Nigeria New Tax Reform Laws

  The Federal Government of Nigeria has published new tax reform laws in the government gazette, which were signed into law by President Bola Tinubu on June 26, 2025. These reforms aim to overhaul the country's fiscal framework, establishing a new foundation for taxation, administration, and revenue collection.  

  Key points include:  

  -   Small businesses with a turnover under ₦100m and assets below ₦250m are exempt from corporate tax.  

  -   Corporate tax rates for large firms may be reduced from 30% to 25% at the President's discretion.  

  -   Top-up tax thresholds are set at ₦50bn for local firms and €750m for multinationals.  

  -   A 5% annual tax credit is introduced for eligible priority-sector projects.  

  -   Companies transacting in foreign currency can now pay taxes in naira at official exchange rates.  

  The implementation timeline for the Nigeria Tax Act (NTA) and Nigeria Tax Administration Act (NTAA) is set for January 1, 2026, while the Nigeria Revenue Service (Establishment) Act (NRSEA) and the Joint Revenue Board (Establishment) Act (JRBEA) are effective from June 26, 2025. These reforms seek to simplify Nigeria’s tax system, support small businesses, attract investment, and strengthen fiscal stability.  

  Effects on Businesses  

  The new tax reform laws in Nigeria will affect businesses in several ways:  

   - Small Businesses: Small businesses with a turnover under ₦100m and assets below ₦250m are exempt from corporate tax.  

   - Large Firms: Corporate tax rates for large firms may be reduced from 30% to 25% at the President's discretion.  

   - Foreign Currency Transactions: Companies transacting in foreign currency can now pay taxes in naira at official exchange rates.  

   - Tax Credit: A 5% annual tax credit is introduced for eligible priority-sector projects.  

  These changes aim to simplify Nigeria’s tax system, support small businesses, attract investment, and strengthen fiscal stability. 

 Other Benefits  

  The new tax reform laws in Nigeria aim to:  

     Simplify Nigeria’s tax system.  

     Support small businesses.  

     Attract investment.  

     Strengthen fiscal stability.