President Bola Ahmed Tinubu has signed four pivotal tax bills into law—ushering in what he describes as the start of “a new economy and business opportunity.”
Taking effect January 1, 2026, these reforms consolidate outdated and overlapping tax statutes into a unified, modern framework, aimed at making Nigeria more business-friendly. Key highlights include:
Tax relief for low-income earners: Over one-third of workers will be fully exempt from PAYE.
Boost for micro and small business: More than 90 % of micro/small/nano enterprises now free from corporate tax, VAT, and withholding taxes.
Zero VAT on essentials: Items like food, healthcare, education, housing, transport, and accommodation are excluded from VAT, relieving household costs.
President Tinubu emphasized the reforms signal Nigeria’s readiness for global business engagement: “a tax regime that rewards enterprise, protects the vulnerable and mobilises revenue without punishing productivity.”
The new laws establish:
- Nigeria Tax Reform Act – streamline tax statutes into a single, coherent code
- Tax Administration Act – unify tax operations across federal, state, and local levels
- Nigeria Revenue Service Act – restructure FIRS into a more efficient and autonomous agency
- Joint Revenue Board Act – formalise inter-agency coordination, including a Tax Appeal Tribunal and Ombudsman office
Senate President Akpabio and other leaders called the legislative overhaul historic, with over 70 fragmented taxes harmonised into the new system.
In supporting comments, NECA’s Director-General Adewale Smatt-Oyerinde said the reforms “will open up the economy” after years of confusing tax burdens on businesses.
