The Federal Government has officially announced a major tax reform that will take effect from January 1, 2026.
The update was shared by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, in a post on X (formerly Twitter) on Monday, September 8.
According to Oyedele, the reforms are covered under four new legislations:
- Nigeria Tax Act, 2025 (NTA)
- Nigeria Tax Administration Act, 2025 (NTAA)
- Nigeria Revenue Service (Establishment) Act, 2025 (NRSEA)
- Joint Revenue Board (Establishment) Act, 2025 (JRBEA)
He confirmed that the laws have already been published in the government’s official gazette.
Key Highlights of the Tax Reform
- Zero Tax for Small Businesses: Companies with yearly turnover of ₦100 million or less and assets valued below ₦250 million will not pay corporate tax.
- Lower Tax for Large Companies: The corporate tax rate for big firms has been reduced from 30% to 25%, with the start date to be announced by the President after advice from the National Economic Council (NEC).
- Top-Up Tax Exemptions: Local businesses earning below ₦50 billion and multinationals with revenue under €750 million are exempt from extra top-up taxes.
- Investment Incentives: Qualified investments in priority sectors will enjoy a 5% annual tax credit.
- Foreign Currency Payments: Taxpayers can now settle taxes on foreign transactions in naira, using the official exchange rate.
Oyedele added that while the NTA and NTAA will kick off in January 2026, the NRSEA and JRBEA will begin earlier on June 26, 2025, to prepare the institutions for smooth implementation.
The four bills were signed into law by President Bola Tinubu on June 26, 2025.
Speaking on the reforms, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said the new tax system will make it easier for businesses to thrive and improve the purchasing power of Nigerians.
Copies of the new tax laws can be downloaded here: bit.ly/NewTaxReformAc
