Nigeria’s President Tinibu Signs Landmark Tax Reform Bills into Law to Drive Inclusive Economic Growth
In a historic move set to redefine Nigeria’s fiscal landscape, President Bola Ahmed Tinubu today signed into law four landmark Tax Reform Bills aimed at strengthening economic governance and boosting investor confidence. The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill. The President described the reforms as part of efforts “to usher in a bold new era of economic governance in our country.”
The new laws introduce wide-ranging benefits for individuals, businesses—both small and large—and subnational governments. For low-income earners, the reforms offer complete PAYE tax exemption for those earning up to ₦1 million annually and reduced rates for those earning ₦1.7 million or less.
Essentials like food, education, and healthcare are now VAT-free, and remote workers, digital nomads, and armed forces personnel receive tailored tax relief.
Small businesses benefit significantly with the tax exemption threshold raised from ₦25 million to ₦50 million in annual turnover. They are now exempt from company income tax, withholding tax, and vendor-related tax deductions.
The introduction of a simplified tax filing process and protection through a newly established Tax Ombud enhances transparency and ease of doing business.
Corporate entities gain from a reduction in corporate income tax from 30% to 25%, alongside harmonised levies. To support startups and economic expansion, pre-commencement expenses are now tax deductible, while sectors critical to national development receive priority incentives.
Additionally, companies can now receive tax refunds within 90 days, improving cash flow and business predictability.
At the subnational level, states are empowered with more VAT revenue, autonomy over internal revenue services, and tax intelligence support—deepening fiscal federalism.
These reforms mark a decisive shift toward a fairer, more growth-focused tax system—positioning Nigeria as a more competitive and business-friendly economy while easing the burden on everyday citizens.
Implementation is billed to commence effective January 1st 2026.
