Nigeria’s long-awaited tax reform laws have been officially published in the government gazette, marking a major step in overhauling the country’s fiscal framework.
The reforms, signed into law on June 26, 2025, establish a new foundation for taxation, administration, and revenue collection in Africa’s largest economy.
The four new legislations are:
- 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
Confirming the publication on his official X handle, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, noted that the new laws would modernize Nigeria’s tax system, improve compliance, and create a more business-friendly environment.
Key Highlights of the Tax Laws
The reforms introduce a high exemption threshold for small businesses, with companies earning less than N100 million in annual turnover and holding assets under N250 million completely exempted from corporate tax.
For large companies, the laws provide room to cut the corporate tax rate from 30% to 25%, subject to an order by the President on the advice of the National Economic Council.
In addition, a top-up tax threshold has been set at N50 billion in revenue for local firms and €750 million for multinational corporations.
To encourage investment, the laws include a 5% annual tax credit for eligible projects in priority sectors.
Importantly, businesses engaged in foreign currency transactions now have the option to pay taxes in Naira at prevailing official exchange rates, a measure designed to ease forex pressures and strengthen domestic currency use.
Implementation Timeline
The Nigeria Tax Act (NTA) and Nigeria Tax Administration Act (NTAA) will officially take effect on January 1, 2026, while the Nigeria Revenue Service Act (NRSEA) and Joint Revenue Board Act (JRBEA) became effective immediately from June 26, 2025.
According to Oyedele, this phased commencement ensures that the relevant tax and revenue institutions are fully prepared before the system’s complete rollout in 2026.
“The NTA and NTAA will commence on 1st January 2026, while the NRSEA and JRBEA have a commencement date of 26 June 2025 to ensure readiness of the relevant institutions ahead of full implementation in 2026.”
Expectations From the Reform
With these sweeping reforms, Nigeria aims to simplify its tax landscape, support small businesses, attract investment into critical sectors, and strengthen its revenue base.
It is believed that the implementation of the laws will be crucial to achieving fiscal stability and driving inclusive growth, particularly as the country works to reduce its reliance on oil revenues.
What You Should Know
- The Presidential Fiscal Policy and Tax Reforms Committee, last week, clarified that the proposed 5% fuel surcharge under Nigeria’s new tax laws will not apply to several household energy products.
- In a statement of Frequently Asked Questions (FAQs) released on Saturday via X (formerly Twitter), committee chairman Taiwo Oyedele explained that household kerosene, cooking gas (LPG), compressed natural gas (CNG), and clean or renewable energy products are exempt from the levy.
- The clarification followed growing concerns that the surcharge could worsen the cost-of-living crisis for Nigerians.
