Tax Reboot 2.0: FIRS Puts 2026 Reforms on the Clock
The Big Picture: If 2025 was the warm-up, 2026 is showtime. Federal Inland Revenue Service (FIRS) chairman Zacch Adedeji says nearly 70 % of all monthly allocations now flow from FIRS-collected taxes, a stat he calls “proof we can fund Nigeria without oil,” BusinessDay reports.
The Details: Speaking in Abuja, Adedeji credited last year’s headline reforms,fuel-subsidy removal and FX-rate unification, for revving up non-oil receipts. But he insists the real makeover begins 1 January 2026, when a fresh bundle of tax laws kicks in. Among the coming attractions: revamped Companies Income Tax rules, overhauled Personal and Petroleum Profits Taxes, and a wider indirect-tax net. “We’re moving from an extraction economy to a value-creation economy,” he said, promising simpler filing and speedier refunds.
Why It Matters: For the three tiers of government, the stakes are huge. Bigger internally generated revenue (IGR) cushions states against oil-price mood swings. Tax professionals, however, are laser-focused on execution. As one Lagos consultant told BusinessDay, “The policy sprint is done; the compliance marathon starts in January.”
Around the Tax World
- Sex work enters the tax bracket. A new revenue law will require sex workers to file returns in 2026, relying on the principle that Nigeria taxes income from legal or illegal sources (NewsGhana).
- Tinubu promises a break for low earners. The President says the incoming statutes will broaden the base without piling on current payers, pledging “relief, not pain” for minimum-wage households (Channels TV).
- Goodbye, archaic codes. Analysts trace Nigeria’s journey from colonial-era ordinances to today’s digital-first framework, noting fresh incentives for diversification away from crude (The Nation).
- VAT holiday on the dinner table. Staples, education materials, and shared transport rides will be exempt from VAT under the 2026 package, aimed at softening cost-of-living pressures (ModernGhana).
By the Numbers
Prime Number: 13.5 %, Nigeria’s current tax-to-GDP ratio, up from 10 % two years ago and still climbing, according to presidential remarks (Channels TV).
Looking Ahead
All eyes are on the Federal Executive Council, which must issue implementing regulations before year-end to keep the 1 January launch date on track.