The Federal Government has formally published Nigeria’s new tax reform laws in the official gazette, marking a major step in the country’s fiscal overhaul. President Bola Tinubu had signed the laws on June 26, 2025, paving the way for comprehensive modernization of Nigeria’s taxation system.
The Four Key Tax Reform Acts:
- Nigeria Tax Act (NTA), 2025
- Nigeria Tax Administration Act (NTAA), 2025
- Nigeria Revenue Service (Establishment) Act (NRSEA), 2025
- Joint Revenue Board (Establishment) Act (JRBEA), 2025
According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the gazettement signals a crucial milestone in creating a simplified and business-friendly tax regime that promotes compliance and supports growth.
Salient Reform Features:
- Small companies with turnover below ₦100 million and assets under ₦250 million are fully exempt from corporate tax.
- Corporate tax for larger firms may be cut from 30% to 25%, subject to presidential approval on the recommendation of the National Economic Council.
- A “top-up tax” will apply to companies with revenues above ₦50 billion, and to multinationals with turnover exceeding €750 million.
- A 5% annual tax credit is introduced for projects in designated priority sectors.
- Businesses involved in foreign currency transactions may now pay taxes in naira using the official exchange rate to ease forex pressures.
Implementation Timeline:
- The NTA and NTAA will take effect from January 1, 2026.
- The NRSEA and JRBEA became effective immediately on June 26, 2025, ensuring institutional readiness for full implementation.
Expected Outcomes:
The reforms are designed to simplify tax processes, support small businesses, stimulate investment in key industries, and broaden the government’s revenue base. They also aim to strengthen fiscal stability and foster inclusive economic growth.
Public Assurance:
Clarifications from the Fiscal Policy and Tax Reforms Committee confirmed that the recently introduced 5% fuel surcharge will not affect household essentials such as kerosene, LPG, CNG, or renewable energy products.
