Legislation
Nigeria’s Tax Reforms Are Getting a Six-Week Review
Nigeria’s tax reforms have been in effect since January 2026. Now, the Federal Government is taking another look at how some parts of the new system are working in practice.
Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy and Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has inaugurated a Technical Subcommittee to carry out a six-week review of the reforms.
The review will focus on areas including VAT thresholds, withholding tax, capital gains treatment and multiple taxation. The government says the exercise is intended to identify areas where implementation has exposed ambiguities, unintended consequences or unnecessary compliance difficulties.
This does not mean these tax rules have already changed. The subcommittee is expected to make recommendations, which could then contribute to the proposed Finance Bill 2027. The existing 2025 tax laws remain the framework taxpayers are required to follow in 2026.
One area worth watching is withholding tax. Oyedele said withholding tax should remain an advance-payment and compliance mechanism rather than become an additional cost or unnecessarily tie down business working capital. The review will also consider revised withholding tax regulations.
For freelancers, this is relevant because tax compliance can involve income from several clients, including foreign clients, alongside deductions, invoices, payment records and withholding tax where applicable. Keeping these records organised makes it easier to understand what has been received, what has been deducted and what documentation supports your tax position.
The government says it received 134 submissions from stakeholders across Nigeria during its call for feedback. Some of the issues raised included simpler VAT rules, withholding tax, capital gains treatment, taxpayer rights, faster refunds and reducing repeated requests for information already available to government agencies.
For now, freelancers should not make tax decisions based on proposed changes that have not become law. Continue keeping accurate records under the rules currently in force, while following developments from the review.
Tax rules can change, but good financial records remain useful either way. That is why keeping your income, expenses, deductions, invoices and payment records properly organised matters throughout the year, not just when filing your return.