NRS Chief Breaks Silence: “Tax Reform Attacks Are Politically Motivated

The Executive Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has pushed back against criticisms of the newly introduced tax reforms, arguing that much of the opposition is politically motivated rather than rooted in the substance of the law.....KINDLY READ THE FULL STORY HERE▶

Speaking during an interview on Arise TV on Sunday, Adedeji sought to clarify the reforms and calm public concerns surrounding new tax obligations.

He explained the differences between major tax categories, including income tax, transactional taxes such as Value Added Tax (VAT), and withholding tax.

“Many Nigerians are already on Pay-As-You-Earn. Beyond that, banks collect VAT, which requires proper documentation. Transactional taxes like VAT apply to everyone, regardless of income level, while income tax is based on earnings. Paying income tax does not excuse anyone from transactional taxes,” he said.

On withholding tax, Adedeji noted that it is simply an advance payment on income earned, stressing that even those on PAYE are still subject to transactional taxes.

According to him, the tax framework is designed to make revenue collection more efficient, not to overburden citizens.

Addressing concerns over the timing of the reforms, Adedeji explained that the legislation was approved by the National Assembly in June 2025 and only became operational on January 1 after a six-month transition period.

“The law took effect when the President signed it in June. What commenced on January 1 was the implementation of the rates after the adjustment window, which is standard practice in tax administration,” he explained.

He also rejected suggestions that the reforms could be used to target political opponents ahead of the 2027 elections.

“The Nigeria Revenue Service serves the nation, not politics. We are not a Political Revenue Service. We are professionals and patriots working in the interest of Nigeria’s growth,” Adedeji said.

Responding to calls for the suspension of the law, he cautioned against turning the issue into a political battle.

“When people talk about suspending the law, you must question the intent. No one can simply suspend an existing law. Some of these reactions are aimed at undermining the gains of the reform,” he stated.

Adedeji highlighted that a major goal of the reform is to ease the tax burden on low-income Nigerians, noting that over 95 percent of the poor are exempted from certain taxes.

“We eliminated VAT on essential items like food and transportation. When you look at the overall impact, the poor stand to benefit the most,” he said.

He also dismissed fears that tax authorities would intrude into personal bank accounts.

“No tax authority will monitor personal bank accounts. Claims about tracking narrations or imposing extra charges are misinformation. We only operate within what the law allows,” he clarified.

Emphasising civic responsibility, Adedeji urged Nigerians to comply with tax filing requirements.

“Filing taxes is a civic duty. Our role is to support taxpayers, not to act like law enforcement,” he said, adding that transparency and accountability remain key objectives.

On the broader significance of the reforms, Adedeji described them as a rare opportunity to strengthen Nigeria’s fiscal system for the long term.

“This is a once-in-a-generation chance to establish a sustainable fiscal framework. We are enhancing revenue administration, improving compliance, and aligning public spending with national development goals,” he said.

While acknowledging that resistance may continue in the early stages, the NRS boss expressed confidence that the reforms would deliver lasting benefits, particularly for low-income earners and the overall efficiency of the revenue system.