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Tax Law Rollout: Why Nigerians Should Exercise Caution – Budget Office

The Budget Office of the Federation has warned Nigerians against relying on unverified claims and speculation about the country’s newly enacted tax laws as their implementation begins on Thursday, January 1, 2026.

In a statement issued on Wednesday, the Director-General of the Budget Office, Tanimu Yakubu, affirmed the integrity of the tax reforms.

He warned that the spread of unsubstantiated information could undermine democratic governance.

The Budget Office stressed that careless amplification of claims from uncertain sources poses a risk to public trust.

“A nation cannot be governed by insinuation or sustained on circulating documents of uncertain origin,”
the statement said, noting that public confidence, once eroded by speculation, is often difficult to rebuild.

According to the statement, authorities remain committed to transparency and accountability.

The Office stressed that governance and reform should not be stalled by unresolved conjecture.

The warning comes amid growing calls by the Minority Caucus of the House of Representatives, former Senate Leader Ali Ndume, the Nigeria Labour Congress, and other groups for the suspension of the tax laws scheduled to take effect on January 1, 2026.

Despite the opposition, President Bola Ahmed Tinubu has maintained that the new tax laws will be implemented as planned on January 1, 2026.

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NANS Declares January 14 Nationwide Protest Against New Tax Laws

The National Association of Nigerian Students (NANS) has announced plans to hold a nationwide protest on January 14, 2026, against the implementation of new tax laws, warning that the reforms could exacerbate economic hardship for students and millions of Nigerians.

In a statement issued on Wednesday, NANS President, Comrade Olushola Oladoja, expressed dissatisfaction with the Federal Government’s handling of the tax reform laws.

He accused President Bola Ahmed Tinubu’s advisers of giving what he described as misguided advice capable of creating unnecessary national tension.

Oladoja also faulted the Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, alleging a failure to effectively manage stakeholder engagement and consultations prior to the rollout of the policy.

He warned that inadequate consultation and a poorly executed implementation strategy could undermine gains recorded in other sectors of the economy.

According to him, the decision to commence implementation of the Tax Reform Law from January 1, 2026, contradicts democratic principles and participatory governance.

“The decision to commence implementation of the Tax Reform Law from January 1, 2026, sets a dangerous precedent for a government that claims commitment to democratic values and participatory governance,”
Oladoja said.

He stressed that in a constitutional democracy, major policies should not be imposed without broad public consent, noting reports that the National Assembly had raised concerns over discrepancies in the gazetted version of the law. He added that civil society organisations, youth groups, and student bodies had called for the suspension of the policy pending greater transparency and public sensitisation.

In response, NANS declared January 14, 2026, a National Day of Action, directing all chapters, state councils, and zonal coordinators to mobilise for peaceful protests nationwide, including marches to the Presidential Villa in Abuja.

“There can be no government without the governed. While power may reside in offices, the power of the people will always be greater,”
Oladoja added.

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No Changes To Tax Laws, Only One Version Exists – FG Insists

The Federal Government has maintained that there is only one genuine version of the newly enacted tax reform laws.

The Minister of Information and National Orientation, Mohammed Idris, stated this on Monday in Abuja at the end-of-year news conference.

Idris dismissed claims that the tax laws had been altered after being passed by the National Assembly, stressing that the version assented to by President Bola Tinubu remains intact.

He said the laws followed due legislative process, including consultations and debates at the National Assembly, before receiving presidential assent.

“The Federal Government is going ahead with the commencement of implementation, noting as changed,” Idris said.

The minister explained that concerns over alleged discrepancies between the version passed by lawmakers and the one gazetted had been raised at the National Assembly, adding that the executive would rely on the outcome of the legislature’s review.

“I think it is important for us to wait for the National Assembly to look at this again to tell us whether there were discrepancies or not,”
he said.

“This is, at this point, an affair of the National Assembly to which I have no jurisdiction, and I have no authority to speak about. As far as the government of Nigeria is concerned, there’s only one version of that tax document.”

The controversy followed claims by a lawmaker representing Kebbe/Tambuwal Federal Constituency in Sokoto State, Abdussamad Dasuki, who raised the alarm in the House of Representatives over alleged alterations to the tax reform laws.

Dasuki alleged that the version of the laws passed by the National Assembly differed from the one later gazetted and circulated by the Federal Government through the Ministry of Information.

PUNCH Online reports that the tax reform laws, scheduled to take effect on January 1, 2026, were recently signed into law by President Tinubu.

The bills, however, faced stiff opposition during legislative consideration, particularly from some northern lawmakers, amid concerns over their economic and regional implications.

The controversy deepened after Dasuki claimed that some provisions contained in the gazetted laws were neither debated nor approved by lawmakers.

The tax laws have also attracted criticism from prominent political figures, including former Vice President Atiku Abubakar and the 2023 Labour Party presidential candidate, Peter Obi, both of whom have called for the suspension of their implementation pending clarification of the disputed provisions.

Meanwhile, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has also dismissed claims of secret alterations, warning of the consequences Nigerians could face if the new tax laws are not implemented from January 1.

