New tax laws exempt low earners, cut corporate rates, and aim to grow business and capital markets.
President Bola Tinubu’s June 26 signing of the Nigeria Tax Reform Acts consolidates multiple tax laws into a single, streamlined system to ease compliance and increase fairness. Individuals earning ₦800,000 or less annually are exempt from Personal Income Tax (PIT), while higher earners face a progressive top rate of 25%. Small companies with turnovers under ₦100 million are now exempt from several taxes, and corporate tax rates are set to reduce from 30% to 25% by 2026 to spur investment. New rules define tax residency clearly and tax worldwide income of residents, closing loopholes. The Acts introduce a unified 4% development levy replacing multiple levies and establish minimum tax rates for large companies to curb avoidance. Digitization and enhanced taxpayer services are core to reforms for transparency and efficiency. Over 90% of workers will pay less tax, supporting economic growth and capital market development, but concerns about phased implementation and tax fairness remain.
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