The recently passed tax reform law slated to take effect on January 1, 2026 may have come with good intentions of raising the economic fortunes of the nation through sustainable tax regime. However, the emerging controversy trailing insertion of new clauses into the law after enactment and presidential assent is sadly hunting the integrity of the entire process. When Hon. Abdulsamad Dasuki, a member of the House of Representatives representing Kebbe/Tambuwal Federal Constituency, Sokoto state opened the can of worms over observed discrepancies in the bill already passed and the gazetted version presented to the public, one shudders at what Nigeria has turned into.
In simple terms: somebody had the audacity to add new provisions diametrically different from what the National Assembly passed and subsequently signed by the president. Nigeria pretends to be in a democracy but ignore democratic values, norms and principles. We have failed to draw a line between decorum and civility from the rash signature of motor park touts. It is actually becoming difficult to differentiate sanity from democratic brigandage; parochial interest from national interest.
The following are clauses passed into law, signed by the president and the alterations inserted in the gazette. First, tax authority is at liberty to investigate breach of tax compliance and process by companies and individuals but the power to arrest defaulters through law enforcement agencies was added. Second, garnishee of funds without judicial process is currently reflected in the gazetted law but was never captured initially. This entails that tax authorities can seize individuals or company funds who they feel defaulted without due court processes or order. This will deny Nigerians judicial protection deserving of citizens.
Third, the annual financial reporting threshold of individual and companies were lowered considerably below what the National Assembly passed and signed by the president. Originally, the reporting baseline for individuals is N50m, companies N250m but N25m and N100m was gazetted for individuals and companies respectively. This invariably means that more people are expected to fall into the wider tax net. Fourth, anyone or company who disagrees with tax assessment done by the authority and in the process takes the authority to court has to deposit 20% of the disputed tax sum while approaching the court. This is a measure aimed at rendering tax payers and businesses who intend to challenge agency overzealousness powerless. Businesses can be affected or even go bankrupt with this idea. Fifth, the oversight function of the National Assembly to summon tax authorities, demand for reports and ensure accountability initially captured were missing in the gazetted law.
Since the above alarm was raised, the presidency, Federal Inland Revenue Service and the presidential committee on tax reform are shocked and completely unsure of how to handle the national shame. Bayo Onanuga, Special Adviser, Information and Strategy in a recent press release only restated the appointed take-off of the tax regime detailing old promises of what it will offer. The chairman presidential fiscal policy and tax reform committee, Taiwo Oyedele smartly warned that, “the implication of not implementing the new tax law by January, 2026 is that the bottom 98% per cent of workers remain over taxed.” He further argued that, “even if it is established that there were substantial alteration to what the national Assembly passed, proper approach is to isolate those provisions while investigating how the discrepancies arose.”
Nigerians need to know who inserted the clauses meant to impose more burden on citizens. In whose interest were they inserted and for what purpose? There are stories which should not make newspaper headlines in sane countries. And if they eventually do, it is considered a national embarrassment. But in Nigeria, the unthinkable reverse is the case – the oddity usually happens. The other year a python had crawled into the fortified account safe in the Joint Admission and Matriculation Board (JAMB) office, Abuja and swallowed the sum of Thirty Six (N36m) million naira. This happened in a city – in Federal Capital Territory.
We are in a nation of prevalent absurdities. The minister of finance will boast that the nation will no longer borrow money to fund it’s budget only for the National Assembly to receive a correspondence from the president asking for more borrowing.
National honour and pride is not a function of mere assertion, geographical size or how large one political party feels it has become. It is a deliberate leadership construct of good governance, national ethos, illuminating in the actions and deeds of national leadership. Whatever honour and pride Nigeria has earned over the years is gradually eroding or has been sacrificed on the altar of petty parochial politics against national interest. When citizens are happy, loyalty to constituted authority needs no coercion. When those in government act the way, they usually do, it raises the question of trust.
This matter is of urgent and great national importance, thus, should not be swept under the carpet. The committee set up by the House of Representatives to look into this burning issue should be at its patriotic best. It should unravel the reason behind the crass circumvention of an act of the National Assembly bearing the interest of Nigerians at heart. For many, this sham version of the tax reform act should not be allowed to fly. What played out is an unconstitutional act of impunity. Nigerians must resist it. If this matter is not handled properly, 2026 will be a year of unforgettable experience for those pushing for the tax regime and citizens who are already tired and are ready to resist government high handedness.
The position of the Supreme Council for Sharia in Nigeria reflects the views of many Nigerians on the issue. The council in a press statement said, “the consequences of such alleged infractions are grave. They include erosion of public confidence in democratic institutions, weakening of the doctrine of separation of powers, exposure of the affected laws to constitutional challenges, economic uncertainty, and loss of investor confidence.” “Most critically, they set a dangerous precedent where laws become negotiable instruments rather than binding outcomes of democratic deliberation,” the council noted.
The release further stated that, “this is a grave constitutional infarction with far-reaching implications for democracy, governance, economic stability and public trust. Tax laws by their compulsory nature, demand the highest level of constitutional integrity and procedural fidelity. Nigerians cannot be expected to comply with fiscal obligations arising from laws whose authenticity and legislative origin are in doubt.” The Council therefore urges that “this matter be treated with urgency, sincerity, and transparency in order to preserve constitutional order, protect institutional credibility, and reaffirm the supremacy of the Nigerian Constitution. Nigeria’s democracy must not be undermined by executive overreach or procedural shortcuts. The will of the people, as expressed through the National Assembly, must be respected and defended.”
Sunday Onyemaechi Eze, lecturer, Department of Mass Communication and Head, Internationalisation and Partnership, Coal City University, Enugu
