Nigeria has officially published its long-awaited tax reform laws in the government gazette, marking a significant overhaul of the nation’s fiscal framework.
Signed into law on June 26, 2025, the reforms create a new foundation for taxation, administration, and revenue collection in Africa’s largest economy.
Confirming the publication on his official X handle, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the new laws are designed to modernize Nigeria’s tax system, boost compliance, and foster a more business-friendly climate.
A key feature of the reforms is a high exemption threshold for small businesses, exempting companies with annual turnover below N100 million and assets under N250 million from corporate tax.
For larger companies, the new laws create scope to reduce the corporate tax rate from 30% to 25%, subject to a presidential order based on the recommendation of the National Economic Council.
They also set a top-up tax threshold of N50 billion in revenue for local firms and €750 million for multinational corporations.
To further encourage investment, the reforms introduce a 5% annual tax credit for qualifying projects in designated priority sectors.
Notably, companies conducting transactions in foreign currencies now have the option to settle their taxes in Naira at the official exchange rate, a measure intended to reduce forex strain and reinforce the use of the local currency.
The Nigeria Tax Act and Nigeria Tax Administration Act take effect on January 1, 2026, while the Joint Revenue Board Act became effective on June 26, 2025, a phased rollout Oyedele said allows institutions time to prepare for full implementation.
Nigeria’s reforms are designed to simplify taxation, ease pressure on small businesses, attract investment in vital sectors, and enhance revenue growth.
Last week, the Presidential Fiscal Policy and Tax Reforms Committee clarified that the proposed 5 per cent fuel surcharge in Nigeria’s new tax laws will exclude several household energy products.
