Nigeria's new tax reform laws officially published in gazette

Nigeria's President, Bola Ahmed Tinubu

Nigeria's New Tax Reform Laws: A Bold Step Toward Fiscal Transformation

In a landmark move to overhaul its fiscal framework, Nigeria has officially published its new tax reform laws in the government gazette, marking a significant milestone in the country’s economic restructuring efforts.

Signed into law by President Bola Ahmed Tinubu on June 26, 2025, the reforms consolidate four major legislations: the Nigeria Tax Act (NTA), the Nigeria Tax Administration Act (NTAA), the Nigeria Revenue Service (Establishment) Act (NRSEA), and the Joint Revenue Board (Establishment) Act (JRBEA). These laws aim to simplify Nigeria’s tax system, enhance transparency, and stimulate economic growth by creating a more business-friendly environment.

The reforms are designed to address Nigeria’s historically low tax-to-GDP ratio, which has hovered around 10.8% in recent years. With the new framework, the government hopes to push this figure closer to the African average of 16%, and eventually toward South Africa’s 24.5%. One of the most transformative aspects of the legislation is the exemption of small businesses from corporate tax. Companies with an annual turnover of less than ₦100 million and fixed assets below ₦250 million are now fully exempt, a move expected to encourage entrepreneurship and reduce the burden on micro and small enterprises.

For larger corporations, the reforms introduce the possibility of reducing the corporate tax rate from 30% to 25%, contingent upon a presidential order advised by the National Economic Council. Additionally, top-up tax thresholds have been established at ₦50 billion for domestic firms and €750 million for multinational entities, signaling a more structured approach to taxing high-revenue businesses.

To incentivize investment in priority sectors, the new laws offer a 5% annual tax credit for qualifying projects. Furthermore, companies engaged in foreign currency transactions now have the option to pay taxes in naira at the prevailing official exchange rate, a measure aimed at easing forex pressures and promoting the use of local currency.

The implementation of these reforms is staggered. The NRSEA and JRBEA took effect immediately on June 26, 2025, while the NTA and NTAA are scheduled to commence on January 1, 2026. This phased rollout is intended to give businesses and regulatory bodies adequate time to adapt and prepare for the new system.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, emphasized that the reforms are not merely about increasing revenue but about creating a more predictable and efficient tax environment. By eliminating outdated colonial-era tax rules and streamlining the collection process, the government aims to close the country’s tax gap, currently estimated at 70%, and build a foundation for long-term fiscal stability.

With these sweeping changes, Nigeria is positioning itself to attract more investment, support small businesses, and diversify its revenue base away from oil dependency.

The publication of the tax reform laws in the official gazette is not just a procedural step; it is a declaration of intent to modernize the nation’s economy and foster inclusive growth.