- Nigeria operates different categories of taxes, including income-based taxes, transaction-related taxes such as Value Added Tax (VAT)
- Adedeji noted that withholding tax is often misunderstood, stating that it is not an extra burden
- He maintained that the revenue agency operates as a national institution, not a political tool
The Executive Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has defended the newly rolled-out tax reforms, insisting that much of the backlash surrounding the policy is politically motivated rather than rooted in flaws within the law itself.
Eko Hot Blog reports that Adedeji made the clarification during an interview on Arise Television on Sunday, where he offered detailed explanations on how the reforms work and addressed widespread misconceptions about the country’s tax structure.
EDITOR’S PICK
- Akpabio Assures Nigerians of Strong Institutions in 2026
- Dollar to Naira Rate for Today, January 1 2026
- Military Eliminates 20 Top Terrorist Commanders, Rescues 2,336 Kidnap Victims in 2025
According to him, Nigeria operates different categories of taxes, including income-based taxes, transaction-related taxes such as Value Added Tax (VAT), and withholding tax, which he described as an advance payment deducted from earnings.
He explained that while many Nigerians pay income tax through the Pay-As-You-Earn system, transactional taxes apply to everyone regardless of income level, stressing that paying income tax does not eliminate other tax obligations.
Adedeji noted that withholding tax is often misunderstood, stating that it is not an extra burden but a prepayment tied to income generated from transactions.
He also addressed concerns about the timing of the reforms, explaining that the laws were passed by the National Assembly in June 2025 and signed into law by the President, with implementation deliberately delayed to allow individuals and businesses time to adapt.
The NRS boss dismissed allegations that the reforms could be weaponised against political opponents ahead of the 2027 elections, describing such claims as unfounded.
He maintained that the revenue agency operates as a national institution, not a political tool, and remains focused on serving Nigeria’s economic interests.
Commenting on protests and calls for the suspension of the law, Adedeji warned that some actors were attempting to exploit public sentiment for political gain, adding that no individual or group has the authority to halt an existing law.
He highlighted provisions within the reforms designed to protect low-income earners, revealing that a significant majority of poor Nigerians are exempt from the new tax regime.
According to him, VAT has been removed from essential items such as food and transportation, ensuring that the reforms deliver net benefits to the most vulnerable.
Adedeji also debunked fears surrounding banking transactions, assuring Nigerians that tax authorities do not monitor personal bank transfers or pry into private accounts beyond what the law permits.
He reminded citizens that tax filing remains a civic duty, noting that the role of the revenue service is to guide compliance rather than intimidate the public.
Adedeji described the reforms as a once-in-a-generation opportunity to reset Nigeria’s fiscal framework, strengthen revenue administration, and align public spending with national development goals.
FURTHER READING
