Nigeria has delayed the rollout of its new tax law until 2026, as policymakers weigh the potential impact on household incomes and inflation already straining citizens.
A Finance Ministry official told Bloomberg that the government opted to shift the implementation timeline to allow more consultations with businesses and civil society groups. The official added that the delay reflects worries that new levies could worsen living costs, particularly as the country continues to grapple with rising fuel and food prices.
The proposed tax reforms are part of President Bola Tinubu’s broader fiscal strategy to expand the revenue base and reduce dependence on oil earnings. Analysts quoted by Reuters said while the reforms are necessary to stabilise Nigeria’s public finances, the government faces political and social risks in enforcing them amid widespread economic hardship.
Data from the National Bureau of Statistics reported by Business Day showed inflation reached 33.4% in July, with food inflation topping 40%, putting additional pressure on households. Economists have argued that implementing new taxes in such an environment could weaken consumption and dampen growth.
The Finance Ministry indicated that the revised 2026 timeline will give room to introduce social safety measures alongside the tax reforms to cushion the most vulnerable households.
