Nigeria’s new tax law takes effect January 1, 2026, changing relief rules, income thresholds, and crypto taxation framework.
Nigeria has passed a major tax reform effective January 1, 2026. This review changes how individuals and businesses calculate relief and pay taxes.
If you earn below N800,000 annually, you pay no income tax. If your company earns below N50 million in turnover, you pay no corporate income tax. The big change is that tax relief is no longer automatic—you must now invest or make specific purchases to qualify.
Eligible deductions include contributions to a retirement savings account, life insurance, the National Health Insurance Scheme, or the national housing fund. Paying rent qualifies you for 20% relief, capped at N500,000.
Under current law, you automatically receive 20% of gross income plus N200,000 or 1% as relief. From 2026, deductions only apply if tied to qualifying investments.
On crypto, simply owning Bitcoin is not taxable. Selling at a profit is taxable, but losses are not. Staking income is taxable. For bank accounts, only interest earned is taxed, not the balance. Government bonds remain tax-free. Stocks attract tax only on profit made when selling. Gifts and inheritances are generally tax-free.
Business owners must keep receipts, use cards instead of cash for audit trails, and consult accountants for compliance. Remember, it is the income generated that is taxable, not the asset itself.
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