Leading opposition figures and groups have faulted the commencement of the new tax reforms, which took effect on January 1, warning that the policy could worsen poverty and deepen hardship across the country.
Those opposing the implementation include the African Democratic Congress (ADC) National Chairman, Senator David Mark; Labour Party (LP) Chairman, Senator Nenadi Usman; 2023 ADC presidential candidate, Mr Dumebi Kachikwu; and the National Association of Nigerian Students (NANS).
Their reactions came as a High Court of the Federal Capital Territory (FCT) declined to restrain the Federal Government from proceeding with the implementation timeline. At the same time, Senate Leader, Senator Opeyemi Bamidele, urged Nigerians to support the reforms, while Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, assured citizens that the new laws would not lead to automatic debits of bank accounts.
Mark: New taxes will deepen hardship
Senator Mark warned that the new tax regime would worsen the cost-of-living crisis and push more Nigerians into poverty. In a New Year message reviewing developments in 2025, the former Senate President said rising prices, declining purchasing power and increasing poverty had defined the past year.
He argued that introducing new taxes at a time of widespread hardship would compound the suffering of citizens. “These taxes will not renew hope; they will renew hopelessness,” he said.
LP describes policy as insensitive
The Labour Party also condemned the implementation, describing the tax regime as insensitive, draconian and ill-timed. In a New Year message, LP Chairman, Senator Nenadi Usman, urged the Federal Government to suspend the policy and prioritise the welfare of Nigerians.
She said good leadership should focus on lifting people out of poverty, warning that the new tax laws would further burden citizens already grappling with extreme economic hardship.
Kachikwu warns of looming crisis
Mr Kachikwu also opposed the reforms, warning that Nigerians could not afford to begin 2026 with additional taxes. He said the policy, if implemented, could trigger a crisis of unprecedented proportions, especially given the country’s security challenges.
According to him, while economic reforms may be necessary, the government should show care, compassion and support for citizens rather than introduce measures that further compound their difficulties.
NANS mobilises for protest
Meanwhile, NANS announced plans to mobilise students nationwide against the implementation of the tax laws. In a statement by its National President, Olushola Oladoja, the association faulted the Federal Inland Revenue Service (FIRS) for proceeding with implementation despite unresolved issues in the gazetted law.
NANS accused the government of failing to adequately engage stakeholders and declared January 14, 2026, as a National Day of Action, calling for a peaceful protest and march to the Presidential Villa in Abuja.
Oyedele, Bamidele defend reforms
However, Mr Oyedele dismissed fears that the reforms would lead to indiscriminate bank debits, saying tax authorities do not target low-income earners. He attributed public opposition largely to misinformation, insisting the reforms were designed to make the tax system more progressive.
Similarly, Senator Bamidele urged Nigerians to support the new tax laws, describing them as among the most consequential reforms of 2025. He said the policy was aimed at generating resources for infrastructure and long-term economic prosperity, not at inflicting hardship on ordinary citizens.
Court declines to halt implementation
Meanwhile, the FCT High Court, in a ruling delivered by Justice Bello Kawu, declined an ex-parte application seeking to stop the implementation of the tax laws. The judge held that the court lacked the power to restrain the enforcement of a law already signed and gazetted without concrete evidence of wrongdoing.
Justice Kawu ruled that the Tax Act 2025 and related laws would take effect from January 1, 2026, pending the determination of the substantive suit, and adjourned the case to January 9, 2026, for further hearing.
