The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has warned that 98 per cent of Nigerian workers will remain overtaxed if the new tax laws are not implemented by January 1, 2026.

Oyedele gave the warning amid growing controversies surrounding the planned implementation of the tax reforms, with prominent stakeholders calling for a suspension of the process.

Former Vice President Atiku Abubakar and former Labour Party presidential candidate, Peter Obi, are among those who have urged the Federal Government to halt implementation until all outstanding concerns are resolved.

However, speaking on Monday during Channels Television’s The Morning Brief, Oyedele argued that delaying the reforms would worsen the tax burden on low- and middle-income earners.

According to him, failure to implement the laws as scheduled would leave the bottom 98 per cent of workers overtaxed, expose businesses to multiple taxation, deny firms critical exemptions, and force small, unprofitable enterprises to continue paying minimum taxes.

He further warned that Value Added Tax (VAT) on food items would remain in place, pushing up the cost of basic household necessities.

“The implication of not implementing the new tax laws by January 1, 2026, is that the bottom 98 per cent of workers remain overtaxed,” Oyedele said.

“Businesses will miss out on exemptions and continue to pay multiple taxes, creating significant burdens. Minimum taxes will continue to apply to small, unprofitable businesses, while hidden VAT will keep driving up prices of basic consumptions such as food, healthcare, and education.”

Oyedele maintained that rather than calling for outright cancellation, the reforms should be implemented while legitimate concerns are addressed through amendments.

“We need to be clear about what we are asking for,” he said. “Even if it is established that there were substantial alterations to what the National Assembly passed, the appropriate approach is to identify those provisions and treat them as not part of the law.

“You then proceed to implement the law as passed by the National Assembly, while addressing how those problematic provisions came in and what needs to be done.”

He disclosed that his committee has already identified areas in the version passed by the National Assembly that require amendment and has approached President Bola Tinubu to initiate the necessary legislative corrections.

“Even regarding the one passed by NASS, my committee and I have noted areas where amendments are required, particularly issues around referencing and definitions,” Oyedele said.

The new tax framework comprises the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act, all to operate under a single authority, the Nigeria Revenue Service.

According to the Federal Government, the reforms are aimed at simplifying tax compliance, expanding the tax base, eliminating overlapping taxes, and modernising revenue collection across federal, state, and local governments.