President Bola Ahmed Tinubu signed into law four key pieces of legislation.
The laws includes the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act. Collectively known as the 2025 Tax Reform Acts.
These laws are designed to modernise Nigeria’s tax system, improve compliance, and increase government revenue.
The reforms are aimed at fiscal efficiency and economic growth.
However, analysts warn that the new tax regime expected to take effect from January 1, 2026.
Also, it could trigger widespread protests, particularly among low- and middle-income Nigerians.
Here are three major reasons protests may occur once the new policy is implemented.
1. Rising Cost of Living and Economic Hardship
Nigeria is currently battling one of its toughest economic periods in decades.
It is marked by high inflation, fuel subsidy removal, and rising food prices.
For many citizens, the new tax reforms are seen as another layer of economic pressure.
With the government expected to expand its tax base to include informal businesses and small traders, the cost of goods and services is likely to rise, as businesses pass additional tax expenses onto consumers.
For ordinary Nigerians already struggling to afford basic necessities like food, transport, and healthcare, this could be the tipping point for frustration.
Economic experts warn that if the government fails to cushion the impact through social welfare programmes, protests could erupt nationwide, similar to the #EndSARS-style demonstrations witnessed in 2020.
2. Public Distrust in Government Spending
Another major trigger for possible protests lies in the public’s lack of trust in how government revenues are managed.
Many Nigerians believe that increased taxation rarely translates into better public services, as corruption, mismanagement, and poor accountability persist at all levels of government.
Also, citizens may question why they are being asked to pay more taxes when roads remain bad, hospitals are underfunded, electricity is unreliable, and unemployment continues to soar.
Without visible improvements in infrastructure and governance, the perception of “tax without benefit” could fuel anger and lead to organised demonstrations
3. Fear of Over-Taxation and Burden on Small Businesses
Nigeria’s informal sector accounts for over 60% of the country’s workforce
They are expected to feel the brunt of the new reforms.
Also, small traders, artisans, and micro-entrepreneurs could face new compliance requirements, registration fees, and levies
This will makes it harder for them to survive in an already harsh economy.
Many fear the policy could drive small businesses out of operation, leading to more unemployment and poverty.
People Also Read: 6 Ways New Tax Policy Will Affect Low-Income Households
Labour unions and trade associations might see this as an attack on the working class
Also, they might mobilise mass protests to demand tax reliefs or policy suspension.
