In a bold move set to redefine Nigeria’s fiscal framework, President Bola Ahmed Tinubu is expected to sign into law the landmark Nigeria Tax Reform Bills today.
Once rejected by the National Assembly, the bills have now received legislative approval, repealing what some have dubbed the “Law of Moses,” and heralding a new era of taxpayer-centered reforms—the “New Testament” of Nigerian taxation.
Key Highlights of the New Tax Bill:
Income Tax Relief for Low Earners: Workers earning 800,000 naira or less annually will now enjoy full tax exemption. Progressive Tax for High Earners: A 25 percent personal income tax will only apply to individuals earning above 50 million naira per year. Small Business Relief: Small business owners will be fully exempt from paying income tax—boosting entrepreneurship and informal sector growth. Corporate Tax Reduction: From 2026, Company Income Tax (CIT) for medium and large businesses will reduce from 30 percent to 25 percent. VAT Exemptions for the Poor: Essential goods and services—such as food items, pharmaceuticals, electricity, education fees, and medical services—are now VAT-exempt. Revenue Consolidation: A new Nigeria Revenue Service, formerly FIRS, will assume responsibility for collecting revenues previously managed by:
Nigeria Customs Service Nigerian Ports Authority (NPA) Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Nigerian Maritime Administration and Safety Agency (NIMASA)
No Increase in VAT or CIT: Despite speculations, VAT remains at 7.5 percent and corporate income tax at 30 percent. No upward adjustments have been made. Development Levy Introduced: A new Development Levy ranging from 2 to 4 percent will be channeled to support:
Student Education Loan Fund TETFund NITDA NASENI
Rebranding FIRS: The Federal Inland Revenue Service has now been officially renamed the Nigeria Revenue Service.
What This Means for Nigerians:
This bill marks one of the most ambitious tax reforms in Nigeria’s history, aimed at reducing the burden on low-income citizens, empowering SMEs, and centralizing revenue collection for transparency and efficiency.
Today, the old tax order is passing away, and the new gospel of equity, growth, and inclusion is being written—not on tablets of stone, but on the hearts of a new Nigeria.
All Times Global Magazine will continue to bring you updates as this new law reshapes the nation’s financial destiny.
