Nigeria Introduces New Tax Laws Allowing Businesses to Claim N3.4 Trillion in Input VAT Credits

Taiwo Oyedele of the Presidential Fiscal Policy Tax Reform Committee revealed that Nigerian businesses will be able to claim N3.4 trillion in input VAT credits under the new tax laws set to begin in January 2026. This move is seen as a fundamental reset for the country's economy and social contract, following narrowly avoiding economic collapse in 2023.

The tax reform aims to modernize and sustain growth, with emphasis on reducing the overall tax burden and eliminating multiple taxation along the value chain. Prominent figures like Olusegun Obasanjo, Stanlei Orosanya, and Bola Ahmed Tinubu have expressed support for the tax reform as a game-changer for Nigeria's economy.