No One Is Exempt: The Tax Changes That Will Hit All Nigerians From 2026 Revealed

Special Adviser to President Bola Ahmed Tinubu on Economic Affairs, Tope Fasua, has provided further clarification on the implementation of Nigeria’s Tax Administration Act, which is set to take effect in January 2026.....KINDLY READ THE FULL STORY HERE▶

In a statement released on Monday, Fasua said the ongoing tax reforms are designed to boost Nigeria’s economic competitiveness and create a more stable business environment.

According to him, recent public fears that the reforms could drive investors away, trigger capital flight, or weaken business operations are misplaced. He stressed that the new framework — embodied in the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) — is one of the most progressive and investment-friendly tax redesigns the country has seen in decades.

Fasua explained that the reforms simplify Nigeria’s tax system, reduce compliance hurdles, and align the country with global standards, ultimately enhancing protections for individuals and businesses. He emphasized that the policy changes are consistent with President Tinubu’s commitment to improving living standards nationwide.

He highlighted key competitive features of the reforms, such as streamlining multiple levies into a single Development Levy, preserving incentives for Free Trade Zones, implementing the internationally approved 15% minimum tax for multinational corporations, and updating capital gains tax rules to reflect modern economic realities.

Fasua particularly addressed misconceptions surrounding the 4% Development Levy, which some critics have labelled a new tax. He clarified that it actually replaces a long list of fragmented levies, including the 3% Tertiary Education Tax, 1% NITDA Levy, 0.25% NASENI Levy, and the Police Trust Fund Levy — charges that, when combined, often exceeded 4% for companies in critical sectors like finance, telecoms and technology.

He noted that the new model not only caps the effective burden but also exempts small businesses with annual turnover below ₦100 million and non-resident firms.

The adviser added that bringing these disparate taxes under a single unified structure will eliminate investor uncertainty and prevent the resurgence of discretionary agency-specific levies. According to him, this shift signals a more transparent and predictable tax environment — something investors consistently demand.

“By consolidating funding for education, security, technology, and cyberdefence into one coherent pool, we are ending the era of arbitrary and unpredictable levies,” Fasua stated.

He further assured that the reforms would reduce the cost of doing business and foster long-term economic growth.