Nigeria’s long-awaited tax reform laws have been officially published in the government gazette.
Signed into law on June 26, 2025, the reforms establish a new foundation for taxation, administration, and revenue collection in Africa’s largest economy. The four legislations are:
1.Nigeria Tax Act (NTA), 2025
2.Nigeria Tax Administration Act (NTAA), 2025
3.Nigeria Revenue Service (Establishment) Act (NRSEA), 2025
4.Joint Revenue Board (Establishment) Act (JRBEA), 2025
Confirming the publication on his official X handle, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said the laws will modernize Nigeria’s tax system, improve compliance, and create a more business-friendly environment.
1.Small businesses with annual turnover below N100 million and assets under N250 million are fully exempted from corporate tax.
2.Corporate tax for large firms could be reduced from 30% to 25%, subject to a presidential order on the advice of the National Economic Council.
3.A top-up tax threshold is set at N50 billion in revenue for local firms and €750 million for multinationals.
4.Eligible projects in priority sectors will receive a 5% annual tax credit.
Businesses in foreign currency transactions may now pay taxes in Naira at the prevailing official exchange rate to ease forex pressure and promote domestic currency use.
The NTA and NTAA take effect on January 1, 2026. The NRSEA and JRBEA became effective immediately on June 26, 2025.
Oyedele explained that the phased commencement ensures tax and revenue institutions are fully prepared ahead of the 2026 rollout.
The reforms aim to simplify Nigeria’s tax structure, support small businesses, attract investment in critical sectors, and boost government revenues, all while reducing overdependence on oil.
Last week, the committee clarified concerns over a proposed 5% fuel surcharge. Oyedele stressed that household kerosene, cooking gas (LPG), compressed natural gas (CNG), and clean or renewable energy products are exempt, ensuring the levy does not worsen the cost-of-living burden on Nigerians.
