FG eliminates VAT on food, education, healthcare, reveals start date

 

The newly enacted tax reform laws in Nigeria will officially take effect on January 1, 2026, according to the Executive Chairman of the National Revenue Service (NRS), Dr. Zacch Adedeji.

The delayed implementation is intended to give the government and stakeholders ample time to prepare, educate the public, and align with Nigeria’s fiscal calendar.

Speaking at the State House after President Bola Ahmed Tinubu signed the tax laws into effect, Adedeji emphasized that the six-month transition period aligns with international best practices and is aimed at avoiding mid-year disruptions.

“This kind of change is best implemented at the start of a new year to maintain fiscal coherence,” he explained. “The time between now and January 1 will be used for sensitization, system upgrades, and institutional planning.”

The reforms, which are part of a broader fiscal restructuring initiative, were crafted to be inclusive and beneficial to lower-income groups. Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, described the laws as “pro-poor,” emphasizing that they will significantly reduce the tax burden on the most vulnerable segments of the population.

Oyedele noted that over one-third of workers in the public and private sectors will now be exempt from paying personal income tax (PAYE), and that more than 90 percent of micro, small, and nano businesses will no longer be liable for corporate income tax, value-added tax (VAT), withholding tax, or employee-related PAYE.