The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has given firm assurances to Nigeria's manufacturing sector, promising that the recently enacted tax reforms will significantly lower the cost of operations, attract more investment, and speed up industrial development across the country.
Clarifying Reforms and Denying Suspension Claims
Speaking at a stakeholders' engagement held at MAN House in Lagos on Thursday, January 15, 2026, Oyedele directly addressed concerns within the industrial community. The event, titled 'From Legislative Assembly to Factory Floor: What the New Tax Laws Mean for Nigerian Manufacturers', served as a platform to elucidate the practical impacts of the new legislation.
Oyedele strongly denied a circulating media report which suggested the Federal Government had paused the issuance of implementation guidelines for the new tax laws. "I could die for Nigeria as a reformer," he stated, emphasizing his commitment to the process. He clarified that the confusion stemmed from a discrepancy between versions of the law published by the government printer and the National Assembly, which is currently conducting its own review.
He explained that his team, acting under the Acts Authentication Act, sought a printed copy from the government printer but were informed that all copies had been taken by the National Assembly and would not be released to the public until lawmakers finalised their review.
Key Benefits and Exemptions for Manufacturers
Oyedele detailed specific changes designed to aid manufacturers. Notable exemptions include:
- Value-Added Tax (VAT) removal on supplies of locally manufactured sanitary products, assistive devices, and disability-related items.
- Zero-rated supplies covering locally produced fertilisers, agricultural chemicals, veterinary medicine, and animal feeds.
- A potential suspension of VAT on petroleum products, renewable energy equipment, Compressed Natural Gas (CNG), and Liquefied Petroleum Gas (LPG), subject to a ministerial order.
He also elaborated on the input tax credit mechanism, allowing manufacturers to deduct input VAT on taxable supplies and fixed assets from their output VAT liability, provided the input tax was incurred for making taxable supplies.
In a separate address at the Cowry Quarterly Economic Discourse in Victoria Island, Lagos, Oyedele highlighted another relief: an automatic capital gains tax exemption for individuals. This applies where total proceeds from asset disposal are N150 million or less, provided the gain does not exceed N10 million in a year.
Experts Weigh In on Compliance and Broader Fiscal Challenges
While the reforms aim to stimulate growth, experts point to Nigeria's underlying fiscal struggles. Former Director-General of the Budget Office, Ben Akabueze, revealed that Nigeria's tax-to-GDP ratio remains alarmingly low at below 10 per cent, compared to an African average of about 16 per cent.
This stark gap, Akabueze noted during a media briefing in Lagos, is driving the government's push to widen the tax base, strengthen enforcement, and improve the overall efficiency of tax administration. He described Nigeria as being in one of its most significant reform cycles ever, touching on taxation, fiscal policy, exchange rates, and market liberalisation.
To help businesses and stakeholders navigate this evolving landscape, a major economic summit is scheduled for January 24, 2026, at the RCCG Christ Church in Gbagada, Lagos. The summit, designed to empower participants with knowledge and tools, will feature the Minister of State for Industry, Trade and Investment, John Enoh, as the keynote speaker. He is expected to address the current administration's economic reforms and highlight emerging investment opportunities.
