Nigeria’s new tax laws gazetted, to take effect from 2026
Nigeria’s tax reform laws have now been published in the Official Gazette, confirming their commencement after months of debate and political wrangling.
Signed into law on June 26, 2025, the reforms are captured in four Acts: the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), the Nigeria Revenue Service Establishment Act (NRSEA), and the Joint Revenue Board Establishment Act (JRBEA).
While the NTA and NTAA will take effect on January 1, 2026, the NRSEA and JRBEA took immediate effect on June 26 to prepare revenue institutions ahead of full rollout.
Officials described the reforms as the most significant reset of Nigeria’s tax system in decades, designed to widen the tax net, improve compliance, and raise revenue.
Backstory: How the Reforms Emerged
Nigeria’s tax reform journey began in 2023, when President Bola Tinubu inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms led by Taiwo Oyedele.
The panel was tasked with harmonising a fragmented tax system, tackling multiple taxation, and improving Nigeria’s tax-to-GDP ratio—barely 10 percent, far below the African average of 18 percent.
After months of consultations, the Senate passed four reform bills in May 2025 despite opposition from labour unions and concerns within the ruling APC that the changes could stoke economic tensions.
For Tinubu, pushing the bills through was central to his fiscal agenda, seen as critical to stabilising government finances after subsidy removal and chronic deficits.
What the Laws Provide
The NTAA exempts small companies with a turnover under N100 million and fixed assets below N250 million from corporate tax.
Large companies may see their tax rate reduced from 30 percent to 25 percent, but only when the president issues an order on the advice of the National Economic Council.
The NTA also sets a high threshold for top-up tax: N50 billion in revenue for local firms and €750 million for multinationals.
To stimulate growth, the law grants a 5 percent annual tax credit for investments in designated priority sectors.
Another measure allows taxes on foreign-currency transactions to be settled in naira at the official exchange rate, easing compliance and reducing forex pressure.
The reforms also repeal multiple outdated statutes, consolidating them into a unified structure aimed at simplifying tax administration across federal and state levels.
