FG Sets up Technical Committee to Review 2025 Tax Acts

• Recommendations to form part of 2027 finance bill 

•CSOs, others protest rising debt profile, demand end to excessive borrowing

Ndubuisi Francis in Abuja

The federal government has set up a technical sub-committee to review the 2025 Tax Acts, tasking the body to search for possible implementation ambiguity, unintended consequences, where compliance can be simplified, and areas of improved investment and competitiveness.

Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, who inaugurated the Technical Sub-committee on Fiscal Policy and Tax Reforms in Abuja, Thursday, said the exercise sought to review the implementation of existing fiscal and tax reforms and develop proposals that respond to current economic realities.

Oyedele said the subcommittee will review key areas of the tax regime, such as Value Added Tax (VAT) thresholds, Withholding Tax, capital gains treatment, and multiple taxation, with recommendations expected to form part of the Finance Bill 2027.

He said, “We must ask where implementation has revealed ambiguity, where unintended consequences have emerged, where compliance can be simplified, and where we can improve investment and competitiveness.”

The subcommittee, chaired by Permanent Secretary, Federal Ministry of Finance, and co-chaired by Chairman of Tax Advisory Committee, Mr. Albert Folorunsho, has over 20 sectoral representatives from the public and private sectors, as well as the professions.

Some of the representatives are drawn from the public sector organisations, like Central Bank of Nigeria (CBN), Nigeria  Custom Service (NCS), Nigeria Revenue Service (NRS), Debt Management Office (DMO), Joint Revenue Board (JRB), Budget Office of the Federation (BoF), and Legal Drafting Department of the Federal Ministry of Justice, among others.

There are also representatives from Nigeria Economic Summit Group (NESG), the professional bodies, such as Institute of Chartered Accountants of Nigeria (ICAN), Association of National Accountants of Nigeria (ANAN), Chartered Institute of Taxation of Nigeria (CITN), and Nigerian Bar Association (NBA).

The Organised Private Sector (OPS), such as Manufacturers Association of Nigeria (MAN); Nigerian Association of Chambers of Commerce, Industry,  Mines and Agriculture (NACCIMA); and representatives of four big accounting firms, Deloitte,  EY, KPMG, and PwC, are also part of the sub-committee.

Inaugurating the body, Oyedele recalled that the new tax laws took effect from January 1, 2026.

Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025, and Joint Revenue Board (Establishment) Act 2025 came into effect on January 1, 2026.

According to Oyedele, the new tax laws has exposed areas requiring clarification, refinement, and further reforms.

He stated, “The real test begins when the law meets the economy, as businesses interpret it, administrators implement it, investors respond to it, and citizens experience it. Implementation inevitably reveals areas requiring clarification, refinement or further reform.”

He observed that the government was moving from fundamental reforms to continuous improvement, adding that the latest exercise is not intended to reverse the 2025 reforms but to address problems identified during implementation.

The minister said the technical subcommittee was established to draft the Finance Bill 2027, the revised Withholding Tax (WHT) Regulations 2027, and an amended Significant Economic Presence Order 2027, for consideration.

The technical subcommittee has six weeks to conclude its assignment.

Oyedele stated, “The Finance Bill 2027 should not be seen as just another annual legislative exercise. Our task is not to rewrite the 2025 reforms, but to preserve their fundamental principles while learning from implementation and responding to new economic realities.

“We must ask where implementation has revealed ambiguity, where unintended consequences have emerged, where compliance can be simplified, and where we can improve investment and competitiveness.”

He said the review would extend beyond taxation to fiscal policy and management, public financial management, debt, transparency, capital markets, and cross-border capital flows.

The minister disclosed that the federal government received 134 submissions from the six geopolitical zones in response to  its call for public input, in addition to submissions received in hard copies.

He stated that the preliminary issues raised by stakeholders included proposals to clarify and simplify VAT thresholds, withholding tax and capital gains treatment.

Others, he stated, sought stronger action against multiple taxation and better coordination among revenue authorities, as well as increased digitalisation and data sharing to prevent taxpayers from repeatedly submitting information already held by government agencies.

Stakeholders also proposed stronger taxpayer rights, faster refunds, safeguards for small businesses, and measures to improve investment and competitiveness in mining, renewable energy, healthcare and capital markets.

He admonished the subcommittee to consider the economic impact of the proposed changes, particularly on low-income households, workers, and businesses, adding. Oyedele added, “Every tax reform produces winners and losers; the question is whether a policy is fair, efficient and competitive, not whether it is popular with everyone.”

He said, “A provision that raises revenue may impose a far greater cost on the wider economy. The government must optimise the whole economy, not merely achieve a single objective.”

