The Federal Government has published the new tax reform laws officially in the government gazette, representing a major step in its sustained efforts to completely overhaul the fiscal legislations in the country.
The affected tax laws, which were signed by President Bola Tinubu on June 26 this year, comprised the Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and the Joint Revenue Board (Establishment) Act (JRBEA) 2025.
Confirming the publication of the new legislations in the official gazette of the government in his official X handle, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, expressed optimism that the new laws would modernize Nigeria’s tax system, improve compliance, and create a more business-friendly environment.
Some of the key highlights of the tax laws include the introduction of exemption threshold for small businesses, with companies earning less than N100 million in annual turnover and holding assets under N250 million completely exempted from corporate tax.
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Comparatively, for large companies, the laws reduced their corporate tax rate from 30% to 25%, subject to an order by the President on the advice of the National Economic Council (NEC) while the laws set a top-up tax threshold at N50 billion in revenue for local firms and €750 million for multinational corporations.
In addition, to encourage investment the laws included a 5% annual tax credit for eligible projects in priority sectors just as businesses engaging in foreign currency transactions now have the option to pay taxes in Naira at prevailing official exchange rates to ease forex pressures and strengthen domestic currency use.
On the implementation timeline of the legislations, both the Nigeria Tax Act (NTA) and Nigeria Tax Administration Act (NTAA) will become effective on January 1, 2026, while the Nigeria Revenue Service Act (NRSEA) and Joint Revenue Board Act (JRBEA) had become effective from June 26, 2025, when the President signed the bills.
Oyedele explained that the phased administration of the tax laws would ensure that the relevant tax and revenue institutions were fully prepared before the full implementation in 2026.
He clarified: “The NTA and NTAA will commence on 1st January 2026, while the NRSEA and JRBEA have a commencement date of 26 June 2025 to ensure readiness of the relevant institutions ahead of full implementation in 2026.”
Experts believe that with the major tax reforms, the government will support small businesses, attract investment into critical sectors, strengthen its revenue base, achieve fiscal stability and by soo doing ensure sustainable inclusive growth of the nation’s economy.
