FG Publishes New Tax Reform Laws in Official Gazette

The Federal Government’s major tax reform laws, enacted on June 26, 2025, have officially been published in the government’s Gazette, marking a significant milestone in the country’s fiscal policy framework.

The new legislations are:

1. Nigeria Tax Act, 2025 (NTA)

2. Nigeria Tax Administration Act, 2025 (NTAA)

3. Nigeria Revenue Service (Establishment) Act, 2025 (NRSEA)

4. Joint Revenue Board (Establishment) Act, 2025 (JRBEA)

According to the Gazette, the reforms introduce wide-ranging measures aimed at easing tax burdens, stimulating investment, and strengthening revenue administration.

Key Provisions:

• Small Business Relief: Small companies, defined as those with an annual turnover not exceeding ₦100 million and fixed assets under ₦250 million, will be exempted from tax.
• Corporate Tax Adjustment: Large companies will benefit from a reduced tax rate, dropping from 30% to 25%, subject to a presidential order on the advice of the National Economic Council.
• Top-Up Tax Thresholds: Local firms with revenue below ₦50 billion and multinationals earning less than €750 million annually will be exempt from additional top-up tax obligations.
• Economic Incentives: A 5% annual tax credit has been introduced for qualifying investments in designated priority sectors.
• Currency Flexibility: Businesses engaging in foreign currency transactions may opt to pay applicable taxes in Naira at the prevailing official exchange rate.

Commencement Dates:

• The NTA and NTAA take effect from January 1, 2026.
• The NRSEA and JRBEA commence earlier, on June 26, 2025, to ensure institutional readiness for full implementation in 2026.

The reforms are expected to create a more competitive tax environment, boost investor confidence, and improve compliance while strengthening Nigeria’s economic base.