Nigeria tax reform laws are now official, offering tax cuts, SME exemptions, and investment incentives under Tinubu’s Renewed Hope Agenda

Nigeria tax reform laws have officially taken effect, following the Federal Government’s publication of four new tax-related legislations in the national gazette.

Also read: Nigeria Tax Information Confidentiality Tightened with New Law Criminalising Data Leaks

The announcement was made on Wednesday via a statement by Kamorudeen Yusuf, the Personal Assistant on Special Duties to President Bola Tinubu, confirming the reforms were signed into law on June 26, 2025.

The laws gazetted include:

1. Nigeria Tax Act 2025
2. Nigeria Tax Administration Act 2025
3. Nigeria Revenue Service (Establishment) Act 2025
4. Joint Revenue Board (Establishment) Act 2025

Exemption for small businesses: Companies with turnover below ₦100 million*and assets under ₦250 million are exempt from corporate tax.

Corporate tax reduction: The President may reduce the tax rate for large firms from 30% to 25%.
Top-up tax threshold: ₦50 billion for Nigerian firms and 750 million for multinationals.

5% annual tax credit for approved priority-sector projects.
Foreign currency transactions can now be taxed in naira at official exchange rates.

•  The Nigeria Tax Act and the Tax Administration Act will become operational from January 1, 2026.
• The Revenue Service Act and the Joint Revenue Board Act are effective from June 26, 2025 the date they were signed by the President.

According to the gazette and accompanying statement, the reforms aim to:

• Simplify Nigeria’s complex tax system
• Support and protect small businesses
• Attract foreign and domestic investments
• Strengthen fiscal stability
• Diversify government revenue beyond oil dependence

These reforms align with President Tinubu’s Renewed Hope Agenda, which places a strong emphasis on creating an efficient, business-friendly fiscal environment.

Tax analysts and business stakeholders have welcomed the reform’s focus on incentivizing productive sectors, particularly for small enterprises and startups, which often struggle under Nigeria’s tax burden.

Also read: Nigeria Tax Information Confidentiality Tightened with New Law Criminalising Data Leaks

The introduction of tax credits and exemptions is expected to stimulate private sector-led growth and encourage innovation in key sectors such as agriculture, manufacturing, renewable energy, and ICT.