Calls for suspension of tax reform laws intensify

The alleged unauthorised alterations to Nigeria’s tax legislation after passage by the National Assembly represent a brazen act of treason against the Nigerian people and a direct assault on our constitutional democracy, says former Vice President Atiku Abubakar.

In a statement yesterday, Atiku called for the suspension of the law’s implementation and investigation of the alleged illegal alterations.

In the same vein, the Coalition of Northern Groups (CNG) condemned the alleged alteration as a treasonable subversion of Nigeria’s democratic order.

A South-West socio-political group, the Yoruba Ronu Leadership Forum, also faulted the alleged alteration of the tax law, describing it as a breach of the principle of separation of powers.

Also, Enough is Enough (EiE) Nigeria has called on the Federal Government to pause the implementation of its newly enacted tax reform laws, scheduled to commence on January 1, 2026, until critical governance, transparency and public trust concerns are addressed.

Meanwhile, Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, insists that Nigeria’s tax reform is not about increasing tax rates but fixing broken systems.

Atiku said, “This draconian overreach by the executive branch undermines the foundational principle of legislative supremacy in the making of laws and reveals a government more interested in extracting wealth from struggling citizens than empowering them to prosper.

The substantive changes allegedly inserted into the tax bills illegally after parliamentary approval, in clear violation of Sections 4 and 58 of the 1999 Constitution, border on new coercive powers without legislative consent, increased financial burdens on citizens, and the removal of accountability mechanisms.

He called on the executive to immediately suspend the implementation of the tax law effective January 1, 2026, to give room for proper investigation by the National Assembly, the judiciary and the civil society, while calling on anti-graft agencies to immediately investigate and prosecute those found culpable in the illegal alteration of the laws to extort and defraud the Nigerian people.

CNG warned that the alleged alterations amount to an executive usurpation of legislative powers and called for the immediate suspension of the implementation of the tax laws, a full investigation, and the prosecution of all those involved.

In a statement by its National Coordinator, Jamilu Charanchi, the CNG said it was disturbing that tax reform bills, which were “duly debated, subjected to public hearings and passed by the legislature”, were later “doctored, rewritten and gazetted as law by some criminal-minded individuals.”

According to the coalition, Nigeria is facing “a brazen act of treacherous expropriation of constitutional authority by elements within the executive arm of government,” describing the development as “an executive coup against the National Assembly, carried out through stealth, impunity and contempt for the Constitution.”

It said the alleged manipulation of the laws amounted to fraud, an economic ambush on citizens, and a direct assault on democracy and its core values.

In a statement signed by its President, Akin Malaolu, Yoruba Ronu expressed worry about reports that the executive altered provisions passed by the National Assembly, adding that it had since observed “underground moves at damage control.”

The group questioned the motive behind the alleged tampering, warning that the controversy had further deepened public distrust of the tax reforms.

While acknowledging that tax collection is a legitimate government function, Yoruba Ronu said the resistance to the reforms and the presidency’s defence of them raised serious concerns.

The group called on the National Assembly to make an urgent pronouncement on the matter, stressing the need to protect its independence. It also urged Tinubu to suspend implementation of the tax law, warning against the use of force to impose new taxes in an unproductive economy.

In a statement made available to The Guardian, the Deputy Executive Director, Programmes, EiE Nigeria, Ufuoma Nnamdi-Udeh, noted that tax reform as a social contract is not just a revenue exercise with success dependent on transparency, legal certainty and public trust.

The call follows widespread public debate and controversy surrounding the new tax framework, including questions about legislative integrity, transparency in international agreements, and inadequate public understanding of the reforms.

While the passage of the four tax reform laws in June 2025; the Nigerian Tax Act, Nigerian Tax Administration Act, Nigerian Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act represents a significant policy shift aimed at improving revenue mobilisation and fiscal sustainability, tax reform is not merely a technical or administrative exercise, but a social contract between the state and its citizens, the group noted.

According to EIE, public trust in Nigeria’s tax system remains fragile, shaped by long-standing concerns about transparency, accountability, and the use of public funds.

These trust deficits, it added, have been further aggravated by widespread public misunderstanding of the content and implications of the new tax laws, heightened misinformation and disinformation in public discourse, controversy surrounding a Memorandum of Understanding between the Federal Inland Revenue Service (FIRS) and the French Government, particularly around data privacy and public disclosure, as well as allegations by a serving member of the House of Representatives that the gazetted tax laws differ from the versions passed by the National Assembly.

“Proceeding with implementation without resolving these issues risks delegitimising the reforms at inception, weakening voluntary compliance, increasing public resistance and litigation, and further eroding confidence in public institutions.

“Tax reform cannot succeed on speed and enforcement alone. Without transparency, legal certainty and public understanding, these reforms risk failing at inception by eroding the trust that compliance depends on,” said Nnamdi-Udeh.

Accordingly, the organisation outlined the following governance safeguards as preconditions for implementation: “The exact versions of the tax bills passed by the National Assembly and assented to by the President must be made publicly available. Where discrepancies exist between passed bills and gazetted Acts, these must be fully disclosed and lawfully corrected. An independent investigation should be conducted to establish responsibility for any unlawful alterations to the tax laws after legislative passage, and safeguards should be put in place to prevent recurrence.

“The MoU between FIRS and the French Government should be proactively disclosed to the public, in line with transparency and data protection best practices. A minimum six-month nationwide civic education campaign should precede enforcement, explaining the tax reforms in plain language, clarifying implications for different categories of taxpayers, and outlining the intended development outcomes.

“These actions are not obstacles to reform; they are enablers of durable reform.”

Addressing legitimacy, transparency and public understanding upfront will strengthen trust in tax and government institutions and improve compliance and reform outcomes over the long term.

EiE Nigeria reaffirmed its commitment to strengthening Nigeria’s fiscal social contract by empowering citizens to understand, question and engage governance processes, and urged government and tax authorities to prioritise governance integrity and citizen confidence over speed or optics.

Speaking yesterday, at the summit organised by the Lagos State government on the Tax Reform 2025, Oyedele argued that the sub-national tax reform is critical to Nigeria’s fiscal sustainability, as states and local councils bear primary responsibility for infrastructure, education, healthcare, security and environmental management.

He said Lagos was expected to demonstrate leadership, particularly in data quality, property registers and taxpayer databases, to serve as a model for other states.

In his keynote address, Lagos State Governor, Babajide Sanwo-Olu, reaffirmed the state’s commitment to aligning with the ongoing fiscal and tax reforms

Sanwo-Olu described the summit as timely and strategic, noting that it provided a critical platform for repositioning Nigeria’s tax system to achieve efficiency, equity and growth.

According to him, Lagos operates within the framework of national fiscal programmes and is fully aligned with the tax reforms being driven by President Bola Tinubu.

He added that the reforms were designed to simplify governance, reduce bureaucratic bottlenecks, strengthen transparency, and leverage technology to improve tax administration and service delivery.

The governor stated that Lagos, as Nigeria’s commercial nerve centre and one of Africa’s fastest-growing megacities, faces unique developmental pressures that require sustainable, internally generated revenue solutions. (Guardian)