Nigeria enacts new tax laws with bold incentives

Nigeria New Tax Laws offer exemptions, reduced rates and incentives to boost investment and ease business operations

Nigeria New Tax Laws were signed into effect on June 26, 2025, marking one of the most sweeping reforms in the nation’s fiscal framework.

Also read: Nigeria’s Proposed Tax Reforms: Balancing Revenue Generation and Stakeholder Concerns

Four major pieces of legislation were enacted to reset the tax system:

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)

The reforms are designed to ease business operations, stimulate economic activity, and strengthen tax administration nationwide.

High exemption threshold for small companies

Firms with annual turnover not exceeding ₦100 million and fixed assets under ₦250 million will enjoy 0% corporate tax under the NTAA.

Lower corporate tax for large companies

The standard rate of 30% may drop to 25% for large companies, effective from a future date to be set by the President on the advice of the National Economic Council.

High thresholds for top-up tax

Exemptions apply to local firms with revenue below ₦50 billion, while multinationals are exempt up to the €750 million benchmark.

Economic development incentives

Investors in priority sectors will benefit from a 5% annual tax credit, reinforcing Nigeria’s bid to attract fresh capital into strategic industries.

Payment flexibility

Businesses involved in foreign currency transactions can now opt to settle their taxes in Naira, using the official market exchange rate.

Commencement dates

The NTA and NTAA take effect from January 1, 2026.
The NRSEA and JRBEA commenced immediately on June 26, 2025, ensuring that the necessary institutions are fully prepared before the 2026 rollout.

Broader Outlook

The Nigerian government says these reforms are a powerful step towards balancing business competitiveness with efficient tax collection.

Also read: Tinubu’s tax reform bills to boost revenue, Jobs, and economic growth

Analysts note that while exemptions and lower rates could ease pressure on companies, the success of the framework will depend on strict enforcement and transparent administration.