PRESS RELEASE
CHARS-AFRICA SEEKS URGENT REVIEW OF NEW TAX LAW OVER RIGHTS AND EQUITY CONCERNS
Aba, Abia State | 17th January 2026
The African Centre for Human Advancement and Resource Support (CHARS-Africa) expresses serious concern over the implementation of Nigeria’s newly enacted tax regime which came into force on 1 January 2026, anchored in the Nigeria Tax Act and related tax reform laws. While we recognise the government’s stated objectives of reforming the tax system, broadening the tax base, and improving revenue mobilisation, critical analysis by KPMG Nigeria (a globally respected professional services firm) has highlighted errors, inconsistencies, ambiguities, gaps, and omissions in the law that threaten to undermine equity, economic growth, and public trust.
KPMG warns that several key provisions lack clarity, contradict fundamental principles of fair taxation and legal certainty, and could trigger widespread disputes, deter investment, and even fuel capital flight. For example:
✓ The law’s definitions of taxable entities, including inconsistency in whether communities are taxable, undermine legal clarity and risk arbitrary enforcement.
✓ Provisions on profit computation, deductions, and treatment of capital losses are ambiguous, potentially imposing undue tax burdens contrary to the constitutional guarantee of fair and equitable treatment under the law.
✓ Sections on capital gains taxation fail to adjust for inflation, meaning taxpayers could face unfair liabilities that do not reflect true economic gains.
CHARS-Africa is particularly alarmed that, in practice, these flaws could contravene Nigeria’s constitutional principles of equality before the law (Section 42 of the 1999 Constitution of the Federal Republic of Nigeria, as amended) and the right to fair hearing in tax disputes (informed by the rule of law and statutory safeguards). Ambiguous tax provisions introduce the risk of arbitrary assessments and enforcement actions without proper safeguards, contrary to the principles of legal certainty and due process.
The Federal Government and relevant arms of the National Assembly must urgently act to clarify, amend, and harmonise the tax laws to reflect the original reform intent without ambiguity. Where provisions conflict with existing statutes or constitutional rights, corrective legislative amendments must be prioritised to uphold public confidence and protect taxpayers’ rights.
CHARS-Africa notes with concern that government responses to KPMG’s critique have downplayed the substantive issues as mere differences in interpretation or minor clerical lapses rather than fundamental legal misalignments requiring immediate correction. This posture undermines public confidence in the Rule of Law and weakens the legitimacy of tax governance in Nigeria.
Accordingly, CHARS-Africa calls on:
1. The Federal Government to immediately review and amend ambiguous or contradictory sections of the Nigeria Tax Act and associated tax laws.
2. The National Assembly to engage in transparent parliamentary scrutiny, including public hearings, to ensure tax laws respect constitutional rights and protect citizens from arbitrary enforcement.
3. The Nigeria Revenue Service (NRS) to issue clear administrative guidelines that align with constitutional protections and the principles of fairness, equity, and non-discrimination.
4. Civil society, media, and professional groups to monitor implementation and advocate for fairness in tax administration.
Tax reform should not be a vehicle for confusion, opaque enforcement, or undue burdens on citizens and investors. Nigeria’s fiscal policy must uphold human rights, economic justice, and the rule of law, ensuring that taxation promotes development without punishing compliance or discouraging investment.
Signed:
Amaka Biachi Esq.
Executive Director
charsafrica.ng@gmail.com
