Reported by: Ijeoma G | Edited by: Gabriel Osa
Abuja — Senator Adams Oshiomhole has publicly defended President Bola Ahmed Tinubu’s recently enacted tax reforms, characterising them as consistent with the principles of a progressive government that aims to ease the burden on low-income earners while ensuring higher-income individuals and enterprises contribute a fairer share to national revenue. His remarks come amid ongoing national discussions about the fairness, economic impact, and social consequences of Nigeria’s newly revised tax framework.
Speaking on national television, Oshiomhole, who represents Edo North in the Senate and supported the tax reforms in the National Assembly, said the policy is deliberately structured to shift the tax burden away from ordinary workers and vulnerable citizens toward those with greater financial capacity. He told viewers that the reforms are anchored in evidence showing that the new system provides relief to the majority of salaried Nigerians while strengthening long-term revenue generation.
“The facts on the ground show that President Tinubu’s tax policy is consistent with the values of a progressive government,” Oshiomhole said, adding that it “places a higher burden on those who earn more while offering tax exemptions to those who earn less.” He emphasised that all governments depend on tax revenue to function and deliver public services, countering narratives that the reforms were arbitrary or punitive.
According to the senator, the new tax structure exempts low-income earners, ensuring that households with modest earnings face minimal direct taxation. Oshiomhole used the example of workers in Nigeria who earn salaries within common wage brackets, noting that many would pay little to no income tax under the system, which he said reflects a hallmark of progressive taxation. He also highlighted that the policy does not single out ordinary Nigerians unfairly, but targets luxury consumption and higher income brackets where the capacity to pay is significantly greater.
The assertion aligns with details emerging from the rollout of the tax reforms, which took effect as part of a suite of laws implemented from January 1, 2026. Independent fact-checkers and policy analysts have noted that the new personal income tax regime exempts annual incomes of ₦800,000 and below, while incomes above that threshold are taxed progressively, with higher rates applied in increasing brackets up to a maximum of 25% for the highest earners. This structure underlines the government’s argument that low-income households are shielded while wealthier individuals contribute more proportionately.
President Tinubu himself has previously stated that the tax laws are intended to support a “structural reset” of Nigeria’s fiscal system, to harmonise tax administration, and to strengthen the social contract between the state and its citizens. Government officials have consistently emphasised that the reforms are not designed simply to increase revenue arbitrarily, but to build a fairer, more transparent tax environment that can sustain economic growth and fund essential services without placing undue strain on the less affluent.
Supporters of the policy, including those in the governing All Progressives Congress and several fiscal policy experts, argue that Nigeria’s historically low tax-to-GDP ratio has constrained public investment and service delivery. They point to the new regime’s emphasis on broadening the tax base, simplifying compliance, and reinforcing progressive elements as necessary steps toward fiscal sustainability and equitable development. These proponents argue the reforms also reduce reliance on indirect consumption taxes that disproportionately affect poorer households.
Despite the government’s assertions and Oshiomhole’s defence, critics of the policy remain vocal. Civil society organisations, labour groups, and some economic commentators argue that even with exemptions and progressive rates, the implementation of tax changes amid broader economic challenges could worsen living costs for many Nigerians. Detractors have highlighted concerns related to job creation, income stability, and the broader economic environment, urging the administration to focus more intensively on employment and growth as part of a holistic approach to national welfare.
Some critics also contest online narratives that misinterpret key provisions of the reform, such as claims that certain income groups will face flat high rates; multiple fact-checking efforts have clarified that such assertions misrepresent the progressive nature of the tax brackets and thresholds. These clarifications reinforce that low-income individuals remain exempt while only higher income segments face rising marginal rates.
Beyond the headline debate over progressivity, broader fiscal discourse in Nigeria has focused on related tax administration reforms introduced over the past year. These include renaming and empowering revenue authorities to streamline tax collection and compliance, as well as public tools such as a personal income tax calculator released by the presidency to allow citizens to estimate liabilities under the new rules. These measures are intended to improve transparency and public understanding of how the system works.
The controversy has also intersected with wider fiscal reforms undertaken since President Tinubu assumed office, including the removal of fuel subsidies and efforts to stabilise the economy, which government officials say are part of a comprehensive strategy to strengthen Nigeria’s financial foundations. Recent statements by the finance ministry suggest that macroeconomic indicators have improved, even as debates over tax policy persist among Nigerians from all economic sectors.
As discussions continue, Oshiomhole has reiterated his call for Nigerians to assess the tax reforms based on evidence and outcomes rather than rhetoric. He argues that a progressive tax policy should relieve those least able to pay while harnessing finance from higher earners and profitable enterprises to fund broad-based public services and infrastructure. His defence reflects broader themes in contemporary fiscal policy debates: balancing equity with revenue needs, protecting vulnerable populations, and building trust in government policy through transparency and engagement.
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