Nigerians still apprehensive about new tax law

Despite widespread public appeals for its suspension, Nigeria’s new tax law came into force on January 1, 2026, as ordered by President Bola Tinubu.

The implementation has sparked anxiety and drawn severe criticism from citizens and experts alike.

Banks have begun notifying customers of key changes, including the renaming of the ₦50 Electronic Money Transfer Levy to “Stamp Duty.”

This charge now applies to electronic transfers of ₦10,000 and above, with the sender bearing the cost instead of the recipient.

New daily withdrawal limits have also been introduced under directives from the Federal Inland Revenue Service (FIRS).

The move has heightened fears of undue deductions from already strained incomes, increased burdens on small businesses, and a further decline in purchasing power.

In response, many Nigerians are curtailing financial activities, with some making large withdrawals or prepaying expenses like school fees to avoid initial impacts.

“I borrowed money to complete my children’s school fees in December,” said Sunny Elekwa, a father of four. “It’s better than facing the pressure and new deductions in January.”

Legal and financial experts have raised serious concerns. Commercial lawyer Alice Oyomekun questioned the government’s haste, asking why grey areas and expert objections were not addressed first.

She expressed skepticism that the additional revenue would be used judiciously, suggesting it could instead “end up in private pockets” or fund vote-buying in the coming 2027 elections.

Abuja-based lawyer and former lawmaker Chijioke Umelahi highlighted an even graver issue: alleged discrepancies between the version passed by the National Assembly and the one signed into law.

“Nigerians don’t really know what was smuggined in,” he warned, implying hidden burdens may yet surface.

Many citizens argue the administration is prioritizing tax revenue over public welfare, further squeezing households in a time of enduring hardship.

Critics suggest alternative revenue sources, such as redirected subsidy funds, should be explored instead.

“Prosperity cannot come by taxing the poor,” one observer remarked.

As Nigerians watch the unfolding effects of the policy, the consensus is clear: the new tax law has arrived as an unwelcome start to the new year.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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