Tax reforms’ll ease burden on poor, boost MSMEs — APC

 

The Lagos State chapter of the All Progressives Congress (APC) has dismissed claims that the Federal Government’s newly introduced tax reforms are targeted at poor Nigerians, describing such narratives as misleading and politically driven.

In a statement issued on Wednesday by its spokesperson, Seye Oladejo, the party said it was disturbed by what it termed deliberate misinformation and sensationalism surrounding the reforms, stressing that the new tax regime was designed to protect low-income earners while promoting fairness and economic growth.

According to the APC, the tax reforms expand exemptions and significantly reduce tax exposure for Nigerians in the lowest income brackets, contrary to assertions that the policy would worsen the plight of the vulnerable.

“The tax reform is not a weapon against the poor, nor an attempt to overburden struggling Nigerians. Rather, it is deliberately structured to protect low-income earners, expand exemptions, and establish a more progressive, fair and humane tax system in line with global best practices,” the party said.

The APC explained that the reforms are aimed at correcting longstanding structural weaknesses in Nigeria’s tax system, including multiple taxation, overlapping mandates, revenue leakages and weak enforcement, which it said have stifled economic growth and discouraged investment over the years.

It added that the new framework would particularly benefit Micro, Small and Medium Enterprises (MSMEs) by simplifying tax compliance, eliminating nuisance taxes and creating a more predictable fiscal environment for businesses to thrive.

The party also noted that large corporations would be compelled to contribute their fair share to national development, describing the reform as pro-growth, pro-investment and pro-Nigeria.

“Nigeria cannot continue to run a modern economy on an archaic, fragmented and oil-dependent tax system. For decades, multiple taxation, overlapping mandates and weak enforcement discouraged investment and rewarded tax evasion. This reform squarely addresses those failures,” the statement said.

The APC stressed that taxation remains a vital tool for funding critical sectors such as infrastructure, education, healthcare, security and social protection, urging Nigerians to engage constructively with the reform process rather than succumb to what it described as politics of fear and distortion.

While acknowledging that reforms of such magnitude require transparency and sensitivity in implementation, the party said it welcomed constructive criticism but warned against the spread of false information capable of undermining public confidence.

The statement comes amid criticisms from opposition figures and civil society organisations, who argue that the tax reforms would further strain Nigerians already grappling with the effects of petrol subsidy removal and exchange rate liberalisation.

Recent projections by PwC indicate that poverty levels in Nigeria may worsen in the next two years, with about 141 million Nigerians—representing roughly 62 per cent of the population—expected to be living in poverty by 2026. The projection is contained in PwC’s Nigeria Economic Outlook 2026, titled Turning Macroeconomic Stability into Sustainable Growth.

Recall that President Bola Tinubu, on June 26, 2025, signed four tax reform bills into law: the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act and the Joint Revenue Board Act. Implementation of the new laws commenced on January 1, marking a comprehensive overhaul of the nation’s tax framework.

Speaking recently in Lagos, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed that fewer than 10 million Nigerians are currently active taxpayers, adding that the success of the new regime would depend largely on accurate data and effective implementation by states and local governments.