The minister cautioned that complicated tax rules could increase the burden on businesses.

“Complexity is itself a tax; it raises compliance costs and creates room for discretion and arbitrage. Where two approaches achieve the same outcome, choose the simpler one,” he said.

Apart from preparing the Finance Bill 2027, he mandated the subcommittee to review the Deduction of Tax at Source Regulations 2024 and prepare revised withholding tax regulations.

It will also review the Companies Income Tax (Significant Economic Presence) Order 2020 and develop an updated framework aligned with the new tax laws and international practices.

But he advised that withholding tax should remain an advance-payment and compliance mechanism rather than become an additional cost to businesses or a tax on working capital, warning that tying down companies’ funds through withholding taxes could be particularly damaging given Nigeria’s high financing costs.

He cautioned that in a country where the cost of capital is very high, withholding funds that businesses should use for expansion for even one year, comes at a huge cost.

Folorunsho, who responded on behalf of other members of the committee, said the panel would seek to produce recommendations that respond to the realities facing taxpayers, businesses, and the government.

He said, “Our recommendations must, therefore, be technically sound, administratively practicable, and responsive to the realities confronting taxpayers, businesses, and government.”

He stated that despite the short period within which the subcommittee is expected to conclude its assignment, it would consult relevant stakeholders and pursue reforms that strengthen revenue mobilisation without imposing unnecessary burdens on taxpayers.

Meanwhile, a coalition of civil society organisations (CSOs), market women, students, and youths yesterday stormed the headquarters of the Federal Ministry of Finance to demand a stop on borrowing and guard against the rising public debt.

Protesting under the aegis of Climate Action, they took exception to the country’s burgeoning debt-service burden, which they said was crowding out funding for essential public services and undermining efforts to tackle climate change, poverty, and unemployment.

With placards bearing various inscriptions, the protesters urged the government to stop accumulating more loans from World Bank, and International Monetary Fund (IMF), among others.

While urging the federal government to cut down on borrowing and channel more resources into critical sectors of the economy, the protesters equally sought greater transparency in the management of the country’s debt.

They urged the government to prioritise spending that directly improved the welfare and livelihoods of Nigerians.

Social Mobilisation Specialist, ActionAid Nigeria, Mr Newton Otsemaye, who spoke on behalf of the protesting groups, said they were at the ministry to draw attention to the implications of rising debt for the future of Nigerians, particularly young people.

Otsemaye said, “Save the future of Nigerians. We have the largest young population in Africa, if not globally. But what are we doing with their future?

“The question is: what are the resources that will be enough for us to be able to address their issues? Those resources, the Nigerian government is prioritising the World Bank and IMF, instead of the people.

“So, we are saying that it is not about profit; it should be about the people. Development is about people. Development is not about profit.

“That is the reason we are here. We are using this year’s Climate Week of Action to rally around these issues at the Federal Ministry of Finance.”

Otsemaye added that the ministry was an appropriate place for the protesters to make their demands because of its role in the management of the country’s finances and public debt.

He stated, “Why are we here? This is the seat. This is the ministry that hosts debt management in Nigeria.

“Let somebody step out of this place to tell us: how are you going to manage the debt crisis that we are finding ourselves in Nigeria, and how will future Nigerians benefit from the way you manage this debt crisis?

“That is just what we are asking for. It’s a clear demand. The future should be guaranteed for Nigerian young people.”

He said the protesters comprised women’s groups, activists, young people, and university undergraduates, among others.

Otsemayev added that the groups might be mixed, but they were united by concerns over the country’s debt profile and its implications for future generations.

He stated, “We have so many groups here. We have women’s groups, activists, young people and university undergraduates. You have so many groups here.

“It is not enough for me to just say this is the group that is here. It is a combination of different groups, but one demand.

“What is our future? What does the future hold for us if our debt, as we speak, can no longer be sustained by Nigeria?”

Otsemaye expressed deep concern over the country’s debt-to-revenue ratio, warning that a continued rise could worsen poverty, unemployment, and loss of livelihoods.

He said, “If you have read the debt-to-revenue ratio, it has risen so high; it is unsustainable.

“We are saying that once you have that ratio, there are going to be more people in debt. There are going to be more people in poverty. There are going to be more unemployment.

“Many people are going to lose their livelihoods.

“So, the Nigerian government should be able to tell us how it wants to guarantee our escape from the poverty trap.

“Yes, stop more borrowing, reduce borrowing and channel the resources to fix our future. Reduce borrowing and improve public services.

“We need more money to go into the real sectors of the economy and into social protection.”