Tinubu and FIRS Defend New Tax Laws as the ‘Ultimate Engine’ for 2026 Prosperity and National Wealth Creation

As Nigeria enters a new fiscal year, the Federal Government has made a bold case for its controversial fiscal policies, declaring that the newly effective tax laws are the definitive path to a more prosperous and self-sufficient nation.

In a New Year’s Day message to the nation, President Bola Ahmed Tinubu emphasized that the 2025 Tax Reform Acts, which officially take full effect today, are designed to create a “fairer and more productive economy.” The President countered critics by stating that the laws are not meant to burden the poor, but to ensure that those who benefit most from the Nigerian economy contribute their fair share toward its development.

Adding weight to the President’s stance, the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, explained that the reforms are centered on “taxing the fruit, not the tree.” According to Adedeji, the new laws eliminate VAT on essential items like local food, drugs, and educational materials—a move intended to provide immediate relief to millions of households.

“We are shifting the focus from taxing investment to taxing consumption,” Adedeji stated during a fiscal briefing. “This is the prosperity model. By simplifying the code and eliminating multiple taxation, we are making it easier for small businesses to grow. When businesses grow, they create jobs; when they create jobs, the nation prospers.”

A cornerstone of the 2026 strategy is the integration of the Tax Identification Number (TIN) across all digital platforms. While this move has sparked debate among student groups and informal traders, the government maintains it is the only way to reduce the country’s debt-to-revenue ratio. The FIRS expects to see a 35% increase in non-oil revenue in the first half of 2026 due to these efficiencies.

Despite the optimistic tone from the State House, economic analysts at the Lagos Business School have urged the government to match the increased revenue with visible service delivery. “The promise of prosperity is only valid if the taxpayer sees the road, the electricity, and the security that their money is supposedly funding,” noted a senior economist.

As the first tax filings under the new system begin this month, the government has launched a nationwide “Tax-for-Service” awareness campaign. The message is clear: the administration believes that for Nigeria to reach its 2026 growth targets, the new tax laws are not just an option, but an essential foundation for national wealth.