Nigeria has officially published its long-awaited tax reform laws. This marks a big step toward changing how the country collects and manages taxes.

The new laws, signed on June 26, 2025, aim to improve Nigeria’s tax system, making it more modern, efficient, and business-friendly.

The Four New Tax Laws:

  1. Nigeria Tax Act (NTA), 2025

  2. Nigeria Tax Administration Act (NTAA), 2025

  3. Nigeria Revenue Service (Establishment) Act (NRSEA), 2025

  4. Joint Revenue Board (Establishment) Act (JRBEA), 2025

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, confirmed the laws were published and said they will help increase tax compliance and support economic growth.

Key Changes in the New Laws:

  • Small businesses are exempt from corporate tax
    Companies that earn less than ₦100 million per year and have assets below ₦250 million will not pay corporate tax.

  • Lower tax rate for big companies
    Large companies may see their corporate tax rate reduced from 30% to 25% if approved by the President.

  • Top-up tax thresholds introduced
    Extra taxes apply only to companies making more than ₦50 billion locally or €750 million for multinational companies.

  • Investment support
    Projects in key sectors can get a 5% yearly tax credit to encourage growth and development.

  • Taxes in Naira for forex businesses
    Companies dealing in foreign currencies can now pay taxes in Naira at the official exchange rate. This is meant to reduce pressure on the foreign exchange market and promote the use of the local currency.

When the Laws Start:

  • NTA and NTAA will start on January 1, 2026.

  • NRSEA and JRBEA started on June 26, 2025.

This phased rollout gives tax agencies time to prepare before full implementation.

What These Reforms Aim to Do:

These reforms are designed to:

  • Make taxes easier to understand and pay

  • Help small businesses grow

  • Attract more investment into key industries

  • Raise more revenue without increasing hardship

  • Reduce Nigeria’s dependence on oil income

Important Update on Fuel Surcharge:

There were concerns about a new 5% fuel surcharge. But the government clarified that this charge does not apply to:

  • Household kerosene

  • Cooking gas (LPG)

  • Compressed natural gas (CNG)

  • Clean or renewable energy products

This exemption is meant to protect households from rising energy costs.

Source: Nairametrics