing critics as offering “alarmism and recycled politics” while urging the nation to embrace changes designed to strengthen the economy.

Showunmi, convener of The Alternative Movement, said opposition to the tax reforms—scheduled to begin in January 2026—amounts to “shameless propaganda,” insisting Nigeria is aligned with global best practices to improve revenue generation and fiscal stability.

The National Opposition Movement (NOM) had condemned the government tax plan as punitive and ill-timed, warning it would increase the burden on households and small enterprises already grappling with rising costs of living, fuel subsidy removal, and currency pressure.

Showunmi described NOM’s stance as lacking a credible economic alternative and said those responsible for past fiscal mismanagement should focus on elections instead of hindering reforms that broaden the tax base and modernize revenue systems.

He further pointed to successful tax reform models in other African countries, saying resistance to change is normal but delaying reform would deepen Nigeria’s fiscal challenges.

The tax reforms, enacted into law in June 2025, aim to simplify the tax code, broaden compliance, and enhance revenue administration as part of a broader economic restructuring strategy ahead of rollout early next year.