President Bola Tinubu has signed four new tax bills into law, marking a significant milestone in the country’s economic reform journey. The bills, which took effect on January 1, 2026, aim to consolidate Nigeria’s fragmented tax laws, establish a uniform tax administration framework, and create a more autonomous national revenue agency.
Key Features of the New Tax Laws
– Income Tax Exemptions: Workers earning ₦800,000 or less annually are now exempt from income tax, while individuals earning ₦50 million annually will pay a 25% personal income tax.
– Small Business Exemption: Small business owners are fully exempt from paying income tax.
– Corporate Tax Cut: Company income tax for medium and large firms will be reduced from 30% to 25% starting in 2026.
– VAT Exemptions: Essential items like food, medical services, pharmaceuticals, school fees, and electricity are exempt from VAT charges.
– Unified Revenue Collection: The Nigeria Revenue Service (NRS) will handle revenue collections previously managed by agencies like the Nigeria Customs Service, NUPRC, NPA, and NIMASA.
President Tinubu’s Vision
At the signing ceremony, President Tinubu emphasized that the new laws are pivotal to the success of the administration’s reforms and the country’s prosperity. “What we did a few minutes ago is the way forward for our country’s prosperity. Leadership must help people take off, lead the way, and navigate every turn and twist.”
Reaction from Stakeholders
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, praised President Tinubu’s leadership, saying, “History will remember you for good for transforming our country because you went for a fundamental reform.”
The Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, described the day as the happiest day of his life, while President of the Senate, Godswill Akpabio, eulogized President Tinubu for his sterling leadership qualities.
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