The Federal Government has officially gazetted four major tax reform legislations aimed at overhauling Nigeria’s fiscal system, providing significant relief for small businesses and setting the stage for a more investment-friendly environment.
Signed into law on June 26, 2025, the reforms mark one of the most comprehensive changes to Nigeria’s tax landscape in decades, with a clear focus on boosting revenue without overburdening struggling citizens or enterprises.
According to a statement shared by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reform Committee, the new laws are designed to simplify tax compliance, increase transparency, and reduce reliance on oil revenues. Oyedele confirmed that the laws have now been officially published in the federal gazette, giving them legal force.
The Four Laws Gazetted:
- Nigeria Tax Act (NTA), 2025
- Nigeria Tax Administration Act (NTAA), 2025
- Nigeria Revenue Service (Establishment) Act (NRSEA), 2025
- Joint Revenue Board (Establishment) Act (JRBEA), 202
Key Features of the Reform
- SMEs Fully Exempt from Corporate Tax:
The new laws introduce a high exemption threshold for small businesses, completely waiving corporate income tax for companies with annual turnover below ₦100 million and assets under ₦250 million. - Potential Corporate Tax Reduction:
Larger corporations may benefit from a tax rate cut from 30% to 25% pending a presidential directive based on the recommendation of the National Economic Council. - Top-Up Tax Thresholds Introduced:
The new system sets a top-up tax threshold of ₦50 billion for local companies and €750 million for multinational enterprises, to align with global taxation practices. - Incentives for Priority Sector Investment:
Eligible projects in sectors deemed critical to Nigeria’s economic development can claim a 5% annual tax credit. - Forex Relief Measures:
Businesses that earn revenue in foreign currency will now have the option to pay taxes in Naira at the prevailing official exchange rate, in a bid to reduce pressure on Nigeria’s foreign reserves.
Phased Implementation Plan
To ensure a smooth transition, the government has adopted a staggered rollout:
| Legislation | Commencement Date |
| NTA & NTAA | January 1, 2026 |
| NRSEA & JRBEA | June 26, 2025 |
Oyedele explained that this timeline gives key agencies and stakeholders ample time to prepare ahead of full implementation in 2026.
“The goal is to ensure institutional readiness and avoid disruption to tax administration processes,” he stated via his official X (formerly Twitter) account.
Clarification on 5% Fuel Surcharge
Amid widespread public concern, the Tax Reform Committee has clarified that the proposed 5% fuel surcharge will not apply to critical household energy sources. Exemptions include:
- Household kerosene
- Cooking gas (LPG)
- Compressed Natural Gas (CNG)
- Renewable energy products
This clarification comes in response to fears that the new levy could worsen the cost-of-living crisis for everyday Nigerians. Oyedele emphasized that the focus remains on easing economic pressure, not aggravating it.
Broader Economic Implications
The reforms are part of the Tinubu administration’s broader economic recovery agenda. Policymakers hope that by simplifying the tax system, reducing the burden on small businesses, and encouraging foreign and domestic investment, Nigeria can stabilize its economy, diversify its revenue base, and attract more long-term capital.
While the full effects of the laws will be clearer by 2026, the government is confident that the new tax regime will balance fiscal responsibility with inclusive economic growth.
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