Nigeria has formally gazetted sweeping tax reforms that promise relief for small businesses and new incentives for investors, as President Bola Tinubu’s administration seeks to simplify the country’s fiscal regime and strengthen non-oil revenue.
The reforms, signed into law on June 26, 2025, introduce four key legislations: the Nigeria Tax Act (NTA) 2025, the Nigeria Tax Administration Act (NTAA) 2025, the Nigeria Revenue Service (Establishment) Act (NRSEA) 2025, and the Joint Revenue Board (Establishment) Act (JRBEA) 2025.
Under the new framework, businesses with turnover below N100 million and assets under N250 million are now exempt from corporate tax — a move expected to ease the burden on small and medium-sized enterprises (SMEs) that account for over 80 percent of jobs in the economy.
Large companies may see their corporate tax rate cut from 30 percent to 25 percent, subject to presidential approval, while new “top-up tax” thresholds have been introduced at N50 billion for local firms and €750 million for multinationals.
Other measures include a 5 percent annual tax credit for qualifying investments in priority sectors such as manufacturing, agriculture, and renewable energy, as well as provisions allowing companies that earn in foreign currency to pay taxes in naira at the official exchange rate.
Analysts say the reforms could improve Nigeria’s competitiveness in attracting foreign direct investment while reducing compliance bottlenecks for businesses. However, they note that the impact will depend on effective implementation and whether government can balance tax reliefs with its urgent need to expand revenues.
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