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Runs Girls, Influencers to Pay Tax – FG

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele has revealed that runs girls will pay tax in the new tax reform laws.
According to him, this is because the new tax reform laws make no distinction between legitimate and illegitimate sources of income.
The reforms, signed into law in June, consolidate four major legislations: the Nigerian Tax Act (NTA), the Nigerian Tax Administration Act (NTAA), the Nigerian Revenue Service (Establishment) Act (NRSEA), and the Joint Revenue Board (Establishment) Act (JRBEA)
The NRSEA and JRBEA will take effect on 26 June 2025, while the NTA and NTAA will commence on 1 January 2026.
Speaking during a “Tax Compliance and Planning” session hosted by the Redeemed Christian Church of God (RCCG) and streamed live on YouTube on 26 September, Oyedele stressed that anyone earning income from providing services would be required to pay tax.
 
“If someone is rendering a service, such a person will pay tax. There’s this extreme example that you probably should not even say in a church, but just to bring it home, if somebody is doing runs with girls. They go and look for men to sleep with. You know, that’s a service. They will pay tax on it. One thing about the tax law is that it does not separate whether what you are doing is legitimate. It doesn’t even ask you. It just asks you whether you have an income. Did you get it from renting a service or providing a good, you pay tax? So if you give upkeep to anyone, they’re free. They won’t pay tax.”
 
He added that the reforms also extend to social media influencers and Nigerians working remotely for foreign companies, especially those paid in foreign currency.
Oyedele, however, emphasized that the new laws are designed to ease the tax burden on 90 per cent of Nigerian workers, reflecting the government’s broader efforts to generate revenue amid dwindling oil income and growing fiscal pressures.
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Lagos govt breaks silence, reacts to Peller’s viral ₦36m tax claim, says ‘all earners must pay tax’

The Lagos State Government has reacted to the viral claims by popular TikTok creator, Habeeb Hamzat, popularly known as Peller, that he was issued a N36 million tax bill by the Lagos State Internal Revenue Service (LIRS).

The Special Adviser to Governor Babajide Sanwo-Olu on Tax and Revenue, Abdulkabir Ogungbo, said on Tuesday that the LIRS is an independent body responsible for assessing and issuing tax judgments on behalf of the government.

Peller, a 20-year-old influencer who gained popularity in 2024, had expressed outrage during a livestream with singer Peruzzi, alleging that the government asked him to pay N36m in income tax.

He argued that he had only recently come into the limelight and questioned why he should be saddled with such a huge tax bill.

“The task force said I should pay N36m in tax. I swear to Almighty Allah, I don’t have anything. I only came into the limelight last year. Why should I pay N36m? Why will the government take money from me when it has never given me anything, not even TikTok support?” Peller lamented.

In response, Ogungbo said that while he would review the specifics of Peller’s case, taxation remains a civic duty for anyone earning income within Lagos State.

“Anybody who earns legitimately is required by Section 24 of the Nigerian Constitution to declare their income honestly and pay tax. So while the context of the size and quantum of this particular case needs to be properly investigated, the principle remains that anyone earning must remit taxes,” he explained.

Speaking on taxation for digital creators, Ogungbo added that new reforms now cover virtual transactions and digital assets.

“Irrespective of whether you earn physically or virtually, once you reside in Lagos and benefit from the state’s infrastructure, you are expected to pay tax here, unless you can prove you are paying to another jurisdiction, for instance, maybe you’re based outside the country, you have to prove to the authority here that you were paying to the other state or other national. But if your income, which you earn here virtually or online and you stay here, and you want to do something with the Lagos State Government, then you’re bound to remit your tax here.” he said. “But I do not have this particular case on my table for me to determine. Because we have a body (the LIRS) that is autonomous and that is very efficient in what they do. So Let me investigate and revert to you.”

The Special Adviser stressed that the LIRS operates with autonomy and efficiency but promised to engage the agency on Peller’s matter before giving further clarification.

Meanwhile, the LIRS has not officially commented on the TikToker’s criticisms.

Attempts to reach the agency’s Head of Corporate Communications, Monsurat Amasa, on Monday and Tuesday were unsuccessful as calls and messages went unanswered.

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Peller cries out after receiving over ₦18m tax bill from government

Popular Nigerian TikToker, Habeeb Okikiola, better known as Peller, has voiced his frustration after receiving what he described as an “outrageous” tax bill from the Lagos State Inland Revenue Service (LIRS).

In a video that has since gone viral, Peller revealed that the agency had asked him to pay ₦18 million in taxes — an amount he insists is far beyond his earnings.

“Government, please pity me. I don’t have anything, I’m just managing. How can you tell me to come and pay such a huge tax? Do you want to kill me? You have children like me at home too; why are you doing this to me?” he pleaded.

Peller suspects that the bill may have been influenced by a rumour circulating online, alleging that he paid fellow content creator Gehgeh ₦25 million to feature on his livestream.

In a follow-up video, he firmly dismissed the claim, stressing that his online income is far smaller than people assume.

“Please don’t listen to him. I didn’t pay such an amount. My fans contributed to cover the studio costs. Even the partnerships I get online don’t pay more than ₦200k or ₦500k,” he explained.

The teen TikToker said that the exaggerated figures circulating about his earnings have created a false image of his financial status, possibly prompting the hefty tax demand.

See below;

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