By: Chioma Madonna Ndukwu
Nigeria’s New Tax Laws Don’t Target the Poor; Food, Transport Remain Tax-Free — NRS Boss Adedeji
Nigeria Revenue Service chairman, Dr Zacch Adedeji, speaking on the country’s new tax reform framework during a live TV interview.
Nigeria entered a new fiscal era on January 1, 2026, following the full implementation of the Tax Act and Tax Administration Act signed into law by President Bola Tinubu in June 2025.
The reforms, which overhaul decades-old tax laws, were introduced to simplify tax collection, expand the revenue base, and promote fairness in the system.
However, since the rollout, public concern has grown over claims that the new laws would increase the burden on low-income Nigerians.
The Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, has dismissed claims that Nigeria’s new tax laws are designed to squeeze the poor, insisting that basic needs such as food and transportation remain completely tax-free.
Speaking during a live interview on TVC in Lagos on Tuesday, Adedeji said there is no section of the law that places any tax burden on low-income earners.
“There is no provision in the law that taxes poor Nigerians. About 90 per cent of their income goes into food and transport, and both are exempt from transactional taxes,” he said.
According to him, the new tax framework, which took effect on January 1, 2026, is built on fairness, efficiency and modernisation of Nigeria’s tax system.
He explained that although the President signed the bills into law in June 2025, implementation was deliberately delayed to allow businesses and institutions prepare for the transition.
“The law provided a clear transition framework. We used the six-month window to train staff, build systems and prepare institutions.
That is why we fixed January 1, 2026, as the take-off date,” he said.
Adedeji added that early indicators show the reforms are already boosting investor confidence.
“The stability of the naira, inflows into the Nigerian Exchange and renewed investor confidence all show that the reforms are being positively received,” he noted.
The NRS chairman urged Nigerians to ignore rumours and rely on verified information.
“Some people said money would disappear from bank accounts if balances were not declared.
Today, Nigerians can see clearly that nothing like that has happened. The reform is not about intimidation. It is about modernising tax collection,” he said.
Clarifying confusion surrounding the new Development Tax, Adedeji said it is not a fresh levy but a merger of existing charges.
“It simply brings together education tax, police trust fund levy and other earmarked taxes into one line. This makes compliance easier and helps businesses plan better,” he explained.
Funds from the Development Tax, he said, will be used to support education, student loans, TETFund, security and other national development priorities.
Describing the reform as the biggest fiscal overhaul since independence, Adedeji said more than 62 scattered tax laws have now been harmonised into a single legal framework.
“Some of our tax laws date back to 1939. No democratic government has attempted reform on this scale before now,” he said.
He added that the transformation goes beyond a name change from FIRS to NRS.
“This is a total institutional upgrade, powered by technology and revenue intelligence,” he stated.
Adedeji said ordinary Nigerians would begin to feel the impact immediately.
“Low-income earners will pay less tax. The new tax tables reduce deductions for workers in the lower income brackets, and people will start seeing the difference in their salaries from this month,” he said.
He stressed that President Tinubu’s policy is to tax prosperity, not poverty.
“When businesses grow, they create jobs and prosperity spreads. That is the foundation of a sustainable economy,” he added.
On Calls for Suspension
Responding to calls for a suspension of the law, Adedeji said such action would be unconstitutional.
“A law cannot be suspended after presidential assent except by court order or under a state of emergency. Without the law, there would be no legal basis to collect taxes,” he warned.
Adedeji called on Nigerians to support the reforms, describing them as a foundation for a stronger economy.
“This law is about fairness, simplicity and growth. It is not about taxing the poor. It is about building a modern and prosperous Nigeria,” he said.
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