Nigeria’s latest tax reforms are set to bring relief to workers and small businesses, according to Joseph Tegbe, Chairman of the National Tax Policy Implementation Committee (NTPIC). Speaking with the News Agency of Nigeria (NAN), Tegbe explained that the new regime is designed to reduce financial pressure on low-income earners while strengthening fiscal sustainability and the country’s economic competitiveness.
Described as the most comprehensive overhaul of Nigeria’s tax system in decades, the reforms aim to simplify taxation, ensure fairness, and encourage sustainable economic growth. Tegbe emphasized that the government’s focus is on creating a transparent system that benefits everyday Nigerians and businesses alike.
The reforms are anchored on four key legislations: the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service (Establishment) Act 2025, and the Joint Revenue Board of Nigeria (Establishment) Act 2025. These laws collectively form the foundation for a more streamlined and predictable tax framework.
Under the new policy, individuals earning less than N800,000 annually are exempted from personal income tax. Additionally, workers can claim rent relief of up to 20 percent, capped at N500,000, along with other targeted incentives aimed at reducing living costs. Small businesses with annual revenue below N100 million and assets under N250 million are now exempt from Company Income Tax (CIT).
Even nano-enterprises earning less than N12 million per year are granted total exemption from income tax. “These reforms are designed to make taxation simpler, fairer, and more predictable for Nigerians,” Tegbe said. “For most workers and small businesses, the new regime means paying the same or even lower taxes while operating within a more transparent system.”
source: newtelegraph