Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has issued a robust rebuttal to KPMG’s recent critique of Nigeria’s new tax laws. In an official statement on Saturday, January 10, 2026, the committee accused the global firm of “mischaracterizing deliberate policy choices” as errors. Oyedele argued that many of the “gaps” identified by KPMG—such as the 25% top marginal tax rate and the disallowance of parallel market forex deductions—were intentional measures designed to promote progressivity and stabilize the Naira by removing “tax subsidies” for round-tripping.
Addressing the concern over the “commencement date,” Oyedele dismissed KPMG’s suggestion to align the start of the laws with the beginning of a single accounting period as a “narrow view.” He maintained that the January 1, 2026, start date is firm, noting that the committee has spent the last six months on capacity building and system upgrades. He emphasized that the reforms are “pro-people,” with approximately 98% of Nigerian workers expected to pay lower or no Personal Income Tax (PAYE) under the new regime.
The committee also clarified the “Small Company Verification” issue, stating that the threshold of ₦100 million turnover for tax exemption is a strategic choice to encourage business formalization. Oyedele pushed back against the “sell-off narrative” regarding the stock market, pointing out that current market highs prove investors understand the long-term benefits of the new laws. He noted that the tax framework is structured to reduce the corporate tax rate from 30% to 25% for larger firms, which will ultimately attract more Foreign Direct Investment (FDI).
Regarding clerical errors, the committee admitted that minor cross-referencing gaps may exist but stated these are already being addressed through administrative guidance. Oyedele urged professional firms and stakeholders to move from “static critique” to “dynamic engagement.” He reaffirmed that the Tax Act 2025 and the Tax Administration Act 2025 are the most significant overhauls of Nigeria’s fiscal landscape since 1960, aimed at ending the “nuisance” of multiple taxation that has long burdened the informal sector.
