Group backs FG on new tax laws, seeks revenue reinvestment in education, security, others

A group under the auspices of Southern Advocacy Congress of Nigeria (SACN) has called on the Federal Government to ensure transparency and accountability in the implementation of the new tax reform law while also ensuring that revenues generated are reinvested in education security, job creation, healthcare, and infrastructure.

National President of SACN, Dr. Victor Ezenagu, in a statement on Sunday in Abuja, threw his weight behind the new tax law, describing it as pro-masses and reform-driven.

He noted that the statement was intended to address the rising misinformation surrounding Nigeria’s newly enacted tax law which took effect from January 1, 2026.

Ezenagu said after a careful review, SACN affirms that the law is pro-masses, reform-driven, and firmly aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda of protecting the vulnerable while restoring fiscal discipline.

“At its core, the reform corrects a long-standing injustice: a system that taxed survival rather than capacity.

“First, the law decisively shields low-income Nigerians. The first ₦800,000 of annual income is completely tax-free. Labour data indicate that over 70 percent of working Nigerians earn at or below this threshold.

“In real terms, the majority of Nigerian workers will pay no personal income tax or significantly less than before. This is deliberate social protection, not coincidence.

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“Second, middle-income earners benefit from reduced effective tax rates under the revised progressive structure. For workers earning between ₦1 million and ₦10 million annually, the reform increases disposable income at a time of economic adjustment and inflationary pressure.

“This relief reflects the administration’s commitment to easing the burden on productive Nigerians while stabilising the economy.

“Third, essential consumption remains protected. VAT has not been increased and remains at 7.5 percent. Basic food items, healthcare, education, residential rent, and public transport are exempt or zero-rated. These essentials account for the bulk of household spending, ensuring the reform does not worsen the cost of living for ordinary Nigerians,” the group stated.

Ezenagu further observed that the new tax reform restores fairness at the top, arguing that higher income earners are now expected to contribute more, consistent with global best practices.

He noted that this reflects a central pillar of the Renewed Hope Agenda which emphasises shared responsibility, where those with greater capacity support national recovery.

“Let the facts be clear. This law does not target the poor. It does not criminalise informal survival activities. It simplifies compliance, reduces multiple taxation, and broadens the tax base without burdening those already struggling.

“SACN estimates that between 65 and 75 percent of economically active Nigerians will benefit directly through exemption, lower taxes, or reduced indirect costs on essential goods and services.

“Nigeria cannot build a stable economy on fear and misinformation. This reform is not anti-people; it is a corrective step toward fairness, sustainability, and national renewal,” he stated.

Ezenagu, however, stressed that tax justice must be matched with transparency, insisting that Nigerians “must see revenues reinvested in security, jobs, healthcare, education, and infrastructure”.

“A fair tax system is not one where everyone pays more, but one where the many are protected and those with capacity pay their fair share,” he added.