By Tony Obiechina Abuja
The Federal Government has officially gazetted a set of landmark tax reform laws, taking a decisive step toward overhauling Nigeria’s fiscal architecture and modernizing revenue administration.
Signed into law on June 26, 2025, the reforms include 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.
Together, they are designed to improve tax compliance, incentivize investment, and build a more business-friendly environment in Africa’s largest economy.
Confirming the development in a statement, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Dr Taiwo Oyedele, said the publication of the laws provides the legal foundation for Nigeria’s long-awaited tax modernization agenda.
He explained that the framework would ease the compliance burden on small businesses, simplify administration for tax authorities, and align the system with international best practices.
One of the most notable provisions is a high exemption threshold for small and medium enterprises (SMEs). Companies earning below ₦100m in annual turnover and holding assets under ₦250m will be completely exempt from corporate income tax.
For larger firms, the reforms create room for the corporate tax rate to be reduced from 30 percent to 25 percent, subject to a presidential order based on the advice of the National Economic Council.
The legislation also introduces a top-up tax threshold, applicable to companies generating more than ₦50bn in revenue locally and multinational corporations with global revenues above €750m.
This provision is aimed at ensuring equitable contributions from highly profitable businesses while safeguarding smaller firms.
To spur investment, the laws grant a five per cent annual tax credit for eligible projects in priority sectors such as infrastructure, energy, and manufacturing.
Additionally, businesses that conduct transactions in foreign currency may now choose to pay taxes in naira at prevailing official exchange rates. Policymakers believe this measure will ease pressure on foreign reserves and encourage wider use of the domestic currency.
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While the Nigeria Revenue Service Act and Joint Revenue Board Act took effect immediately on June 26, 2025, the Nigeria Tax Act and Nigeria Tax Administration Act are scheduled to commence on January 1, 2026.
Oyedele said the phased rollout is intended to allow newly established tax and revenue institutions sufficient time to prepare for full implementation.
“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,” he said.
The reforms represent one of the most ambitious attempts in decades to restructure Nigeria’s fiscal framework.
By exempting SMEs, lowering potential tax rates for large firms, and creating incentives for priority investments, the government aims to boost economic competitiveness while shoring up revenue collection.
