Sh*ckwave! FG Unveils Fresh Tax Reform Laws – What It Means For Nigerians

The Federal Government has officially gazetted Nigeria’s new tax reform laws, marking what it calls a historic transformation of the nation’s fiscal framework.

Signed into law by President Bola Tinubu on June 26, 2025, the reforms introduce fresh structures for taxation, administration, and revenue collection.

In a statement on Wednesday, Kamorudeen Yusuf, Personal Assistant on Special Duties to the President, said the fiscal overhaul is anchored on four legislations:

• Nigeria Tax Act (NTA), 2025

• Nigeria Tax Administration Act (NTAA), 2025

• Nigeria Revenue Service (Establishment) Act (NRSEA), 2025

• Joint Revenue Board (Establishment) Act (JRBEA), 2025

According to Yusuf, the reforms are designed to simplify Nigeria’s tax system, ease pressure on small businesses, attract investments, and strengthen fiscal stability—all in line with President Tinubu’s Renewed Hope Agenda to diversify revenue away from oil.

Key Highlights of the Reforms

• Exemptions: Small businesses with turnover below ₦100m and assets under ₦250m will not pay corporate tax.

• Corporate Tax Rate: For large firms, the rate could be reduced from 30% to 25% at the President’s discretion.

• Top-up Tax Thresholds: ₦50bn for local firms and €750m for multinationals.

• Tax Credits: Eligible projects in priority sectors will enjoy a 5% annual tax credit.

• Currency Transactions: Companies transacting in foreign currency may now pay taxes in naira, based on official exchange rates.

Implementation Timeline

The rollout will be phased:

• The NTA and NTAA will take effect on January 1, 2026.

• The NRSEA and JRBEA will kick off from June 26, 2025.

Officials said the staggered timeline is to allow businesses time to adjust and enable regulatory bodies to set up the required infrastructure.

The Tinubu administration stressed that the reforms are not only about raising revenue but about ensuring long-term economic stability.

“These measures are built to drive compliance, encourage investment in critical sectors, and deliver a transparent, predictable tax system that can sustain Nigeria beyond oil,” Yusuf added.