CSO Urges FG to Give Clarity on New Tax Law

Citizen Monitors Welcomes Pause on Fossil-Fuel Surcharge

In a statement signed by its spokesperson, Olajumoke Alawode-James, Citizen Monitors welcomed the government’s decision to pause the proposed 5% fossil-fuel surcharge pending further consultations with stakeholders.

While acknowledging the need for tax reform, the group stressed that reform is only meaningful when people understand it and can plan ahead. Without clarity, misinformation spreads and public trust erodes.

Citizen Monitors outlined three immediate priorities for the Federal Government to address before the new rules take effect in January 2026:

1. Publish a Plain-English Guide

The government should produce a one-page guide explaining:

• What is changing under the new tax law
• What remains the same
• A clear timeline to January 2026
• FAQs for common jobs, small businesses, and self-employed workers
• Details of a public helpline or online portal for quick answers

This would reduce the “weekly trickle of rumours” and enable Nigerians to make informed financial and business decisions.

2. Clarify VAT Rules and Protect Consumers

Citizen Monitors urged the government to continue reminding the public that Value Added Tax (VAT) remains at 7.5%. It also called for stricter enforcement of zero-rated essentials—such as food, books, medicines, and energy items—ensuring they remain exempt in stores and markets.

Regulators should actively monitor retail prices to stop merchants from falsely claiming VAT increases at checkout.

3. Publish Updated PAYE Tables and Support SMEs

The group emphasized the need to publish updated Pay-As-You-Earn (PAYE) tax tables early. It also recommended giving small and medium-sized enterprises (SMEs) an easy onboarding process into the new e-invoicing and fiscalisation system, with no retroactive penalties during the transition.

According to Citizen Monitors, clear steps and free toolkits will improve compliance and reduce fear among businesses.

Public Engagement and Awareness Campaign

Citizen Monitors called for a nationwide awareness campaign to educate Nigerians about the new tax rules. This campaign should utilize radio, television, print media, and social media to reach urban and rural populations alike.

The organisation also recommended that the government partner with civil society groups, trade associations, and local community leaders to counter misinformation at the grassroots level.

Citizen Monitors’ Role Moving Forward

The organisation reaffirmed its mission to track government policies and their impact on ordinary Nigerians. It pledged to monitor the rollout of the new tax law and provide regular updates on its real-life effects.

“As rollout begins, Citizen Monitors will track and report the real-life impact of the changes, helping Nigerians see what is working and where more clarity or correction is needed,” the group said.

The new tax law will affect a wide range of stakeholders, including:

• Individual taxpayers
• Small and medium-sized enterprises (SMEs)
• Large corporations and multinationals
• Financial institutions and banks

Experts warn that without clear guidance, these groups may struggle to comply with the new rules, leading to penalties and loss of trust. Early clarity and support can transform this reform into a success story.

As Nigeria prepares to implement the new tax law on January 1, 2026, Citizen Monitors’ call for greater transparency highlights a critical gap in the government’s reform strategy. While tax reforms are necessary to boost revenue and modernize the economy, they must be introduced in a way that is fair, predictable, and understandable for all Nigerians.

If the government follows Citizen Monitors’ recommendations—publishing a plain-English guide, clarifying VAT rules, and assisting SMEs—it can turn a source of public anxiety into an example of transparent, people-centered governance.

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