Former House of Representatives Speaker, Yakubu Dogara, has launched a strong defence of President Bola Tinubu’s tax reforms while accusing critics of wanting the government to fail.
He stated that the opposition to the reforms was not based on genuine concerns for the country but on what he called a “sinister” desire to see the President stumble.
Speaking at the maiden Distinguished Parliamentarian Lecture organised by the House of Representatives Press Corps on Tuesday, Dogara did not hold back in his criticism of those opposing the government’s new tax policies. “It was clear that most of those opposed to the reform desired to see the President fail rather than succeed,” he told the audience of lawmakers, journalists, and guests. He dismissed many of the arguments against the reforms as issues that were “both trivial and untrue.”
The former speaker provided context for why he believes the reforms are necessary. He described the economic situation President Tinubu inherited as full of “conspicuous debris,” mentioning that ₦22.7 trillion had been printed under the previous government under the “Ways and Means” arrangement, which he said destroyed the value of the Naira.
He also criticised the previous dual exchange rate system, which he said allowed “anointed people” to make “hundreds of millions of Naira off forex allocations from the CBN without producing any goods or offering any services whatsoever.”
Dogara insisted that from day one, President Tinubu had no choice but to take revolutionary steps. “Something urgent, nay revolutionary must be done to prevent our economy from imploding,” Dogara said, adding that “if everything seems under control, it is not only an indication that you are not going fast enough, you are most probably not a reformer.”
He explained that the tax reform is part of a broader strategy that includes the removal of the fuel subsidy and the unification of exchange rates. The goal, he said, is to create a system that “protect the poor, empower businesses, encourage investment, and ensure fairness across society.” He firmly stated that there is no going back on this new direction, calling it a “line in the sand for Nigeria’s future.”
Dogara then detailed what the new tax laws will mean for Nigerians and businesses. The reforms will replace 16 different federal tax laws with four main Acts. One of these, the Nigeria Tax Act 2025, introduces several changes, including a single 4% levy on company profits instead of multiple old levies. It also means that large companies will have to pay a minimum of 15% tax, and the capital gains tax for companies will increase from 10% to 30%.
Crucially, he highlighted significant exemptions designed to protect vulnerable citizens and small businesses. “Companies with annual turnover ≤ ₦100 million and fixed assets ≤ ₦250 million are fully exempt from Company Income Tax (CIT), Capital Gains Tax (CGT), and 4% Development Levy,” he stated. For individuals, “income exemption for individuals earning ₦800,000 or less annually are fully exempt from both Personal Income Tax (PIT) and Capital Gains Tax (CGT).”
He also addressed two of the most talked-about issues: the fuel surcharge and the Tax Identification Number (TIN). On the fuel surcharge, he clarified that it is not new. “The provision already exists under the Federal Roads Maintenance Agency Act, 2007 as amended,” he explained, adding that it was included in the new Act “for harmonisation and transparency rather than for immediate implementation.” He stressed that it would not start automatically in 2026 but only when the Minister of Finance issues a formal order, and that it would not apply to household cooking gas, kerosene, or compressed natural gas (CNG).
Regarding the TIN, which will be required for bank accounts, he said this is also not a new rule. “It has been in place since the Finance Act, 2019,” he noted, explaining that a person’s National Identity Number (NIN) will eventually serve as their Tax ID to avoid duplication.
Dogara acknowledged the challenges ahead, including uncertainty, the need for technology upgrades, and the cost of compliance. However, he ended his speech with a rallying call, describing tax reform as a “pact” between the government and the people. “Tax reform is not a punishment. It is a pact,” he stated. He argued that true reform “is not about raising rates, but about raising trust,” and reminded the government that “transparency is the engine of compliance.”
He concluded with a direct message to President Tinubu, urging him to “ensure that he takes no prisoners in ensuring that this reform is implemented and sustained.” He believes this will be the President’s lasting legacy, cementing his place as Nigeria’s “undisputed most consequential economic reformer.”
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