President Bola Tinubu Signed New Tax Law To Boost Nigeria Prosperity
President Bola Tinubu has signed four new tax bills into law, marking a significant milestone in the country’s journey of economic reform. These laws, which took effect on January 1, 2026, aim to consolidate Nigeria’s fragmented tax regulations, establish a unified 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. Individuals earning ₦50 million annually will pay a personal income tax rate of 25%.
– Small Business Exemption:nSmall business owners will be fully exempt from paying income tax.
– Corporate Tax Reduction:bThe company income tax rate for medium and large firms will be reduced from 30% to 25% starting in 2026.
– VAT Exemptions: Essential items such as food, medical services, pharmaceuticals, school fees, and electricity will be 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
During the signing ceremony, President Tinubu emphasized that these new laws are crucial for the success of the administration’s reforms and for the country’s prosperity. He stated, “What we did a few minutes ago is the way forward for our country’s prosperity. Leadership must help people move forward, lead the way, and navigate every turn and twist.”
Reactions 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 positively for transforming our country because you pursued fundamental reform.”
The Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, described the day as the happiest day of his life. Additionally, the President of the Senate, Godswill Akpabio, commended President Tinubu for his exemplary leadership.
