Nigeria has officially published landmark tax reform laws, reshaping corporate taxation, revenue collection, and business incentives across Africa’s largest economy.
Nigeria’s long-awaited tax reform laws have been officially gazetted, creating a new framework for taxation and revenue administration. Signed into law on June 26, 2025, the reforms overhaul fiscal policy in Africa’s largest economy.
The Four New Laws
• 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
Committee chairman Taiwo Oyedele said the laws will modernize Nigeria’s tax system, boost compliance, and improve the business climate.
Key Highlights
1. Small businesses exempted: Companies with turnover under N100m and assets below N250m pay no corporate tax.
2. Corporate tax cut: Large firms could see rates fall from 30% to 25%, pending presidential approval.
3. Top-up tax: Threshold set at N50bn revenue for local firms and €750m for multinationals.
4. Investment incentive: 5% annual tax credit for eligible projects in priority sectors.
5. Forex relief: Firms trading in foreign currency can now pay taxes in naira at official rates.
Implementation Timeline
• NTA and NTAA take effect Jan 1, 2026.
• NRSEA and JRBEA effective immediately from June 26, 2025.
Oyedele explained this phased rollout will prepare institutions for full implementation in 2026.
Broader Impact
The reforms aim to support SMEs, attract investment, and stabilize revenues, reducing Nigeria’s dependence on oil. Officials clarified that the proposed 5% fuel surcharge will not apply to kerosene, LPG, CNG, or renewable energy products to ease cost-of-living concerns.
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