FG Publishes New Tax Reform Laws to Support Businesses and Diversify Revenue

The Federal Government has formally gazetted Nigeria’s new tax reform laws following President Bola Tinubu’s assent on June 26, in a move aimed at simplifying the tax system and boosting investment.

A statement signed by the President’s Personal Assistant on Special Duties, Kamorudeen Yusuf, on Wednesday, outlined four key legislations: the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025, and the Joint Revenue Board (Establishment) Act 2025.

Under the reforms:

Small businesses with turnover below ₦100 million and assets under ₦250 million are exempted from corporate tax.

Corporate tax for larger firms could be reduced from 30% to 25% at the President’s discretion.

Top-up tax thresholds are set at ₦50 billion for domestic companies and €750 million for multinationals.

A 5% annual tax credit is introduced for eligible priority-sector projects.

Firms transacting in foreign currency may now settle tax obligations in naira at official exchange rates.

The Nigeria Tax Act and the Nigeria Tax Administration Act will take effect from January 1, 2026, while the Nigeria Revenue Service Act and Joint Revenue Board Act became effective from June 26.

“These reforms are designed to simplify Nigeria’s tax regime, support small businesses, attract investment, and strengthen fiscal stability, in line with the Renewed Hope Agenda to diversify revenue beyond oil,” the statement added.