Nigeria Postpones New Tax Law to 2026 Amid Concerns Over Rising Cost of Living

Abuja, Nigeria — The Nigerian government has delayed the implementation of its proposed new tax law until 2026, citing widespread concerns that the measure could further strain citizens already grappling with a soaring cost of living.

The decision, announced by the Federal Ministry of Finance on Wednesday, comes after months of public backlash and warnings from economists that introducing new taxes at this time could worsen inflation and deepen economic hardship for millions.

“The government is committed to fiscal reforms, but we must be sensitive to the realities facing Nigerians,” said Finance Minister Wale Edun. “Delaying the rollout will give us time to strengthen social safety nets and ensure the policy is better understood and accepted.”

The proposed tax law, part of a broader effort to boost revenue and reduce reliance on oil exports, had included new levies on digital services, luxury goods, and certain consumer products. Critics argued the timing was ill-advised, with inflation at a record high and unemployment rates climbing.

Economic analysts say the delay could help calm public discontent but warn that Nigeria still faces tough choices in balancing revenue generation with protecting vulnerable populations.

The government has pledged to use the intervening period to engage with stakeholders, review the policy framework, and explore alternative measures to stabilize the economy.