Nigeria has formally published its new tax reform laws, setting the stage for the most significant overhaul of the country’s fiscal system in decades.
The reforms, signed into law by President Bola Tinubu on June 26, 2025, were confirmed in a statement issued on Wednesday by Kamorudeen Yusuf, Personal Assistant on Special Duties to the President.
According to the statement, the laws lay a new foundation for taxation, revenue collection, and administration, reflecting the government’s broader push to modernize Nigeria’s economy and reduce dependence on oil revenues, Channels TV reported.
The reforms consist of four key legislations: the Nigeria Tax Act (NTA) 2025, the Nigeria Tax Administration Act (NTAA) 2025, the Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and the Joint Revenue Board (Establishment) Act (JRBEA) 2025.
Among the major provisions, small businesses with an annual turnover of less than ₦100 million and assets below ₦250 million are exempt from corporate tax.
In addition, large companies may see their corporate tax rate reduced from 30 percent to 25 percent, subject to presidential approval.
The reforms also introduce a 5 percent annual tax credit for qualifying projects in priority sectors and establish new top-up tax thresholds of ₦50 billion for local firms and €750 million for multinationals.
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Companies conducting transactions in foreign currency will also have the option of paying taxes in naira at official exchange rates.
Implementation timelines vary, with the NTA and NTAA scheduled to take effect from January 1, 2026, while the NRSEA and JRBEA will come into force immediately, beginning June 26, 2025.
“These reforms aim to simplify Nigeria’s tax system, support small businesses, attract investment, and strengthen fiscal stability, aligning with President Tinubu’s Renewed Hope Agenda to diversify revenue away from oil,” the statement read.
Analysts say the reforms could reshape Nigeria’s investment climate by easing compliance for smaller enterprises while offering incentives for larger corporations to expand operations within the country.
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Image Credit: Channels TV
