The Centre for the Promotion of Private Enterprise (CPPE), has declared that deep-seated distrust in the government and lived experiences of recent economic policies formed the basis for the serious resistance against the implementation of the new tax policies in the country.
This was as it warned that rushing reforms in a pre-election year, could trigger political backlash and further erode public trust, stressing that tax reform must evolve with the economy.
CPPE therefore stressed the importance of careful timing in the implementation of the tax policies particularly against the backdrop of Nigeria’s fragile economic recovery.
Mr. Muda Yusuf, Chief Executive Officer of CPPE, who stated these in a report released on Monday, January 5, 2026, insisted tat successful implementation would depend on strategic execution rather than policy intent alone and therefore called for a pragmatic approach towards ensuring long-term fiscal sustainability.
In his words; “History shows that good policy doesn’t guarantee good outcomes. Lived experiences where previous policy changes, including fuel subsidy removal and forex adjustments, increased living costs without corresponding improvements in public services.
“Mandatory filings and penalties could criminalise informality without gradual implementation,” CPPE said.
The reforms according to Yusuf include tax exemptions for low-income earners and small businesses, plus VAT relief on essential services like education and healthcare, saying however, that despite the pro-welfare measures, public resistance persisted.
The CPPE report noted that the informal sector which employs millions of Nigerians, but operating on narrow profit margins, represents a critical challenge.
It emphasised that contentious provisions include quarterly reporting requirements for bank transactions exceeding ₦25 million, a proposed capital gains tax increase to 30 per cent, and a ₦500,000 rent relief cap that critics noted ignores urban housing realities.
The CPPE therefore recommended a “revenue-efficient” strategy focusing enforcement on large corporations and high-net-worth individuals who generate most tax revenue, while using incentives and education to bring informal businesses into the tax net.
The CPPE report comes as the government advanced its reform agenda amid persistent inflation and growing reform fatigue among Nigerian households and businesses.
