FG Gazettes Tax Reform Laws, To Take Effect January 2026

THE Federal Government of Nigeria has officially gazetted its new tax reform laws, with full implementation set to begin January 1, 2026.

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, disclosed this development in a post on X (formerly Twitter) on Monday.

The newly gazetted laws include:

• Nigeria Tax Act, 2025 (NTA)

• Nigeria Tax Administration Act, 2025 (NTAA)

• Nigeria Revenue Service (Establishment) Act, 2025 (NRSEA)

• Joint Revenue Board (Establishment) Act, 2025 (JRBEA)

Oyedele described the publication of the laws in the official gazette as a major milestone in the government’s efforts to modernize Nigeria’s tax system.

Key Provisions of the Tax Reform Package

Some of the major highlights of the new tax framework include:

• Zero tax rate for small companies: Businesses with annual turnover not exceeding ₦100 million and fixed assets below ₦250 million will not pay corporate tax.

• Reduced corporate tax for large companies: The rate will drop from 30% to 25%, with the official start date to be determined by the President based on advice from the National Economic Council (NEC).

• High thresholds for top-up tax: Local firms earning up to ₦50 billion and multinational companies with revenue up to €750 million equivalent will be exempt.

• Economic development incentives: Eligible investments in priority sectors will receive a 5% annual tax credit.

• Payment in local currency: Taxpayers can pay taxes on foreign currency transactions in naira, using the official exchange rate.

“The NTA and NTAA will commence on 1st January 2026, while the NRSEA and JRBEA will take effect from 26 June 2025, to ensure the readiness of relevant institutions ahead of full implementation in 2026,” Oyedele explained.