The four new legislations—Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and Joint Revenue Board (Establishment) Act (JRBEA) 2025—aim to modernize taxation, enhance compliance, and foster a business-friendly environment in Africa’s largest economy.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced the publication on X, emphasizing that the reforms will streamline Nigeria’s tax framework and drive economic growth. 

Key provisions include:

Small Business Relief: Companies with annual turnover below N100 million and assets under N250 million are exempt from corporate tax. 

Corporate Tax Reduction: Large firms may see corporate tax drop from 30% to 25%, pending a presidential order advised by the National Economic Council. 

Top-Up Tax: A threshold of N50 billion for local firms and €750 million for multinationals is set for additional taxation.

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

Forex Transactions: Businesses can pay taxes in Naira at the official exchange rate for foreign currency transactions, reducing forex pressure.

The NTA and NTAA will take effect on January 1, 2026, while the NRSEA and JRBEA were effective immediately upon signing. 

Oyedele noted that the phased implementation ensures tax authorities are ready for the 2026 rollout.

The reforms aim to simplify taxation, support small businesses, attract investment, and reduce Nigeria’s reliance on oil revenue. 

Addressing concerns about a proposed 5% fuel surcharge, Oyedele clarified that household kerosene, cooking gas (LPG), compressed natural gas (CNG), and renewable energy products are exempt to protect Nigerians from rising living costs.