FG Gazettes Nigeria’s New Tax Reform Laws, Exempts Small Businesses and Cuts Corporate Tax

The Federal Government has officially published Nigeria’s sweeping new tax reform laws in the national gazette, signaling one of the biggest overhauls of the country’s fiscal framework in decades. The announcement, made on Wednesday by Kamorudeen Yusuf, Special Assistant on Special Duties to President Bola Tinubu, confirms the start of a new era in tax administration, aimed at simplifying procedures, supporting businesses, and boosting government revenue.

The reforms stem from four key legislations assented to by President Tinubu on June 26, 2025: the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service (Establishment) Act (NRSEA), and the Joint Revenue Board (Establishment) Act (JRBEA). Collectively, these laws are designed to replace outdated rules with clearer, more investor-friendly frameworks for taxation, collection, and compliance.

Among the standout provisions is a complete exemption from corporate tax for small businesses with an annual turnover under ₦100 million and assets below ₦250 million. Larger companies will also see relief, with the corporate tax rate reduced from 30% to 25% at the President’s discretion. Top-up tax thresholds have been set at ₦50 billion for local firms and €750 million for multinational companies, while eligible priority-sector projects, especially in agriculture, will enjoy a 5% annual tax credit.

The new regime also allows businesses transacting in foreign currency to pay their taxes in naira at official exchange rates, a move aimed at easing foreign exchange pressures on investors. According to Yusuf, the NTA and NTAA will take effect on January 1, 2026, while the NRSEA and JRBEA will commence earlier, on June 26, 2025. This phased rollout is expected to give businesses time to adjust to the changes.

Government officials say the reforms are a key plank of President Tinubu’s “Renewed Hope” agenda to diversify revenue away from oil and create a friendlier environment for small and large businesses alike. By simplifying Nigeria’s tax system, the administration hopes to attract more investment, spur job creation, and strengthen the country’s fiscal stability in the long term.

source: business day