Beginning January 1, 2026, federal government will commence enforcement of new tax regulations.
Gatekeepers News reports that the tax regulations introduce 50 categories of exemptions and reliefs designed to support low-income earners, middle-class taxpayers, and small-scale businesses.
President Bola Ahmed Tinubu approved the reform package by signing four tax-related bills into law on June 26, namely the Nigeria Tax Act (NTA) 2025, Nigeria Tax Administration Act (NTAA) 2025, Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and the Joint Revenue Board (Establishment) Act (JRBEA) 2025.
According to Wale Edun, Minister of Finance and Coordinating Minister of the Economy, these reforms aim to stimulate business expansion and strengthen Nigerians’ purchasing power.
Taiwo Oyedele, chairman of Presidential Committee on Fiscal Policy and Tax Reforms, explained in a post on X that the 50 exemptions and reliefs are part of a broader effort to simplify taxation and make the system fairer.
Oyedele said, “From January 1, 2026, the new tax laws will provide many reliefs and exemptions for low-income earners, average taxpayers, and small businesses.”
Oyedele explained that under the new system, individuals earning the national minimum wage or less will be exempt from personal income tax, while those earning up to ₦1.2 million annually will enjoy significant reliefs.
He added that small companies with an annual turnover below ₦100 million and fixed assets not exceeding ₦250 million will pay no company income tax. Agricultural businesses will also benefit from a five-year tax holiday, while employers who hire and retain new workers for at least three years will qualify for a 50 percent salary deduction relief.
Other provisions include full exemptions on basic food items, rent, educational services, medical care, pharmaceutical products, and essential agricultural inputs. Small companies will be exempted from charging or paying VAT, while transactions such as electronic transfers below ₦10,000, salary payments, and intra-bank transfers will no longer attract stamp duties. Capital gains from the sale of personal assets such as homes, vehicles, and shares below set thresholds will also be exempt.
Oyedele stated that the new laws aim to make the tax system fairer, encourage voluntary compliance, and ease the burden on average Nigerians.
He added that tax incentives will extend to pension contributions, life insurance premiums, and owner-occupied housing loans, with compensation for job loss up to ₦50 million remaining tax-free.
To ensure proper understanding of the reforms, Oyedele called for nominations of content creators who educate the public about tax matters or are capable of doing so.
He said the top 20 nominees will receive special training to promote accurate and balanced tax information online. According to him, misinformation spreads quickly and often benefits the author, while accurate information, though slower to circulate, empowers people and builds lasting trust.
He noted that nominations can be made through social media by tagging preferred influencers or by filling out the official nomination form at forms.gle/15kyv1ffx7tzTL. The process will close on November 9, 2025.
