The Federal Government of Nigeria has officially released new tax reform legislation following President Bola Tinubu’s approval on June 26. The new laws were published in the government’s official gazette, as announced on Wednesday by Kamorudeen Yusuf, the President’s Personal Assistant on Special Duties.
The reforms introduce four key laws: the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service (Establishment) Act 2025, and the Joint Revenue Board (Establishment) Act 2025.
Key highlights from the legislation include exemptions for small businesses with annual turnover below ₦100 million and assets less than ₦250 million from corporate tax.
Additionally, corporate tax rates for larger companies could be reduced from 30% to 25% at the President’s discretion. The new framework also sets higher top-up tax thresholds at ₦50 billion for local firms and €750 million for multinational corporations.
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To further encourage investment, a 5% annual tax credit has been introduced for qualifying projects in priority sectors. The reforms also allow companies dealing in foreign currencies to pay their taxes in naira, using official exchange rates.
While the Nigeria Tax Act and Nigeria Tax Administration Act will come into force on January 1, 2026, the Nigeria Revenue Service Act and the Joint Revenue Board Act took effect immediately from June 26.
The government stated that these reforms are designed to simplify the tax system, promote growth among small enterprises, attract more investors, and enhance fiscal stability. These efforts align with President Tinubu’s Renewed Hope Agenda, which seeks to diversify Nigeria’s revenue sources beyond oil dependence.
