The Nigerian Medical Association (NMA) and the Guild of Medical Directors (GMDs) have raised fresh concerns over the newly introduced tax laws, warning that the policy could significantly escalate the cost of healthcare services and further strain an already overstretched system.
The tax laws, which took effect from January 1, 2026, were enacted through a harmonised set of tax reform bills passed by the National Assembly in 2025 and subsequently signed into law by President Bola Tinubu, despite widespread calls for suspension and broader stakeholder consultation.
Speaking on the development, President of the NMA, Prof. Bala Audu, cautioned that the new tax regime risks deepening the economic hardship faced by Nigerians and limiting access to essential services, particularly healthcare.
According to him, the cascading effects of increased taxation would cut across critical sectors of the economy, with early warnings from the aviation industry already suggesting that airfares could soar to as high as N1 million.
“Increased taxation will make families poorer, raise the cost of education and ultimately push healthcare beyond the reach of many Nigerians,” Audu said. “Government has a duty of care to examine how policies affect the well-being of citizens. Taxes are meant to improve society, not impoverish it. Any policy that threatens social welfare must be carefully reviewed to avert social tension.”
Echoing similar sentiments, President of the Guild of Medical Directors, Dr Raymond Kuti, said hospitals across the country were already suffocating under the weight of multiple taxes and levies, adding that the new law would only compound the burden.
He listed several statutory payments borne by health facilities, including Federal Inland Revenue Service taxes, Pay-As-You-Earn deductions, land use charges, signboard fees, vehicle and ambulance levies, annual returns and registration fees.
“On average, hospitals pay close to 10 different taxes annually, excluding bank charges on transactions. This is overwhelming for healthcare providers,” Kuti said.
He warned that any additional fiscal pressure on hospitals would inevitably be transferred to patients, most of whom already rely on out-of-pocket payments to access care.
Kuti also decried the absence of incentives or reliefs for private healthcare providers, calling for an urgent roundtable involving government and key stakeholders to reassess the implications of the new tax regime before full-scale implementation.
Beyond the health sector, legal and governance experts have also questioned the rollout of the reforms. Renowned constitutional lawyer and Senior Advocate of Nigeria, Chief Mike Ozekhome, described the tax reforms as ambitious but cautioned that unresolved legislative inconsistencies could undermine their success.
“Uniform legislative imprimatur is crucial to reconcile any differences between what was proposed, passed and signed. Government must tread cautiously and address all legitimate concerns,” he said.
Governance advocate, Dr Joe Okei-Odumakin, faulted what she described as inadequate public engagement, warning that policies lacking transparency and popular support undermine democratic values.
“Policies without public buy-in are anti-democratic and tilt dangerously towards authoritarianism,” she said.
Adding a political dimension to the debate, former Labour Party presidential candidate, Mr Peter Obi, criticised the tax system as inequitable, arguing that it disproportionately affects the poor while offering protection to the wealthy.
In a statement on social media, Obi called for a transparent and fair tax framework that prioritises citizens’ welfare and supports inclusive economic growth.
