Senator Adams Oshiomhole has lauded President Bola Tinubu’s new tax policy, describing it as aligned with the ideals of a progressive government.
The Edo North lawmaker, who revealed that he was among the legislators backing the tax bill that became law, spoke on Channels Television’s Politics Today on Wednesday. He highlighted that the policy is progressive because it shifts the tax burden toward higher earners while offering relief to lower-income Nigerians.
“The facts on the ground show that President Tinubu’s tax policy reflects the principles of a progressive government,” Oshiomhole said. “This policy places a greater tax responsibility on those with higher incomes, while providing exemptions and relief for those earning less.”
The former Edo State governor stressed his support for the new tax framework, noting that no government can operate without taxes.
“Only in Nigeria do people claim that government generates its own money. Governments do not earn income; citizens do, and the government collects taxes on that income—individual and corporate. The total taxes collected determine the state’s revenue for the year,” he explained.
Oshiomhole added that working families would benefit under the new system. “There is no worker under the Nigeria Labour Congress earning N1 million per month, which is N12 million annually. For salary earners, this is a progressive approach to taxation.”
VAT and luxury goods
On Value Added Tax (VAT), the senator reassured that ordinary Nigerians need not worry, as VAT largely targets luxury goods. He criticized citizens who pay VAT abroad but resist paying the same tax within Nigeria.
“Globally, VAT is applied to non-food items. Nigerians pay VAT in the US, London, and Dubai, yet complain when paying it here at home,” Oshiomhole noted.
Despite some criticisms, President Tinubu confirmed in December 2025 that the new tax laws would take effect from January 1, 2026. The president emphasized that the reforms are intended not to arbitrarily increase taxes, but to support a structural reset, harmonize the tax system, protect citizens’ dignity, and strengthen the social contract.
He also called on Nigerians to support the smooth implementation of the new tax policy.
