Nigeria has signed four new tax laws aimed at overhauling its tax system and boosting revenue from January 1, 2026. The Nigeria Tax Act, Tax Administration Act, Nigeria Revenue Service Act, and Joint Revenue Board Act replace over a dozen outdated statutes.
The reforms exempt individuals earning up to ₦800,000 annually from personal income tax and maintain VAT exemptions on food and education. Higher earners will face new progressive rates up to 25 per cent on incomes above ₦50 million, with global income, capital gains on assets including crypto, and non-cash benefits now taxable.
Small businesses with turnover below ₦100 million will pay no corporate tax or capital gains tax but must register with the Corporate Affairs Commission and use e-invoicing. Larger firms will keep paying 30 per cent corporate tax, with a possible cut to 25 per cent for key sectors. Multinationals face a 15 per cent minimum effective tax rate and new levies on undistributed offshore profits.
The government says the changes protect the poor while shifting the tax burden to wealthy individuals and big corporations. Critics warn of pressure on salaried workers, while supporters praise the simplified laws and green investment incentives. The Nigeria Revenue Service has urged taxpayers to prepare before the start date.
Source: Guardian
