Sensitising Nigerians on the new tax reforms of the federal government, which took effect January 1, 2026, is difficult because the initiative “is a terrible product aimed at plundering the economy”.
Mr Uchenna Nnadi, a chartered accountant and former Director General of Nsukka Chamber of Commerce, stated this in an interview with NEWSNGR in Enugu on Wednesday. He faulted the manner the new policy was launched into the nation’s economy.
According to him, “When you have a terrible product, it is often difficult to advertise it no matter how good your advertising team and strategies are. Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, did engage many stakeholders, but fundamentally, he has a bad product. He knows he has a terrible product to sensitise Nigerians about.”
Nnadi said the best tax policy had always been for the government to create the frameworks, institutional arrangements and support to geometrically increase productivity of the businesses in the economy, and then tax the increased productivity to provide requisite social services. “Any other tax policy is only plundering the economy and playing games with the people,” he said.
On some interpretations that the new tax regime would benefit low-income earners, Nnadi said it would end up that the rich would transfer the burden to the poor. According to him, “Tax policies should be a fallout of main government social and economic policies. Any tax burden put on the rich is often transferable to the poor. The poor are often the final consumers of all tax burdens. Therefore, exempting the poor from direct income taxes and asking the rich to bear it is simply akin to the ostrich burying its head in the sand rather than confronting its challenges.”
He recalled that when the fuel subsidy was removed, the brunt was heavier on the common consumers. He said “Rich people often seek the services of experts in planning and managing their socio-economic transactions to minimise their tax liabilities. Rich or rather wealthy people avoid tax, but do not evade tax. Tax evasion is criminal, while tax avoidance is legal. Tax avoidance is using tax planning and management to minimise your tax exposure given the opportunities in the tax system and laws.”
He however called for more sensitisation by key stakeholders on the new tax reforms. Quoting him, “In Nigeria, tax professionals come from two professions, accounting and law. These two professions have principally three self-regulated associations, namely the Institute of Chartered Accountants of Nigeria (ICAN), Chartered Institute of Taxation of Nigeria (CITN) and Nigeria Bar Association (NBA). The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms in Nigeria, Taiwo Oyedele, is a member of ICAN and CITN.
“ICAN, CITN and NBA have tried in the area of creating awareness as key stakeholders. However, the continued public outcry, including informed stakeholders like the organised private sector, the Nigeria-France MoU and the alleged discrepancies between the NASS-passed Tax Reform Bills and the gazetted ones have necessitated that these topmost associations do much more.”
He recalled that CITN expressed serious concerns over alleged discrepancies between texts passed by the National Assembly and the gazetted versions of the new tax laws, emphasizing that such inconsistencies threaten legal certainty and compliance. The agency, he added, also stressed the technical sensitivity of tax legislation and the need for due legislative process and transparency using its professional authority to call for strengthened controls and audit trails for tax legislation.
He added that NBA had formally called for immediate suspension of the implementation of the new Tax Reform Acts and an open investigation into alleged discrepancies between versions passed by the National Assembly and the gazetted Acts, stating that “these controversies undermine procedural sanctity, transparency, and the rule of law”.
He emphasized that legal certainty and constitutional governance should guide tax legislation, and warned of negative impacts on investor confidence, economic stability, and legal compliance.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, had in a post stated that 97 percent of small businesses would be exempted from Corporate Income Tax, Value Added Tax and Withholding Tax, adding that large corporations were slated to benefit from reduced tax rates. He further explained that nearly 98 percent of Nigerian workers would either be fully exempted from taxes or see their liabilities drastically reduced.
Leave a Comment