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Wednesday, 31 December 2025

Northern Groups Slam President Tinubu's Push for New Tax Reforms Starting January 1, 2026, Calling It a Blow to Democracy


 As Nigeria rings in the new year on January 1, 2026, a heated debate is raging over the government's decision to roll out major tax reform laws despite serious questions about their legitimacy. The Coalition of Northern Groups (CNG) has come out swinging against President Bola Ahmed Tinubu's determination to implement these changes right away, labeling it a direct attack on democratic principles. This comes at a time when many Nigerians are already struggling with high living costs, and accusations are flying that the final versions of the laws were tampered with after lawmakers approved them.

The CNG, a prominent voice representing interests in northern Nigeria, didn't hold back in their criticism. In a strongly worded statement released just before the new year by their national coordinator, Jamilu Aliyu Charanchi, the group expressed deep worry over what they see as clear differences between the tax bills that went through lengthy debates in the National Assembly and the ones that ended up being officially published and ready for enforcement.


These aren't just small tweaks or typos, the coalition argues—they're big changes that go right to the core of how laws should be made in a democracy. Things like legislative power, following the constitution, and basic rule of law are at stake here. The group pointed fingers at the presidency and Taiwo Oyedele, who heads the presidential committee on fiscal policy and tax reforms, suggesting they're pushing some hidden agenda that could make life even tougher for everyday Nigerians already dealing with economic hardships.


Charanchi highlighted the irony: President Tinubu, who built much of his political reputation fighting for democracy in the past, is now seemingly ignoring calls to pause and review these controversial laws. Instead of listening to widespread concerns from citizens, lawmakers, and experts, the government is charging ahead with what the CNG calls arrogance and force. This, they say, shows a worrying shift away from the democratic values Tinubu once championed.


The controversy kicked off late in 2025 when some representatives in the House raised alarms about discrepancies in the gazetted versions of the four key tax laws: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Establishment Act, and Joint Revenue Board Establishment Act. Critics claim substantive parts were added or changed after the National Assembly passed them and the president signed in June 2025. Issues like new powers for tax officials, thresholds for reporting, and appeal processes have been flagged as not matching what was originally debated.


On the other side, the presidency and Oyedele have pushed back hard, insisting no major problems exist and that the reforms are meant to ease burdens on most people—exempting low earners, small businesses, and reducing overall taxes for many. They've described the changes as a rare chance to modernize Nigeria's outdated tax system, making it fairer and more efficient. President Tinubu himself stated late last year that implementation would go ahead as planned, with some parts already in effect since mid-2025, and the rest kicking in now.


But the CNG isn't buying it. They question why there's such a rush to start on January 1, 2026, when doubts haven't been cleared up and people are grappling with poverty, joblessness, and insecurity. If these reforms are truly for the people and about building better trust between government and citizens, why not slow down, talk it out, and build consensus? Forcing through laws with questionable validity, the group warns, will only breed more anger, damage relationships with the public, and make folks feel even more marginalized and unfairly treated.


The coalition also took aim at the National Assembly for what they see as a weak response. Lawmakers chanting support for the president's mandate during his visits came across as giving up their independence, turning the legislature into just an extension of the executive. In a healthy democracy, separation of powers is crucial—Parliament should fiercely guard the laws it passes, not let them be altered behind closed doors.


This isn't just about taxes; it's about trust in government. Nigerians have been through a lot—fuel subsidy removal, inflation biting hard, and now new tax rules amid all that. The CNG is calling for an immediate halt to the rollout, full transparency by releasing both the assembly-passed and gazetted versions side by side, and independent checks by lawmakers and courts to sort out the alleged changes.


History shows that pushing policies without broad support can backfire, the group reminded. Nigeria isn't ruled by one person; presidential power has limits set by the constitution. Letting this slide could set a bad example, weakening how all future laws are handled.


The tax reforms were billed as a game-changer: simplifying collections, cutting multiple taxes, and shifting the load to higher earners and big companies. Supporters say it'll bring relief to over 95% of workers and small firms, boost revenue without hurting the poor, and modernize a system that's been messy for decades. But opponents, especially from the north where the laws faced tough resistance initially, fear uneven impacts, like on value-added tax distribution or business costs.


Groups like the Nigerian Bar Association, labor unions, students, and opposition figures including Atiku Abubakar and Peter Obi have echoed calls for suspension until everything's cleared. Even some southern voices and business associations have mixed feelings, though many employers back the changes for potential long-term gains.


As the laws take effect today, eyes are on how enforcement plays out. Will there be smooth transitions with exemptions and lower rates kicking in? Or will confusion and pushback lead to delays or adjustments? The government has promised sensitization and fairness, but public skepticism runs deep.


For ordinary Nigerians—market traders in Kano, salary earners in Lagos, farmers in rural areas—these reforms could mean real changes in take-home pay, business expenses, or prices of goods. Low-income folks might see tax breaks, but fears of hidden burdens linger.


The CNG's strong stance reflects broader northern concerns, but the debate cuts across regions. Many agree good tax reform is needed to fund roads, schools, and hospitals without overtaxing the vulnerable. The key is doing it transparently and inclusively.


Moving forward, dialogue could bridge the gap. If investigations confirm no foul play, confidence might return. If issues are found, corrections would strengthen democracy. Either way, this episode highlights challenges in Nigeria's governance: balancing bold reforms with accountability.


In a country striving for economic recovery, tax policies touch everyone. Getting them right means listening, clarifying, and ensuring no one feels sidelined. As 2026 unfolds, how this plays out could shape public trust in the Tinubu administration for years to come.


The coming months will tell if these Nigeria tax reforms 2026 deliver promised relief or fuel more division. Citizens deserve clear answers and fair implementation—nothing less in a democracy, stakeholders explained. 

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