Oyebola, Managing Partner of Olayinka Oyebola & Co, described the reforms as a major shift in Nigeria’s fiscal framework, noting that they will fundamentally reshape tax administration, compliance, and revenue generation from 2026.
He spoke at a one-day seminar titled “The New Tax Law (Implication & Compliance Requirements)”, organised to enlighten clients and stakeholders on the scope, benefits, and compliance obligations under the new laws.
According to him, the reform, which introduces four new tax acts, aims to promote fairness, economic growth, and stricter compliance, but its success will largely depend on effective implementation and public acceptance.
“The reforms represent an ambitious overhaul of Nigeria’s tax system. For those who are proactive, there are reliefs and strategic opportunities, but for the unprepared, there will be significant compliance risks and financial penalties,” Oyebola said.
He explained that a major highlight of the reforms is the establishment of the Nigeria Revenue Service, which replaces the Federal Inland Revenue Service. He said the new body was designed to improve professionalism and efficiency in tax collection, while State Internal Revenue Services would enjoy greater autonomy.
Oyebola added that new institutions, including an independent Tax Ombud and a strengthened Tax Appeal Tribunal, would be created to enhance dispute resolution and protect taxpayers’ rights.
He further disclosed that mandatory registration and universal use of a Tax Identification Number would be enforced, with penalties for non-compliance, while the Tax Clearance Certificate would become compulsory for accessing government services and certain commercial transactions.
On reliefs, the tax expert said small companies with annual turnover not exceeding N100m would benefit from enhanced tax exemptions, while larger companies would be subject to a consolidated four per cent Development Levy.
Oyebola also noted that Capital Gains Tax for companies has been increased to 30 per cent, with its scope expanded to cover indirect share transfers, digital assets, and intangible property, although reinvestment reliefs have been introduced to reduce the burden.
He added that individuals earning N800,000 or less annually would be exempt from personal income tax under the redesigned progressive tax structure.
He said while the Value Added Tax rate remains at 7.5 per cent, operational changes such as mandatory e-invoicing and VAT fiscalisation would be introduced to curb tax evasion. States and local governments, he added, would receive a larger share of VAT revenue under a revised sharing formula.
Oyebola stressed the need for public enlightenment and engagement with tax practitioners to prevent misinformation, saying the ultimate goal was to build a transparent, technology-driven tax system that citizens and businesses can understand and trust without stifling enterprise.
